UPDATE 2-Cameco profit falls, cuts uranium sales forecast

* Q2 Adj EPS C$0.29 vs C$0.41 a year ago

* Q2 Revenue down 15 pct to C$546 mln

* Sees 2010 uranium rev down 10 to 15 pct from 2009 level
(Adds details on results, forecast, byline)

By Euan Rocha

TORONTO, Aug 13 (BestGrowthStock) – Cameco Corp (CCO.TO: ) reported a
weaker second-quarter operating profit on Friday, as results
were hurt by lower uranium sales volumes and a lower realized
uranium selling price.

The top Canadian uranium producer also lowered its 2010
uranium sales forecast to 30 million pounds from a range of 31
to 33 million pounds, as some customers deferred deliveries
into 2011.

Cameco also said it expects 2010 uranium revenues to fall
10 percent to 15 percent below 2009 levels, compared with its
prior forecast of a 5 to 10 percent decline.

Excluding one-time items, earnings fell to C$114 million,
or 29 Canadian cents a share, in the quarter ended June 30.
That compared with a year-before profit of C$162 million, or 41
Canadian cents a share.

Analysts polled by Thomson Reuters I/B/E/S had expected, on
average, a profit of 24 Canadian cents a share.

The company said its net income fell 72 percent to C$68
million, or 17 Canadian cents a share, down from C$247 million,
or 63 Canadian cents a share, a year earlier.

Net income in the latest quarter was hurt by an after-tax
expense of C$46 million for unrealized mark-to-market losses on
financial instruments, while the year-ago net income included a
C$107 million one-time gain.

The company said lower revenues from its fuel services and
electricity businesses also weighed on its bottom-line in the
recent quarter.

Quarterly revenue fell 15 percent to C$546 million in the
second quarter.

CIGAR LAKE

Cameco said it continues to expect that Cigar Lake will
begin initial production in mid-2013.

The uranium mine was on track to produce 18 million pounds
a year before it flooded in 2006. Cameco has been struggling to
overhaul the project for the past four years.

“Cigar Lake is a key part of our plan to double annual
uranium production to 40 million pounds by 2018, and we are
committed to bringing this valuable asset safely into
production,” said the company, in a statement.

Cameco trimmed its 2010 capital expenditure forecast to
about C$510 million from its previous estimate of C$552 million
due to changes in the scheduling of certain projects.

The company said it does not expect this reduction in
capital expenditures in 2010 will impact its plans to double
annual uranium output by 2018.
($1.00= $1.04 Canadian)
(Reporting by Euan Rocha and Julie Gordon, editing by Dave
Zimmerman)

UPDATE 2-Cameco profit falls, cuts uranium sales forecast