Cameco (TSX: CCO; NYSE: CCJ) today reported its consolidated
financial and operating results for the first quarter ended March
31, 2024, in accordance with International Financial Reporting
Standards (IFRS).
“In the first quarter operational performance was strong across
our uranium, fuel services and Westinghouse segments. Financial
results are in line with the 2024 outlook we provided, which has
not changed, and are as expected, reflecting normal quarterly
variability and the required purchase accounting and other
non-operational acquisition-related costs for Westinghouse,” said
Tim Gitzel, Cameco’s president and CEO.
“Our strategy continues to demonstrate the benefits of aligning
our operational, marketing, and financially focused decisions in a
market where we are seeing sustained, positive momentum for nuclear
energy like never before. We remain in the enviable position of
having what we believe are the world’s premier, tier-one assets
operating in stable geopolitical regions, along with our
investments across the fuel cycle and reactor life cycle. That
includes our investment in Westinghouse, where we are seeing its
long-term business prospects continue to improve. With our position
as a proven, reliable supplier operating across the nuclear fuel
cycle, our customers recognize our deep understanding of how
nuclear fuel markets work, and global policymakers are turning to
us as thought leaders in the industry.
“Operationally, production results in the first quarter were
strong and are on track with our 2024 plans, with production rates
and total production costs in our uranium segment continuing to
reflect the transition back to our tier-one cost structure. In the
market, we continued to be selective in committing our
unencumbered, tier-one, in-ground uranium inventory and UF6
conversion capacity, building on a contract portfolio that spans
more than a decade by successfully layering in additional long-term
contracts, increasing our annual commitments to an average of about
28 million pounds per year from 2024 through 2028. Every contract
we add reflects the sentiment and dynamics in the market at the
time it is negotiated, allowing us to capture greater upside and
creating value over the lifetime of the contract. From a
risk-managed financial perspective, our resulting expectation of
strong cash flow generation is guiding our conservative capital
allocation priorities in 2024, with focused debt reduction and
prudent refinancing plans.
“Full-cycle support for nuclear energy and the required uranium
fuel continues to grow, with increasing public support, positive
policy decisions, and market-based solutions underpinning the
positive fundamentals and durable long-term demand story for
nuclear. The inaugural Nuclear Energy Summit took place in Brussels
in March, with representatives from 32 countries joining forces to
back supportive measures in areas including financing, regulatory
cooperation, technological innovation, and workforce training,
enabling the expansion of nuclear power to help address climate
change and boost energy security.
“The benefits of nuclear energy as a critical tool in the fight
against climate change and the advantage nuclear provides in the
context of energy security are not only being recognized and
highlighted by governments around the world, but by
energy-intensive industries that are advancing faster than
policymakers to effectively transition to energy sources that
provide clean, constant and reliable power. An increase in public
support from tech sector leaders and announcements like the recent
acquisition of a 960 MW data centre campus by Amazon Web Services,
with a related long-term agreement to secure reliable power from
Talen’s Energy Corporation’s Susquehanna nuclear power plant, are
indicative of that industrial focus.
“The geopolitical events that have been amplifying global supply
chain and transportation risks are continuing to have a significant
impact on nuclear fuel customer procurement strategies. Utilities
are adjusting their supply chains to ensure reliable supply, with
increasing competition to secure long-term contracts for uranium
products and services. We expect that Cameco and Westinghouse, as
proven producers of uranium products and services and having
demonstrated strong and sustainable performance, can be expected to
benefit from the significant tailwinds associated with having
licensed and permitted operations in geopolitically stable
jurisdictions.
“We are a responsible, commercial supplier with a strong balance
sheet, long-lived, tier-one assets, and a proven operating track
record. We are invested across the nuclear fuel cycle and believe
we have the right strategy to achieve our vision of ‘energizing a
clean-air world’ and do so in a manner that reflects our values.
Embedded in our decisions is a commitment to address the risks and
opportunities that we believe will make our business sustainable
over the long term.”
