SASKATOON (CP) -- Writedowns and weak prices for uranium and gold dropped Cameco Corp. to a net loss of $87 million in 2000, a $158-million turnaround from a profit of $71 million the year before.

 Excluding one-time items, earnings were $45 million, up from $42 million in 1999, as lower spending on exploration, interest and income taxes outweighed pressure on gross profits at the world's biggest uranium supplier.

 The $1.57-per-share annual loss reported Tuesday evening included a $128-million accounting writedown of uranium milling assets in the United States, and a $20-million provision for overhanging liability on managing radioactive waste in Ontario.

 "Prices for our gold and nuclear products remained under great pressure during 2000," Cameco chairman and CEO Bernard Michel observed in a statement.  "Despite these weak markets, we increased net earnings, before special items, by seven per cent from a year ago. In addition, we continue to generate strong cash flows which are indicative of the company's exceptional asset base and balanced marketing strategy."

 Revenue in 2000 declined seven per cent to $689 million from the record $742 million in 1999, as the average spot price for uranium declined to $8.21 US per pound, from $10.23 in the previous year, and high-priced supply contracts expired.   "Lower demand coupled with the presence of aggressive inventory sellers caused the spot price to soften during much of the year before leveling off in the fourth quarter to its lowest point since 1974," the company stated.

 On the plus side, Cameco reduced its debt by $65 million during the year to $294 million, leaving its debt-equity ratio at 14 per cent.

 "Cameco's strong balance sheet provides the company with financial flexibility as we look forward to better commodity prices," Michel said.

 "Despite the price trends in 2000, the long-term uranium market outlook remains positive and new mine development will be needed to meet anticipated uranium requirements," he added.

 "World uranium production continues to be about half of requirements, a situation which is not sustainable over the long term."

 For the fourth quarter, Cameco had net earnings of $4 million on revenue of $246 million, down from $17 million on $245 million a year earlier.

 The financial results were released after stock markets had closed with Cameco shares at a 52-week high of $30 in Toronto, up $1.50 on the day.