TORONTO -- Shares of Cameco Corp. (CCO.TO) have fallen seven per cent in overnight trading after the Saskatoon-based uranium producer warned Tuesday that analyst estimates are too high and it expects to report a loss for 2016.

Cameco said the loss will reflect the reduced fair value of its assets because of a weak uranium market.

The company also said its adjusted net earnings would be significantly lower than analyst estimates.

Thomson Reuters data indicate analysts had estimated 86 cents Cdn per share of adjusted earnings and a net profit of 96 cents per share for the full year ended Dec. 31.

At 6:30 a.m. today, Cameco's shares had fallen by US$1.17 to US$12.10 in overnight trading. The stock had recently shot up $2.52 from US$10.75 per share on Jan. 9.

Cameco's shares closed at US$13.27 on Tuesday at the New York Stock Exchange and at $17.32 in Toronto.

The company also announced Tuesday that it expects to lay off 120 employees in stages as part of its plans to further reduce costs and improve efficiency at its struggling uranium mining operations. It expects to complete the layoffs by the end of May.

Cameco said the workforce at the McArthur River, Key Lake and Cigar Lake operations will be reduced by approximately 10 per cent in total.