Extension of Uranium Mineralisation at Samphire Uranium Project Blackbush Deposit

“Our technique continues to reveal the advantages of aligning our operational, advertising and marketing, and financially centered selections in a market the place we’re seeing sustained, optimistic momentum for nuclear vitality like by no means earlier than. We stay within the enviable place of getting what we imagine are the world’s premier, tier-one property working in secure geopolitical areas, together with our investments throughout the gasoline cycle and reactor life cycle. That features our funding in Westinghouse, the place we’re seeing its long-term enterprise prospects proceed to enhance. With our place as a confirmed, dependable provider working throughout the nuclear gasoline cycle, our prospects acknowledge our deep understanding of how nuclear gasoline markets work, and international policymakers are turning to us as thought leaders within the trade.

“Operationally, manufacturing ends in the primary quarter have been sturdy and are on monitor with our 2024 plans, with manufacturing charges and complete manufacturing prices in our uranium phase persevering with to replicate the transition again to our tier-one price construction. Available in the market, we continued to be selective in committing our unencumbered, tier-one, in-ground uranium stock and UF ₆ conversion capability, constructing on a contract portfolio that spans greater than a decade by efficiently layering in extra long-term contracts, growing our annual commitments to a mean of about 28 million kilos per yr from 2024 by way of 2028. Each contract we add displays the sentiment and dynamics available in the market on the time it’s negotiated, permitting us to seize better upside and creating worth over the lifetime of the contract. From a risk-managed monetary perspective, our ensuing expectation of sturdy money stream era is guiding our conservative capital allocation priorities in 2024, with centered debt discount and prudent refinancing plans.

“Full-cycle assist for nuclear vitality and the required uranium gasoline continues to develop, with growing public assist, optimistic coverage selections, and market-based options underpinning the optimistic fundamentals and sturdy long-term demand story for nuclear. The inaugural Nuclear Power Summit happened in Brussels in March, with representatives from 32 international locations becoming a member of forces to again supportive measures in areas together with financing, regulatory cooperation, technological innovation, and workforce coaching, enabling the enlargement of nuclear energy to assist handle local weather change and enhance vitality safety.

“The advantages of nuclear vitality as a vital software within the combat in opposition to local weather change and the benefit nuclear offers within the context of vitality safety are usually not solely being acknowledged and highlighted by governments around the globe, however by energy-intensive industries which might be advancing quicker than policymakers to successfully transition to vitality sources that present clear, fixed and dependable energy. A rise in public assist from tech sector leaders and bulletins just like the current acquisition of a 960 MW information centre campus by Amazon Net Providers, with a associated long-term settlement to safe dependable energy from Talen’s Power Company’s Susquehanna nuclear energy plant, are indicative of that industrial focus.

“The geopolitical occasions which were amplifying international provide chain and transportation dangers are persevering with to have a major affect on nuclear gasoline buyer procurement methods. Utilities are adjusting their provide chains to make sure dependable provide, with growing competitors to safe long-term contracts for uranium services and products. We count on that Cameco and Westinghouse, as confirmed producers of uranium services and products and having demonstrated sturdy and sustainable efficiency, will be anticipated to learn from the numerous tailwinds related to having licensed and permitted operations in geopolitically secure jurisdictions.

“We’re a accountable, industrial provider with a powerful steadiness sheet, long-lived, tier-one property, and a confirmed working monitor file. We’re invested throughout the nuclear gasoline cycle and imagine we now have the best technique to attain our imaginative and prescient of ‘energizing a clean-air world’ and achieve this in a fashion that displays our values. Embedded in our selections is a dedication to handle the dangers and alternatives that we imagine will make our enterprise sustainable over the long run.”

