Cameco, the Canadian uranium producer, reported a profit in the latest quarter thanks to increased sales volumes and higher realized prices in its uranium and fuel services divisions.
Financial Performance
In the fourth quarter, Cameco recorded net earnings of 80 million Canadian dollars ($59.4 million), or C$0.18 per share. This marked a significant improvement compared to the same period last year when the company reported a loss of C$15 million. On an adjusted basis, the earnings for the quarter rose to C$90 million, or C$0.21 per share. However, this fell short of the mean estimate of C$0.24 from nine analysts polled by FactSet.
Strong Revenue Growth
Cameco’s revenue for the quarter increased by 61% to C$844 million. This contributed to a 39% increase in revenue for the full year, bringing it to C$2.59 billion. The company’s performance exceeded its target range of C$2.43 billion to C$2.58 billion.
Robust Uranium Operations
Cameco’s uranium operations saw a significant uptick in sales during the quarter. The company sold 9.8 million pounds of uranium, a 42% increase compared to the same period last year. Production also surged by 54% to 5.7 million pounds.
Global Uranium Market Conditions
Last month, global uranium prices reached a 16-year high due to concerns over supply shortages. Kazakhstan state uranium company Kazatomprom announced that it is likely to miss its output targets over the next two years due to sulfuric acid shortages and delays in completing construction at newly developed deposits. In addition, Cameco’s Cigar Lake and McArthur River-Key Lake operations in Saskatchewan reduced production last year, while French peer Orano’s Niger operation shut down in September.
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