“Our technique continues to show the advantages of aligning our operational, advertising, and financially centered choices 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 world policymakers are turning to us as thought leaders within the business.
“Operationally, manufacturing leads to the primary quarter had been robust and are on monitor with our 2024 plans, with manufacturing charges and complete manufacturing prices in our uranium phase persevering with to mirror the transition again to our tier-one price construction. Out there, 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 further long-term contracts, growing our annual commitments to a mean of about 28 million kilos per yr from 2024 by 2028. Each contract we add displays the sentiment and dynamics available in the market on the time it’s negotiated, permitting us to seize higher upside and creating worth over the lifetime of the contract. From a risk-managed monetary perspective, our ensuing expectation of robust money circulate technology is guiding our conservative capital allocation priorities in 2024, with centered debt discount and prudent refinancing plans.
“Full-cycle help for nuclear vitality and the required uranium gasoline continues to develop, with growing public help, optimistic coverage choices, 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 nations becoming a member of forces to again supportive measures in areas together with financing, regulatory cooperation, technological innovation, and workforce coaching, enabling the growth of nuclear energy to assist tackle local weather change and increase vitality safety.
“The advantages of nuclear vitality as a crucial software within the struggle in opposition to local weather change and the benefit nuclear supplies within the context of vitality safety will not be 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 help from tech sector leaders and bulletins just like the latest acquisition of a 960 MW knowledge 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 world 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. We anticipate that Cameco and Westinghouse, as confirmed producers of uranium services and having demonstrated robust and sustainable efficiency, could be anticipated to profit from the numerous tailwinds related to having licensed and permitted operations in geopolitically secure jurisdictions.
“We’re a accountable, industrial provider with a powerful stability sheet, long-lived, tier-one property, and a confirmed working monitor report. We’re invested throughout the nuclear gasoline cycle and imagine we now have the precise technique to realize our imaginative and prescient of ‘energizing a clean-air world’ and achieve this in a fashion that displays our values. Embedded in our choices is a dedication to handle the dangers and alternatives that we imagine will make our enterprise sustainable over the long run.”
- 2024 outlook stays stable: We’re monitoring properly in the direction of reaching the 2024 outlook supplied in our 2023 annual MD&A. We proceed to anticipate robust money circulate technology, 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 info. 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 robust with internet earnings up by 34% and adjusted EBITDA up by 16% in comparison with the identical interval in 2023 largely resulting from a rise of 27% within the Canadian greenback common realized value 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 info. Nonetheless, as indicated in our 2023 annual MD&A, Westinghouse is anticipated 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 resulting from 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 mirror 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 info. Adjusted internet earnings and adjusted EBITDA are non-IFRS measures, see Non-IFRS measures under.
- Sturdy manufacturing efficiency within the uranium phase: In our uranium phase we produced 5.8 million kilos (our share) through the quarter, a rise from the 4.5 million kilos (our share) of manufacturing in the identical interval of 2023. On account 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 operating at deliberate manufacturing charges, we proceed to anticipate 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 info. 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 a purpose to retain the flexibleness 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 2028, with dedication ranges in 2024 and 2025 larger than the typical and in 2026 by 2028 decrease than the typical. Because the market additional improves, we anticipate to proceed to layer in volumes capturing higher 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 below dialogue, which we anticipate will assist additional construct our long-term contract portfolio.
- Sustaining monetary self-discipline and balanced liquidity to execute on technique:
- Sturdy stability 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 enhancing costs below 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 enhance in our UF 6 conversion manufacturing, we anticipate to see robust money circulate technology in 2024.
- Targeted 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: According to the conservative monetary administration we now have demonstrated and our 2024 capital allocation priorities, within the second quarter, we anticipate 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 $129 million (US), internet of withholdings, from JV Inkai primarily based on its 2023 monetary efficiency. From a money circulate perspective, we anticipate to appreciate the profit from JV Inkai’s 2024 monetary efficiency in 2025 as soon as the dividend for 2024 is asserted and paid.
- JV Inkai shipments: The second cargo containing the rest of our share of Inkai’s 2023 manufacturing arrived in February 2024. We proceed to work carefully with JV Inkai and our three way partnership companion, Kazatomprom, to obtain our share of manufacturing through the Trans-Caspian Worldwide Transport Route, which doesn’t depend on Russian rail traces or ports. We might expertise delays to our anticipated Inkai deliveries this yr if transportation utilizing this delivery route takes longer than anticipated. Inkai manufacturing was 1.6 million kilos (100% foundation) for the quarter, in comparison with 1.9 million kilos (100% foundation) in the identical interval final yr. Presently, JV Inkai is experiencing procurement and provide chain points, most notably, associated to the supply of sulfuric acid. JV Inkai’s present manufacturing goal for 2024 is 8.3 million kilos of U 3 O 8 (100% foundation). Nonetheless, this goal is tentative and contingent upon receipt of enough volumes of sulfuric acid. Our allocation of the deliberate manufacturing from JV Inkai is at present below dialogue. To mitigate the chance of transportation delays or manufacturing shortfalls, we now have stock, long-term buy agreements and mortgage preparations in place we are able to draw on.
