Quarterly Reports - 2011 - Q3

  • third quarter results as expected — higher uranium sales and realized prices
  • strong fourth quarter expected — over one-third of 2011 uranium deliveries
  • sales and revenue guidance for 2011 reconfirmed
  • uranium and fuel services 2011 production outlook decreased slightly
  • long-term fundamentals strong — expect near- to medium-term market uncertainty

Cameco (TSX: CCO; NYSE: CCJ) today reported its consolidated financial and operating results for the third quarter ended September 30, 2011 in accordance with International Financial Reporting Standards (IFRS).

"Cameco performed well during the quarter despite the prevailing economic uncertainty. We realized higher prices on our uranium sales and achieved higher sales volumes resulting in higher adjusted earnings," said president and CEO Tim Gitzel. "With sales commitments of over 300 million pounds, we are positioned to continue delivering solid financial performance while preparing our assets for the growth we expect in the nuclear industry.

"During the quarter, we undertook several initiatives to advance our strategy to double annual uranium production by 2018 and add value for our shareholders. We signed a memorandum of agreement (MOA) with our Inkai partner to increase total production to 5.2 million pounds annually. We also signed a non-binding memorandum of understanding (MOU) to process all Cigar Lake ore at McClean Lake mill, which we expect will result in a significant reduction in the operating cost.

"We believe in the long-term fundamentals of the nuclear industry and will continue to pursue our strategy in a disciplined manner to ensure we can respond appropriately to evolving market conditions."