To enhance operational efficiency, Cameco has consolidated global marketing activities at its corporate office in Saskatoon. As a result, the offices of Cameco Inc., NUKEM Inc. and NUKEM GmbH in the US and Germany will be closed, with the corporate entities remaining in place to fulfill all commitments on existing contracts.
All future Canadian and international marketing activities, including uranium, conversion, fuel fabrication and reactor components to customers as well as contract administration, logistics and inventory management, will be consolidated in Saskatoon.
Customer inquiries are welcome.
NUKEM Third Quarter 2017
During the third quarter of 2017, NUKEM delivered 1.1 million pounds of uranium, a decrease of 27% from the same period last year due largely to a lack of acceptable spot sale opportunities relative to the same period in 2016. Total revenues decreased 52% due to the decrease in sales volume and a 34% decrease in average realized price. The decrease in realized price was mainly the result of a lower uranium spot price compared to the third quarter of 2016.
NUKEM recorded a gross loss of $1 million in the third quarter of 2017 compared to $15 million in 2016. In 2016, a net write-down of inventory of $12 million was recorded which was the result of a decline in the spot price. The net write-down in 2017 was nil.
First nine months
During the nine months ended September 30, 2017, NUKEM delivered 6 million pounds of uranium, an increase of 50%, due to the timing of customer requirements and a greater number of acceptable spot sale opportunities relative to the same period in 2016. Total revenues were unchanged due to the increase in sales volumes being offset by a 32% decrease in average realized price. The decrease in realized price was mainly the result of a lower uranium spot price compared to the first nine months of 2016.
NUKEM recorded a gross loss of $16 million in the first nine months of 2017 compared to a $26 million loss in the same period in 2016. Included in the 2017 margin was a $12 million net write-down of inventory while the 2016 margin included a $26 million net write-down.
|3 months ended
|9 months ended
|Uranium sales U308 (million lbs)1||1.1||1.5||(27)%||6.0||4.0||50%|
|Average realized price ($Cdn/lb)||28.72||43.52||(34)%||33.22||48.89||(32)%|
1. There were no significant inter-segment transactions in the periods shown.