Measuring our results

We set corporate, business unit and departmental objectives every year under our four measures of success, and these become the foundation for a portion of annual employee compensation.

Outstanding financial performance

2011 objectives	Results	2012 objectives This is forward-looking information.
(1) We use adjusted net earnings and cash flow from operations (before working capital changes) as a more meaningful way to compare our financial performance from period to period. These are not standard measures, and not a substitute for financial information prepared in accordance with IFRS. Other companies may calculate these measures differently. See Adjusted net earnings (non-IFRS/GAAP measure) and note 26 to our audited 2011 financial statements for more information.
Production Produce 21.9 million pounds of U3O8 and between 15 million and 16 million kgU from fuel services.	Achieved Our share of U3O8 production was 22.4 million pounds, or 102% of plan, and we produced 14.7 million kgU at fuel services, or 98% of plan. Exceeded Exceeded our production target of 18.7 million lbs U3O8 (100% basis) by 7% at McArthur River/Key Lake through technological advancements and identification of mining opportunities that allowed us to take advantage of production flexibility provisions in our operating licences.	Production Achieve budgeted production from our uranium and fuel services segments. McArthur River Implement productivity improvements to maintain planned production during mining zone transitions.
Financial measures Corporate performance Achieve budgeted net earnings and cash flow from operations (before working capital changes).	Exceeded Adjusted net earnings1 were $509 million, 32% higher than budget. Cash flow from operations (before working capital changes)1 was $850 million, 41% higher than budget.	Financial measures Corporate performance Achieve budgeted adjusted net earnings and cash flow from operations (before working capital changes). Costs Achieve budgeted unit costs.
Costs Strive for unit costs below budget.	Achieved Actual unit operating costs for uranium were 1% better than budgeted costs of $19.19 per lb U3O8 produced and exceeded budgeted unit production costs for fuel services of $15.65 per kgU sold, by 3%. The results were weighted 70/30, reflecting the portion each segment makes up of our business. Our minimum target was to achieve budgeted unit costs on a consolidated basis. Target was achieved in the face of cost escalation fueled by increased resource development activity where we operate.
Growth Cigar Lake Advance the project towards mid-2013 startup by completing remediation of all underground workings and advancing shaft 2 sinking.	Achieved Completed remediation of all underground workings and completed sinking of shaft 2 to the 480 metre level. Cigar Lake is a challenging deposit to mine. Completion of these critical milestones required careful planning and deliberate execution.	Growth Meet regulatory project milestones and stage gate assessments on projects that support our Double U strategy. Cigar Lake Advance the project towards startup in 2013 by successfully completing critical activities planned for 2012.
Inkai Advance block 3 mineral resource delineation and the engineering design of a test leach facility. Advance construction of site infrastructure.	Partially achieved Advanced block 3 mineral resource delineation, completed engineering for a test leach facility and began infrastructure development. We need regulatory approval of the detailed delineation and test leach work programs. The approval process has been challenging because of the complex and developing regulatory environment.	Inkai Advance block 3 mineral resource delineation drilling and complete the test leach facility. Receive approval to increase annual production from blocks 1 and 2 to design capacity of 5.2 million pounds per annum (100% basis). Continue to advance our longer-term objective of receiving approval to double annual production from blocks 1 and 2, extend the lease terms and secure block 3 mining rights.
Receive approval to increase annual production from blocks 1 and 2 to design capacity of 5.2 million pounds per annum (100% basis). Pursue our longer-term objective of receiving approval to double annual production from blocks 1 and 2 by advancing the conversion joint venture project with Kazatomprom.	Partially achieved Signed memorandum of agreement with our partner to increase annual production from blocks 1 and 2 to 5.2 million pounds per year (100% basis). Government approval is pending in this complex and developing regulatory environment. To pursue our longer-term objective to double annual production, we continued to explore with Kazatomprom the feasibility of building a uranium conversion facility and other potential collaborations in uranium conversion.
Kintyre Continue to advance project evaluation to allow a production decision as soon as possible.	Partially achieved Significantly advanced a prefeasibility study and an environmental review and management program in a remote area that is often subject to extreme weather conditions. To support our prefeasibility study, we expanded the scope of our drilling program and delayed these activities to 2012. Gained support in principle from the Martu, the local indigenous people, for development of the project.	Kintyre Continue to advance project evaluation in 2012 and decide if we will proceed to feasibility.
Millennium Continue to advance the Millennium project toward a project decision.	Achieved Continued to work on the environmental assessment and carried out additional studies and design work. Our 2011 drill program resulted in an increase in inferred resources. As a project under evaluation, it must pass a number of decision points before the project decision is made.
Exploration and innovation Replace mineral reserves and resources at the rate of annual U3O8 production based on a three-year rolling average.	Achieved Over the last three years, mineral reserves decreased by 60 million pounds compared to production of 66 million pounds, measured and indicated resources increased by 126 million pounds and inferred resources decreased by 18 million pounds. On average, production was replaced and exceeded by 16 million pounds per year in each of the last three years (2009 to 2011). Replacing our reserves and resources is fundamental to our long-term success.	Exploration and innovation Replace mineral reserves and resources at the rate of annual U3O8 production based on a three-year rolling average.
Support production growth and improved operating efficiencies through targeted research, development and technological innovation.	Achieved Advanced numerous ongoing research projects and selected four of these to fast track that are aimed at improving our environmental performance and process efficiencies at our operations. Innovation is critical to achieving continuous improvement in these areas even though it is complex and its outcome is uncertain.
McArthur River extension Advance the underground exploration drifts to the north of current mining areas and initiate a feasibility study.	Achieved Advanced the underground exploration drifts based on our updated mine plan and began feasibility work. Upgraded resources from inferred to indicated based on surface drilling. Achieved these results while managing the operational risks associated with the location and grade of the orebody.
Management Sustain and grow production in accordance with our strategy to double annual uranium production by 2018 by advancing pipeline uranium projects through the stage gate process.	Achieved Successfully implemented the stage gate process and incorporated all of our global development projects into the process. This is a complex scheduling process involving cross-functional teams, communication across different disciplines and several large capital projects in different geographic locations competing for internal resources.	Management Deliver capital projects planned for completion in 2012 within budget and on schedule.
Deliver planned capital projects within 10% of budget.	Achieved The 213 capital projects that closed in 2011 were 3.8% below our budget of $150 million.