- 2024 outlook remains solid: We are tracking well towards
achieving the 2024 outlook provided in our 2023 annual MD&A. We
continue to expect strong cash flow generation, with estimated
consolidated revenue of between about $2.9 billion and $3.0
billion. We maintain the outlook for our share of Westinghouse’s
2024 adjusted EBITDA of between $445 million and $510 million. See
Outlook for 2024 in our first quarter MD&A for more
information. Adjusted EBITDA attributable to Westinghouse is a
non-IFRS measure, see Non-IFRS measures below.
- Q1 net losses of $7 million; adjusted net earnings of $56
million; adjusted EBITDA $345 million: Results are driven by
normal quarterly variations in contract deliveries in our uranium
and fuel services segments, and the addition of Westinghouse.
Performance in our core uranium segment was strong with net
earnings up by 34% and adjusted EBITDA up by 16% compared to the
same period in 2023 largely due to an increase of 27% in the
Canadian dollar average realized price partially offset by the
expected lower deliveries and higher cost of sales. See Financial
results by segment – Uranium in our first quarter MD&A for more
information. However, as indicated in our 2023 annual MD&A,
Westinghouse is expected to generate a net loss of between $170
million and $230 million in 2024 due to the impact of the purchase
accounting, which requires the revaluation of Westinghouse’s
inventory and other assets at the time of acquisition, and the
expensing of some non-operating acquisition-related transition
costs. Of the expected net loss for Westinghouse in 2024, $123
million was incurred in the first quarter due to normal variability
in the timing of its customer requirements and delivery and outage
schedules. Westinghouse’s first quarter is typically its weakest,
with stronger expected performance in the second half of the year,
and higher expected cash flows in the fourth quarter. We do not
believe the impact of the revaluation of Westinghouse’s inventory
and assets, or the non-operating acquisition-related transition
costs reflect its underlying performance for the reporting period,
therefore, we use adjusted EBITDA as a performance measure for
Westinghouse, which was $77 million for the first quarter. See Our
earnings from Westinghouse in our first quarter MD&A for more
information. Adjusted net earnings and adjusted EBITDA are non-IFRS
measures, see Non-IFRS measures below.
- Strong production performance in the uranium segment: In
our uranium segment we produced 5.8 million pounds (our share)
during the quarter, an increase from the 4.5 million pounds (our
share) of production in the same period of 2023. As a result of
increased production, the unit cash cost of production was $19.52
per pound, a 16% reduction compared to the same period in 2023. The
unit cost of sales was up 15% primarily due to the impact of higher
cost purchases on the inventory value, including Inkai purchases.
The cash impact of higher cost Inkai purchases on average unit cost
of sales is partially offset by the dividends we receive from Joint
Venture Inkai (JV Inkai). With our mining operations performing
well and Key Lake running at planned production rates, we continue
to expect 18 million pounds of production (100% basis) at each of
McArthur River/Key Lake and Cigar Lake operations in 2024. See Our
operations – uranium production overview in our first quarter
MD&A for more information. We continue to plan our production
to align with our contract portfolio and customer needs, as well as
evaluate the optimal mix of production, inventory and purchases in
order to retain the flexibility to deliver long-term value. Cash
cost per pound is a non-IFRS measure, see Non-IFRS measures
below.
- Disciplined long-term contracting continues, maintaining
exposure to higher prices: As of March 31, 2024, we had
commitments requiring delivery of an average of about 28 million
pounds per year from 2024 through 2028, with commitment levels in
2024 and 2025 higher than the average and in 2026 through 2028
lower than the average. As the market further improves, we expect
to continue to layer in volumes capturing greater upside using
market-related pricing mechanisms. We also have contracts in our
uranium and fuel services segments that span more than a decade,
and in our uranium segment, many of those contracts benefit from
market-related pricing mechanisms. In addition, we have a large and
growing pipeline of business under discussion, which we expect will
help further build our long-term contract portfolio.
