(Kitco News) - Uranium miner Cameco (TSX: CCO) today reported that the company produced 2.8 million pounds of uranium (the company's share) in Q2 2022, up 115% compared to 1.3 million pounds produced in Q2 2021.
The company said it has been successful in catching up on development work at the Cigar Lake mine in Saskatchewan that had been deferred from 2021 and now expects to produce 18 million pounds at Cigar Lake (100% basis) in 2022, with Cameco's share - including its increased ownership - of approximately 9.5 million pounds.
Cameco also reported net earnings of C$84 million in Q2 2022, compared to a net loss of C$37 million in Q2 2021.
According to the company's statement, its second quarter results reflect the impact of higher average realized prices in both the uranium and fuel services segments under Cameco's long-term contract portfolio.
The company noted it delivered 7.6 million pounds at an average realized price 41% higher than the same period last year, adding that in its fuel services segment average realized prices were 8% higher than in the second quarter of 2021.
However, the company said that year-to-date it has taken no deliveries from its share of Inkai's 2022 production due to shipping delays, as the company continues to work with its partner Kazatomprom on securing an alternate shipping route that doesn't rely on Russian rail lines or ports.
"While the work on enabling shipping via the Trans-Caspian route continues, we have no confirmed date for when the first shipment with our share of Inkai's production will proceed via that route,” Cameco said.
Importantly, the company noted that should JV Inkai be unable to execute its sales transactions due to its inability to ship Cameco's share of its 2022 production, the company's 2022 equity earnings and dividend may be impacted, depending on how and when the issue is resolved.
Cameco is one of the largest global providers of the uranium fuel. The company owns the world's largest high-grade uranium reserves and low-cost operations. The company is also a leading supplier of uranium refining, conversion and fuel manufacturing services.
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