Cameco (TSX: CCO; NYSE: CCJ) has posted a loss of $137 million for the second quarter.
The Saskatoon-based company said a quiet market coupled with pressure on prices contributed to the loss.
“Market conditions have become increasingly challenging over the past five years” Tim Gitzel, president and CEO of Cameco, said in a release.
“Primary supply has simply not responded to decreased demand, and coupled with an abundance of secondary material available today, the uranium market continues to be oversupplied. As a result, prices have remained under pressure, and because we don’t know how long the current weak conditions will persist, we must manage the company with that uncertainty in mind.”
READ MORE: Revenue falls at Cameco, but company earns profit in Q1
The company also reported it took a $124.4 million impairment charge when production was suspended at its Rabbit Lake operation earlier this year.
According to company documents, the impairment charge is a determination of the “excess carrying value of the mine and mill over the fair value less costs to sell.”
READ MORE: Cameco suspends Rabbit Lake mine production and cuts 500 jobs
Despite the downturn in the market, Gitzel remains optimistic.
“Despite the current market challenges, we remain confident in nuclear power as an important part of the long-term global energy mix,” Gitzel stated.
“Based on the reactor construction that is underway around the world today, we continue to expect uranium demand to increase in the long-term.”
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