TORONTO (miningweekly.com) – Canadian uranium-miner Cameco Corporation earned C$247-million in the second quarter of this year, 65% higher than net earnings of C$150-million posted a year earlier.
Excluding one-off items, adjusted net earnings rose 1%, to C$140-million.
Profit was helped by increased earnings in the group's fuel services and electricity businesses, partly offset by weaker performances in the uranium and gold units.
Revenue for the quarter increased 15%, to C$774-million.
Cameco said the higher costs of sales in its uranium business affected profits, but that costs are still expected to be within its previous guidance, increasing by between 5% and 10%, for the year.
However, uranium revenue increased by C$114-million, to $443 million, because of a 35% increase in reported sales volumes and a marginal increase in the realised selling price in Canadian dollars.
The increase in the average realised price was related to higher prices under fixed-price contracts and a more favourable foreign exchange rate being offset by lower realised prices under market-related contracts, Cameco said.
Shares in the company rose 1,5% on Wednesday morning, to C$29,82 apiece by 9:48 in Toronto.