2015 Performance Highlights
Cameco performed well in 2015, navigating the challenging market conditions, while continuing to prepare for the positive long-term growth we see coming in the industry.
Financial performance
| Highlights December 31 ($ millions except where indicated) |
2015 | 2014 | Change |
|---|---|---|---|
| Revenue | 2,754 | 2,398 | 15% |
| Gross profit | 697 | 638 | 9% |
| Net earnings attributable to equity holders | 65 | 185 | (65)% |
| $ per common share (diluted) | 0.16 | 0.47 | (65)% |
| Adjusted net earnings (non-IFRS) | 344 | 412 | (17)% |
| $ per common share (adjusted and diluted) | 0.87 | 1.04 | (16)% |
| Cash provided by operations (after working capital changes) | 450 | 480 | (6)% |
Net earnings attributable to equity holders (net earnings) and adjusted net earnings were lower in 2015 compared to 2014. However, significant weakness in the Canadian dollar in 2015 resulted in record annual consolidated revenue of $2.8 billion, and record annual revenue from our uranium segment of $1.9 billion based on sales of 32.4 million pounds at a record Canadian dollar average realized price of $57.58 per pound. See 2015 consolidated financial results for more information.
Solid progress in our uranium segment this year
In our uranium segment, we exceeded our annual production expectations, and realized a number of successes at our mining operations. Key highlights:
- record annual production of 28.4 million pounds—4% higher than the guidance provided in our 2015 third quarter MD&A
- record quarterly production of 9.6 million pounds in the fourth quarter—17% higher than in 2014, largely due to production from Cigar Lake
- exceeded planned production at the Cigar Lake mine and AREVA’s McClean Lake mill
We continued to advance exploration activities, spending $2 million on four brownfield exploration projects, $4 million on our projects under evaluation in Australia, and $2 million at Inkai and our US operations. We spent about $32 million on regional exploration programs, mostly in Saskatchewan and Australia.
Updates on our other segments and investments
Production in 2015 from our fuel services segment was 16% lower than in 2014. We continue to face weak market conditions for conversion services, and have decided to further reduce production at Port Hope in 2016.
On January 31, 2014, we announced the sale of our 31.6% limited partnership interest in Bruce Power Limited Partnership (BPLP) and related entities for $450 million. The sale closed on March 27, 2014, and was accounted for as being completed effective January 1, 2014.
| Highlights | 2015 | 2014 | Change | ||
|---|---|---|---|---|---|
|
|||||
| Uranium | Production volume (million lbs) | 28.4 | 23.3 | 22% | |
| Sales volume (million lbs) 1 | 32.4 | 33.9 | (4)% | ||
| Average realized price | ($US/lb) | 45.19 | 47.53 | (5)% | |
| ($Cdn/lb) | 57.58 | 52.37 | 10% | ||
| Revenue ($ millions) 1 | 1,866 | 1,777 | 5% | ||
| Gross profit ($ millions) | 608 | 602 | 1% | ||
| Fuel services | Production volume (million kgU) | 9.7 | 11.6 | (16)% | |
| Sales volume (million kgU) 1 | 13.6 | 15.5 | (12)% | ||
| Average realized price | ($Cdn/kgU) | 23.37 | 19.70 | 19% | |
| Revenue ($ millions) 1 | 319 | 306 | 4% | ||
| Gross profit ($ millions) | 61 | 38 | 61% | ||
| NUKEM | Sales volume U3O8 (million lbs) 1 | 10.7 | 8.1 | 32% | |
| Average realized price | ($Cdn/lb) | 48.82 | 44.90 | 9% | |
| Revenue ($ millions) 1 | 554 | 349 | 59% | ||
| Gross profit ($ millions) | 42 | 22 | 91% | ||
Shares and stock options outstanding
At February 3, 2016, we had:
- 395,792,522 common shares and one Class B share outstanding
- 8,481,833 stock options outstanding, with exercise prices ranging from $19.30 to $54.38
Dividend policy
Our board of directors has established a policy of paying a quarterly dividend of $0.10 ($0.40 per year) per common share. This policy will be reviewed from time to time based on our cash flow, earnings, financial position, strategy and other relevant factors.