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Cameco raises uranium output as Q3 results surge

Market News, Mining
TSX:CCO
07 November 2024 11:17 (EST)
Cameco Corporation - President and CEO, Tim Gitzel

Source: cameco.com

Cameco Corporation (TSX:CCO) reveals its financial and operational results for the third quarter ended Sept. 30, 2024, highlighting an increase in its 2024 uranium production.

In a press release, CEO Tim Gitzel highlighted the company’s return to a “tier-one cost structure,” driven by strong operational performance, stable uranium prices, and increasing cash flow generation.

“The marketing and operational decisions set the stage for the financial element of our strategy, under which we expect strong cash flow generation to underpin our conservative capital allocation priorities,” Gitzel said. “Those priorities include a focus on debt management, as is evident with the prudent refinancing activities we have undertaken in 2024, and the prepayment of a large portion of the term loan we utilized to purchase Westinghouse.”

Production and operational updates

Cameco increased its 2024 uranium production outlook from 22.4 million pounds (its share) to 23.1 million pounds, driven by strong output from the McArthur River/Key Lake operation. However, production from its joint venture (JV) Inkai project in Kazakhstan is expected to fall by 600,000 pounds to 7.7 million pounds due to ongoing acid supply issues.

“The higher production level for 2024 is fully committed within our contract portfolio and allows us to rebalance our other supply sources, including a partial offset of the increase in Saskatchewan by lower production and purchases from JV Inkai,” Gitzel said.

Looking ahead, Cameco’s disciplined strategy is designed to align its operations with long-term market trends, emphasizing sustainability and responsible energy production.

About Cameco

Based out of Saskatoon, Sask., Cameco is one of the largest global providers of uranium fuel, controlling some of the world’s largest high-grade reserves and low-cost operations. The company also owns significant investments in the nuclear fuel cycle through its stake in Westinghouse Electric Company.

The company provides various nuclear fuel processing services, including refining, fuel assembly manufacturing, and reactor component production. Its operations are divided into three segments: Uranium, Fuel Services, and Westinghouse.

Cameco’s key uranium projects include Millennium, Yeelirrie, and Kintyre. The Cree Extension-Millennium project, a joint venture operated by Cameco, is located in the southeastern part of Canada’s Athabasca Basin.

Shares of Cameco are up 4.60 per cent to C$74.79 as of 10:39 a.m. ET.

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(Top image: Cameco)


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