More Trouble for Cameco at Cigar Lake
More Trouble for Cameco at Cigar Lake
Posted By Uranium Stocks On July 12, 2007 @ 11:00 am In Uranium Mining Stocks | 18 Comments
Cameco is in more trouble at Cigar Lake as they have announced that the mine will not be online until 2011.
According to the news release by Cameco, more flooding anddewatering issues have further hampered the world’s largest undevelopeduranium project.
Cigar Lake was supposed to produce 9 million pounds of U3O8 annuallywith its originally estimated proven reserves of 113 million pounds.The project is a joint venture owned by Cameco, Areva Resources Canada,Idemitsu Canada Resources, and TEPCO Resources.
Taking Cigar Lake out of the uranium market is like taking SaudiArabia out of the oil market. It creates a devastating supply squeezethat could push the [1] uranium price and so [2] uranium shares to extreme heights.
We are of the opinion that Cameco don’t actually know the problem atthe project. They have to find out what the problem is before they caneven contemplate fixing it. At the moment their tactics are appear tobe on a “hit and miss basis” with the company trying all sorts ofstrategies that are to no avail.
Cameco COO Tim Gitzel said that they were “making steady progress in bringing the project into production”.Well this latest release sounds nothing like steadily progress to us,it is a step back as it means that Cameco shareholders have to waitanother year until Cameco think they can get the project back online…and it might not even come online then.
