URNM - Cameco suspends Cigar Lake production on COVID concerns

Cameco ([[CCJ]] +2.6%) says it will temporarily suspend production at its Cigar Lake uranium mine in Saskatchewan over the coming weeks due to increasing risks posed by the pandemic.Cameco says it had six positive tests at its northern operations in recent weeks, including three at Cigar Lake.While Cigar Lake is on care and maintenance, Cameco expects to incur costs of $8M-$10M/month, with additional costs related to the purchase of uranium; the company does not expect the costs to affect results until Q1 2021.The timing of the restart and the production rate will depend on how the pandemic is impacting the availability of the required workforce at Cigar Lake, the company says.Cigar Lake had produced 2.3M lbs. (Cameco's share) of uranium concentrates YTD through Sept. 30, but Cameco no longer expects to achieve 5.3M lbs. of production for 2020.Uranium peers open higher: [[DNN]] +8.6%, [[UEC]] +8%, [[UUUU]] +6.8%, [[NXE]] +5.3%, [[URG]]

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Cameco suspends Cigar Lake production on COVID concerns