Quarterly Reports - 2012 - Q3

Quarterly items

  • reconfirmed sales, revenue and production guidance for the year
  • increased mineral reserves by 19% at McArthur River
  • signed an MOA with our joint venture partner at Inkai
  • received funding commitment from the Saskatchewan government to construct a highway connecting McArthur River and Cigar Lake

Long-term growth plan

  • strong long-term industry fundamentals — 64 reactors under construction
  • ongoing market uncertainties reduce uranium demand forecast to 2021
  • our growth plan adjusted to focus primarily on our brownfield projects resulting in annual supply of 36 million pounds by 2018
  • maintain our world class portfolio of projects, providing the ability to respond to positive market signals

Cameco (TSX: CCO; NYSE: CCJ) today reported its consolidated financial and operating results for the third quarter ended September 30, 2012 in accordance with International Financial Reporting Standards (IFRS).

"Our results this quarter reflect the delivery pattern we reported in our second quarter report and we still expect to deliver on our sales, revenue and production guidance for the year," said Tim Gitzel, president and CEO.

"Longer term, we continue to see strong fundamentals. However, ongoing market uncertainty in the near term led us to review and adjust our growth plans this quarter. We decided to focus on advancing projects with the greatest certainty in the near term, from which we expect to achieve about 36 million pounds of annual supply by 2018 compared to the 40 million previously targeted. We will also continue with the rest of our projects in a measured manner in order to preserve the option to bring them on as quickly as possible, if profitable.

"By taking these actions, we expect to spread our capital spending over a longer period and decrease project-related expenses. Our focus will be on execution and reducing costs without compromising on our values.

"With this adjustment, we believe we are positioned to continue to succeed in the current market environment, add value for our shareholders, and take advantage of the growth in uranium demand we see long term."