The extension was expected to come through last year, and as recently as Dec. 26 reports hadn’t indicated that production might be suspended, Cameco said in a release.
The Saskatoon-based company’s shares gained 1.8% to C$75.28 apiece on Thursday morning in Toronto, for a market capitalization of C$32.7 billion ($22.7 billion). Its shares traded in a 52-week range of C$48.71 to C$88.18.
Shares in Kazatomprom fell 2.1% to $36.95 apiece in London, giving it a market cap of £7.8 million ($9.6 million).
Production increase questions
The Inkai suspension adds more uncertainty to Kazakhstan’s near-term uranium production ramp up, BMO Capital Markets analyst Alexander Pearce wrote in a note on Thursday.
Kazatomprom’s announcement suggests the paperwork approvals should be resolved shortly, Pearce said. In the meantime the spot uranium price could rise if Cameco and Kazatomprom have to purchase supplies to…
