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Cameco doubles 2023 uranium gross sales, costs in comparison with yr earlier

“The advantages of nuclear energy have come clearly into focus, with 28 international locations world wide declaring assist for the tripling of capability to assist obtain world net-zero greenhouse gasoline emissions by 2050. The uncertainty about the place nuclear gas provides will come from to fulfill rising demand has led to elevated long-term contracting exercise, and in 2023, about 160 million lb. of uranium was positioned below long-term contracts by utilities,” stated Gitzel.

Costs throughout the nuclear gas cycle rose in 2023 and proceed to rise. Uranium spot costs greater than doubled to $100/lb. on the finish of January 2024, after being solely $48 on the finish of 2022. The long-term value for uranium was $72/lb., a rise of about 38% over the identical interval.

Yr-end income for 2023 was C$2.59 billion, up from C$1.87 billion for 2022. Gross revenue was C$562 million (C$233 million in 2022) and web earnings had been C$361 million (C$89 million in 2022). Adjusted EPITDA was C$831 million, in comparison with C$431 million in 2022. Money supplied by operations in 2023 was C$688 million (C$305 million in 2022).

One notable accomplishment final yr was including a 49% curiosity in Westinghouse to the Cameco portfolio. Brookfield Asset Administration retained the remaining 51% curiosity.

“We consider Westinghouse is well-positioned for long-term progress pushed by the anticipated enhance in world demand for nuclear energy,” stated Gitzel. “In 2024, we anticipate our share of its adjusted EBITDA to be between C$445 million and C$510 million. Additional, over the subsequent 5 years, we anticipate its adjusted EBITDA will develop at a compound annual progress price of 6% to 10%.”

On the mining facet, Cameco is planning to provide 18 million lb. of uranium oxide (U3O8) at every of the McArthur River-Key Lake and the Cigar Lake mines this yr. Reserves noticed a lift of 73.4 million lb. U3O8 at Cigar Lake, of which Cameco’s share is 40%. The rise additionally has the potential to increase the mine life to 2036. The corporate looking forward to broaden annual manufacturing to 25 million lb. (on a 100% foundation) when the time is true.

Cameco produced 17.6 million lb. U3Oin 2023 (in comparison with 10.4 million lb. in 2022), leading to 2023 web earnings of C$606 million (C$121 million in 2022).

Within the gas companies sector, the corporate produced 13.3 million kg elemental uranium in 2023 (in comparison with 13.0 million kg in 2022), giving it web earnings of C$129 million (C$120 million in 2022).

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