Germany Chancellor plans lithium deal with Serbia after Rio ruling
Olaf Scholz plans to visit Serbia this week to secure supplies of lithium that are critical for the nation’s energy transition and auto industry.
Canadian Cameco Corp. (TSX:CCO, NYSE:CCJ), the world’s third-biggest uranium producer, posted Wednesday a dramatic first quarter profit drop of 93%, triggering a 5% plunge in its shares as uranium sales fell and prices were weaker.
While a decline in profit was expected, Cameco’s figures were beyond analysts’ estimates with net income falling to Cdn $9 million (2 cents per share), from Cdn$129 million or 33 cents in the same period last year.
The Saskatoon, Saskatchewan-based miner said it produced 5.9 million pounds of uranium during the quarter and sold 5.1 million pounds. A year earlier, it had output of 4.8 million pounds and sales of 8.2 million pounds.
Cameco’s average realized price for uranium dropped 2% year over year to $48.25 per pound.
The uranium market has been in a downward spiral since the earthquake and tsunami that struck Japan in March 2011, crippling Tokyo Electric Power Co.’s Fukushima Dai-Ichi nuclear power plant.
Spot prices have dropped about 40% as several nations, led by Germany and Japan, have reduced their dependence on nuclear power.
According to the World Nuclear Association, Kazakhstan’s state-owned Kazatomprom and Paris-based Areva SA (AREVA) are the top two uranium miners in the world.
