NUKEM
| Three months ended December 31, 2013 |
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|---|---|---|---|
| Highlights | 2014 | 2013 | Change |
|
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| Uranium sales (million lbs) | 3.4 1 | 3.3 | 3% |
| Average realized price ($Cdn/lb) | 52.12 | 41.84 | 25% |
| Cost of product sold (including D&A) | 156 | 169 | (8)% |
| Revenue | 159 1 | 188 | (15)% |
| Gross profit | 3 | 19 | (84)% |
| Net earnings | (6) | 13 | (146)% |
| Adjustments on derivatives 2 | — | (1) | (100)% |
| NUKEM inventory write-down (reversal) (net of tax) | (2) | (1) | (100)% |
| Adjusted net earnings (loss) 2 | (8) | 11 | (173)% |
During the three months ended December 31, 2014, NUKEM delivered 3.4 million pounds of uranium, an increase of 0.1 million pounds compared to 2013 due to timing of customer requirements. NUKEM revenues amounted to $159 million compared to $188 million in 2013 due to a decline in the uranium spot price relative to the previous year.
The unit cost of uranium sold was lower in 2014 as a result of the decline in the spot price.
The net effect was a $16 million decrease in gross profit. On a percentage basis, gross profits were 2% in the fourth quarter of 2014 compared to 10% in the same period in 2013.
Administration costs were higher in the fourth quarter due to the timing of expenditures. In addition, the sale of inventory on hand at the time of the acquisition of NUKEM resulted in an allocation of the historic purchase price to the sale of uranium in the quarter. This resulted in an adjusted net loss for the fourth quarter of 2014 of $8 million, compared to earnings of $11 million (non-IFRS measure) in 2013.