• 2024 outlook stays strong: We’re monitoring properly in the direction of reaching the 2024 outlook offered in our 2023 annual MD&A. We proceed to count on sturdy money stream era, with estimated consolidated income of between about $2.9 billion and $3.0 billion. We preserve 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 extra data. Adjusted EBITDA attributable to Westinghouse is a non-IFRS measure, see Non-IFRS measures under.
• Q1 internet losses of $7 million; adjusted internet earnings of $56 million; adjusted EBITDA $345 million: Outcomes are pushed by regular quarterly variations in contract deliveries in our uranium and gasoline providers segments, and the addition of Westinghouse. Efficiency in our core uranium phase was sturdy with internet earnings up by 34% and adjusted EBITDA up by 16% in comparison with the identical interval in 2023 largely as a result of a rise of 27% within the Canadian greenback common realized worth partially offset by the anticipated decrease deliveries and better price of gross sales. See Monetary outcomes by phase – Uranium in our first quarter MD&A for extra data. Nevertheless, as indicated in our 2023 annual MD&A, Westinghouse is predicted to generate a internet lack of between $170 million and $230 million in 2024 because of the affect of the acquisition accounting, which requires the revaluation of Westinghouse’s stock and different property on the time of acquisition, and the expensing of some non-operating acquisition-related transition prices. Of the anticipated internet loss for Westinghouse in 2024, $123 million was incurred within the first quarter as a result of regular variability within the timing of its buyer necessities and supply and outage schedules. Westinghouse’s first quarter is often its weakest, with stronger anticipated efficiency within the second half of the yr, and better anticipated money flows within the fourth quarter. We don’t imagine the affect of the revaluation of Westinghouse’s stock and property, or the non-operating acquisition-related transition prices replicate its underlying efficiency for the reporting interval, subsequently, we use adjusted EBITDA as a efficiency measure for Westinghouse, which was $77 million for the primary quarter. See Our earnings from Westinghouse in our first quarter MD&A for extra data. Adjusted internet earnings and adjusted EBITDA are non-IFRS measures, see Non-IFRS measures under.
• Robust manufacturing efficiency within the uranium phase: In our uranium phase we produced 5.8 million kilos (our share) throughout the quarter, a rise from the 4.5 million kilos (our share) of manufacturing in the identical interval of 2023. Because of elevated manufacturing, the unit money price of manufacturing was $19.52 per pound, a 16% discount in comparison with the identical interval in 2023. The unit price of gross sales was up 15% primarily because of the affect of upper price purchases on the stock worth, together with Inkai purchases. The money affect of upper price Inkai purchases on common unit price of gross sales is partially offset by the dividends we obtain from Joint Enterprise Inkai (JV Inkai). With our mining operations performing properly and Key Lake working at deliberate manufacturing charges, we proceed to count on 18 million kilos of manufacturing (100% foundation) at every of McArthur River/Key Lake and Cigar Lake operations in 2024. See Our operations – uranium manufacturing overview in our first quarter MD&A for extra data. We proceed to plan our manufacturing to align with our contract portfolio and buyer wants, in addition to consider the optimum mixture of manufacturing, stock and purchases with the intention to retain the pliability to ship long-term worth. Money price per pound is a non-IFRS measure, see Non-IFRS measures under.
• Disciplined long-term contracting continues, sustaining publicity to larger costs: As of March 31, 2024, we had commitments requiring supply of a mean of about 28 million kilos per yr from 2024 by way of 2028, with dedication ranges in 2024 and 2025 larger than the typical and in 2026 by way of 2028 decrease than the typical. Because the market additional improves, we count on to proceed to layer in volumes capturing better upside utilizing market-related pricing mechanisms. We even have contracts in our uranium and gasoline providers segments that span greater than a decade, and in our uranium phase, a lot of these contracts profit from market-related pricing mechanisms. As well as, we now have a big and rising pipeline of enterprise beneath dialogue, which we count on will assist additional construct our long-term contract portfolio.
• Sustaining monetary self-discipline and balanced liquidity to execute on technique:
  • Robust steadiness sheet: As of March 31, 2024, we had $323 million in money and money equivalents and $1.5 billion in complete debt. As well as, we now have a $1.0 billion undrawn credit score facility which matures October 1, 2027. With bettering costs beneath our long-term contract portfolio, the progress we’re making in our uranium phase in the direction of the return to our tier-one price construction, and an anticipated improve in our UF ₆ conversion manufacturing, we count on to see sturdy money stream era in 2024.
  • Centered debt discount: Because of our risk-managed monetary self-discipline, and powerful money place, within the first quarter we prioritized the discount of the $600 million (US) floating-rate time period mortgage used to finance the Westinghouse acquisition, repaying $200 million (US) of the principal. We plan to proceed to prioritize reimbursement of the remaining $400 million (US) excellent principal on the time period mortgage whereas balancing our liquidity and money place.
  • Prudent refinancing plans: Per the conservative monetary administration we now have demonstrated and our 2024 capital allocation priorities, within the second quarter, we count on to refinance the $500 million senior unsecured debenture we now have maturing on June 24, 2024, previous to maturity or when it comes due.
• Acquired dividends from JV Inkai in April: Following the quarter finish, we obtained a money dividend of $129 million (US), internet of withholdings, from JV Inkai primarily based on its 2023 monetary efficiency. From a money stream perspective, we count on to understand the profit from JV Inkai’s 2024 monetary efficiency in 2025 as soon as the dividend for 2024 is asserted and paid.
• JV Inkai shipments: The second cargo containing the rest of our share of Inkai’s 2023 manufacturing arrived in February 2024. We proceed to work carefully with JV Inkai and our three way partnership associate, Kazatomprom, to obtain our share of manufacturing through the Trans-Caspian Worldwide Transport Route, which doesn’t depend on Russian rail strains or ports. We might expertise delays to our anticipated Inkai deliveries this yr if transportation utilizing this delivery route takes longer than anticipated. Inkai manufacturing was 1.6 million kilos (100% foundation) for the quarter, in comparison with 1.9 million kilos (100% foundation) in the identical interval final yr. Presently, JV Inkai is experiencing procurement and provide chain points, most notably, associated to the provision of sulfuric acid. JV Inkai’s present manufacturing goal for 2024 is 8.3 million kilos of U ₃ O ₈ (100% foundation). Nevertheless, this goal is tentative and contingent upon receipt of adequate volumes of sulfuric acid. Our allocation of the deliberate manufacturing from JV Inkai is presently beneath dialogue. To mitigate the danger of transportation delays or manufacturing shortfalls, we now have stock, long-term buy agreements and mortgage preparations in place we will draw on.

