From Startup Fortune · · 1m 20s
Cameco Stock Falls Despite Uranium Price High
Cameco's stock drops as uranium hits 19-year high.
In brief
Cameco's stock drops as uranium hits 19-year high. Cameco's stock fell to $85.18 on October 2 as uranium prices hit a 19-year high of $96.50 per pound, due to the company's missed earnings and production forecast cuts. Originally reported by Startup Fortune.
Cameco stock lags uranium rally
Cameco's stock has lagged uranium's record rally even as the metal hits a 19 year high.
Earnings miss and production cut
Cameco posted earnings of 5 cents a share, missing analysts' 28 cents expectation, with revenue down 15% year-over-year.
Production forecast lowered
Cameco cut its production forecast at McArthur River/Key Lake to 14-15 million pounds, down from 18 million pounds.
Cigar Lake mine suspended
Cameco temporarily suspended its Cigar Lake mine in Saskatchewan over problems at Orano's McClean Lake mill.
Uranium price hits 19-year high
Uranium prices hit a 19-year high of $96.50 per pound on October 2, with realized prices near $65 per pound.
Long-term contracts drive prices
Cameco's business runs on long-term contracts priced well below current market rates, explaining the stock's decline despite rising uranium prices.
Next earnings report
Cameco's next earnings report is scheduled for October 30 to determine if Cigar Lake production has resumed and guidance holds.
The bottom line
Cameco's stock fell to $85.18 on October 2 as uranium prices hit a 19-year high of $96.50 per pound, due to the company's missed earnings and production forecast cuts.
