Cameco (TSX: CCO; NYSE: CCJ) today reported its consolidated
financial and operating results for the fourth quarter and year
ended December 31, 2023, in accordance with International Financial
Reporting Standards (IFRS).
“Our 2023 financial performance benefitted from higher sales
volumes and realized prices in our uranium and fuel services
segments. Our net earnings, adjusted net earnings, and cash from
operations all more than doubled compared to 2022, with adjusted
EBITDA up 93%. In 2024, we expect strong financial performance as
we begin to realize the benefits from our investment in
Westinghouse. We plan to continue to transition to our tier-one
cost structure and make the capital and other expenditures we
believe are necessary to position the company for continued
sustainable growth. Growth that will be sought in the same manner
as we approach all aspects of our business; strategic, deliberate,
disciplined, and with a focus on generating full-cycle value,” said
Tim Gitzel, Cameco’s president and CEO.
“Heightened geopolitical uncertainty, global production
shortfalls, and transportation challenges in 2023 further
highlighted the growing security of supply risk at a time when we
believe the demand outlook is stronger and more durable than ever.
The benefits of nuclear power have come clearly into focus, with 28
countries around the world declaring support for the tripling of
capacity to help achieve global net-zero greenhouse gas emissions
by 2050. The uncertainty about where nuclear fuel supplies will
come from to satisfy growing demand has led to increased long-term
contracting activity, and in 2023, about 160 million pounds of
uranium was placed under long-term contracts by utilities. Prices
across the nuclear fuel cycle continued to rise. Spot enrichment
prices are up 38% and conversion prices continue to achieve record
highs. Uranium spot prices have more than doubled from around $48
(US) per pound at the end of 2022 to $100 (US) per pound at the end
of January 2024, after peaking at $106 (US) per pound earlier in
the month, and the long-term price for uranium was $72 (US) per
pound, an increase of about 38% over the same period.
“We continue to believe that Cameco remains an excellent
opportunity to invest in the recovery of the nuclear fuel cycle. We
have 35 years of experience in this market and have built a strong
reputation as a proven and reliable supplier with a diversified
production portfolio that provides us with the flexibility to work
with our customers to ensure they maintain access to our reliable
supplies to satisfy their ongoing fuel requirements. We have
designed our strategy of full-cycle value capture to be resilient.
We have multiple supply options, including production, purchases,
inventory and loans we can draw on to help ensure we continue to
meet our delivery commitments to our customers. Given the nature of
our contracts, we have good visibility into when and where we need
to deliver material, and we have put in place a number of tools
that allow us to self-manage risk.
“We continue to have success gaining and preserving exposure to
the improving market fundamentals under long-term contracts that
will underpin the sustainable operation of our assets. In our
uranium segment, our contracting focus has been on obtaining
market-related pricing mechanisms, while also providing adequate
downside protection. We continue to be strategically patient in our
discussions to maximize value in our contract portfolio and to
maintain exposure to higher prices with unencumbered future
productive capacity.
“With ongoing improvements in the market, the new long-term
contracts we have put in place and our pipeline of contracting
discussions, we are planning to produce 18 million pounds (100%
basis) at each of McArthur River/Key Lake and Cigar Lake in 2024.
We have also converted 73.4 million pounds (100% basis) (40 million
pounds our share) of resources to reserves at Cigar Lake, and plan
to begin the work necessary to extend the estimated mine life to
2036. At McArthur River/Key Lake, we will undertake an evaluation
of the work and investment necessary to expand production up to its
annual licensed capacity of 25 million pounds (100% basis), which
we expect will allow us to take advantage of this opportunity when
the time is right.
“We are excited to have added a 49% interest in Westinghouse to
our portfolio of investments in 2023. We believe Westinghouse is
well-positioned for long-term growth driven by the expected
increase in global demand for nuclear power. In 2024, we expect our
share of its adjusted EBITDA to be between $445 million and $510
million. Further, over the next five years, we expect its adjusted
EBITDA will grow at a compound annual growth rate of 6% to 10%.
“Thanks to the disciplined execution of our strategy, including
our conservative financial management, our balance sheet remains
strong. We expect it will enable us to continue executing our
strategy and self-managing risk, including risks related to global
macro-economic uncertainty and volatility. As of December 31, 2023,
we had $567 million in cash and cash equivalents with approximately
$1.8 billion in total debt. And, we recently initiated a partial
repayment of $200 million (US) on the $600 million (US)
floating-rate term loan that was used to finance the acquisition of
Westinghouse. Our $1.0 billion credit facility continues to be
undrawn.
