Production at Cameco down two-thirds for first nine months of 2020
Revenues are up 25% for the quarter compared to the same quarter a year ago, but Cameco warned of variations in contract deliveries.
Production volume is down significantly, 86% for the quarter and 63% for the nine months up to the end of September. Cameco has been closing operations due to weak demand, as well as COVID-19 disruptions.
The average realized price was higher in Q3, up 9%, while just up 2% for the nine-months.
The company lowered the interest on its debt. Cameco issued debentures in the amount of $400 million, bearing interest of 2.95% per annum and maturing in 2027, and announced the redemption of our outstanding $400 million debenture bearing interest of 3.75% maturing in 2022, which is to be completed on or about November 20, 2020.
As of the end of September, Cameco had $793 million in cash and short-term investments and $1.0 billion in long-term debt.
The CEO said current trade issues and the march towards renewables if favorable for uranium.
"In an environment where we think trade policy, like the amendment to the Russian Suspension Agreement in the US, will create opportunities for commercial suppliers like Cameco and where utilities have growing uncovered requirements, we are excited about the fundamentals for our industry. We see demand for nuclear growing driven by an increasing focus on electrification and the recognition that to achieve this while still meeting clean-air and climate change goals, nuclear will be needed in the toolbox," said Tim Gitzel, Cameco's president and CEO.