Cameco shares drop 7 percent, move puzzles analysts

TORONTO (Reuters) - Shares of Cameco Corp (CCO.TO) sank more than 7 percent on Tuesday, pressured slightly by a downgrade of its gold-mining subsidiary, although analysts scratched their heads at the size of the selloff.

Cameco, the world's top uranium producer, fell C$3.07 to C$38.20 on the Toronto Stock Exchange, hitting its lowest point in more than a month.

Analysts contacted by Reuters did not have an explanation for the sharp move in the stock.

"I haven't been able to find any news that could be behind it at this point," said George Topping at Blackmont Capital.

Officials of the uranium producer will go before Canada's nuclear industry regulator on Wednesday to present applications for license renewals for its McArthur River, Key Lake and Rabbit lake uranium operations in Saskatchewan.

Spot uranium prices have been near $59 a pound for the past two weeks, but are seen rebounding after falling hard over the past 12 months.

Earlier on Tuesday, RBC Capital Markets lowered its 12-month target for shares of Cameco subsidiary Centerra Gold (CG.TO) to C$10 from C$12 due to uncertainty over the company's ownership of its Kumtor mine in Kyrgyzstan. Centerra's shares fell 60 Canadian cents, or 8 percent, to C$6.90 on Tuesday.

($1=$1.02 Canadian)

(Reporting by Cameron French; Editing by Peter Galloway)