uranium news

Uranium miners still waiting on that rebound, TIM KILADZE, Globe and Mail , January 24, 2012 When stocks of uranium miners plummeted after last March’s traumatizing Japanese earthquake, some people expected a rebound once the market’s initial shocks and fears subsided.

They’re still waiting.

Close to a year after the earthquake, shares of Cameco Corp. (CCO-T23.54-0.25-1.05%) are still down 40 per cent and smaller rivals are faring just as badly, with Denison Mines (DML-T1.89-0.12-5.97%) down about 50 per cent. The death knell apparently came when Germany declared a retreat from nuclear energy.

Are these miners doomed for good? Depends on who you ask. Investors are clearly too scared to go near the industry, considering the stocks have moved very little since their initial free fall. (Check out a stock chart for the past year.
Quite scary.) But the companies themselves keep saying that everyone has it wrong.

Cameco chief financial officer Grant Isaac repeated this view when he sat down at CIBC World Market’s Whistler conference last week….. there’s still a major problem. Even if Cameco is bullish over the next decade, its consumers, particularly utilities, like to secure long-term supply contracts, and Cameco can’t talk long-term contracts when they would have to lock-in at today’s prices.

So for now, Cameco is touting plans to increase production. Mr. Isaac said Cameco is sitting on 1 billion pounds of reserves and resources, and the firm wants to bump production from 2 per cent of this a year to 4 per cent.

On this front, investors are cautious. Much of this growth centres on developing the second shaft of Cameco’s Cigar Lake project in northern Saskatchewan, and it’s been plagued with problems…..
http://www.theglobeandmail.com/globe-investor/investment-ideas/streetwise/uranium-miners-still-waiting-on-that-rebound/article2313513/

Cameco (CCJ) Downgraded by Zacks Investment Research to “Underperform”, Localised USA, Jan 10th, 2012 Cameco (NYSE: CCJ) was downgraded by equities research analysts at Zacks Investment Research from a “neutral” rating to an “underperform” rating in a research note issued to investors on Tuesday.

Cameco Corporation (Cameco) is a Canada-based company. The Company and its subsidiaries are primarily engaged in the exploration for and the development, mining, refining, conversion and fabrication of uranium for sale as fuel for generating electricity in nuclear power reactors in Canada and other countries. Cameco has three reportable segments: uranium, fuel services and electricity.

The company has a 31.6% interest in Bruce Power L.P. (BPLP). Cameco’s uranium joint venture interests are comprised of McArthur River, Rabbit Lake, Cree Extension Millenium, Moon Lake, Dawn Lake, Read Lake and Virgin River. Cameco’s projects include Kintyre Uranium Exploration Project (Kintyre) and GoviEx Uranium (GoviEx). Kintyre project is located in the East Pilbara region of Western Australia. Cameco holds 12% interest in GoviEx. Its wholly owned subsidiary is Global Laser Enrichment LLC (GLE).

Canada’s Cameco, the world’s biggest uranium miner by market value, has seen its share price tumble 48 per cent since the beginning of March.

A drop in supply may also be met by a drop in demand, according to UxC. “The reduction in uranium demand will extend to the longer term as some of the reactors taken offline will be permanently shut down,” it says in its report. “In addition, other new reactors under construction or planned will likely be delayed, leading to a further reduction in demand.”….

Uranium miners hamstrung by price and demand By William MacNamara, FT.com November 16, 2011  The uranium industry, suppliers of the fuel that powers nuclear plants, is processing a few hard numbers.

These start with the benchmark spot price for uranium. Since the Fukushima disaster in March, when the price was hovering about $70 per pound, uranium has fallen to a range of $50-$55 per pound. The costs of extracting uranium are rising, and lower prices are affecting producers’ profitability and plans to invest in future supply. (more…)

Cameco reduces production forecast, Globe and Mail, BRENDA BOUW — MINING REPORTER, VANCOUVER, Nov. 07, 2011 Uranium giant Cameco Corp.  lowered its annual production forecast and reported third-quarter financial results below expectations amid continuing upheaval in the nuclear power industry.

Cameco is the largest player in the highly volatile uranium space……Apart from causing a massive impact in Japan’s economy, as well as disrupting global supply chains, the Fukushima Daiichi incident has put the uranium industry in an existential moment.

Cameco Sinks As Sales Drop Post-Fukushima – - Forbes, 4 Aug 11, As the nuclear energy and uranium businesses recover from the crisis that was the Fukushima Daiichi accident in Japan, Cameco posted second-quarter earnings that reveal big drops in revenue and profit. Despite hitting expectations, Cameco’s earnings sparked a sell-off given a more bearish look on their industry, …..

Revenue at the Canadian-headquartered uranium company fell 22% to $439 million on falling sales volume and the “variability of uranium demand.”  The company also noted the average cost of product sold increased, despite higher prices.  Cameco expects sales to be heavily weighted toward the second half of the year.

Cameco is the largest player in the highly volatile uranium space……
Apart from causing a massive impact in Japan’s economy, as well as disrupting global supply chains, the Fukushima Daiichi incident has put the uranium industry in an existential moment. (Read Uranium And Nuclear Stocks Fell The Shock Waves Of Fukushima Meltdown).
…….. Public outbursts against nuclear energy have caused Germany to wind down much of its nuclear program; Germany, with 17 reactors, represents 5% of global generating capacity….
Shares in Cameco fell precipitously, as the company lowered its long term forecasts for the industry.  By noon in New York, the uranium producer was trading down 4.6% or $1.17 to $24.55, below both its 200- and 50-day moving averages….
Cameco Sinks As Sales Drop Post-Fukushima – Agustino Fontevecchia – Moral Hazard – Forbes