TORONTO, Oct 8 (Reuters) - Shares of Cameco Corp rose more than 3 percent on Friday on expectations that a possible strike at its McArthur property, the world's largest high-grade uranium deposit, could boost spot prices.
Workers at Cameco's McArthur and Key Lake properties, located in the central province of Saskatchewan, gave the union a strike mandate to back negotiations toward a new collective agreement.
Oct. 22 is the earliest possible date for a strike.
Saskatoon-based Cameco, the top Canadian uranium producer, would lose sales volumes if its McArthur mine were to go on strike, but it would gain more on higher prices from its other operations, analysts said.
The McArthur mine is the world's largest, high-grade uranium deposit, while Key Lake is the world's largest, high-grade uranium milling operation.
Analysts also pointed to pending deals with Chinese utilities as a possible reason for the share activity.
The shares closed up 3.28 percent at C$30.21 on Friday on the Toronto Stock Exchange, while its U.S.-listed shares closed up 4.15 percent at $29.87 on the New York Stock Exchange.
(Reporting by Julie Gordon) Keywords: CAMECO/ (julie.gordon@thomsonreuters.com; +1 416 941 8136; Reuters Messaging: julie.gordon.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
Workers at Cameco's McArthur and Key Lake properties, located in the central province of Saskatchewan, gave the union a strike mandate to back negotiations toward a new collective agreement.
Oct. 22 is the earliest possible date for a strike.
Saskatoon-based Cameco, the top Canadian uranium producer, would lose sales volumes if its McArthur mine were to go on strike, but it would gain more on higher prices from its other operations, analysts said.
The McArthur mine is the world's largest, high-grade uranium deposit, while Key Lake is the world's largest, high-grade uranium milling operation.
Analysts also pointed to pending deals with Chinese utilities as a possible reason for the share activity.
The shares closed up 3.28 percent at C$30.21 on Friday on the Toronto Stock Exchange, while its U.S.-listed shares closed up 4.15 percent at $29.87 on the New York Stock Exchange.
(Reporting by Julie Gordon) Keywords: CAMECO/ (julie.gordon@thomsonreuters.com; +1 416 941 8136; Reuters Messaging: julie.gordon.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.