Cameco Reports $321 Million Earnings Surge Amid Nuclear Boom

URGENT UPDATE: Cameco Corp. has just announced a remarkable financial performance, reporting net earnings of $321 million for the second quarter, a staggering increase from $36 million last year. The Saskatoon-based uranium miner exceeded analyst expectations, driven by a global surge in demand for uranium to fuel nuclear reactors.

In a call with investors, CEO Tim Gitzel emphasized the company’s readiness to meet the rising demand for nuclear energy, citing plans to construct small modular reactors in Ontario and ten new reactors across the United States. He stated, “We believe Cameco is positioned as a central pillar supporting the wave of new nuclear plans announced in recent months.”

The company’s adjusted net earnings reached $308 million, up from $62 million, while earnings before interest, taxes, and amortization (EBITA) soared to $673 million, surpassing analyst forecasts of $629 million. Increased sales in uranium and fuel services contributed to this strong performance, with uranium sales before taxes up 46 percent and adjusted EBITA up 43 percent compared to last year.

Despite a temporary dip in uranium production at the Key Lake Mill due to planned maintenance, Cameco remains optimistic. Gitzel confirmed that the McArthur River/Key Lake and Cigar Lake operations are projected to each produce 18 million pounds of uranium in 2025, while the J.V. Inkai mine in Kazakhstan is set to yield 8.3 million pounds.

However, Gitzel warned that nuclear utilities have yet to secure enough uranium to meet projected demand through 2045, stating, “Utilities still have a significant amount of uranium to secure to meet their fuel needs.” He noted that production could face challenges, including labor shortages and potential wildfire threats affecting skilled workers.

In response to the positive earnings report, analyst Mohamed Sidibé of National Bank of Canada Financial Markets highlighted Cameco’s earnings per share growth of 71 cents, which outperformed expectations of 51 cents. He attributed this success to strong revenue from uranium and fuel sales, as well as higher equity earnings from the J.V. Inkai and Westinghouse.

Despite a 4 percent decline in stock price to $103.32 during midday trading, Cameco’s shares have surged 38 percent year-to-date, reflecting investor confidence in the nuclear sector’s future.

Additionally, Cameco announced key executive changes effective September 1, 2023. Grant Isaac will take over as chief operating officer, while Heidi Shockey steps in as chief financial officer and Liam Mooney becomes chief legal officer. The outgoing chief legal officer, Sean Quinn, and Brian Reilly, the outgoing COO, will remain in advisory roles until their retirement in March 2026.

As Cameco positions itself at the forefront of the nuclear renaissance, it remains committed to navigating the evolving landscape of energy demands while ensuring financial robustness. Gitzel concluded, “I will remain as CEO and will continue to guide this company through the most exciting times that any of us have ever experienced in this industry.”

Stay tuned for more updates as Cameco continues to shape the future of nuclear power.