Financial Post reported Cameco Corp. (TSX:CCO,NYSE:CCJ) experienced a sharp drop in second quarter profit dropped sharply as uranium sales volumes declined, prices fell and costs rose.
As quoted in the market news:
Adjusted net income came in at $34-million, or 9 cents a share, down from 18 cents a year ago. The numbers fell short of analyst expectations.
Uranium sales volumes in the quarter were 5.3 million pounds, well down from 5.8 million pounds in the second quarter of 2011. Saskatoon-based Cameco’s realized price also dropped 8% year-over-year to US$42.08 a pound because of lower U.S.-dollar prices under fixed-price contracts. Uranium production dropped 7%.