Cameco Provides Preliminary Update on Third Quarter Operations
SASKATOON, Saskatchewan, Oct. 11, 2022 (GLOBE NEWSWIRE) — Cameco (TSX: CCO; NYSE: CCJ) today reports preliminary operating results for its third quarter ended September 30, 2022.
On October 27, 2022, we expect to announce our third quarter 2022 results before markets open. We expect to announce deliveries in the uranium segment for the three months ended September 30, 2022, which will be between 5 million and 5.5 million pounds, consistent with the delivery pattern for the third quarter of 2022 disclosed in our annual management report. In our fuel services segment, we expect to announce deliveries for the same period between 2.1 million and 2.4 million kilograms of uranium (“kgU”).
Production from our uranium segment for the quarter ended September 30, 2022 is expected to be 2 million pounds (our share) from Cigar Lake. Production from our fuel services segment is expected to be 1.5 million kgU for the same period.
Restart activities at McArthur River and Key Lake continue to progress, with first production from the plant expected later in the fourth quarter of 2022.
Our Inkai joint venture continued to experience delays in shipping materials via the Trans-Caspian route. Depending on when we receive shipment of our share of Inkai’s 2022 production, our share of this equity-accounted entity’s 2022 earnings and the timing of receipt of our share of joint venture dividends may be impacted.
The interest of third parties to contract with us for the supply of our uranium and fuel services remains strong. Utilities continue to ensure they have the conversion and enrichment services they need, guaranteed under long-term contracts. As a result, we are seeing conversion prices at historic highs and have focused on agreeing long-term supply terms with customers to meet their increased demand. Since the beginning of the year, we have added to our portfolio of long-term contracts more than 50 million pounds in our uranium segment and more than 7 million kgU UF6 conversion in our fuel services segment.
The technical and scientific information discussed herein with respect to our Cigar Lake and McArthur River/Key Lake material properties has been approved by Lloyd Rowson, Managing Director, Cigar Lake, Cameco and Greg Murdock, Managing Director, McArthur River/Key, respectively. Lake, Cameco, which are qualified persons for the purposes of NI 43-101.
Caution regarding forward-looking information
Examples of forward-looking information in this press release include: our expected announced deliveries in our uranium segment and in our fuel services segment for the third quarter of 2022; our expected production from our Cigar Lake uranium segment and our fuel services segment for the third quarter of 2022; our first planned production from the restart at McArthur River and Key Lake; and the expected date for announcing our third quarter 2022 results. Such statements constitute forward-looking information within the meaning of applicable securities laws in Canada and the United States, including the United States Private Securities Litigation Reform Act of 1995. In some cases, but not necessarily in all cases, forward-looking information may be identified by the use of forward-looking terminology such as “plans”, “targets”, “expects” or “does not not expect”, “is expected”, “should”, “an opportunity exists”, “is positioned”, “estimates”, “intends to”, “assumes”, “anticipates” or “does not anticipate ” or “believes”, or variations of these words and expressions or states that certain actions, events or results “may”, “could”, “would”, “might”, “will” or “will be taken”, “will will occur” or “will be achieved”. In addition, any statements referring to expectations, projections or other statements of future events or circumstances contains forward-looking information. Statements containing forward-looking information are not historical facts but rather represent management’s expectations, estimates and projections regarding future events.
Forward-looking information is necessarily based on a number of opinions, assumptions and estimates which, although considered reasonable by the Company as of the date of this press release, are subject to known and unknown risks, uncertainties, assumptions and other factors that may cause actual results, level of activity, performance or achievements to differ materially from those expressed or implied by such forward-looking information, including, but not limit, non-compliance with the closing conditions to the completion of the Offer or the Acquisition and the factors described in more detail in the “Risk Factors” section of the Company’s current annual information form and in the other documents of the Company filed with the Canadian securities regulators and the SEC, available at www.sedar.com and www. sec.gov, respectively. These factors are not intended to represent a complete list of factors that could affect the Company; however, these factors should be carefully considered. There can be no assurance that such estimates and assumptions will prove to be correct. The forward-looking statements contained in this press release are made as of the date of this press release, and the Company expressly disclaims any obligation to update or modify any statements containing forward-looking information, or the underlying factors or assumptions, whether as a result of new information, future events or otherwise, except as required by law.
All financial information projected in this press release is preliminary, as financial close procedures for the third quarter have not yet been completed. These estimates do not constitute a complete statement of our financial condition and results of operations. The expectations set forth herein are based on a number of assumptions, estimates and business decisions that are inherently subject to significant business and economic conditions and competitive uncertainties and contingencies, many of which are beyond our control. Actual results may differ materially from these estimates due to the completion of normal quarter-end procedures and adjustments, including performance of our internal control over financial reporting, completion of preparation and management’s review of our financial statements for the relevant period and the occurrence or subsequent identification of events prior to the release of our financial results for the three months ended September 30, 2022.
Cameco is one of the world’s largest suppliers of the uranium fuel needed to power a clean-air world. Our competitive position is based on our majority ownership of the world’s largest high-grade reserves and low-cost operations. Utilities around the world rely on our nuclear fuel products to generate safe, reliable, carbon-free nuclear power. Our shares trade on the Toronto and New York stock exchanges. Our head office is in Saskatoon, Saskatchewan.
As used in this press release, the terms we, us, our, the company and Cameco refer to Cameco Corporation and its subsidiaries, unless otherwise specified.