Consolidated monetary outcomes
THREE MONTHS |
||||
HIGHLIGHTS |
ENDED MARCH 31 |
|||
($ MILLIONS EXCEPT WHERE INDICATED) |
2024 |
2023 |
CHANGE |
|
Income |
634 |
687 |
(8)% |
|
Gross revenue |
187 |
167 |
12% |
|
Web earnings (losses) attributable to fairness holders |
(7) |
119 |
>(100)% |
|
$ per widespread share (fundamental) |
(0.02) |
0.27 |
>(100)% |
|
$ per widespread share (diluted) |
(0.02) |
0.27 |
>(100)% |
|
Adjusted internet earnings (ANE) (non-IFRS, see Non-IFRS measures under) |
56 |
115 |
(51)% |
|
$ per widespread share (adjusted and diluted) |
0.13 |
0.27 |
(52)% |
|
Adjusted EBITDA (non-IFRS, see Non-IFRS measures under) |
345 |
226 |
53% |
|
Money supplied by operations (after working capital adjustments) |
63 |
215 |
(71)% |
The monetary info offered for the three months ended March 31, 2023, and March 31, 2024, is unaudited.
Chosen phase highlights
THREE MONTHS |
|||||
HIGHLIGHTS |
ENDED MARCH 31 |
||||
($ MILLIONS EXCEPT WHERE INDICATED) |
2024 |
2023 |
CHANGE |
||
Uranium |
Manufacturing quantity (million lbs) |
5.8 |
4.5 |
29% |
|
Gross sales quantity (million lbs) |
7.3 |
9.7 |
(25)% |
||
Common realized value 1 |
($US/lb) |
57.57 |
45.35 |
27% |
|
($Cdn/lb) |
77.33 |
60.98 |
27% |
||
Income |
561 |
595 |
(6)% |
||
Gross revenue |
169 |
137 |
23% |
||
Web earnings attributable to fairness holders |
253 |
189 |
34% |
||
Adjusted EBITDA 2 |
303 |
261 |
16% |
||
Gasoline providers |
Manufacturing quantity (million kgU) |
3.7 |
4.1 |
(10)% |
|
Gross sales quantity (million kgU) |
1.5 |
2.5 |
(40)% |
||
Common realized value 3 |
($Cdn/kgU) |
48.36 |
37.66 |
28% |
|
Income |
72 |
92 |
(22)% |
||
Web earnings attributable to fairness holders |
20 |
31 |
(35)% |
||
Adjusted EBITDA 2 |
25 |
39 |
(36)% |
||
Adjusted EBITDA margin (%) 2 |
35 |
42 |
(17)% |
||
Westinghouse |
Income |
656 |
– |
n/a |
|
(our share) |
Web loss |
(123) |
– |
n/a |
|
Adjusted EBITDA 2 |
77 |
– |
n/a |
||
1 Uranium common realized value is calculated because the income from gross sales of uranium focus, transportation and storage charges divided by the amount of uranium concentrates offered. |
|||||
2 Non-IFRS measure, see Non-IFRS measures under. |
|||||
3 Gasoline providers common realized value is calculated as income from the sale of conversion and fabrication providers, together with gasoline bundles and reactor elements, transportation and storage charges divided by the volumes offered. |
The desk under exhibits the prices of produced and bought uranium incurred within the reporting durations (see Non-IFRS measures under). These prices don’t embrace care and upkeep prices, promoting prices comparable to royalties, transportation and commissions, nor do they mirror the affect of opening inventories on our reported price of gross sales.
