Cameco Q1 earnings soar on higher sales, prices and Bruce Power deal
TORONTO (miningweekly.com) – Canadian uranium miner Cameco on Tuesday reported soaring profits for the first quarter driven by higher uranium deliveries, higher realised prices and the sale of its interest in Bruce Power Limited Partnership during the period.
During the three months ended March 31, net earnings soared to C$131-million, or C$.033 Canadian cents a share, from C$9-million, or C$0.02 a share in the comparable quarter last year, despite revenue falling 6% year-on-year to C$419-million.
Excluding special items, Cameco’s earnings totalled C$36-million, or C$0.09 a share, up over C$27-million, or C$0.07 a share.
Bay Street analysts had on average expected adjusted earnings of C$0.10 a share on revenue of C$462.72-million.
On March 27, Cameco completed the C$450-million sale of its 31.6% limited partnership interest in Bruce Power, which operates the four Bruce B nuclear reactors in Ontario and realised an after tax gain of C$127-million on this divestiture.
Cameco's uranium sales rose 35% to 6.9-million pounds in the quarter, while its average realised uranium price fell 4% to $46.60/lb. However, Cameco said that the average realised uranium price rose 5% to C$50.58/lb in Canadian-dollar terms, as a result of the weakening of the Canadian currency.
Last month, Cameco reported that following several years of delays and project setbacks, it had started ore shipments from the Cigar Lake uranium mine, in northern Saskatchewan.
Cameco said that at December 31, the total costs for the project, the second-biggest high-grade uranium deposit in the world after its flagship McArthur River mine, had risen to C$2.6-billion, a far cry from the $450-million it expected the project to cost when it first approved its construction in 2004.
Project partner Areva Resources Canada is expected to start processing Cigar Lake ore at its McClean Lake mill by the end of the second quarter.
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