Canadian uranium miner Cameco( TSX:CCO,NYSE:CCJ) reported its second quarter results on Wednesday (July 31), punctuated by net earnings of C$36 million, in line with its full-year forecast.
The company reported consolidated revenue of C$598 million, a 24 percent increase compared to the same period in 2023. Its net earnings attributable to equity holders amounted to C$0.08 per share, up from C$0.03 per share in Q2 2023.
Adjusted net earnings, which exclude certain non-operational items, came to C$62 million, up from a loss of C$3 million in the previous year. Adjusted EBITDA for the quarter was C$337 million, up from C$54 million in Q2 2023.
“Cameco is in the enviable position of having what we believe are the world’s premier, tier-one assets, with investments across the fuel cycle and the reactor life cycle,” said President and CEO Tim Gitzel in a press release.
He also noted that Cameco is well-placed to supply the uranium needed to meet growing nuclear power demand.
“Our contract portfolio spans more than a decade, with commitments increasing to an average of about 29 million pounds per year from 2024 through 2028,’ he explained. “With our disciplined strategy that aligns our operational, marketing, and financially focused decisions, in a market where we are seeing sustained, positive momentum for nuclear energy, we believe those assets and investments will allow us to generate full-cycle value.’
In its uranium segment, Cameco reported production volume of 7.1 million pounds in Q2, a 61 percent increase compared to Q2 2023. Sales volume for the quarter was 6.2 million pounds, up 13 percent year-on-year.
The average realized price for uranium was US$56.43 per pound, a rise of 14 percent from the previous year. This increase contributed to higher revenues and gross profit, as did better sales volume.
The fuel services segment experienced lower delivery volumes in Q2 compared to the previous year, which Cameco has attributed to normal quarterly variations. Even so, the average realized price for fuel services increased by 12 percent year-on-year to C$39.98 per kilogram of uranium. The company is maintaining its annual production expectation for combined fuel services products at between 13.5 million and 14.5 million kilograms of uranium.
‘We believe we are in a unique position to provide reliable sources of supply to meet the durable, long-term demand emerging across the fuel cycle,’ Gitzel also said in Wednesday’s release.
Cameco reiterated its financial outlook for 2024, expecting consolidated revenue of C$2.85 billion to C$3 billion.
Gitzel also addressed the retirement of Alice Wong, senior vice president and chief corporate officer, after 37 years with the company. Rachelle Girard, previously vice president of investor relations, will be Wong’s successor.
Cameco’s share price took a hit after its results were released, closing Thursday (August 1) at C$56.91 on the TSX. That’s down 9.05 percent from its opening price of C$62.57 at the beginning of the week.
Securities Disclosure: I, Giann Liguid, hold no direct investment interest in any company mentioned in this article.