“With the renewed recognition of the role nuclear power must
play in providing clean and secure baseload power, we are
optimistic about Cameco’s role in supporting the transition to a
net-zero carbon economy. We have a plan to achieve a 30% absolute
reduction from our total Scope 1 and 2 emissions level by 2030 from
our 2015 baseline, which is the first major milestone on the
journey to achieve our ambition of being net-zero. We believe our
largest contribution to the net-zero transition comes from the
uranium, nuclear fuel, services and technology that we supply to
support the generation of nuclear power – 100% carbon-free
electricity. Recently, we put further support behind our commitment
to climate action and our vision of energizing a clean-air world by
joining Net Zero Nuclear, an initiative between government,
industry leaders and civil society to triple global nuclear
capacity to achieve carbon neutrality by 2050.
“We believe we have the right strategy to achieve our vision of
‘energizing a clean-air world’ and we will do so in a manner that
reflects our values. Embedded in all our decisions is a commitment
to addressing the environmental, social and governance risks and
opportunities that we believe will make our business sustainable
over the long term.”
Summary of Q4 and 2023 results and developments:
- 2024 guidance: With the improvements in the market, the
new long-term contracts we have put in place, and a pipeline of
contracting discussions, our plan is to produce 18 million pounds
(100% basis) at each of McArthur River/Key Lake and Cigar Lake in
2024. We also plan to begin the work necessary to extend the
estimated mine life at Cigar Lake to 2036. In addition, at McArthur
River/Key Lake, we plan to undertake an evaluation of the work and
investment necessary to expand production up to its annual licensed
capacity of 25 million pounds (100% basis), which we expect will
allow us to take advantage of this opportunity when the time is
right. Based on Kazatomprom’s (KAP) announcement on February 1,
2024, production in Kazakhstan is expected to remain 20% below the
level stipulated in subsoil use agreements, similar to in 2023,
primarily due to the sulfuric acid shortage in the country. We are
still in discussions with JV Inkai and KAP to determine how this
may impact production at Inkai in 2024 and thereafter and therefore
our corresponding purchase obligation. At our Port Hope conversion
facility, we plan to produce between 13.5 million and 14.5 million
kgU, including 12 million kgU of UF6 to satisfy our book of
long-term business for conversion services and customer demand at a
time when conversion prices are at historic highs. As a result of
these plans, we expect strong financial performance in 2024,
including cash flow generation. See Outlook for 2024 and Uranium –
Tier-one operations in our 2023 annual MD&A.
- Fourth quarter net earnings of $80 million; adjusted net
earnings of $90 million: Fourth quarter results are driven by
normal quarterly variations in contract deliveries and the
continued execution of our strategy. Our results include the
addition of a new segment with the close of the acquisition of
Westinghouse Electric Company (Westinghouse) in the fourth quarter.
Adjusted net earnings is a non-IFRS measure, see below.
- Annual net earnings of $361 million; adjusted net earnings
of $339 million: Annual results reflect the continued
transition back to a tier-one cost structure. Our results also
reflect higher sales volumes and the improvement in average
realized prices as uranium and conversion prices continued to
increase, catalyzed by security of supply concerns. In our uranium
segment, we delivered 32 million pounds of uranium at an average
realized price of $67.31. Production for 2023 was 17.6 million
pounds in our uranium segment, slightly lower than anticipated in
September. In our fuel services segment, we delivered 12 million
kgU under contract at an average realized price of $35.61 and
produced 13.3 million kgU. In addition, we generated $688 million
in cash from operations and adjusted EBITDA of $831 million. Our
annual results include $101 million in adjusted EBITDA from our
investment in Westinghouse. Adjusted net earnings and adjusted
EBITDA are non-IFRS measures, see below.