- Maintaining financial discipline and balanced liquidity to
execute on strategy:
- Strong balance sheet: As of March 31, 2024, we had $323
million in cash and cash equivalents and $1.5 billion in total
debt. In addition, we have a $1.0 billion undrawn credit facility
which matures October 1, 2027. With improving prices under our
long-term contract portfolio, the progress we are making in our
uranium segment towards the return to our tier-one cost structure,
and an expected increase in our UF6 conversion production, we
expect to see strong cash flow generation in 2024.
- Focused debt reduction: Thanks to our risk-managed
financial discipline, and strong cash position, in the first
quarter we prioritized the reduction of the $600 million (US)
floating-rate term loan used to finance the Westinghouse
acquisition, repaying $200 million (US) of the principal. We plan
to continue to prioritize repayment of the remaining $400 million
(US) outstanding principal on the term loan while balancing our
liquidity and cash position.
- Prudent refinancing plans: Consistent with the
conservative financial management we have demonstrated and our 2024
capital allocation priorities, in the second quarter, we expect to
refinance the $500 million senior unsecured debenture we have
maturing on June 24, 2024, prior to maturity or when it comes
due.
- Received dividends from JV Inkai in April: Following the
quarter end, we received a cash dividend of $129 million (US), net
of withholdings, from JV Inkai based on its 2023 financial
performance. From a cash flow perspective, we expect to realize the
benefit from JV Inkai’s 2024 financial performance in 2025 once the
dividend for 2024 is declared and paid.
- JV Inkai shipments: The second shipment containing the
remainder of our share of Inkai's 2023 production arrived in
February 2024. We continue to work closely with JV Inkai and our
joint venture partner, Kazatomprom, to receive our share of
production via the Trans-Caspian International Transport Route,
which does not rely on Russian rail lines or ports. We could
experience delays to our expected Inkai deliveries this year if
transportation using this shipping route takes longer than
anticipated. Inkai production was 1.6 million pounds (100% basis)
for the quarter, compared to 1.9 million pounds (100% basis) in the
same period last year. Presently, JV Inkai is experiencing
procurement and supply chain issues, most notably, related to the
availability of sulfuric acid. JV Inkai’s current production target
for 2024 is 8.3 million pounds of U3O8 (100% basis). However, this
target is tentative and contingent upon receipt of sufficient
volumes of sulfuric acid. Our allocation of the planned production
from JV Inkai is currently under discussion. To mitigate the risk
of transportation delays or production shortfalls, we have
inventory, long-term purchase agreements and loan arrangements in
place we can draw on.
Consolidated financial results
THREE MONTHS
HIGHLIGHTS
ENDED MARCH 31
($ MILLIONS EXCEPT WHERE INDICATED)
2024
2023
CHANGE
Revenue
634
687
(8)%
Gross profit
187
167
12%
Net earnings (losses) attributable to
equity holders
(7)
119
>(100)%
$ per common share (basic)
(0.02)
0.27
>(100)%
$ per common share (diluted)
(0.02)
0.27
>(100)%
Adjusted net earnings (ANE) (non-IFRS, see
Non-IFRS measures below)
56
115
(51)%
$ per common share (adjusted and
diluted)
0.13
0.27
(52)%
Adjusted EBITDA (non-IFRS, see Non-IFRS
measures below)
345
226
53%
Cash provided by operations (after working
capital changes)
63
215
(71)%
The financial information presented for the three months ended
March 31, 2023, and March 31, 2024, is unaudited.
