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    Cameco delay could boost uranium prices
    The longer-than-expected overhaul of Cameco Corp.’s (CCO/TSX) flooded Cigar Lake mine may delay production until 2011, but it could be a blessing for uranium producers, as a tighter supply situation could boost prices for the nuclear fuel.

    If production at the Saskatchewan mine is delayed by one year, global uranium production will decline by 3 million pounds in 2010 and 6 million pounds in 2010, RBC Dominion Securities analyst H. Fraser Phillips said in a note to clients. He thinks a short delay could have a positive effect on Cameco as losses should be offset by higher prices and possibly higher production at its Rabbit Lake operation.

    Mr. Phillips left his “top pick” rating and $80 price target on Cameco shares unchanged, adding that a further progress report should come with the company’s second quarter earnings on July 30.

    Cameco is the world’s largest publicly traded uranium producer.

    Jonathan Ratner
    [email protected]

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