EC1Direct economic value
This indicator provides information about Cameco’s annual revenue, operating costs, employee wages and benefits, payments to providers of capital, payments to governments, community investments and economic value retained.
|Employee Wages and Benefits||453,242||462,164||464,021||507,767||487,349|
|Payments to Providers of Capital||201,587||224,073||236,344||227,820||228,756|
|Payments to Government||35,906||96,357||233,716||92,758||114,669|
|Economic Value Retained||9,768||17,103||-64,552||139,017||-137,648|
All figures in Canadian dollars (1,000s).
As of 2013, IFRS 11 – Joint Arrangements requires that we account for our former interest in Bruce Power Limited Partnership using equity accounting. Our results for 2012 and 2013 have been revised for comparative purposes. We divested our interest in BPLP effective January 1, 2014.
Revenue by region
(Revenue is attributed to the geographic location based on the location of the entity providing the services)
What it means
In 2016, revenue decreased by 12% compared to 2015 due to lower sales revenues in all of our operating segments as a result of reduced sales volumes related to market conditions. In addition, we had lower revenues in our uranium and NUKEM segments as a result of the lower US dollar average realized price which was the result of lower prices on market-related contracts. This was partially offset by further weakening of the Canadian dollar exchange rate realized on sales during 2016. The realized foreign exchange rate was also 1.32 compared to 1.27 in 2015.
The decrease in 2016 operating costs was due to lower sales volumes in all of our segments, largely offset by:
- higher unit cost of sales in the uranium segment as a result of care and maintenance costs and severance costs related to the curtailment of production at Rabbit Lake and our US operations
- $18 million net write-down of NUKEM inventory, compared to $3 million net recovery in 2015
- Higher administration costs as a result of increased legal costs as we prepared the CRA case for trial and one-time costs related to collaboration agreements
Employee wages and benefits
Employee wages and benefits, including pension and share based compensation costs, decreased from 2015 mainly due to a reduction in the annual employee incentive program, partially offset by additional costs related to the restructuring of the NUKEM segment and the reduction of staffing levels at our corporate office.
Canada, the United States, Australia and Kazakhstan are all either a candidate to or compliant with the Extractive Industries Transparency Initiative.