Quarterly Reports - 2009 - Q4

Cameco Corporation (TSX: CCO; NYSE: CCJ) today reported record net earnings of $1.1 billion ($2.82 per share diluted) for 2009, compared to $450 million ($1.28 per share diluted) in 2008. For the fourth quarter net earnings were $598 million ($1.52 per share diluted), compared to $31 million ($0.08 per share diluted) in the fourth quarter of 2008.

Our net earnings were significantly higher for the year and the fourth quarter, primarily as a result of selling our interest in Centerra Gold Inc. (Centerra) and recording an after-tax gain of $374 million. Net earnings for the full year were also favourably impacted by the recording of an after-tax profit of $179 million relating to mark-to-market gains on financial instruments, compared to a loss of $148 million in 2008.

Adjusted net earnings1 for the full year were $582 million ($1.49 per share adjusted and diluted), compared to $589 million ($1.67 adjusted and diluted) in 2008. The 1% decrease in 2009 was attributable to:

  • lower profits from our uranium business due to higher unit costs
  • lower profits in gold resulting from lower sales volumes
  • higher profits from our electricity business, relating to higher realized selling prices, which partially offset our uranium and gold results

Our 2009 fourth quarter adjusted net earnings1 were $248 million ($0.63 per share adjusted and diluted), a 39% increase over $179 million earned for the same period in 2008. This resulted primarily from higher profits in gold, due to a higher realized selling price (averaging $1,129 (US) per ounce in 2009 compared to $806 (US) per ounce in 2008).

"With the sale of Centerra, we are now fully focused on the growing interest in nuclear energy," said Jerry Grandey, Cameco's President and Chief Executive Officer. "Operationally and financially, we are well positioned to meet our goal of doubling annual uranium production by 2018."

1 Net earnings for the quarters and years ended December 31, 2008 and 2009 have been adjusted to exclude a number of items. Our adjusted net earnings include our share of Centerra's operating earnings for the periods presented. Adjusted net earnings is a non-GAAP measure. For a description see "Non-GAAP measures" in this document.

Note: All dollar amounts are expressed in Canadian dollars unless otherwise stated. The 2009 annual financial statements have been audited, however 2008 and 2009 fourth quarter financial information presented is unaudited. Our audited annual financial statements are available on our company's website cameco.com, on SEDAR at sedar.com and on EDGAR at sec.gov/edgar.shtml.