Cameco
2008 Business Review
Driven to succeed
Dollars are expressed in $ Canadian millions except prices and per share amounts.
    2007   2006   2005   2004   2003
Commodity Market Prices (annual average)                    
Uranium (spot price in $US/lbs U3O8) $ 99.29 $ 49.60 $ 28.67 $ 18.60 $ 11.54
UF6 Conversion (spot price in $US/kgU)   10.98   11.60   11.60   7.91   5.07
Electricity (spot price in $/megawatt hours)   47.87   46.38   68.35   49.95   54.24
Gold (market price in $US/oz)   696        602        445        409        364     
                     
Operations                    
Revenue $ 2,309.7   $ 1,831.7   $ 1,312.7   $ 1,048.5   $ 826.9  
Earnings from operations1   475.0     335.4     120.7     123.1     73.5  
Adjusted net earnings1,2   603.1     273.7     208.5     182.5     125.4  
Net earnings1   416.1     375.7     215.5     276.5     206.7  
EBITDA   638.4     502.8     455.3     544.3     327.7  
Cash provided by operations   800.7     418.0     277.5     228.0     249.8  
Capital expenditures   494.5     459.6     284.9     148.3     166.8  
                     
Financial Position                    
Total assets $ 5,371.4   $ 5,140.4   $ 4,772.8   $ 4,052.1   $ 3,431.2  
Total debt   725.9     704.6     858.8     518.6     605.4  
Shareholders' equity   2,743.9     2,741.4     2,363.6     2,160.5     1,894.9  
                     
Financial Ratios                    
Current ratio (current assets/current liabilities)   1.9:1   2.7:1   2.4:1   2.9:1   3.3:1
Return on common shareholders' equity   15%   15%   10%   14%   12%
Net debt to capitalization   18%   12%   9%   13%   22%
Cash from operations/total net debt   135%   113%   118%   69%   48%
                     
Common Share Data ($ per share)                    
Adjusted net earnings $ 1.72 $ 0.78 $ 0.60 $ 0.53 $ 0.37
Basic net earnings   1.18   1.07   0.62   0.81   0.61
Dividends   0.20   0.16   0.12   0.10   0.10
Book value   7.97   7.78   6.76   6.24   5.56
TSX Market – high   59.90   49.95   37.50   21.13   12.83
  – low   35.22   35.35   18.97   9.54   4.83
  – close   39.57   47.20   36.90   20.98   12.46
  – annual volume (millions)   476.22   424.91   460.09   490.04   318.60
Shares outstanding (millions)                    
Weighted average   351.2     351.2     347.9     342.9     336.7  
Year end   344.4     352.3     349.6     346.1     340.6  
                     
Production (Cameco's Share)                    
Uranium production (million lbs U3O8)   19.8     21.0     21.2     20.5     18.5  
Fuel services (million kgU)3   12.9     15.4     11.4     9.5     13.3  
Electricity generation (terawatt hours)   8.0     8.2     9.7     10.6     7.2  
Gold production (thousand oz)4   555.4     303.6     407.4     321.6     225.9  
Employees (including subsidiaries)5   2,720        2,446        1,957        1,802        3,716     
1Attributable to common shares.
2Net earnings for 2007 have been adjusted to exclude charges of $59 million related to the stock compensation transition to cash settlement and $153 million related to the restructuring of Centerra, as well as a $25 million recovery of taxes due to tax legislation changes enacted by the federal government. Net earnings for 2006 have been adjusted for a $102 million net gain from a $73 million recovery of future income taxes related to reductions in federal and provincial income tax rates and a $29 million gain on sale of our interest in the Fort à la Corne joint venture. Net earnings have been adjusted for a $7 million net gain from the sale of Energy Resources of Australia Ltd shares and the loss on restructuring Bruce Power Limited Partnership in 2005, a $94 million gain on the restructuring of our gold business in 2004 and an $81 million gain from income tax recoveries in 2003.
3Production volumes for 2006 and 2007 include UF6, UO2, fuel fabrication and UF6 supply from Springfields Fuels Ltd. (SFL).
4Represents Cameco's beneficial ownership interest in Kumtor and Boroo mines.
5The year 2003 includes Centerra and Inkai employees.