Consolidated monetary outcomes

The monetary data offered for the three months ended March 31, 2023, and March 31, 2024, is unaudited.

Chosen phase highlights

The desk under exhibits the prices of produced and bought uranium incurred within the reporting durations (see Non-IFRS measures under). These prices don’t embody care and upkeep prices, promoting prices resembling royalties, transportation and commissions, nor do they replicate the affect of opening inventories on our reported price of gross sales.

Non-IFRS measures

The non-IFRS measures referenced on this doc are supplemental measures, that are used as indicators of our monetary efficiency. Administration believes that these non-IFRS measures present helpful data to buyers, securities analysts, lenders and different events in assessing our operational efficiency and our potential to generate money flows to satisfy our money necessities. These measures are usually not acknowledged measures beneath IFRS, don’t have standardized meanings, and are subsequently unlikely to be akin to similarly-titled measures offered by different firms. Accordingly, these measures shouldn’t be thought-about in isolation or as an alternative to the monetary data reported beneath IFRS. The next are the non-IFRS measures used on this doc.

ADJUSTED NET EARNINGS

Adjusted internet earnings is our internet earnings attributable to fairness holders, adjusted for non-operating or non-cash gadgets resembling positive factors and losses on derivatives and changes to reclamation provisions flowing by way of different working bills that we imagine don’t replicate the underlying monetary efficiency for the reporting interval. Different gadgets might also be adjusted occasionally. We additionally modify this measure for sure of the gadgets that our equity-accounted investees make in arriving at different non-IFRS measures. Adjusted internet earnings is likely one of the targets that we measure to kind the premise for a portion of annual worker and govt compensation (see Measuring our outcomes in our 2023 annual MD&A).

In calculating ANE we modify for derivatives. We don’t use hedge accounting beneath IFRS and, subsequently, we’re required to report positive factors and losses on all hedging exercise, each for contracts that shut within the interval and those who stay excellent on the finish of the interval. For the contracts that stay excellent, we should deal with them as if they have been settled on the finish of the reporting interval (mark-to-market). Nevertheless, we don’t imagine the positive factors and losses that we’re required to report beneath IFRS appropriately replicate the intent of our hedging actions, so we make changes in calculating our ANE to higher replicate the affect of our hedging program within the relevant reporting interval. See Overseas change in our 2023 annual MD&A for extra data.

