Fourth quarter consolidated results

In the fourth quarter of 2011, our net earnings were $265 million ($0.67 per share diluted), an increase of $59 million compared to $206 million ($0.52 per share diluted) in 2010. Uranium revenues were up significantly due to an increase in sales volumes, an increase in the average realized selling price and partially offset by lower results in the electricity business due to lower sales volumes and a lower realized price.

The 31% increase in adjusted net earnings in the quarter followed the same trend as our net earnings, due to our positive results in the uranium business partially offset by our results in the electricity business.

We use adjusted net earnings, a non-IFRS measure, as a more meaningful way to compare our financial performance from period to period. See Adjusted net earnings (non-IFRS/GAPP measure) for more information. The table below reconciles adjusted net earnings with our net earnings.

We recorded an income tax expense of $25 million this quarter, based on adjusted net earnings, compared to a $1 million expense in 2010.

Direct administration costs were $46 million in the quarter, $6 million lower than the same period last year. Stock-based compensation expenses were $2 million higher than the fourth quarter of 2010 at $3 million. See note 27 to the financial statements.