Cameco Corp. (TSX:CCO) shares fell more than 10 per cent in late morning trading on Wednesday following a warning that analyst estimates are too high and it expects to report a loss for 2016.
Shares of Canada’s largest uranium miner 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 sad it will reflect the reduced fair value of its assets because of a weak uranium market.
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READ MORE: Cameco suspends Rabbit Lake mine production and cuts 500 jobs
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.
READ MORE: Cameco announces job cuts at Cigar Lake, McArthur River and Key Lake operations
On Tuesday, the company announced it was cutting approximately 10 per cent of its workforce at three northern Saskatchewan mines due to weakness and oversupply in the uranium market.
With files from Ryan Kessler
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