Due to the weak uranium market Cameco says it will suspend operations at McArthur River and Key Lake and permanently lay off 550 site employees and 150 corporate staff said the company in its 2Q.
The news bumped Cameco's stock (CCO.TO) five per cent on Thursday sending it to $14.97 a share.
Cameco reported net losses of $76 million and adjusted net losses of $28 million in its 2Q filed yesterday.
A reduced workforce of approximately 200 employees will remain at the McArthur River and Key Lake sites to keep the facilities in a state of safe care and maintenance.
As a result of the layoffs at the two sites and corporate office, we expect to incur between $40 million and $45 million in severance costs in the third quarter.
Before Cameco put McArthur River and Key Lake in suspension the mine produced 7.2 million lbs over six months in 2017. Average grade is 9.63% U3O8 and proven and probable reserves of 250.7 million lbs.
Written with material from Cameco's news release