* Shares up 5.03 percent at C$43.64
* Company forecasts stronger uranium sales in 2011
TORONTO Feb 11 Shares of Cameco Corp (CCO.TO)
rose more than 5 percent on Monday, the first day of trade
after the uranium producer reported higher-than-expected fourth
quarter and full year 2010 earnings.
The Saskatoon, Saskatchewan-based company reported a lower
net profit on Friday, but fourth quarter earnings were up 12
percent after stripping out the impact of a one-time 2009
The uranium producer's underlying profit benefited from
higher uranium prices and lower production costs, easily
beating analyst expectations.
The shares rose 5.03 percent to C$43.64 on the Toronto
Stock Exchange on Monday.
"Cameco remains the leader in the uranium industry," said
RBC Capital Markets analyst H. Fraser Phillips in a note to
clients. "We believe the shares will continue to benefit from
strong uranium markets and have further upside potential."
Cameco said it would boost sales in 2011 to 31 to 33
million pounds of uranium, versus 29.6 million pounds in 2010.
Analysts expect demand for uranium to stay strong
throughout 2011 as Asia builds more reactors, and nuclear power
gains in popularity around the world.
(Reporting by Julie Gordon; Editing by Frank McGurty)