Selected segment highlights
THREE MONTHS
HIGHLIGHTS
ENDED MARCH 31
($ MILLIONS EXCEPT WHERE INDICATED)
2024
2023
CHANGE
Uranium
Production volume (million lbs)
5.8
4.5
29%
Sales volume (million lbs)
7.3
9.7
(25)%
Average realized price1
($US/lb)
57.57
45.35
27%
($Cdn/lb)
77.33
60.98
27%
Revenue
561
595
(6)%
Gross profit
169
137
23%
Net earnings attributable to equity
holders
253
189
34%
Adjusted EBITDA2
303
261
16%
Fuel services
Production volume (million kgU)
3.7
4.1
(10)%
Sales volume (million kgU)
1.5
2.5
(40)%
Average realized price 3
($Cdn/kgU)
48.36
37.66
28%
Revenue
72
92
(22)%
Net earnings attributable to equity
holders
20
31
(35)%
Adjusted EBITDA2
25
39
(36)%
Adjusted EBITDA margin (%)2
35
42
(17)%
Westinghouse
Revenue
656
-
n/a
(our share)
Net loss
(123)
-
n/a
Adjusted EBITDA2
77
-
n/a
1 Uranium average realized price is
calculated as the revenue from sales of uranium concentrate,
transportation and storage fees divided by the volume of uranium
concentrates sold.
2 Non-IFRS measure, see Non-IFRS measures
below.
3 Fuel services average realized price is
calculated as revenue from the sale of conversion and fabrication
services, including fuel bundles and reactor components,
transportation and storage fees divided by the volumes sold.
The table below shows the costs of produced and purchased
uranium incurred in the reporting periods (see Non-IFRS measures
below). These costs do not include care and maintenance costs,
selling costs such as royalties, transportation and commissions,
nor do they reflect the impact of opening inventories on our
reported cost of sales.
THREE MONTHS
ENDED MARCH 31
($CDN/LB)
2024
2023
CHANGE
Produced
Cash cost
19.52
23.13
(16)%
Non-cash cost
9.79
10.82
(10)%
Total production cost 1
29.31
33.95
(14)%
Quantity produced (million lbs)1
5.8
4.5
29%
Purchased
Cash cost1
87.75
66.92
31%
Quantity purchased (million lbs)1
2.6
0.4
>100%
Totals
Produced and purchased costs
47.40
36.64
29%
Quantities produced and purchased (million
lbs)
8.4
4.9
71%
1 Due to equity accounting, our share of
production from JV Inkai is shown as a purchase at the time of
delivery. These purchases will fluctuate during the quarters and
timing of purchases will not match production. During the quarter,
we purchased 1.1 million pounds from JV Inkai at a purchase price
per pound of $129.96 ($96.88 (US)). There were no purchases from JV
Inkai in the first quarter of 2023.
Non-IFRS measures
The non-IFRS measures referenced in this document are
supplemental measures, which are used as indicators of our
financial performance. Management believes that these non-IFRS
measures provide useful information to investors, securities
analysts, lenders and other interested parties in assessing our
operational performance and our ability to generate cash flows to
meet our cash requirements. These measures are not recognized
measures under IFRS, do not have standardized meanings, and are
therefore unlikely to be comparable to similarly-titled measures
presented by other companies. Accordingly, these measures should
not be considered in isolation or as a substitute for the financial
information reported under IFRS. The following are the non-IFRS
measures used in this document.
ADJUSTED NET EARNINGS
Adjusted net earnings is our net earnings attributable to equity
holders, adjusted for non-operating or non-cash items such as gains
and losses on derivatives and adjustments to reclamation provisions
flowing through other operating expenses that we believe do not
reflect the underlying financial performance for the reporting
period. Other items may also be adjusted from time to time. We also
adjust this measure for certain of the items that our
equity-accounted investees make in arriving at other non-IFRS
measures. Adjusted net earnings is one of the targets that we
measure to form the basis for a portion of annual employee and
executive compensation (see Measuring our results in our 2023
annual MD&A).
In calculating ANE we adjust for derivatives. We do not use
hedge accounting under IFRS and, therefore, we are required to
report gains and losses on all hedging activity, both for contracts
that close in the period and those that remain outstanding at the
end of the period. For the contracts that remain outstanding, we
must treat them as though they were settled at the end of the
reporting period (mark-to-market). However, we do not believe the
gains and losses that we are required to report under IFRS
appropriately reflect the intent of our hedging activities, so we
make adjustments in calculating our ANE to better reflect the
impact of our hedging program in the applicable reporting period.
See Foreign exchange in our 2023 annual MD&A for more
information.
