(Kitco News) - Uranium producer Cameco (TSX: CCO; NYSE: CCJ) yesterday reported Q3 2022 net loss of C$20 million and adjusted net earnings of C$10 million, compared to a net loss of C$72 million and adjusted net loss of C$54 million in Q3 2021.
The company said its quarterly results are driven by normal quarterly variations in contract deliveries and the continued execution of its strategy, including the operational readiness activities to reach planned tier-one production by 2024.
In its uranium segment, the company produced 2 million pounds (its share) during the quarter (Q3 2021: 2 million pounds) and delivered 5.3 million pounds (Q3 2021: 6.7 million pounds) at an average realized price 48% higher than the same period last year.
Cameco noted that in its fuel services segment average realized prices were 27% higher than in the third quarter of 2021, adding that uranium and fuel services production and deliveries were in line with the preliminary third quarter operating update provided on October 11, 2022.
According to the company's statement, JV Inkai (Kazakhstan) has continued to experience delays in shipping its finished product via the Trans-Caspian route. The first shipment of the company's share of JV Inkai's 2022 production has been dispatched at the end of September but is delayed in transit, it said.
"Depending on when we receive the shipment of our share of Inkai's 2022 production, our 2022 share of earnings from this equity-accounted investee and the timing of the receipt of our share of dividends from the joint venture may be impacted," Cameco said.
Importantly, the company noted that at McArthur River/Key Lake, commissioning activities are winding down and first production is scheduled for later in the fourth quarter. Cameco continues to expect up to 2 million pounds of production (100% basis) this year.
The company also reported that year-to-date, it has added to its long-term contract portfolio more than 50 million pounds in its uranium segment and more than 7 million kgU UF6 conversion in its fuel services segment. In addition, the company has advanced contracting discussions for about 27 million pounds of long-term uranium business and 7.5 million kgU of conversion services.
"Once all contracts are finalized, the total volume of uranium successfully contracted since the beginning of 2022 is expected to be about 77 million pounds, and the total volume of conversion services contracted is expected to be about 14.5 million kgU. And, while it has already been a successful year of contracting, our pipeline of uranium and conversion negotiations remains large, and we expect to see more long-term demand come to the market," Cameco noted in its news release.
Cameco is one of the largest global providers of uranium fuel. The company has interests in tier-one mining and milling operations that have the licensed capacity to produce more than 30 million pounds of uranium concentrates annually, backed by more than 464 million pounds of proven and probable mineral reserves. Cameco is also a leading supplier of uranium refining, conversion and fuel manufacturing services.
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