- Disciplined long-term contracting continues: As of
December 31, 2023, in our uranium segment, we had commitments
requiring delivery of an average of about 27 million pounds of
uranium per year from 2024 through 2028, with commitment levels
higher than the average in 2024 and 2025, and below the average in
2026 through 2028. Our total portfolio of long-term contracts
includes commitments for approximately 205 million pounds of
uranium. These commitments only represent about 20% of our current
reserve and resource base, providing us with a great deal of
exposure to improving demand from our customers as they look to
secure their long-term needs. We continue to have a large and
growing pipeline of uranium business under discussion. Our focus
continues to be on obtaining market-related pricing mechanisms,
while also providing adequate downside protection. We continue to
be strategically patient in our discussions to maximize value in
our contract portfolio and to maintain exposure to higher prices
with unencumbered future productive capacity. In addition, with
strong demand in the UF6 conversion market, we were successful in
adding new long-term contracts that bring our total contracted
volumes to over 75 million kgU of UF6 that will underpin our Port
Hope conversion facility for years to come.
- JV Inkai shipments: The first shipment containing
approximately two thirds of our share of Inkai's 2023 production
was received in the fourth quarter. The second shipment with the
remaining volume of our share of 2023 production has arrived at a
Canadian port. We continue to work closely with JV Inkai and our
joint venture partner, KAP, 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 further
delays to our expected Inkai deliveries if transportation using
this shipping route takes longer than anticipated. To mitigate the
risk of delays, we have inventory, long-term purchase agreements
and loan arrangements in place we can draw on to meet our
commitments. Depending on when we receive shipments of our share of
Inkai’s production, our share of earnings from this
equity-accounted investee and the timing of the receipt of our
share of dividends from the joint venture may be impacted. See
Uranium – Tier-one operations – Inkai in our 2023 annual
MD&A.
- Acquisition of Westinghouse: In November, we announced
the closing of the acquisition of Westinghouse in a strategic
partnership with Brookfield Asset Management alongside its publicly
listed affiliate Brookfield Renewable Partners (Brookfield) and
institutional partners. Cameco now owns a 49% interest and
Brookfield owns the remaining 51% in Westinghouse. We believe
bringing together our expertise in the nuclear industry with
Brookfield’s expertise in clean energy positions nuclear power at
the heart of the clean energy transition and creates a powerful
platform for strategic growth across the nuclear sector. In 2024,
we expect our share of its adjusted EBITDA to be between $445
million and $510 million. Further, over the next five years, we
expect its adjusted EBITDA will grow at a compound annual growth
rate of 6% to 10%. Adjusted EBITDA is a non-IFRS measure, see
below. See Westinghouse Electric Company in our 2023 annual
MD&A.
- Strong balance sheet: As of December 31, 2023, we had
$567 million in cash and cash equivalents and $1.8 billion in total
debt. In addition, we have a $1.0 billion undrawn credit facility.
We have a $500 million senior unsecured debenture maturing on June
24, 2024. Over the coming months, we will look for an opportunity
to refinance this debenture, prior to maturity or as it comes due.
Ultimately, our decision will be made with consideration for our
cash generation, the interest rate environment and other capital
allocation considerations. In addition, we have initiated a partial
repayment of $200 million (US) on the $600 million (US)
floating-rate term loan that was used to finance the acquisition of
Westinghouse. The prepayment will be applied to the $300 million
(US) tranche, which matures in November 2026. See Financing
Activities in our 2023 annual MD&A for more information about
the term loan.
- Received dividends from JV Inkai: In the first quarter
of 2023, we disclosed the receipt of a cash dividend payment from
JV Inkai totaling $79 million (US), net of withholdings. JV Inkai
distributes excess cash, net of working capital requirements, to
the partners as dividends. See Uranium – Tier-one operations –
Inkai in our 2023 annual MD&A.
- Canada Revenue Agency (CRA) tax dispute: In March, we
announced CRA issued revised reassessments for the 2007 through
2013 tax years, which resulted in a refund of $297 million of the
$780 million in cash and letters of credit held by CRA at the time.
The refund consisted of cash in the amount of $86 million and
letters of credit in the amount of $211 million, which were
returned in the second quarter. In the third quarter MD&A, we
disclosed the receipt of $12 million from CRA for disbursements
related to costs awarded by the courts, based on their decisions in
our favour for the 2003, 2005 and 2006 tax years. The costs were in
addition to the $10 million we received from CRA in April 2021 as
reimbursement for legal fees. In late 2023, we received a
reassessment for the 2017 tax year based on CRA’s alternate
reassessing position and expect we will be required to provide
letters of credit of about $70 million as security. See Transfer
pricing dispute in our 2023 annual MD&A for more
information.