We also adjust for changes to our reclamation provisions that
flow directly through earnings. Every quarter we are required to
update the reclamation provisions for all operations based on new
cash flow estimates, discount and inflation rates. This normally
results in an adjustment to our asset retirement obligation asset
in addition to the provision balance. When the assets of an
operation have been written off due to an impairment, as is the
case with our Rabbit Lake and US ISR operations, the adjustment is
recorded directly to the statement of earnings as “other operating
expense (income)”. See note 10 of our interim financial statements
for more information. This amount has been excluded from our ANE
measure.
As a result of the change in ownership of Westinghouse when it
was acquired by Cameco and Brookfield, Westinghouse’s inventories
at the acquisition date were revalued based on the market price at
that date. As these quantities are sold, Westinghouse’s cost of
products and services sold reflect these market values, regardless
of Westinghouse’s historic costs. Our share of these costs is
included in earnings from equity-accounted investees and recorded
in cost of products and services sold in the investee information
(see note 7 to the financial statements). Since this expense is
non-cash, outside of the normal course of business and only
occurred due to the change in ownership, we have excluded our share
from our ANE measure.
Westinghouse has also expensed some non-operating
acquisition-related transition costs that the acquiring parties
agreed to pay for, which resulted in a reduction in the purchase
price paid. Our share of these costs is included in earnings from
equity-accounted investees and recorded in other expenses in the
investee information (see note 7 to the financial statements).
Since this expense is outside of the normal course of business and
only occurred due to the change in ownership, we have excluded our
share from our ANE measure.
To facilitate a better understanding of these measures, the
table below reconciles adjusted net earnings with our net earnings
for the first quarter of 2024 and compares it to the same period in
2023.
THREE MONTHS
ENDED MARCH 31
($ MILLIONS)
2024
2023
Net earnings (losses) attributable to
equity holders
(7)
119
Adjustments
Adjustments on derivatives
33
(6)
Adjustments to earnings from
equity-investees
Inventory purchase accounting (net of
tax)
38
-
Acquisition-related transition costs (net
of tax)
14
-
Adjustments to other operating income
(15)
(2)
Income taxes on adjustments
(7)
4
Adjusted net earnings
56
115
The following table shows the drivers of the change in adjusted
net earnings (non-IFRS measure, see above) in the first quarter of
2024 compared to the same period in 2023.
THREE MONTHS
ENDED MARCH 31
($ MILLIONS)
IFRS
ADJUSTED
Net earnings – 2023
119
115
Change in gross profit by segment
(We calculate gross profit by deducting
from revenue the cost of products and services sold, and
depreciation and amortization (D&A))
Uranium
Impact from sales volume changes
(35)
(35)
Higher realized prices ($US)
119
119
Higher costs
(52)
(52)
Change – uranium
32
32
Fuel services
Impact from sales volume changes
(12)
(12)
Higher realized prices ($Cdn)
16
16
Higher costs
(16)
(16)
Change – fuel services
(12)
(12)
Other changes
Lower administration expenditures
4
4
Higher exploration expenditures
(1)
(1)
Change in reclamation provisions
15
2
Lower earnings from equity-accounted
investees
(103)
(51)
Change in gains or losses on
derivatives
(43)
(4)
Change in foreign exchange gains or
losses
19
19
Lower finance income
(22)
(22)
Change in income tax recovery or
expense
5
(6)
Other
(20)
(20)
Net earnings (losses) – 2024
(7)
56
EBITDA
EBITDA is defined as net earnings attributable to equity
holders, adjusted for the costs related to the impact of the
company’s capital and tax structure including depreciation and
amortization, finance income, finance costs (including accretion)
and income taxes.
ADJUSTED EBITDA
Adjusted EBITDA is defined as EBITDA adjusted for the impact of
certain costs or benefits incurred in the period which are either
not indicative of the underlying business performance or that
impact the ability to assess the operating performance of the
business. These adjustments include the amounts noted in the ANE
definition.