We additionally modify for modifications to our reclamation provisions that stream immediately by way of earnings. Each quarter we’re required to replace the reclamation provisions for all operations primarily based on new money stream estimates, low cost and inflation charges. This usually ends in an adjustment to our asset retirement obligation asset along with the availability steadiness. When the property of an operation have been written off as a result of an impairment, as is the case with our Rabbit Lake and US ISR operations, the adjustment is recorded on to the assertion of earnings as “different working expense (revenue)”. See word 10 of our interim monetary statements for extra data. This quantity has been excluded from our ANE measure.

Because of the change in possession of Westinghouse when it was acquired by Cameco and Brookfield, Westinghouse’s inventories on the acquisition date have been revalued primarily based in the marketplace worth at that date. As these portions are bought, Westinghouse’s price of services and products bought replicate these market values, no matter Westinghouse’s historic prices. Our share of those prices is included in earnings from equity-accounted investees and recorded in price of services and products bought within the investee data (see word 7 to the monetary statements). Since this expense is non-cash, exterior of the conventional course of enterprise and solely occurred because of the change in possession, we now have excluded our share from our ANE measure.

Westinghouse has additionally expensed some non-operating acquisition-related transition prices that the buying events agreed to pay for, which resulted in a discount within the buy worth paid. Our share of those prices is included in earnings from equity-accounted investees and recorded in different bills within the investee data (see word 7 to the monetary statements). Since this expense is exterior of the conventional course of enterprise and solely occurred because of the change in possession, we now have excluded our share from our ANE measure.

To facilitate a greater understanding of those measures, the desk under reconciles adjusted internet earnings with our internet earnings for the primary quarter of 2024 and compares it to the identical interval in 2023.

The next desk exhibits the drivers of the change in adjusted internet earnings (non-IFRS measure, see above) within the first quarter of 2024 in comparison with the identical interval in 2023.

EBITDA

EBITDA is outlined as internet earnings attributable to fairness holders, adjusted for the prices associated to the affect of the corporate’s capital and tax construction together with depreciation and amortization, finance revenue, finance prices (together with accretion) and revenue taxes.

ADJUSTED EBITDA

Adjusted EBITDA is outlined as EBITDA adjusted for the affect of sure prices or advantages incurred within the interval that are both not indicative of the underlying enterprise efficiency or that affect the power to evaluate the working efficiency of the enterprise. These changes embody the quantities famous within the ANE definition.

In calculating adjusted EBITDA, we additionally modify for gadgets included within the outcomes of our equity-accounted investees that aren’t changes to reach at our ANE measure. This stuff are reported as a part of different bills inside the investee monetary data and are usually not consultant of the underlying operations. These embody positive factors/losses on undesignated hedges, transaction, integration and restructuring prices associated to acquisitions and positive factors/losses on disposition of a enterprise.

The corporate could notice related positive factors or incur related expenditures sooner or later.

ADJUSTED EBITDA MARGIN

Adjusted EBITDA margin is outlined as adjusted EBITDA divided by income for the suitable interval.

EBITDA, adjusted EBITDA and adjusted EBITDA margin are non-IFRS measures which permit us and different customers to evaluate outcomes of operations from a administration perspective with out regard for our capital construction. To facilitate a greater understanding of those measures, the desk under reconciles earnings earlier than revenue taxes with EBITDA and adjusted EBITDA for the primary quarter of 2024 and 2023.

For the quarter ended March 31, 2024:

For the quarter ended March 31, 2023:

CASH COST PER POUND, NON-CASH COST PER POUND AND TOTAL COST PER POUND FOR PRODUCED AND PURCHASED URANIUM

Money price per pound, non-cash price per pound and complete price per pound for produced and bought uranium are non-IFRS measures. We use these measures in our evaluation of the efficiency of our uranium enterprise. These measures are usually not essentially indicative of working revenue or money stream from operations as decided beneath IFRS.