THREE MONTHS |
||||
ENDED MARCH 31 |
||||
($CDN/LB) |
2024 |
2023 |
CHANGE |
|
Produced |
||||
Money price |
19.52 |
23.13 |
(16)% |
|
Non-cash price |
9.79 |
10.82 |
(10)% |
|
Complete manufacturing price 1 |
29.31 |
33.95 |
(14)% |
|
Amount produced (million lbs) 1 |
5.8 |
4.5 |
29% |
|
Bought |
||||
Money price 1 |
87.75 |
66.92 |
31% |
|
Amount bought (million lbs) 1 |
2.6 |
0.4 |
>100% |
|
Totals |
||||
Produced and bought prices |
47.40 |
36.64 |
29% |
|
Portions produced and bought (million lbs) |
8.4 |
4.9 |
71% |
|
1 Because of fairness accounting, our share of manufacturing from JV Inkai is proven as a purchase order on the time of supply. These purchases will fluctuate through the quarters and timing of purchases is not going to match manufacturing. In the course of the quarter, we bought 1.1 million kilos from JV Inkai at a purchase order value per pound of $129.96 ($96.88 (US)). There have been no purchases from JV Inkai within the first quarter of 2023. |
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 info to buyers, securities analysts, lenders and different events in assessing our operational efficiency and our capacity to generate money flows to fulfill our money necessities. These measures will not be acknowledged measures below IFRS, wouldn’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 of in isolation or as an alternative to the monetary info reported below 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 comparable to positive factors and losses on derivatives and changes to reclamation provisions flowing by different working bills that we imagine don’t mirror the underlying monetary efficiency for the reporting interval. Different gadgets can 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 among the targets that we measure to kind the idea 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 below 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 had been settled on the finish of the reporting interval (mark-to-market). Nonetheless, we don’t imagine the positive factors and losses that we’re required to report below IFRS appropriately mirror the intent of our hedging actions, so we make changes in calculating our ANE to raised mirror the affect of our hedging program within the relevant reporting interval. See International trade in our 2023 annual MD&A for extra info.
We additionally modify for adjustments to our reclamation provisions that circulate instantly by earnings. Each quarter we’re required to replace the reclamation provisions for all operations primarily based on new money circulate estimates, low cost and inflation charges. This usually leads to an adjustment to our asset retirement obligation asset along with the availability stability. When the property of an operation have been written off resulting from 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 info. This quantity has been excluded from our ANE measure.
On account of the change in possession of Westinghouse when it was acquired by Cameco and Brookfield, Westinghouse’s inventories on the acquisition date had been revalued primarily based in the marketplace value at that date. As these portions are offered, Westinghouse’s price of services offered mirror 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 offered within the investee info (see word 7 to the monetary statements). Since this expense is non-cash, outdoors of the traditional 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 value paid. Our share of those prices is included in earnings from equity-accounted investees and recorded in different bills within the investee info (see word 7 to the monetary statements). Since this expense is outdoors of the traditional 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.
THREE MONTHS |
|||
ENDED MARCH 31 |
|||
($ MILLIONS) |
2024 |
2023 |
|
Web earnings (losses) attributable to fairness holders |
(7) |
119 |
|
Changes |
|||
Changes on derivatives |
33 |
(6) |
|
Changes to earnings from equity-investees |
|||
Stock buy accounting (internet of tax) |
38 |
– |
|
Acquisition-related transition prices (internet of tax) |
14 |
– |
|
Changes to different working revenue |
(15) |
(2) |
|
Revenue taxes on changes |
(7) |
4 |
|
Adjusted internet earnings |
56 |
