To enhance operational efficiency, in 2017 Cameco 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 were closed, with the corporate entities remaining in place to fulfill all commitments on existing contracts.
All Canadian and international marketing activities, including uranium, conversion, fuel fabrication and reactor components to customers as well as contract administration, logistics and inventory management, have been consolidated in Saskatoon.
Customer inquiries are welcome.
During 2017, NUKEM delivered 10.0 million pounds of uranium, an increase of 2.9 million pounds compared to the previous year due to planned inventory reductions after the restructuring of Cameco’s global marketing activities. Revenues from NUKEM amounted to $321 million. Despite higher sales volumes, revenue decreased by 18% compared to 2016 as a result of a decline in the average realized price in the oversupplied uranium market. Gross loss percentage was 5% for 2017, compared to 7% for 2016.
The net effect was a $13 million increase in gross profit. Included in the 2017 gross loss is a $9 million net write-down of inventory compared to an $18 million write-down in 2016.
|3 months ended
|Uranium sales U308 (million lbs)1||4.0||3.1||29%||10.0||7.1||41%|
|Average realized price ($Cdn/lb)||30.81||46.63||(34)%||32.25||47.90||(33)%|
1. Includes sales and revenue between our uranium, fuel services and NUKEM segments (1.7 million pounds in sales and revenue of $49.0 million in Q4 2017, 48,000 pounds in sales and revenue of $0.4 million in Q4 2016).