To facilitate a greater understanding of those measures, the desk under reconciles these measures to price of product bought and depreciation and amortization for the primary quarter of 2024 and 2023.

Administration’s dialogue and evaluation (MD&A) and monetary statements

The primary quarter MD&A and unaudited condensed consolidated interim monetary statements present an in depth rationalization of our working outcomes for the three months ended March 31, 2024, as in comparison with the identical interval final yr. This information launch needs to be learn along with these paperwork, in addition to our audited consolidated monetary statements and notes for the yr ended December 31, 2023, and annual MD&A, and our most up-to-date annual data kind, all of which can be found on our web site at cameco.com, on SEDAR+ at www.sedarplus.com , and on EDGAR at sec.gov/edgar.shtml.

Certified individuals

The technical and scientific data mentioned on this doc for our materials properties McArthur River/Key Lake, Cigar Lake and Inkai was accredited by the next people who’re certified individuals for the needs of NI 43-101:

MCARTHUR RIVER/KEY LAKE

• Greg Murdock, normal supervisor, McArthur River, Cameco
• Daley McIntyre, normal supervisor, Key Lake, Cameco

CIGAR LAKE

• Lloyd Rowson, vice-president, technical providers, Cigar Lake, Cameco

INKAI

• Sergey Ivanov, deputy director normal, technical providers, Cameco Kazakhstan LLP

Warning about forward-looking data

This information launch contains statements and details about our expectations for the longer term, which we confer with as forward-looking data. Ahead-looking data is predicated on our present views, which may change considerably, and precise outcomes and occasions could also be considerably completely different from what we presently count on. Examples of forward-looking data on this information launch embody: our views concerning the optimistic momentum for nuclear vitality, its persevering with full-cycle assist, and the transitioning of industries to vitality sources that present clear, fixed and dependable energy; the affect of geopolitical occasions on nuclear gasoline buyer procurement methods, and our expectation that Cameco and Westinghouse can profit from having licensed and permitted operations in geopolitically secure jurisdictions; our contracting portfolio technique, and our expectation of capturing better upside, creating future worth and powerful money stream era by way of it and our rising pipeline of enterprise beneath dialogue; our imaginative and prescient of energizing a clean-air world and perception in our technique for doing so in a fashion that displays our values; our dedication to handle dangers and alternatives that we imagine will make our enterprise sustainable over the long term; our expectation of reaching the 2024 outlook offered in our 2023 annual MD&A, together with anticipated sturdy money stream era, our estimated consolidated income and our share of Westinghouse’s 2024 adjusted EBITDA and internet loss; anticipated larger price Inkai purchases, their money affect on common unit price of gross sales and our expectation of a partial offset by way of dividends we obtain from JV Inkai; our 2024 manufacturing estimates at McArthur River/Key Lake and Cigar Lake; our expectations concerning a return to our tier-one price construction with bettering costs, our anticipated improve in UF ₆ conversion manufacturing and our expectation for sturdy money stream era in 2024; our intention to prioritize reimbursement of the remaining excellent principal of the time period mortgage used to finance the Westinghouse acquisition; our plans to refinance our senior unsecured debenture maturing on June 24, 2024; our expectations concerning JV Inkai’s 2024 monetary efficiency and the profit we’d obtain from future dividends; our expectations concerning receipt of Inkai deliveries this yr, JV Inkai’s manufacturing goal, its potential to safe adequate volumes of sulfuric acid, and our potential to attract on different sources of provide to mitigate the danger of manufacturing shortfalls or delays in anticipated Inkai deliveries; our view that the long-term enterprise prospects for Westinghouse proceed to enhance; and the anticipated date for announcement of our 2024 second quarter outcomes.