115 |
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.
THREE MONTHS |
|||
ENDED MARCH 31 |
|||
($ MILLIONS) |
IFRS |
ADJUSTED |
|
Web earnings – 2023 |
119 |
115 |
|
Change in gross revenue by phase |
|||
(We calculate gross revenue by deducting from income the price of services offered, and depreciation and amortization (D&A)) |
|||
Uranium |
Affect from gross sales quantity adjustments |
(35) |
(35) |
Greater realized costs ($US) |
119 |
119 |
|
Greater prices |
(52) |
(52) |
|
Change – uranium |
32 |
32 |
|
Gasoline providers |
Affect from gross sales quantity adjustments |
(12) |
(12) |
Greater realized costs ($Cdn) |
16 |
16 |
|
Greater prices |
(16) |
(16) |
|
Change – gasoline providers |
(12) |
(12) |
|
Different adjustments |
|||
Decrease administration expenditures |
4 |
4 |
|
Greater exploration expenditures |
(1) |
(1) |
|
Change in reclamation provisions |
15 |
2 |
|
Decrease earnings from equity-accounted investees |
(103) |
(51) |
|
Change in positive factors or losses on derivatives |
(43) |
(4) |
|
Change in international trade positive factors or losses |
19 |
19 |
|
Decrease finance revenue |
(22) |
(22) |
|
Change in revenue tax restoration or expense |
5 |
(6) |
|
Different |
(20) |
(20) |
|
Web earnings (losses) – 2024 |
(7) |
56 |
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 flexibility to evaluate the working efficiency of the enterprise. These changes embrace 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. These things are reported as a part of different bills inside the investee monetary info and will not be consultant of the underlying operations. These embrace 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 might understand 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:
FUEL |
|||||||||||||
($ MILLIONS) |
URANIUM |
SERVICES |
WESTINGHOUSE |
OTHER |
TOTAL |
||||||||
Web earnings (loss) attributable to fairness holders |
253 |
20 |
(123 |
) |
(157 |
) |
(7 |
) |
|||||
Depreciation and amortization |
37 |
5 |
– |
1 |
43 |
||||||||
Finance revenue |
– |
– |
– |
(6 |
) |
(6 |
) |
||||||
Finance prices |
– |
– |
– |
38 |
38 |
||||||||
Revenue taxes |
– |
– |
– |
31 |
31 |
||||||||
290 |
25 |
(123 |
) |
(93 |
) |
99 |
|||||||
Changes on fairness investees |
|||||||||||||
Depreciation and amortization |
8 |
– |
85 |
– |
|||||||||
Finance revenue |
– |
– |
(2 |
) |
– |
||||||||
Finance expense |
– |
– |
64 |
– |
|||||||||
Revenue taxes |
20 |
– |
(37 |
) |
– |
||||||||
Web changes on fairness investees |
28 |
– |
110 |
– |
138 |
||||||||
EBITDA |
318 |
25 |
(13 |
) |
(93 |
) |
237 |
||||||
Acquire on derivatives |
– |
– |
– |
33 |
33 |
||||||||
Different working revenue |
(15 |
) |
– |
– |
– |
(15 |
) |
||||||
303 |
25 |
(13 |
) |
(60 |
) |
255 |
|||||||
Changes on fairness investees |
|||||||||||||
Stock buy accounting |
– |
– |
50 |
– |
|||||||||
Acquisition-related transition prices |
– |
– |
19 |
– |
|||||||||
Different bills |
– |
– |
21 |
– |
|||||||||
Web changes on fairness investees |
– |
– |
90 |
– |
90 |
||||||||
Adjusted EBITDA |
303 |
25 |
77 |
(60 |
) |
345 |
For the quarter ended March 31, 2023:
FUEL |
|||||||||||
($ MILLIONS) |
URANIUM |
SERVICES |
OTHER |
TOTAL |
|||||||
Web earnings (loss) attributable to fairness holders |
189 |
31 |
(101 |
) |
119 |
||||||
Depreciation and amortization |
68 |
8 |
1 |
77 |
|||||||
Finance revenue |
– |
– |
(28 |
) |
(28 |
) |
|||||
Finance prices |
– |
– |
24 |
24 |
|||||||
Revenue taxes |
– |
– |
36 |
36 |
|||||||
257 |
39 |
(68 |
) |
228 |
|||||||
Changes on fairness investees |
|||||||||||
Depreciation and amortization |
2 |
– |
– |
– |
|||||||
Revenue taxes |
4 |
– |
– |
– |
|||||||
Web changes on fairness investees |
6 |
– |
– |
6 |
|||||||
EBITDA |
263 |
39 |
(68 |
) |
234 |
||||||
Loss on derivatives |
– |
– |
(6 |
) |
(6 |
) |
|||||
Different working revenue |
(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
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 will not be essentially indicative of working revenue or money circulate from operations as decided below IFRS.
To facilitate a greater understanding of those measures, the desk under reconciles these measures to price of product offered and depreciation and amortization for the primary quarter of 2024 and 2023.