Safe, healthy and rewarding workplace

2011 objectives	Results	2012 objectives This is forward-looking information.
Strive for no lost-time injuries at all Cameco-operated sites and, at a minimum, maintain a long-term downward trend in combined employee and contractor injury frequency and severity, and radiation doses.	Achieved Safety performance in 2011 was strong overall, although performance declined slightly from last year's record-setting level and there were a few serious near misses. Lost-time incident frequency for employees and contractors was 0.3 per 200,000 hours worked compared to a target of 0.4, severity was 8.9 compared to a target of 25.	Strive for no lost-time injuries at all Cameco-operated sites and, at a minimum, maintain a long-term downward trend in combined employee and contractor injury frequency and severity, and radiation doses. Attract, retain, engage and develop employees in support of current and future operations and establish succession pools for key positions.
Complete implementation of the risk standard and integrate it into our quality management system. Adopt a risk policy and implement improvements to the risk governance structure at the management and board level.	Achieved Completed implementation of the risk standard and integrated it into our quality management system. This involved significant change management across Cameco. Management and the board approved the risk policy, and we made improvements to our risk governance structure.

Clean environment

2011 objectives	Results	2012 objectives This is forward-looking information.
Strive for zero reportable environmental incidents, reduce the frequency of incidents and have no significant incidents at Cameco-operated sites.	Partially achieved There were 31 reportable environmental incidents, slightly above our three-year average of 29, but within the range of expected statistical variation. There were no significant environmental incidents.	Strive for zero reportable environmental incidents, reduce the frequency of incidents and have no significant incidents at Cameco-operated sites.
Improve year-over-year performance in corporate environmental leadership indicators.	Achieved Two of eight key performance indicators showed an improvement over 2010, while two were at the same level as 2010. Higher rates in two of the key indicators were largely influenced by the cleanup of historic waste. Higher rates in the remaining two key indicators were tied to increased activity at our operations. We need continuous innovation in our practices and technology to improve year-over-year.

Supportive communities

2011 objectives	Results	2012 objectives This is forward-looking information.
Develop long-term relationships by engaging with stakeholders important to our sustainability. Ensure support from our employees, impacted communities, investors, governments and the general public through communications, community investment and business development.	Achieved Established and maintained positive relationships with groups affected by our operating activities. Received a higher management credibility rating of 74% in our investor perception study compared to 64% in 2010. Maintained strong corporate trust ratings in Saskatchewan (7.24/10 compared to 7.62 in 2010), Port Hope (7.98/10 compared to 7.58 in 2010) and the US (7.32/10 compared to 7.74 in 2010). These levels of support for our operations were achieved in the face of inherent challenges for mining companies, complicated by misperceptions of the nuclear industry. Named a Top 100 Employer and among the 10 Best Companies to Work For, and received awards for being one of Saskatchewan's Top Employers, Canada's Best Diversity Employers and a Top Employer of Canadians Over 40.	Develop long-term relationships by engaging with regulators and other stakeholders important to our sustainability. Secure continued support from our employees, impacted communities, investors, governments and the general public through communications, community investment and business development. Implement Cameco's corporate social responsibility policy to advance Cameco projects in all locations and secure support from indigenous communities affected by our operations.