Cameco Annual Report 2011

Notes

Table of Contents

35. Jointly Controlled Entities

Cameco holds a 31.6% interest in the BPLP partnership, which is governed by an agreement that provides for joint control of the strategic operating, investing and financing activities among the three major partners. Cameco uses the proportionate consolidation method to account for its 31.6% interest in BPLP. Cameco also holds a 60% interest in the Inkai joint venture, which is governed by an agreement that provides for joint control of the strategic operating, investing and financing activities among the two venturers. Cameco uses the proportionate consolidation method to account for its 60% interest in Inkai.

The following schedules reflect Cameco's proportionate interest in the assets, liabilities, revenue and expenses of the BPLP partnership:

  2011 2010 Jan 1/10
Current assets $225,719  $207,896  $253,369 
Non-current assets 502,250  502,250  544,942 
Current liabilities (155,504) (128,106) (129,623)
Non-current liabilities (605,993) (502,377) (404,512)
Net assets (liabilities) $(33,528) $79,663  $264,176 
  2011 2010
Revenue $427,927  $476,749 
Expenses (329,605) (298,245)
Net earnings $98,322  $178,504 

The following schedule reflects Cameco's proportionate interest in the assets and liabilities of the Inkai joint venture:

  2011 2010 Jan 1/10
Current assets $54,968  $84,013  $60,501 
Non-current assets 198,831  190,340  189,832 
Current liabilities (10,959) (9,291) (15,809)
Non-current liabilities (136,908) (197,275) (216,648)
Net assets $105,932  $67,787  $17,876 

Through an unsecured shareholder loan, Cameco has agreed to fund the development of the Inkai project. On proportionate consolidation of Inkai, Cameco eliminates the loan balance recorded by Inkai and records advances receivable (notes 12 & 37) representing its 40% ownership interest.

The following schedule reflects Cameco's proportionate interest in the revenue and expenses of the Inkai joint venture:

  2011 2010
Revenue $132,845  $137,079 
Expenses (78,517) (90,566)
Net earnings $54,328  $46,513 

The participants in the Inkai joint venture purchase uranium from Inkai, and, in turn, derive revenue directly from the sale of such product to third party customers. On proportionate consolidation of Inkai, Cameco eliminates revenues and cost of sales recorded by Inkai related to sales by Inkai to Cameco.