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Be the first with the news that moves the market- The uranium fuel supplier, Cameco (CCO) released its 2019 financial results along with a 2020 prospective statement from the CEO
- Cameco C$527 million during 2019 but was still C$50 million short on net profit when compared to 2018
- The price of uranium has been trending down since 2011
- Cameco’s president and CEO, Tim Gitzel stated that the current low prices are not sustainable, and he expects the price to recover as demand outstretches supply
- The company has a market cap of C$4.52 billion
- Cameco (TSX: CCO) was down 0.35 per cent, with shares currently trading at C$11.45
Cameco (CCO) ,one of the largest uranium fuel companies in the world, today released its 2019 financial results and its 2020 outlook.
The company generated C$527 million in cash during 2019 from its operations and 14 million pounds of uranium in the year’s fourth quarter.
Despite this the company’s gross profit was down by C$50 million when compared with 2018.
The company’s stock has seen a decline, dropping almost a quarter since the beginning of last year.
The price of uranium, which is negotiated privately and does not trade openly, has been trending down since 2011.
Due to this downturn the company the company has suspended operations at Rabbit Lake Mine and the McArthur River mines in Saskatchewan. The latter mine was indefinitely shut down in 2018.
Cameco’s president and CEO, Tim Gitzel feels these low prices cannot continue indefinitely.
“The underlying fact is that uranium demand is going up, while supply is going down. Today, the market is failing to send the appropriate signals. Current prices are putting future supply availability at risk.
Mr Gitzel went on to say that he believes the market will eventually improve. Once that happens the company will be able to restart a number of its assets and begin selling uranium at a much more sustainable rate.
Cameco (TSX: CCO) was down 0.35 per cent, with shares currently trading at C$11.45
