Throughout 2019 we continued to do what we said we would do, executing on all strategic fronts; operational, marketing and financial.

On the operational front, Cigar Lake and our Fuel Services segment performed very well. With the McArthur River/Key Lake operation still on care and maintenance, production in our uranium segment remained well below our committed sales. As a result, we were actively purchasing material on the spot market.

In 2019, the spot market underperformed our expectations, due to the delay of end-user demand caused by uncertainty largely related to market acess and trade policy issues. However, we were pleased by our performance in the term market. The interest in long-term contracting and our off-market conversations with some of our best and largest customers continued. We had not seen the current level of prospective business in our pipeline since before 2011. Since the beginning of 2019, we added just over 36 million pounds of deliveries to our contract portfolio, more than replacing the volumes delivered in 2019, while maintaining leverage to higher future uranium prices.

On the financial front, we remain well-positioned to execute on our strategy and self-manage risk. Our balance sheet is strong and we began 2020 with $1.1 billion in cash and $1 billion in long-term debt with maturities in 2022, 2024 and 2042.

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Financial Highlights