- Licence renewals: In January, the Canadian Nuclear
Safety Commission (CNSC) granted a 20-year licence renewal for
Cameco Fuel Manufacturing, which also allows for a slight increase
to 1,650 tonnes as UO2 fuel pellets (previously 1,200 tonnes). In
October, the CNSC renewed the licences for McArthur River, Key Lake
and Rabbit Lake. We were pleased to receive 20-year licences for
McArthur River and Key Lake and a 15-year licence for Rabbit Lake.
We believe that our commitment to protecting the health and safety
of our employees, the public and the environment is reflected in
the extended duration of the licences.
Consolidated financial results
THREE MONTHS ENDED
YEAR ENDED
CONSOLIDATED HIGHLIGHTS
DECEMBER 31
DECEMBER 31
($ MILLIONS EXCEPT WHERE INDICATED)
2023
2022
2023
2022
Revenue
844
524
2,588
1,868
Gross profit
133
65
562
233
Net earnings (loss) attributable to equity
holders
80
(15)
361
89
$ per common share (basic)
0.18
(0.04)
0.83
0.22
$ per common share (diluted)
0.18
(0.04)
0.83
0.22
Adjusted net earnings (loss) (non-IFRS,
see below)
90
36
339
135
$ per common share (adjusted and
diluted)
0.21
0.09
0.78
0.33
Adjusted EBITDA (non-IFRS, see below)1
831
431
Cash provided by operations
201
77
688
305
1 We have only provided adjusted EBITDA on
a year-to-date basis.
The 2023 annual financial statements have been audited; however,
the 2022 fourth quarter and 2023 fourth quarter financial
information presented is unaudited. You can find a copy of our 2023
annual MD&A and our 2023 audited financial statements on our
website at cameco.com.
NET EARNINGS
The following table shows what contributed to the change in net
earnings and adjusted net earnings (non-IFRS measure, see below) in
the three months and year ended December 31, 2023, compared to the
same period in 2022.
CHANGES IN EARNINGS
THREE MONTHS ENDED
YEAR ENDED
($ MILLIONS)
DECEMBER 31
DECEMBER 31
IFRS
ADJUSTED
IFRS
ADJUSTED
Net earnings (losses) - 2022
(15)
36
89
135
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), net of hedging
benefits)
Uranium
Impact from sales volume changes
10
10
30
30
Higher realized prices ($US)
122
122
208
208
Foreign exchange impact on realized
prices
13
13
95
95
Higher costs
(73)
(73)
(9)
(9)
change – uranium
72
72
324
324
Fuel services
Impact from sales volume changes
4
4
9
9
Higher realized prices ($Cdn)
8
8
32
32
Higher costs
(14)
(14)
(34)
(34)
change – fuel services
(2)
(2)
7
7
Other changes
Higher administration expenditures
(30)
(30)
(74)
(74)
Higher exploration expenditures
(1)
(1)
(7)
(7)
Change in reclamation provisions
41
(7)
31
3
Change in gains or losses on
derivatives
36
(4)
111
(24)
Change in foreign exchange gains or
losses
2
2
(58)
(58)
Change in earnings from equity-accounted
investments
39
59
60
80
Bargain purchase gain on CLJV ownership
interest increase
-
-
(23)
-
Higher (lower) finance income
(3)
(3)
75
75
Higher finance costs
(24)
(24)
(30)
(30)
Change in income tax recovery or
expense
(32)
(5)
(130)
(78)
Other
(3)
(3)
(14)
(14)
Net earnings - 2023
80
90
361
339
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 (ANE) is our net earnings attributable to
equity holders, adjusted for non-operating or non-cash items such
as gains and losses on derivatives, adjustments to reclamation
provisions flowing through other operating expenses, and bargain
purchase gains, 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 do not adjust this measure
for items that 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 16 of our annual financial statements
for more information. This amount has been excluded from our ANE
measure.
The bargain purchase gain that was recognized when we acquired
our pro-rata share of Idemitsu Canada Resources Ltd.’s 7.875%
participating interest in the Cigar Lake Joint Venture has also
been removed in calculating ANE since it is non-cash, non-operating
and outside of the normal course of our business. The gain was
recorded in the statement of earnings as part of “other income
(expense)”.
