Cameco (CCJ) witnessed a significant plummet of 11.12% in pre-market trading on Monday, as the Canadian uranium producer announced that its JV Inkai operation in Kazakhstan has resumed production following a suspension.
The Saskatoon-based company, which holds a 40% stake in the Inkai uranium mine, was informed by its partner Kazatomprom that operations have restarted at the joint venture. Kazatomprom owns the remaining 60% interest in JV Inkai.
While the resumption of production at Inkai is positive from an operational standpoint, it appears to have disappointed investors who were anticipating a prolonged outage. An extended suspension could have further tightened global uranium supplies and supported higher prices for the nuclear fuel, benefiting Cameco's bottom line.
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