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Notes

  1. Cameco Corporation
  2. Significant accounting policies
  3. Accounting standards
  4. Determination of fair values
  5. Use of estimates and judgments
  6. Acquisitions
  7. Accounts receivable
  8. Inventories
  9. Property, plant and equipment
  10. Goodwill and intangible assets
  11. Long-term receivables, investments and other
  12. Equity-accounted investees
  13. Accounts payable and accrued liabilities
  14. Short-term debt
  15. Long-term debt
  16. Other liabilities
  17. Provisions
  1. Share capital
  2. Employee benefit expense
  3. Finance costs
  4. Other expense
  5. Income taxes
  6. Per share amounts
  7. Statements of cash flows
  8. Share-based compensation plans
  9. Pension and other post-retirement benefits
  10. Financial instruments and related risk management
  11. Capital management
  12. Segmented information
  13. Group entities
  14. Joint operations
  15. Related parties
  16. Subsequent event

9. Property, plant and equipment

At December 31, 2013 Land and 
buildings 		 Plant and 
equipment 		 Furniture 
and 
fixtures 		 Under 
construction 		 Exploration and 
evaluation 		 Total 
Cost
Beginning of year $2,722,059  $1,663,769  $89,868  $1,679,571  $1,126,254  $7,281,521 
Acquisitions [note 6] –  1,070  –  –  –  1,070 
Additions 56,857  18,299  485  528,547  9,131  613,319 
Transfers 161,042  141,018  6,929  (308,989) –  – 
Disposals (1,467) (14,294) (578) –  (131) (16,470)
Effect of movements in exchange rates 33,403  9,749  516  5,271  (49,390) (451)
End of year 2,971,894  1,819,611  97,220  1,904,400  1,085,864  7,878,989 
Accumulated depreciation and impairment
Beginning of year 1,305,639  918,829  71,903  –  168,000  2,464,371 
Depreciation charge 169,561  105,101  9,531  –  258  284,451 
Transfers (185) 692  (507) –  –  – 
Disposals (378) (9,104) (155) –  –  (9,637)
Impairment charge (a) 28  344  –  70,159  7,160  77,691 
Effect of movements in exchange rates 17,016  3,667  444  –  (7) 21,120 
End of year 1,491,681  1,019,529  81,216  70,159  175,411  2,837,996 
Net book value at December 31, 2013 $1,480,213  $800,082  $16,004  $1,834,241  $910,453  $5,040,993 
At December 31, 2012 Land and 
buildings 		 Plant and 
equipment 		 Furniture 
and 
fixtures 		 Under 
construction 		 Exploration 
and 
evaluation 		 (Revised – 
note 3) 
Total 
  1. (a) During 2013, Cameco recognized a $70,159,000 impairment charge relating to its agreement with Talvivaara Mining Company Plc. to purchase uranium produced at the Sotkamo nickel-zinc mine in Finland. The impairment charge represents the full amount of Cameco’s investment which was used to cover construction costs with the amount to be repaid through deliveries of uranium concentrate. The amount of the charge was determined as the excess of the carrying value over the fair value less costs to sell. Due to Talvivaara’s weak financial position and application to the Finnish government to undergo a corporate restructuring, as an unsecured creditor Cameco determined the fair value less costs to sell to be nil and as such recognized an impairment charge for the full amount of the asset.
  2. (b) In 2012, Cameco recognized a $168,000,000 impairment charge relating to Kintyre, its advanced uranium exploration project in Australia. Due to the weakening of the uranium market since the asset was purchased in 2008, no increase to the mineral resource estimate in 2012 and the decision not to proceed with the detailed feasibility study, the Company concluded it was appropriate to recognize an impairment charge. The amount of the charge was determined as the excess of the carrying value over the fair value less costs to sell based on the implied fair value of the resources in place using comparable market transaction metrics.
Cost
Beginning of year $2,518,918  $1,471,739  $78,981  $1,419,464  $513,664  $6,002,766 
Acquisitions [note 6] –  –  –  –  598,407  598,407 
Additions 97,481  21,215  1,271  577,743  19,416  717,126 
Transfers 117,648  187,105  9,800  (314,553) –  – 
Disposals (2,281) (13,180) (3) –  –  (15,464)
Effect of movements in exchange rates (9,707) (3,110) (181) (3,083) (5,233) (21,314)
End of year 2,722,059  1,663,769  89,868  1,679,571  1,126,254  7,281,521 
Accumulated depreciation and impairment
Beginning of year 1,179,652  852,217  63,242  –  –  2,095,111 
Depreciation charge 131,207  80,107  8,785  –  –  220,099 
Disposals (1,251) (12,554) (4) –  –  (13,809)
Impairment charge (b) –  –  –  –  168,000  168,000 
Effect of movements in exchange rates (3,969) (941) (120) –  –  (5,030)
End of year 1,305,639  918,829  71,903  –  168,000  2,464,371 
Net book value at December 31, 2012 $1,416,420  $744,940  $17,965  $1,679,571  $958,254  $4,817,150