As a result of the change in ownership of Westinghouse when they
were acquired by Cameco and Brookfield, their inventories at the
acquisition date were revalued based on the market price at that
date. As these quantities are sold, their cost of products and
services sold reflect these market values, regardless of
Westinghouse’s historic costs. Since this adjustment is non-cash,
outside of the normal course of business and only occurred due to
the change in ownership, it has been excluded from our ANE
measure.
The following table reconciles adjusted net earnings with our
net earnings for the three months and years ended December 31,
2023, and 2022.
THREE MONTHS ENDED
YEAR ENDED
DECEMBER 31
DECEMBER 31
($ MILLIONS)
2023
2022
2023
2022
Net earnings (loss) attributable to
equity holders
80
(15)
361
89
Adjustments
Adjustments on derivatives
(59)
(19)
(59)
76
Adjustments to earnings from
equity-investees
20
-
20
-
Adjustments on other operating expense
(income)
40
88
(2)
26
Adjustment to other income
-
-
-
(23)
Income taxes on adjustments
9
(18)
19
(33)
Adjusted net earnings
90
36
339
135
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
adjusted net earnings definition.
In calculating adjusted EBITDA, we also adjust for items
included in the results of our equity-accounted investees. These
items are reported as part of marketing, administrative and general
expenses within the investee financial information and are not
representative of the underlying operations. These include
gain/loss on undesignated hedges, transaction costs related to
acquisitions and gain/loss on disposition of a business.
We also adjust for the unwinding of the effect of purchase
accounting on the sale of inventories which is included in our
share of earnings from equity-accounted investee and recorded in
the cost of products and services sold in the investee information
(see note 12 to the financial statements).
The company may realize similar gains or incur similar
expenditures in the future.
EBITDA and adjusted EBITDA are 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 years ended 2023 and 2022.
For the year ended December 31, 2023:
FUEL
($ MILLIONS)
URANIUM1
SERVICES
WESTINGHOUSE
OTHER
TOTAL
Net earnings (loss) attributable to
equity holders
606
129
(24)
(350)
361
Depreciation and amortization
175
35
-
10
220
Finance income
-
-
-
(112)
(112)
Finance costs
-
-
-
116
116
Income taxes
(7)
126
119
Net adjustments on equity investees2
56
-
89
-
145
EBITDA
837
164
58
(210)
849
Loss on derivatives
-
-
-
(59)
(59)
Other operating expense (income)
(2)
-
-
-
(2)
Other income
-
-
-
-
-
Adjustments on equity investees3
-
-
43
-
43
Adjusted EBITDA
835
164
101
(269)
831
1JV Inkai EBITDA is included in the
uranium segment. See JV Inkai Non-IFRS measures in our 2023 annual
MD&A.
2Includes depreciation and amortization,
finance income and finance costs of equity-accounted investees (see
note 12 to the financial statements).
3For detail of adjustments, see Our 2023
Earnings from Westinghouse in our 2023 annual MD&A.
For the year ended December 31, 2022:
FUEL
($ MILLIONS)
URANIUM1
SERVICES
OTHER
TOTAL
Net earnings (loss) attributable to
equity holders
200
120
(231)
89
Depreciation and amortization
136
33
8
177
Finance income
-
-
(37)
(37)
Finance costs
-
-
86
86
Income taxes
-
-
(4)
(4)
Net adjustments on equity investees2
41
-
-
41
EBITDA
377
153
(178)
352
Loss on derivatives
-
-
76
76
Other operating expense (income)
26
-
-
26
Other income
(23)
-
-
(23)
Adjusted EBITDA
380
153
(102)
431
1JV Inkai EBITDA is included in the
uranium segment. See JV Inkai Non-IFRS measures in our 2023 annual
MD&A.
2Includes depreciation and amortization,
finance income and finance costs of equity-accounted investees (see
note 12 to the financial statements)
The following Westinghouse financial outlook is reported in
Canadian dollars and prepared in accordance with IFRS and reflects
Cameco’s 49% ownership share. It reconciles the Westinghouse
outlook for net earnings with EBITDA and adjusted EBITDA.