In calculating adjusted EBITDA, we also adjust for items
included in the results of our equity-accounted investees that are
not adjustments to arrive at our ANE measure. These items are
reported as part of other expenses within the investee financial
information and are not representative of the underlying
operations. These include gains/losses on undesignated hedges,
transaction, integration and restructuring costs related to
acquisitions and gains/losses on disposition of a business.
The company may realize similar gains or incur similar
expenditures in the future.
ADJUSTED EBITDA MARGIN
Adjusted EBITDA margin is defined as adjusted EBITDA divided by
revenue for the appropriate period.
EBITDA, adjusted EBITDA and adjusted EBITDA margin are non-IFRS
measures which allow us and other users to assess results of
operations from a management perspective without regard for our
capital structure. To facilitate a better understanding of these
measures, the table below reconciles earnings before income taxes
with EBITDA and adjusted EBITDA for the first quarter of 2024 and
2023.
For the quarter ended March 31, 2024:
FUEL
($ MILLIONS)
URANIUM
SERVICES
WESTINGHOUSE
OTHER
TOTAL
Net earnings (loss) attributable to
equity holders
253
20
(123
)
(157
)
(7
)
Depreciation and amortization
37
5
-
1
43
Finance income
-
-
-
(6
)
(6
)
Finance costs
-
-
-
38
38
Income taxes
-
-
-
31
31
290
25
(123
)
(93
)
99
Adjustments on equity investees
Depreciation and amortization
8
-
85
-
Finance income
-
-
(2
)
-
Finance expense
-
-
64
-
Income taxes
20
-
(37
)
-
Net adjustments on equity investees
28
-
110
-
138
EBITDA
318
25
(13
)
(93
)
237
Gain on derivatives
-
-
-
33
33
Other operating income
(15
)
-
-
-
(15
)
303
25
(13
)
(60
)
255
Adjustments on equity investees
Inventory purchase accounting
-
-
50
-
Acquisition-related transition costs
-
-
19
-
Other expenses
-
-
21
-
Net adjustments on equity investees
-
-
90
-
90
Adjusted EBITDA
303
25
77
(60
)
345
For the quarter ended March 31,
2023:
FUEL
($ MILLIONS)
URANIUM
SERVICES
OTHER
TOTAL
Net earnings (loss) attributable to
equity holders
189
31
(101
)
119
Depreciation and amortization
68
8
1
77
Finance income
-
-
(28
)
(28
)
Finance costs
-
-
24
24
Income taxes
-
-
36
36
257
39
(68
)
228
Adjustments on equity investees
Depreciation and amortization
2
-
-
-
Income taxes
4
-
-
-
Net adjustments on equity investees
6
-
-
6
EBITDA
263
39
(68
)
234
Loss on derivatives
-
-
(6
)
(6
)
Other operating income
(2
)
-
-
(2
)
Adjusted EBITDA
261
39
(74
)
226
CASH COST PER POUND, NON-CASH COST PER POUND AND TOTAL COST
PER POUND FOR PRODUCED AND PURCHASED URANIUM
Cash cost per pound, non-cash cost per pound and total cost per
pound for produced and purchased uranium are non-IFRS measures. We
use these measures in our assessment of the performance of our
uranium business. These measures are not necessarily indicative of
operating profit or cash flow from operations as determined under
IFRS.
To facilitate a better understanding of these measures, the
table below reconciles these measures to cost of product sold and
depreciation and amortization for the first quarter of 2024 and
2023.
