Cameco, a uranium company based in Saskatoon, Saskatchewan, announced a positive financial performance in the third quarter. Lower costs and an unrealized foreign exchange gain contributed to the company’s swing to profitability.

Strong Financial Results

Cameco reported net income of 148 million Canadian dollars ($107 million), or C$0.34 per share, compared to a loss of C$20 million, or C$0.05 per share, during the same period last year. This represents a significant improvement in financial performance.

Factors Driving Performance

The company attributed its success in the quarter to lower unit costs within its uranium segment. Additionally, Cameco benefited from unrealized foreign exchange gains of C$54 million on its U.S. dollar cash balances.

Exceeding Analyst Expectations

Adjusted earnings per share reached C$0.32, surpassing the analyst consensus estimate of C$0.13 according to FactSet data. This positive deviation reflects the company’s strong operational performance.

Increased Revenue

Sales rose from C$389 million to C$575 million, illustrating a substantial increase in revenue compared to the same quarter last year.

Future Commitments

As of September 30, Cameco had secured commitments to deliver an average of about 29 million pounds of uranium annually from 2023 through 2027. This represents an increase from the average of about 28 million pounds per year at the end of the previous quarter.

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