Cameco Share Price Slides 8.4Pct As Flooding Delays Completion Of Saskatchewan Uranium Mine

August 16, 2008 11:09 a.m. EST

Saskatoon, Saskatchewan (AHN) - Cameco Corp. shares plunged 8.4 percent on Friday's trading, the lowest in 21 months for the uranium miner, as reports of delayed production in a Saskatchewan mine continue to pull its value.

Cameco, the global leader in uranium production, dropped C$2.80, or 8.4 percent, to C$30.52 before closing at the Toronto Stock Exchange, according to Bloomberg. The uranium miner's share price dipped 23 percent since January.

On Thursday, Cameco CEO Jerry Grandey said he expected more flooding in the coming week dragging the completion of a uranium mine north of the province near Cigar Lake, reportedly the world's largest undeveloped high-grade uranium deposit. Water has been flowing in the mine's main shaft at 600 meters an hour.

Cameco said the Cigar Lake mine, which is expected to be operational by 2011, has a capacity to produce 18 million pounds of uranium annually, about 10 percent of global consumption.

Cameco second quarter profit dropped 27 percent to C$150 million ($141.7 million) due to declining uranium output and sales.