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Measuring our Results

Our ability to build competitive advantage and deliver value is a function of our people, processes, assets and reputation.

We use four categories to define what we are committed to deliver, how we will measure our results, and how we determine compensation:

  • outstanding financial performance
  • a safe, healthy and rewarding workplace
  • a clean environment
  • supportive communities

We introduced these measures of success to proactively address the financial, social and environmental aspects of our business. We believe that each is integral to our overall success and that, together, they will ensure our long-term sustainability.

Outstanding financial performance

2013 Objectives Results
  1. 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 measures do not have a standardized meaning or a consistent basis of calculation under IFRS (non-IFRS measure), and they should not be considered in isolation or as a substitute for financial information prepared in accordance with IFRS. Other companies may calculate these measures differently. Adjusted net earnings (non-IFRS measure) is our net earnings attributable to equity holders, adjusted to better reflect the underlying financial performance for the reporting period. This measure reflects the matching of the net benefits of our hedging program with the inflows of foreign currencies in the applicable reporting period and adjusted for impairment charges, inventory write-downs, losses on exploration interests and income taxes on adjustments. Cash flow from operations (before working capital changes) of $669 million is cash provided by operations of $530 million with the changes in non-cash working capital of $139 million added back. Changes in non-cash working capital includes changes in accounts receivable, inventories, supplies and prepaid expenses, accounts payable and accrued liabilities, and certain other operating items, as further detailed in note 24 to our audited 2013 financial statements.
Earnings Measures
  • Achieve targeted adjusted net earnings and cash flow from operations (before working capital changes).
Exceeded
  • Adjusted net earnings1 were $445 million, 11% higher than our target.
  • Cash flow from operations (before working capital changes)1 was $669 million, 11% higher than our target.
Capital Management
  • Execute capital projects within scope, on time and on budget.
Partially achieved
  • Our cost performance indicator for 2013 was 0.87 (over budget), above the threshold; however, below the target of 1.0, due to cost overruns and necessary scope additions at Cigar Lake.
  • Our schedule performance indicator was below our threshold for 2013, resulting in a zero rating.
Cigar Lake
  • Achieve production at Cigar Lake in 2013.
Not achieved
  • In 2013, we made strong progress toward production, including jetting in waste, assembling a second jet boring system underground, and commissioning most of the other mine systems. We were also successful in obtaining the required construction and operating licence. However, production of the first packaged pounds was delayed as a result of additional work to ensure the safe, efficient operation of the mine and mill. In December, we began jet boring in ore, and have since completed the first cavity in ore.

Safe, healthy and rewarding workplace

2013 Objectives Results
  1. 1 Measured against the Occupational Safety and Health Administration (OSHA) safety metrics, total recordable incident rate (TRIR) and days away, restricted or transferred (DART), adopted by the company to continue to drive improvements in safety performance. TRIR is a measure of the rate of “recordable” workplace injuries. Examples of “recordable injuries” are a medical treatment (other than first aid), restricted work, lost time and other specific injuries such as 10 decibel hearing loss, loss of consciousness and broken bone. DART is a measure of the rate of workplace injuries and illnesses that require employees to miss work, perform restricted work activities or transfer to another job within a calendar year.

  • Strive for no lost-time injuries (LTI) 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.
Exceeded
  • Overall safety performance was strong in 20131. Injury rates trended downward across the company and were better than expected. Average radiation doses remained low and stable. In the past two years, we have met our targets for safety performance.

  • Attract and retain the employees needed to support operations and growth.
Achieved
  • We were listed as both a Top 100 Employer (for the fourth year in a row) and one of the Financial Post’s 10 Best Companies to Work For, in addition to receiving awards for being among Saskatchewan’s Top 10 Employers, Canada’s Best Diversity Employers, Top Employer for Canadians Over 40, and a Top Employer for Young People.
  • Our 2013 turnover rate of 8.3% (excluding the impact of restructuring) was lower than our target of 9%.
  • The expected turnover rate for new hires within the first year of employment was slightly higher than expected at 12.7%.

Clean environment

2013 Objectives Results

  • Do not incur an incident that results in moderate or significant environmental impacts or remediation costs of greater than or equal to $1M or which has reasonable potential to result in significant negative impact on the company’s reputation. Achieve a decreasing trend for environmental incidents, measured as less than the long-term average.
Exceeded
  • There were no significant environmental incidents in 2013, and our reportable environmental incidents were significantly lower than our long-term average of 38, with only 22 over the course of the year.

Supportive communities

2013 Objectives Results

  • Increase employment of residents of Saskatchewan’s north (RSN) by 2% (15 net additions) over 2012.
  • Support northern business development opportunities by procuring at least 75% of northern services from northern Saskatchewan vendors.
Not achieved
  • Overall RSN employment decreased seven positions from 2012 to 747 positions. However, we were successful in adding 18 RSN employees at Cigar Lake, and maintained a 50% RSN workforce overall at the northern sites.
  • Only 67% of northern services were procured from northern Saskatchewan vendors. We did not achieve our target due to disproportionate growth in overall spend, cost efficiencies and a temporary increase in expenditures, largely growth capital at Cigar Lake which required specialized services that were not available from northern Saskatchewan vendors. Over the past few years, overall spend has grown faster than the growth in capacity of northern vendors. Despite not achieving our targeted ratio, the nominal business volume with northern Saskatchewan vendors has more than doubled since 2009.

2014 objectives

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

  • Achieve targeted adjusted net earnings and cash flow from operations.
  • Execute capital projects within scope, on time and on budget.
  • Achieve production at Cigar Lake in 2014, and advance other activities needed to achieve medium and long-term growth objectives.

Safe, healthy and rewarding workplace

  • Improve workplace safety performance at all sites.
  • Attract and retain the employees needed to support operations and growth.

Clean environment

  • Improve environmental performance at all sites.

Supportive communities

  • Build and sustain strong stakeholder support for our activities.