THREE MONTHS
ENDED MARCH 31
($ MILLIONS)
2024
2023
Cost of product sold
355.9
390.0
Add / (subtract)
Royalties
(17.8)
(24.7)
Care and maintenance costs
(12.2)
(11.9)
Other selling costs
(4.9)
(2.7)
Change in inventories
20.4
(219.8)
Cash operating costs (a)
341.4
130.9
Add / (subtract)
Depreciation and amortization
36.7
67.9
Care and maintenance costs
(0.2)
(1.6)
Change in inventories
20.3
(17.6)
Total operating costs (b)
398.2
179.6
Uranium produced & purchased (million
lbs) (c)
8.4
4.9
Cash costs per pound (a ÷ c)
40.64
26.71
Total costs per pound (b ÷ c)
47.40
36.64
Management's discussion and analysis (MD&A) and financial
statements
The first quarter MD&A and unaudited condensed consolidated
interim financial statements provide a detailed explanation of our
operating results for the three months ended March 31, 2024, as
compared to the same period last year. This news release should be
read in conjunction with these documents, as well as our audited
consolidated financial statements and notes for the year ended
December 31, 2023, and annual MD&A, and our most recent annual
information form, all of which are available on our website at
cameco.com, on SEDAR+ at www.sedarplus.com, and on EDGAR at
sec.gov/edgar.shtml.
Qualified persons
The technical and scientific information discussed in this
document for our material properties McArthur River/Key Lake, Cigar
Lake and Inkai was approved by the following individuals who are
qualified persons for the purposes of NI 43-101:
MCARTHUR RIVER/KEY LAKE
- Greg Murdock, general manager, McArthur River, Cameco
- Daley McIntyre, general manager, Key Lake, Cameco
CIGAR LAKE
- Lloyd Rowson, vice-president, technical services, Cigar Lake,
Cameco
INKAI
- Sergey Ivanov, deputy director general, technical services,
Cameco Kazakhstan LLP
Caution about forward-looking information
This news release includes statements and information about our
expectations for the future, which we refer to as forward-looking
information. Forward-looking information is based on our current
views, which can change significantly, and actual results and
events may be significantly different from what we currently
expect. Examples of forward-looking information in this news
release include: our views regarding the positive momentum for
nuclear energy, its continuing full-cycle support, and the
transitioning of industries to energy sources that provide clean,
constant and reliable power; the impact of geopolitical events on
nuclear fuel customer procurement strategies, and our expectation
that Cameco and Westinghouse can benefit from having licensed and
permitted operations in geopolitically stable jurisdictions; our
contracting portfolio strategy, and our expectation of capturing
greater upside, creating future value and strong cash flow
generation through it and our growing pipeline of business under
discussion; our vision of energizing a clean-air world and belief
in our strategy for doing so in a manner that reflects our values;
our commitment to address risks and opportunities that we believe
will make our business sustainable over the longer term; our
expectation of achieving the 2024 outlook provided in our 2023
annual MD&A, including expected strong cash flow generation,
our estimated consolidated revenue and our share of Westinghouse’s
2024 adjusted EBITDA and net loss; expected higher cost Inkai
purchases, their cash impact on average unit cost of sales and our
expectation of a partial offset through dividends we receive from
JV Inkai; our 2024 production estimates at McArthur River/Key Lake
and Cigar Lake; our expectations regarding a return to our tier-one
cost structure with improving prices, our expected increase in UF6
conversion production and our expectation for strong cash flow
generation in 2024; our intention to prioritize repayment of the
remaining outstanding principal of the term loan used to finance
the Westinghouse acquisition; our plans to refinance our senior
unsecured debenture maturing on June 24, 2024; our expectations
regarding JV Inkai’s 2024 financial performance and the benefit we
would receive from future dividends; our expectations regarding
receipt of Inkai deliveries this year, JV Inkai’s production
target, its ability to secure sufficient volumes of sulfuric acid,
and our ability to draw on other sources of supply to mitigate the
risk of production shortfalls or delays in expected Inkai
deliveries; our view that the long-term business prospects for
Westinghouse continue to improve; and the expected date for
announcement of our 2024 second quarter results.