CAMECO SHARE (49%)
($Cdn MILLIONS - IFRS)
2024 OUTLOOK
Net earnings (loss)
(170-230)
Depreciation and amortization
335-385
Finance income
(2-3)
Finance costs
140-170
Income tax expense (recovery)
10-30
EBITDA
320-380
Adjustments on cost of products and
services sold
55-60
Adjustments on marketing, administrative
and general
50-65
Adjusted EBITDA
445-510
The outlook for Westinghouse’s Adjusted EBITDA for 2024 and its
growth over the next five years are based on the following
assumptions:
- An exchange rate of $1.00 (US) for $1.30 (Cdn)
- A compound annual growth rate in revenue from its core business
of 4% to 6%, which is slightly higher than the anticipated average
growth rate of the nuclear industry based on the World Nuclear
Association’s Reference Case. In addition to orders for PWR reactor
fuel and services, this includes orders for VVER and BWR fuel and
services. The outlook assumes that work is fulfilled on the
timelines and scope expected based on current orders received, and
additional work is undertaken based on past trends. The expected
margins on this work are aligned with the historic margins of 16%
to 19%, with variability expected to come from product mix compared
to in previous years.
- Growth from new AP1000® reactor projects is based on agreements
that have been signed and announcements where the AP1000 technology
has been selected, including Poland, Bulgaria and Ukraine. It is
assumed that work on announced agreements and announced selections
to be done by Westinghouse would proceed on the timelines and
revenue pattern noted under the New Build Framework. The growth
only assumes Westinghouse undertakes the Engineering and
Procurement work required prior to a new reactor project breaking
ground, which is a small component of the overall potential. A
delay in project timelines or cancellation of announced projects
would result in a growth rate near the bottom of the range.
- Estimates and assumptions, including development timelines for
both announced and potential reactor builds are subject to
government and regulatory approval, as well as risks related to the
current macro-economic environment, and may differ significantly
from those assumed.
- We also expect that investments in new technologies, including
eVinci™ microreactor and AP300™ small modular reactor, will be made
in accordance with Westinghouse’s current business plan and are
expected to contribute to Westinghouse’s Adjusted EBITDA largely
outside the 5-year time frame.
Selected segmented highlights
THREE MONTHS ENDED
YEAR ENDED
DECEMBER 31
DECEMBER 31
HIGHLIGHTS
2023
2022
CHANGE
2023
2022
CHANGE
Uranium
Production volume (million lbs)
5.7
3.7
54%
17.6
10.4
69%
Sales volume (million lbs)
9.8
6.9
42%
32.0
25.6
25%
Average realized price1
($US/lb)
52.35
43.05
22%
49.76
44.73
11%
($Cdn/lb)
71.65
57.87
24%
67.31
57.85
16%
Revenue ($ millions)
700
397
76%
2,152
1,480
45%
Gross profit ($ millions)
96
24
>100%
444
121
>100%
Net earnings2
606
200
>100%
Adjusted EBITDA2,3
835
380
>100%
Fuel services
Production volume (million kgU)
3.7
3.7
-
13.3
13.0
2%
Sales volume (million kgU)
4.2
3.8
11%
12.0
11.1
8%
Average realized price 4
($Cdn/kgU)
32.19
30.11
7%
35.61
32.92
8%
Revenue ($ millions)
134
115
17%
426
365
17%
Gross profit ($ millions)
40
41
(2)%
124
117
6%
Net earnings2
129
120
8%
Adjusted EBITDA2,3
164
153
7%
Westinghouse
Revenue5
521
-
-
(our share)
Net loss2
(24)
-
Adjusted EBITDA2,3
101
-
-
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 We have only provided segmented net
earnings (loss) and adjusted EBITDA on a year-to-date basis.
3 Non-IFRS measure, see below.
4 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.
5 We closed the acquisition of
Westinghouse on November 7, 2023. Our share of its revenue is
reflected for the year ended 2023. We did not have an ownership
interest in Westinghouse in 2022.
