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Uranium Stocks was created to give investors a diversified look at uranium shares, spot prices, options markets, ore and production, canadian reverses and any other relevant issues that may affect shares prices across the globe.
Cameco Q2 Earnings Beat the Street
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Cameco Q2 Earnings Beat the Street
Cameco came out with a positive earnings report this week, upping estimates and sharing some future growth plans.
CCJ crushed the forecast, posting a second quarter EPS of $0.36 vs a $0.25 forecast (these figures are in Canadian dollars).
Chief Executive Jerry Grandey regarding the company filing for up to $1 billion in new debt:
“Cameco watchers may see this filing as a sign that we have identified a specific acquisition target. Let me merely restate that Cameco intends to maintain the financial flexibility to take advantage of opportunities when they might emerge,”
Cameco continues to use the current depressed spot market prices to their advantage, buying a large portion of uranium on the spot market and turning around and selling it in the future for a profit.
Daniel Rohr, an analyst at Morningstar said the following regarding the spot market purchase vs production:
“Their low cost ore in Saskatchewan will always be there. market opportunities may not always be there,”
This partially lead to uraniumn production falling 27% year over year. This was also attributed to planned maintanience at two key mines.
In a forward looking statement Cameco declared that they have the potential to double their annual production over the next ten years
CCJ raises its 2009 revenue forcast 5 to 10%.