Uranium Business Drives 120% Earnings Increase For Cameco
Written by NucNet
Wednesday, 06 February 2008
6 Feb (NucNet): Cameco Corporation today reported adjusted 2007 net
earnings of 603 million Canadian dollars (CAD) (601 million US dollars,
410 million euro), 120 percent higher than in 2006 due to improved
results in the uranium business.
The company said for 2007 revenue from its uranium business rose by 58
percent over 2006 to CAD 1.26 billion due to a 69 percent increase in
the Canadian dollar selling price. Sales volumes were 6 percent lower
than in 2006.
Cameco’s earnings before taxes from the uranium business increased to
CAD 572 million, from CAD 181 million in 2006, primarily as a result of
the rise in the price of uranium.
The company also said that for 2008 it expects consolidated revenue
from its nuclear fuel and electricity businesses to increase by about 3
percent to 10 percent over 2007, again due largely to expected higher
revenue from the uranium business.
In 2008, Cameco’s uranium sales quantities are expected to total 31
million to 33 million pounds U3O8, with revenue about 5 percent to 15
percent greater than in 2007, due to the expected increase in sales
volume and price. This is based on an estimated spot price of 75.00 US
dollars per pound, reflecting the Ux Consulting (UxC) spot price as of
4 February 2008.
Cameco’s share of uranium production for 2008 is projected to total
about 21 million pounds of U3O8, up slightly compared to 2007 due to
the anticipated start of commercial production at the Inkai uranium
deposit in Kazakhstan.
Cameco is the world’s largest uranium producer accounting for 20
percent of world production from its operational mines in Canada and
the US.
>>Related reports in the NucNet database (available to subscribers)
Cameco And Kazakhstan Consider Building Uranium Conversion Facility (News No. 131, 29 May 2007)
Cigar Lake Uranium Mine Faces New Delay (News in Brief No. 34, 31 October 2007)