Management's discussion and analysis (MD&A) and financial
statements
The 2023 annual MD&A and consolidated financial statements
provide a detailed explanation of our operating results for the
three and twelve months ended December 31, 2023, as compared to the
same periods last year, and our outlook for 2024. This news release
should be read in conjunction with these documents, as well as 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
INKAI
- Sergey Ivanov, deputy director general, technical services,
Cameco Kazakhstan LLP
CIGAR LAKE
- Lloyd Rowson, general manager, Cigar Lake, Cameco
- Scott Bishop, director, technical services, Cameco
- Alain D. Renaud, principal resource geologist, technical
services, Cameco
- Biman Bharadwaj, principal metallurgist, technical services,
Cameco
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 expectation of strong financial performance as we
begin to realize benefits from our investment in Westinghouse,
including our belief that Westinghouse is well-positioned for
long-term growth, and our expected share of its adjusted EBITDA for
2024 and over the next five years; our expectation that
Westinghouse’s investments in new technologies will be made in
accordance with Westinghouse’s current business plan and our
expectations regarding the effects on Westinghouse’s adjusted
EBITDA; our views regarding supply and demand for nuclear power and
its growth across the near, medium and long term; our ability to
benefit from market fundamentals and opportunities; the durability
of growth in our uranium and conversion services contracting; our
ability to operate our assets sustainably, and our expectations
regarding the value they will generate for us; our expectations
regarding the impact of the completion of a return to a tier-one
run rate on our financial results; our views regarding the impact
on the nuclear power industry of geopolitical events and ongoing
focus on climate crisis; our belief that Cameco is an excellent
opportunity to invest in the recovery in the uranium market; the
durability of our growth, and our ability to pursue growth and
generate full-cycle value; our contract portfolio strategy and
ability to maintain exposure to higher prices with unencumbered
future productive capacity; our supply plans, including production
levels at McArthur River/Key Lake, Cigar Lake and Inkai, as well as
at our Port Hope conversion facility; our intention to extend the
estimated mine life at Cigar Lake to 2036, our ability to continue
to receive production from Inkai without reliance on Russian rail
lines or ports and our ability to mitigate the risk of shipment
delays; our ability to expand production from our existing assets,
and the production level we could achieve through our tier-one
expansion opportunities; the factors we will consider in making
decisions regarding expanding production; our ability to continue
to be resilient; our optimism regarding our role in supporting a
transition to a net-zero carbon economy, and expectations regarding
our ability to achieve emissions level reductions within our
expected timeframes; our vision of energizing a clean-air world and
belief in our strategy for doing so in a manner that reflects our
values; our expectations regarding refinancing our debenture prior
to maturity or as it comes due; our expectations regarding letter
of credit requirements in connection with CRA’s reassessment for
the 2017 tax year; our views regarding the long-term sustainability
of our business and our ability to self-manage risk; and the
expected date for announcement of our 2024 first 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 we may not continue with our supply
discipline strategy; risks to Westinghouse’s business associated
with potential production disruptions, the implementation of its
business objectives, compliance with licensing or quality assurance
requirements, or otherwise be unable to achieve expected growth;
the risk that we may not be able to implement changes to future
operating and production levels for Cigar Lake and McArthur
River/Key Lake and Inkai, or at our Port Hope conversion facility,
to the planned levels within the expected timeframes, or that the
costs involved in doing so, exceed our expectations; the risk that
our revenues and cash flows may not improve to the extent expected;
the risk of Inkai shipment delays due to the continuation or
outcome of the conflict between Ukraine and Russia; the risk that
we may not be able to meet sales commitments for any reason; the
risk that we may not be able to continue to be resilient or
continue to improve our financial performance; the risks to our
business associated with potential production disruptions,
including those related to global supply chain disruptions, global
economic uncertainty and political volatility; 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 be successful in pursuing
innovation or implementing advanced technologies; the risk that we
may not be able to refinance our debenture on terms that are as
favourable as we expect; 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; the success of our plans and
strategies, including planned operating and production changes;
assumptions about Westinghouse’s production, purchases, sales,
deliveries and costs, the absence of business disruptions, and the
success of its plans and strategies; the absence of new and adverse
government regulations, policies or decisions; that there will not
be any significant unanticipated adverse consequences to our
business resulting from production disruptions, including those
relating to supply disruptions, and economic or political
uncertainty and volatility; 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 fourth quarter conference call on
Thursday, February 8, 2024, at 8:00 a.m. 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, March 8, 2024, by calling
(800) 319-6413 (Canada and US) or (604) 638-9010 (Passcode
0554)
2024 first quarter report release date
We plan to announce our 2024 first quarter results before
markets open on April 30, 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/20240207373185/en/
Investor inquiries: Rachelle Girard 306-956-6403
rachelle_girard@cameco.com
Media inquiries: Veronica Baker 306-385-5541
veronica_baker@cameco.com
Cameco (NYSE:CCJ)
Historical Stock Chart
Von Apr 2024 bis Mai 2024
Cameco (NYSE:CCJ)
Historical Stock Chart
Von Mai 2023 bis Mai 2024