Uranium miner Cameco reports first-quarter profit falls from year ago

SASKATOON – Cameco (TSX:CCO) reported Wednesday a sharp drop in its first-quarter earnings compared with a year ago due to lower uranium sales and prices as well as lower sales and higher costs at its power generation business.

The company said Wednesday that it earned $9 million or two cents per share for the quarter ended March 31, down from $129 million or 33 cents per share a year ago. Revenue was $444 million, down from $466 million.

Excluding charges for derivatives, Cameco said it earned $27 million or seven cents per share, down from $121 million or 31 cents per share a year ago.

Cameco chief executive Tim Gitzel said the results were consistent with expectations.

“Deliveries from our uranium segment and revenue from Bruce Power were low and resulted in lower net earnings,” Gitzel said in a statement.

“We remain on track with our annual outlook and have increased our focus on streamlining and efficiency in order to remain competitive in today’s uncertain environment.”

Cameco said it sold 5.1 million pounds of uranium in the quarter, down from 8.2 million pounds a year ago, while the average realized price was $31.90 per pound, down from $31.99.

Production totalled 5.9 million pounds of uranium in the quarter, up from 4.8 million a year ago.

Meanwhile, total electricity revenue in the quarter fell 14 per cent compared with a year ago due to lower output and a lower realized price.

Cameco is one of the world’s largest uranium producers with mines, mills and conversion plants in Canada, the United States and abroad. It also owns a stake in the Bruce Power nuclear power station in a partnership with TransCanada Corp., Borealis Infrastructure, the Power Workers’ Union and the Society of Energy Professionals.