Cameco’s financial and operating results for the third quarter were released today, saying it earned $28 million in net earnings this latest quarter, compared to a loss in the same quarter of last year.
The total revenue was up by $2 million.
Production volumes were down 52 per cent in the third quarter, compared to this time last year, because of the extended shut down of the McArthur River and Key Lake mines. The shutdown saw a loss of almost 700 jobs. Cameco incurred $27 million severance due to the permanent layoffs.
“Our results and the updates to our outlook reflect the impact of our decision to extend the shutdown at McArthur River/Key Lake, and the tax case ruling that was unequivocally in our favour,” said Tim Gitzel, Cameco’s president and CEO. “As a result of the updates to our outlook, we expect a strong finish in the fourth quarter.”
If the price of the materials continue to grow, it will allow Cameco to layer in new long commitments, including a potential restart on the mines. “We will now have met the conditions necessary to restart McArthur River and Key Lake. The restart will probably take us a couple of months, depending on how long we were down for,” Gitzel said during a conference call today, “but there will be ample delivery lead time in the new contracts being signed.”
Cameco is one of the world’s largest uranium producers, and supplies a conversion of the material which is used for generating heat in nuclear power reactors. There are currently over 50 reactors under construction.
(Photo courtesy Cameco.ca)