More reasons to be bullish, first we had Kazakhstan cut 10%, as even they can't sustain the cost of business here and need at least mid 30s, now Cameco continues to fall. a profits nose dive.
Even 25Uranium prices re not sustainable. Either lights go out or U pops over the course of 2017.
I am betting on a pop to mid 30s. Would love to hear a bears view.
Cameco to cut 120 mining and milling jobs in Saskatchewan
ALEX MACPHERSON, SASKATOON STARPHOENIX
More from Alex MacPherson, Saskatoon StarPhoenix
Published on: January 18, 2017 | Last Updated: January 18, 2017 10:54 AM CST
Inside Cameco Corp.'s McArthur River mine. HO: CAMECO / - SHAREADJUSTCOMMENTPRINT
Cameco Corp. says it plans to continue its cost-cutting program by eliminating a total of about 120 jobs from its McArthur River, Cigar Lake and Key Lake operations in northern Saskatchewan.
The Saskatoon-based uranium miner said the changes represent about 10 per cent of the workforce at its three major facilities in the province, and that the layoffs will be complete by the end of May.
Cameco’s announcement comes less than two months after it unveiled plans to save some cash by temporarily halting production at its northern mines and mill for four weeks over the summer.
“These are necessary actions to take in a uranium market that has remained weak and oversupplied for more than five years,” Cameco president and CEO Tim Gitzel said in a statement Tuesday afternoon.
“These operational changes are part of our strategy to help us effectively manage the company through these low times and remain competitive, while positioning the company to benefit as the market improves.”
Cameco, which spent most of last year working to cut costs amid an extremely weak uranium market, said it also plans to change work schedules and air transport arrangements for its workers in the province.
The changes announced Tuesday are the latest in a long string for the company, which closed its Rabbit Lake mine at the cost of about 500 jobs and cut about nine per cent of its corporate workforce last year.
Uranium prices have collapsed in the years since the 2011 Fukushima Daiichi disaster. However, Cameco maintains that a recovery is on the horizon as new reactors being built around the world come online.
In an unusual move, the company also revealed that it expects to report a net loss for 2016 and that, following adjustments including impairment charges of between $180 million and $220 million, it anticipates lower-than-expected adjusted earnings.
At the end of the third quarter in November, Cameco reported year-to-date earnings of $83 million on revenues of $1.54 billion. Its full financial results will be released Feb. 9.
ALEX MACPHERSON, SASKATOON STARPHOENIX
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