Shares in Uranium One (UUU.TO) were halted earlier today, and after market close they announced they would be slashing 2007 and 2008 production forecasts.  The company expects to produce 2.1 million pounds of uranium for 2007 down from a previous forecast of 2.5 million pounds; and 4.6 million pounds for 2008 down from 7.4 million pounds.

Obviously the 2008 cut was pretty big.  I think it is safe to say the stock will probably drop at least 10% tomorrow as investors panic.  To me, this once again proves how difficult it is to mine uranium.  UUU's problems, however, seem to be temporary and will be fixed over time.

Readers and fellow investors should note that this is nothing like Cameco's Cigar Lake troubles.  And even there Cameco's stock price recovered quickly (and later rose significantly) despite their major hit to future production.  My theory is that mining production problems reduces global supplies - which are already tight - and thus causes the price of uranium and mining shares to go higher.