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Cameco posts net earnings of C$119M in Q1 on higher uranium production and prices

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(Kitco News) - Cameco (TSX: CCO) (NYSE: CCJ), one of the largest global producers of uranium fuel, today reported net earnings of C$119 million and adjusted net earnings of C$115 million for Q1 2023, compared to net earnings of C$40 million and adjusted net earnings of C$17 million in Q1 2022.

The company said its Q1 2023 results are a result of higher deliveries and higher average realized prices in both the uranium and fuel services segments "as we continue the transition to our tier-one cost structure.”

"In our uranium segment, our average realized price was 11% higher than the same period last year, and in our fuel services segment average realized prices were 9% higher," Cameco added.

In its uranium segment, the company delivered 9.7 million pounds in Q1 2023 (Q1 2022: 5.9 million pounds), which represents almost a third of the total expected 2023 deliveries.

According to a press release, Q1 2023 production was 4.5 million pounds in Cameco's uranium segment, up 137% from Q1 2022, as production ramp up at McArthur River/Key Lake is progressing well with 3.4 million pounds (2.4 million pounds Cameco's share) produced in the first quarter.

In its fuel services segment, Cameco produced 4.1 million kgU in Q1 2023, which is in line with Q1 2022.

The company said that as of March 31, 2022, it had C$2.5 billion in cash and cash equivalents and short-term investments and C$1.0 billion in long-term debt. In addition, Cameco has a C$1 billion undrawn credit facility.

President and CEO Tim Gitzel commented, "Our results demonstrate the strength and purpose of the strategic decisions we have made over the last several years, and the continued support we see developing for nuclear power around the world. In fact, I am not sure there's ever been a better time to be a pure-play investment in the growing demand for nuclear energy.

"We remain in the enviable position of having what we believe are the world's premier, tier-one assets operating in a stable geopolitical region, and as McArthur River and Key Lake continue to ramp up to planned production, we are returning to our tier-one cost structure.”

Cameco is one of the largest global providers of the uranium fuel. The company's competitive position is based on its controlling ownership of the world's largest high-grade reserves and low-cost operations.

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