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Cameco reports Q4 and 2018 Financial Results

Mining News - Published on Wed, 13 Feb 2019

Image Source: CBC.ca
Cameco has reported its consolidated financial and operating results for the fourth quarter and year ended December 31, 2018 in accordance with International Financial Reporting Standards (IFRS). Tim Gitzel, Cameco’s president and CEO, said “As we expected, we had a strong finish to 2018,” said “There were some significant developments in 2018 that contributed to the strong finish, and that have strengthened our foundation, setting the course for our future success. In 2018, the temporary suspension of production at McArthur River/Key Lake, and the subsequent extension for an indeterminate duration, allowed us to preserve the value of our tier-one assets, drawdown our excess inventory under the protection of our contract portfolio, and build a significant cash balance, positioning the company to self-manage risk. And, of course one of those risks has been substantially diminished with the unequivocal win in our CRA tax case for the tax years 2003, 2005, and 2006.”

“In addition, we saw a significant improvement in the spot market driven by substantial production cuts, cuts to some secondary supplies, a reduction in producer inventories, and an increase in demand for uranium in the spot market from producers and financial players. However, the term market remains tentative driven largely by market access and trade policy issues.

“Our outlook for 2019 is also as we expected, and reflects the deliberate decisions we have made. Our decisions come with some near-term costs, but they are the right decisions to make in order to build long-term value. Although we currently expect our gross margin could be weaker, our balance sheet will remain strong. We will continue to maintain a significant cash balance, and generate cash from operations, allowing us to self-manage risk. And, there is significant potential upside to our outlook. Remember, there are a number of moving pieces both internally and externally that could have a significant impact on the market and on our results for the year.

“These items include the result of the investigation under Section 232 of the Trade Expansion Act in the US, a potential cost award from the Tax Court based on the unequivocal win in our tax case, and a potential award for damages in our TEPCO dispute.

“We are a commercially motivated supplier, with a diversified portfolio of assets, including a tier-one production portfolio that is among the best in the world. We will continue to be disciplined and make the decisions necessary to keep the company strong and viable for the long term.”

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Posted By : Rabi Wangkhem on Wed, 13 Feb 2019
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