Cameco Predicts Uranium Spot Market Downwards Correction

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A forecast of lower sales and spot prices by Canadian uranium über-miner Cameco Monday during a conference call generated concern among analysts and reporters, resulting in a written clarification by the world's largest uranium miner.

A forecast of lower sales and spot prices by Canadian uranium über-miner Cameco Monday during a conference call generated concern among analysts and reporters, resulting in a written clarification by the world's largest uranium miner.

The announcement followed two weeks of bad news involving Cameco and its gold subsidiary Centerra concerning lower gold production and pollution concerns at the Mount Hope operations.

Cameco reduced its 2007 uranium sales assumption from the 35 million pounds predicted as of the first quarter to 30 million pounds as of the second quarter. Meanwhile, Cameco said sales volumes are expected to average 32 million pounds annually from 2008 to 2011.

...George Assie, Cameco's Senior Vice President, Marketing and Business Development, noted that "few utilities have uncovered needs for the remainder of this year and demand from other spot market players-the traders, producers, investor funds-is uncertain as the large increase in the spot prices has caused some to move to the sidelines." Due to very limited volumes of supply and demand, Assie said, "We could very well see further decreases in the spot outlook in the near term."

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