THREE MONTHS |
|||
ENDED MARCH 31 |
|||
($ MILLIONS) |
2024 |
2023 |
|
Value of product offered |
355.9 |
390.0 |
|
Add / (subtract) |
|||
Royalties |
(17.8) |
(24.7) |
|
Care and upkeep prices |
(12.2) |
(11.9) |
|
Different promoting prices |
(4.9) |
(2.7) |
|
Change in inventories |
20.4 |
(219.8) |
|
Money working prices (a) |
341.4 |
130.9 |
|
Add / (subtract) |
|||
Depreciation and amortization |
36.7 |
67.9 |
|
Care and upkeep prices |
(0.2) |
(1.6) |
|
Change in inventories |
20.3 |
(17.6) |
|
Complete working prices (b) |
398.2 |
179.6 |
|
Uranium produced & bought (million lbs) (c) |
8.4 |
4.9 |
|
Money prices per pound (a ÷ c) |
40.64 |
26.71 |
|
Complete prices per pound (b ÷ c) |
47.40 |
36.64 |
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 side 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 info 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 info mentioned on this doc for our materials properties McArthur River/Key Lake, Cigar Lake and Inkai was authorised by the next people who’re certified individuals for the needs of NI 43-101:
MCARTHUR RIVER/KEY LAKE
- Greg Murdock, basic supervisor, McArthur River, Cameco
- Daley McIntyre, basic supervisor, Key Lake, Cameco
CIGAR LAKE
- Lloyd Rowson, vice-president, technical providers, Cigar Lake, Cameco
INKAI
- Sergey Ivanov, deputy director basic, technical providers, Cameco Kazakhstan LLP
Warning about forward-looking info
This information launch contains statements and details about our expectations for the long run, which we consult with as forward-looking info. Ahead-looking info is predicated on our present views, which might change considerably, and precise outcomes and occasions could also be considerably completely different from what we at present anticipate. Examples of forward-looking info on this information launch embrace: our views relating to the optimistic momentum for nuclear vitality, its persevering with full-cycle help, 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 higher upside, creating future worth and powerful money circulate technology by it and our rising pipeline of enterprise below 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 run; our expectation of reaching the 2024 outlook supplied in our 2023 annual MD&A, together with anticipated robust money circulate technology, 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 dividends we obtain from JV Inkai; our 2024 manufacturing estimates at McArthur River/Key Lake and Cigar Lake; our expectations relating to a return to our tier-one price construction with enhancing costs, our anticipated enhance in UF 6 conversion manufacturing and our expectation for robust money circulate technology 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 relating to JV Inkai’s 2024 monetary efficiency and the profit we’d obtain from future dividends; our expectations relating to receipt of Inkai deliveries this yr, JV Inkai’s manufacturing goal, its capacity to safe enough volumes of sulfuric acid, and our capacity to attract on different sources of provide to mitigate the chance 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 embrace: sudden adjustments in uranium provide, demand, long-term contracting, and costs; adjustments in client demand for nuclear energy and uranium on account of altering societal views and aims relating to nuclear energy, electrification and decarbonization; the chance that our views relating to nuclear energy, its progress profile, and advantages, might show to be incorrect; the chance that we might 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 chance 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 aims, compliance with licensing or high quality assurance necessities, or that it could in any other case be unable to realize anticipated progress; the chance that we might not be capable of meet gross sales commitments for any motive; the dangers to our enterprise related to potential manufacturing disruptions, together with these associated to world provide chain disruptions, world financial uncertainty, political volatility, labour relations points, and working dangers; the chance that we might not be capable of implement our enterprise aims in a fashion according to our environmental, social, governance and different values; the chance that the technique we’re pursuing might show unsuccessful, or that we might not be capable of execute it efficiently; the chance that we might not understand the anticipated advantages from the Westinghouse acquisition; the chance that Westinghouse might not be capable of implement its enterprise aims in a fashion according to its or our environmental, social, governance and different values; and the chance that we could also be delayed in saying our future monetary outcomes.
In presenting the forward-looking info, we now have made materials assumptions which can show incorrect about: uranium demand, provide, consumption, long-term contracting, progress within the demand for and world public acceptance of nuclear vitality, and costs; our manufacturing, purchases, gross sales, deliveries and prices; the market situations and different components upon which we now have primarily based our future plans and forecasts; our contract pipeline discussions; our capacity to mitigate hostile 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 techniques; the success of our plans and techniques, together with deliberate manufacturing; the absence of latest and hostile authorities laws, insurance policies or choices; that there is not going to be any important hostile penalties to our enterprise ensuing from manufacturing disruptions, together with these relating to produce disruptions, financial or political uncertainty and volatility, labour relation points, ageing infrastructure, and working dangers; the assumptions regarding progress in Westinghouse adjusted EBITDA; and our capacity to announce future monetary outcomes when anticipated.
Please additionally overview the dialogue in our 2023 annual MD&A and most up-to-date annual info 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 info is designed that will help you perceive administration’s present views of our near-term and longer-term prospects, and it will not be acceptable for different functions. We is not going to essentially replace this info except we’re required to by securities legal guidelines.
Convention name
We invite you to hitch our first quarter convention name on Tuesday, April 30, 2024, from 8:00 a.m. till 9:00 am Japanese.
The decision might be open to all buyers and the media. To hitch the decision, please dial (800) 319-4610 (Canada and US) or (604) 638-5340. An operator will put your name by. The slides and a reside webcast of the convention name might be accessible 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 might be accessible:
- on our web site, cameco.com, shortly after the decision
- on publish view till midnight, Japanese, 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 among the largest world 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 World Laser Enrichment. Utilities around the globe depend on Cameco to supply world nuclear gasoline options for the technology of secure, 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