UPDATE 3-Cameco profit rises, but production hiccups remain

(Adds CEO comments, in U.S. dollars unless noted)

By Cameron French

TORONTO, May 13 (Reuters) - Profit at Cameco Corp (CCO.TO: Quote, Profile, Research, Stock Buzz) more than doubled in the first quarter as uranium sales rose alongside higher uranium and gold prices, the company said on Tuesday.

However, the profit was just short of analyst estimates, while the company warned of possible delays at its uranium mines in Saskatchewan and Kazakhstan.

Cameco, the world's top uranium producer, earned C$133 million ($133 million), or 37 Canadian cents a share, up from C$59 million, or 16 Canadian cents a share, a year ago.

The profit was shy of the 40 Canadian cents a share expected by analysts polled by Reuters.

Investors pulled the shares down by as much as 2.6 percent after the results were released, but by late Tuesday afternoon they had rebounded, and were up 11 Canadian cents at C$40.39 on the Toronto Stock Exchange.

The stock is down about 33 percent from its record high hit last year, as uranium prices have come off their peaks, while the company has experienced operations problems its Port Hope, Ontario, nuclear fuel conversion plant, its Centerra Gold (CG.TO: Quote, Profile, Research, Stock Buzz) subsidiary, and its Cigar Lake mine development.

Speaking on a conference call with analysts, Chief Executive Jerry Grandey noted the strong year-over-year profit gain and said the company had learned from its past problems, predicting 2008 will be "Cameco's year for renewal".