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Uranium company posts $62 million fourth-quarter loss

Saskatoon-based uranium company Cameco has posted a net loss of more than $60 million in the last quarter of 2017. Fourth quarter results for the company were released on Feb. 9.
Cameco

Saskatoon-based uranium company Cameco has posted a net loss of more than $60 million in the last quarter of 2017.

Fourth quarter results for the company were released on Feb. 9.

The quarter adds to a net loss of more than $200 million throughout 2017, the second year in a row with a loss reported by the company.

Cameco shares have dropped by almost six dollars each from February 2016 and are approaching a five-year low for the company.

In January, Cameco shut down operations at its McArthur River mine and Key Lake processing plant in northern Saskatchewan – the largest high-grade uranium production in the world – due to mounting losses. Firm reopening dates have not been set for either facility. Several Flin Flon and Creighton residents worked at the McArthur River and Key Lake sites.

The company also shut down operations at its mine at Rabbit Lake, Sask.,
in 2016.

A dramatic drop in global uranium prices is the primary cause of the losses. Since 2014, uranium prices have dropped by approximately 70 per cent. Some forecasts show the price of the element rebounding this year, due in part to market scarcity caused by shutting down the two plants and increasing demand.

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