Cameco Inc. had a bigger loss in the first quarter than analysts were expecting, as the uranium company grappled with challenges including the sudden loss of a supply contract with Tokyo Electric Power Co.
The Saskatoon-based uranium company says it had a net loss of $18 million, or five cents per share, in the quarter ending March 31.
READ MORE: Cameco CEO ‘cautiously optimistic’ that better days will come in 2017
With adjustments, the loss was even bigger at $29 million or seven cents per share — six cents more than analyst estimates compiled by Thomson Reuters.
Revenue for the three months was ahead of estimates, at $393 million, but down about four per cent from the same time last year.
In addition to the termination of the Japanese contract, Cameco says its loss was affected by severance costs, market and price weakness and a strengthening of the Canadian dollar.
However, Cameco says its 2017 financial outlook and product targets remain unchanged despite the weak first quarter.
READ MORE: Cameco risks losing $1.3B in revenue as Tokyo Electric moves to terminate contract
Cameco said in February, when Tokyo Electric stopped accepting shipments from the company and ended their multi-year deal prematurely, that the uranium supply contract would have been worth about $1.3 billion from 2017 through 2028.