Cameco posts Q3 profit despite weak uranium prices

A jump in the amount of uranium being sold by Cameco means profits are up, despite low prices.

According to the Saskatoon-based uranium mining company's latest financial reports, Cameco reported net profits of $142 million, attributable to equity holders in the third quarter. Last year, during that same period, the company lost $4 million.

"Uranium prices are at the lowest levels we've seen in over a decade, and that's making for difficult times in our market" said Cameco president and CEO Tim Gitzel in a press release. "However, the strength of our long-term contract portfolio continues to keep our average realized price well above the weak market price."

• Cameco cutting 500 jobs at Rabbit Lake uranium mine

The company said uranium sales rose by 35 per cent in the third quarter. However, prices continue to drop.

"While we can't control the market, we're not idly waiting for the recovery we see coming. We've flexed our production levels, we've optimized our contract portfolio, and we've identified efficiencies within our business to streamline and adapt the company to the current conditions," said Gitzel.

In April, the company announced it would be cutting 500 jobs at its Rabbit Lake mine.

The company said it was encouraged that four more reactors had recently been brought online, bringing a total of nine new reactors this year onto the power grid. The company is worried about timelines for restarting Japan's nuclear reactors, and economic pressure on nuclear operators in the United States.