Cameco shares fall

Photo: Contributed

Shares of Canada's largest uranium miner fell more than 10 per cent in late morning trading following a warning that analyst estimates are too high and it expects to report a loss for 2016.

Cameco Corp. (TSX:CCO) shares were down $2.24 or nearly 13 per cent at $15.08 in trading on the Toronto Stock Exchange.

The Saskatoon-based company didn't specify how big a loss it expected for the full year ended Dec. 31, but said it will reflect the reduced fair value of its assets because of a weak uranium market.

The company also said its adjusted earnings would be significantly lower than analyst estimates.

Thomson Reuters data indicated analysts had estimated 86 cents per share of adjusted earnings and a net profit of 96 cents per share for the full year ended Dec. 31 prior to Cameco's announcement after markets closed Tuesday.

Before the drop Wednesday, Cameco shares had been up significantly for the year so far gaining more than 20 per cent compared with where they ended 2016.

The company also announced Tuesday that it expects to lay off 120 employees in stages as part of its plans to further reduce costs and improve efficiency at its struggling uranium mining operations. It expects to complete the layoffs by the end of May.

Cameco (TSX:CCO) said the workforce at the McArthur River, Key Lake and Cigar Lake operations will be reduced by approximately 10 per cent in total.