Cameco said 2022 was a fantastic year for the uranium producer.
In its Third Quarter financial results released Thursday said it produced over 80 million pounds of uranium, through signing a record number of contracts.
“Demand for nuclear power, supported by growth across the near, medium and long term, is driving the best fundamentals we have ever seen for the nuclear fuel market. The growing structural gap has led to supply uncertainty, which was amplified in 2022,” said Cameco CEO Tim Gitzel.
2022 also saw employment growth in Northern Saskatchewan, as Cameco restarted the McArthur River/Key Lake mine.
“Our plan will now be for McArthur River/Key Lake to produce 18 million pounds per year (100% basis) starting in 2024 and we will continue to operate Cigar Lake at its licensed capacity of 18 million pounds per year (100% basis) in 2024,” Gitzel said. “We acquired a greater share in the Cigar Lake mine, increasing our ownership to 54.5%. We are pleased to increase our share in the Cigar Lake operation, which is a proven, permitted and fully licensed tier-one mine in a safe and stable jurisdiction that we operate with the tremendous participation and support of our neighbouring Indigenous partner communities.”
Yesterday, Cameco announced a new supply contract agreement in the Ukraine. It will be supplying fuel to Ukraine’s state-owned nuclear energy utility Energoatom.
The deal was struck on Wednesday and will see Cameco meet Ukraine’s full nuclear fuel needs through 2035.
Key terms have been agreed to, but according to the uranium supplier the contract is still subject to finalization, which they expect will happen sometime in early 2023.
“We are proud to play an essential role in helping Ukraine gain supply security for significant components of their nuclear fuel in these extraordinarily challenging times for the country,” said Tim Gitzel. “This has the potential to be the single largest supply contract in Cameco’s history, and it is only achievable through the strong relationship that has developed between our two companies. Commercial arrangements between Cameco and Energoatom began modestly in 2018 and have grown today into a significant strategic partnership.”
Gitzel says this new contract will allow them to ramp up production at the McArthur River and Key Lake Mine operations, which he says should bring 40-70 new jobs to northern Saskatchewan for Cameco and its contractors.
The contract also includes special provisions given that Ukraine and Russia are still at war with each other. This includes an option for Cameco to provide fuel to some power-plants currently under Russian control, should they ever be returned to Ukraine. Gitzel says if that were to happen this deal with Enrgoatom would become the largest supply contract in Cameco’s history.
Cameco says the financial terms of the contract are confidential and will not be released, but the CEO did indicate it is the range of a multi-billion dollar deal.
(PHOTO- Cameco CEO Tim Gitzel speaks with reporters about the Energoatom deal at Cameco HQ in Saskatoon. Photo by Joel Willick.)