Material risks that could lead to different results include:
unexpected changes in uranium supply, demand, long-term
contracting, and prices; changes in consumer demand for nuclear
power and uranium as a result of changing societal views and
objectives regarding nuclear power, electrification and
decarbonization; the risk that our views regarding nuclear power,
its growth profile, and benefits, may prove to be incorrect; the
risk that we may not be able to achieve planned production levels
for Cigar Lake and McArthur River/Key Lake within the expected
timeframes, or that the costs involved in doing so exceed our
expectations; the risk that the production levels at Inkai may not
be at expected levels or that it may not be able to deliver its
production; risks to Westinghouse’s business associated with
potential production disruptions, the implementation of its
business objectives, compliance with licensing or quality assurance
requirements, or that it may otherwise be unable to achieve
expected growth; the risk that we may not be able to meet sales
commitments for any reason; the risks to our business associated
with potential production disruptions, including those related to
global supply chain disruptions, global economic uncertainty,
political volatility, labour relations issues, and operating risks;
the risk that we may not be able to implement our business
objectives in a manner consistent with our environmental, social,
governance and other values; the risk that the strategy we are
pursuing may prove unsuccessful, or that we may not be able to
execute it successfully; the risk that we may not realize the
expected benefits from the Westinghouse acquisition; the risk that
Westinghouse may not be able to implement its business objectives
in a manner consistent with its or our environmental, social,
governance and other values; and the risk that we may be delayed in
announcing our future financial results.
In presenting the forward-looking information, we have made
material assumptions which may prove incorrect about: uranium
demand, supply, consumption, long-term contracting, growth in the
demand for and global public acceptance of nuclear energy, and
prices; our production, purchases, sales, deliveries and costs; the
market conditions and other factors upon which we have based our
future plans and forecasts; our contract pipeline discussions; our
ability to mitigate adverse consequences of delays in the shipment
of our share of Inkai production; assumptions about Westinghouse’s
production, purchases, sales, deliveries and costs, the absence of
business disruptions, and the success of its plans and strategies;
the success of our plans and strategies, including planned
production; the absence of new and adverse government regulations,
policies or decisions; that there will not be any significant
adverse consequences to our business resulting from production
disruptions, including those relating to supply disruptions,
economic or political uncertainty and volatility, labour relation
issues, aging infrastructure, and operating risks; the assumptions
relating to growth in Westinghouse adjusted EBITDA; and our ability
to announce future financial results when expected.
Please also review the discussion in our 2023 annual MD&A
and most recent annual information form for other material risks
that could cause actual results to differ significantly from our
current expectations, and other material assumptions we have made.
Forward-looking information is designed to help you understand
management’s current views of our near-term and longer-term
prospects, and it may not be appropriate for other purposes. We
will not necessarily update this information unless we are required
to by securities laws.
Conference call
We invite you to join our first quarter conference call on
Tuesday, April 30, 2024, from 8:00 a.m. until 9:00 am Eastern.
The call will be open to all investors and the media. To join
the call, please dial (800) 319-4610 (Canada and US) or (604)
638-5340. An operator will put your call through. The slides and a
live webcast of the conference call will be available from a link
at cameco.com. See the link on our home page on the day of the
call.
A recorded version of the proceedings will be available:
- on our website, cameco.com, shortly after the call
- on post view until midnight, Eastern, May 30, 2024, by calling
(855) 669-9658 (Canada and US) or (604) 674-8052 (Passcode
0802#)
2024 second quarter report release date
We plan to announce our 2024 second quarter results before
markets open on Wednesday, July 31, 2024.
Profile
Cameco is one of the largest global providers of the uranium
fuel needed to energize a clean-air world. Our competitive position
is based on our controlling ownership of the world’s largest
high-grade reserves and low-cost operations, as well as significant
investments across the nuclear fuel cycle, including ownership
interests in Westinghouse Electric Company and Global Laser
Enrichment. Utilities around the world rely on Cameco to provide
global nuclear fuel solutions for the generation of safe, reliable,
carbon-free nuclear power. Our shares trade on the Toronto and New
York stock exchanges. Our head office is in Saskatoon,
Saskatchewan, Canada.
As used in this news release, the terms we, us, our, the Company
and Cameco mean Cameco Corporation and its subsidiaries unless
otherwise indicated.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240429417611/en/
Investor inquiries: Cory Kos 306-716-6782
cory_kos@cameco.com
Media inquiries: Veronica Baker 306-385-5541
veronica_baker@cameco.com
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