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Cameco on the front foot as earnings soar

Cigar Lake uranium mine. Image from Cameco.

Shares in Canada’s uranium major, Cameco (TSX: CCO; NYSE: CCJ), gained nearly 10% on Wednesday after the company reported higher core profit than expected amid an uptick in uranium prices.

The Saskatoon, Saskatchewan-based company said headline profit per share more than doubled to 18¢, compared with analyst forecasts calling for a loss of 1¢.

Revenue for the three months ended June increased 55% year-on-year to $558 million. Cameco said uranium revenues this quarter were up 75% compared to 2021 due to an increase of 41% in the Canadian dollar average realized price and a 25% increase in sales volume due to the timing of sales. While the average US dollar spot price for uranium increased by 63% compared to the same period in 2021, the US dollar average realized price only increased by 38%

due to the impact of fixed price contracts.

“We are benefiting from higher average realized prices in both our uranium sales and our fuel services sales as the market continues to transition and geopolitics continue to highlight concentration of supply concerns,” said Tim Gitzel, Cameco’s president and CEO on an analyst call on Wednesday.