Cameco CEO Tim Gitzel
Canadian uranium miner Cameco’s financial performance continues to demonstrate the positive momentum experienced in the nuclear energy industry, CEO Tim Gitzel said on Tuesday, announcing improved third-quarter results.
Revenue surged 48% year-on-year to $575-million in the September quarter. The firm returned to the black with adjusted net earnings of $137-million.
On the back of improving market fundamentals, Cameco increased its consolidated revenue outlook for 2023 to between $2.4-billion and $2.58-billion, from a previous guidance of between $2.38-billion and $2.53-billion.
In the first nine months of the year, Cameco delivered 22.2-million pounds at an average realised price that was 13% higher than in the same period last year. In the fuel services segment, sales were 7% higher and prices 9% higher than in the corresponding period.
“The world’s desire for clean, secure and low-cost energy is creating a foundation of support for nuclear energy from across the public and political spectrum. This increase in support, coupled with the geopolitical uncertainty brought on by Russia’s invasion of Ukraine and a coup in Niger, has intensified supply concerns as future uranium supply and downstream processing is needed to balance the market.
“In the short term, supply chain issues and inflation risks are causing production challenges for current operators. Compared to previous price cycles, the market does not have the inventory or secondary supplies to absorb market shocks.
“We are seeing durable, full-cycle demand growth across the nuclear energy industry. These factors lead us to believe that we are experiencing the industry’s best-ever market fundamentals,” said Gitzel.
Cameco declared a 2023 yearly dividend of $0.12 a share, payable on December 15.
Meanwhile, the company announced the appointment of Dominic Kieran as global MD for Cameco UK.