Materials dangers that would result in completely different outcomes embody: surprising modifications in uranium provide, demand, long-term contracting, and costs; modifications in shopper demand for nuclear energy and uranium because of altering societal views and targets concerning nuclear energy, electrification and decarbonization; the danger that our views concerning nuclear energy, its development profile, and advantages, could show to be incorrect; the danger that we could not be capable of obtain deliberate manufacturing ranges for Cigar Lake and McArthur River/Key Lake inside the anticipated timeframes, or that the prices concerned in doing so exceed our expectations; the danger that the manufacturing ranges at Inkai will not be at anticipated ranges or that it could not be capable of ship its manufacturing; dangers to Westinghouse’s enterprise related to potential manufacturing disruptions, the implementation of its enterprise targets, compliance with licensing or high quality assurance necessities, or that it could in any other case be unable to attain anticipated development; the danger that we could not be capable of meet gross sales commitments for any purpose; the dangers to our enterprise related to potential manufacturing disruptions, together with these associated to international provide chain disruptions, international financial uncertainty, political volatility, labour relations points, and working dangers; the danger that we could not be capable of implement our enterprise targets in a fashion in line with our environmental, social, governance and different values; the danger that the technique we’re pursuing could show unsuccessful, or that we could not be capable of execute it efficiently; the danger that we could not notice the anticipated advantages from the Westinghouse acquisition; the danger that Westinghouse could not be capable of implement its enterprise targets in a fashion in line with its or our environmental, social, governance and different values; and the danger that we could also be delayed in saying our future monetary outcomes.

In presenting the forward-looking data, we now have made materials assumptions which can show incorrect about: uranium demand, provide, consumption, long-term contracting, development within the demand for and international public acceptance of nuclear vitality, and costs; our manufacturing, purchases, gross sales, deliveries and prices; the market circumstances and different components upon which we now have primarily based our future plans and forecasts; our contract pipeline discussions; our potential to mitigate adversarial penalties of delays within the cargo of our share of Inkai manufacturing; assumptions about Westinghouse’s manufacturing, purchases, gross sales, deliveries and prices, the absence of enterprise disruptions, and the success of its plans and methods; the success of our plans and methods, together with deliberate manufacturing; the absence of latest and adversarial authorities laws, insurance policies or selections; that there won’t be any important adversarial penalties to our enterprise ensuing from manufacturing disruptions, together with these relating to provide disruptions, financial or political uncertainty and volatility, labour relation points, getting older infrastructure, and working dangers; the assumptions referring to development in Westinghouse adjusted EBITDA; and our potential to announce future monetary outcomes when anticipated.

Please additionally evaluation the dialogue in our 2023 annual MD&A and most up-to-date annual data kind for different materials dangers that would trigger precise outcomes to vary considerably from our present expectations, and different materials assumptions we now have made. Ahead-looking data is designed that will help you perceive administration’s present views of our near-term and longer-term prospects, and it will not be applicable for different functions. We won’t essentially replace this data except we’re required to by securities legal guidelines.

Convention name

We invite you to affix our first quarter convention name on Tuesday, April 30, 2024, from 8:00 a.m. till 9:00 am Jap.

The decision will likely be open to all buyers and the media. To affix the decision, please dial (800) 319-4610 (Canada and US) or (604) 638-5340. An operator will put your name by way of. The slides and a dwell webcast of the convention name will likely be obtainable from a hyperlink at cameco.com. See the hyperlink on our house web page on the day of the decision.

A recorded model of the proceedings will likely be obtainable:

• on our web site, cameco.com, shortly after the decision
• on put up view till midnight, Jap, Might 30, 2024, by calling (855) 669-9658 (Canada and US) or (604) 674-8052 (Passcode 0802#)

2024 second quarter report launch date

We plan to announce our 2024 second quarter outcomes earlier than markets open on Wednesday, July 31, 2024.

Profile

Cameco is likely one of the largest international suppliers of the uranium gasoline wanted to energise a clean-air world. Our aggressive place is predicated on our controlling possession of the world’s largest high-grade reserves and low-cost operations, in addition to important investments throughout the nuclear gasoline cycle, together with possession pursuits in Westinghouse Electrical Firm and International Laser Enrichment. Utilities around the globe depend on Cameco to offer international nuclear gasoline options for the era of protected, dependable, carbon-free nuclear energy. Our shares commerce on the Toronto and New York inventory exchanges. Our head workplace is in Saskatoon, Saskatchewan, Canada.

As used on this information launch, the phrases we, us, our, the Firm and Cameco imply Cameco Company and its subsidiaries except in any other case indicated.

View supply model 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