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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$14 million and adjusted net losses of C$3 million in Q2 2023, compared to net earnings of C$84 million and adjusted net earnings of C$72 million in Q2 2022.
The company said its Q2 2023 results reflect "normal" quarterly variations in contract deliveries, "which were expected to be lower than in the second quarter of 2022."
"Unrealized losses on our US dollar cash balances, reflected in the C$44 million of reported foreign exchange losses for the quarter, contributed to lower net earnings and adjusted net earnings compared to in the same period of 2022," Cameco added.
However, the company noted that with improving market fundamentals, for 2023 it has increased its consolidated revenue outlook to between C$2.4 billion and C$2.5 billion (previously C$2.2 billion and C$2.4 billion), "which is primarily driven by higher expected average realized prices under our contract portfolio and increased deliveries in our uranium segment."
According to a press release, Q2 2023 production was 4.4 million pounds in Cameco's uranium segment, up 57% from Q2 2022, while in its fuel services segment, Cameco produced 3.4 million kgU, down 8% compared to Q2 2022.
The company also said that as of June 30, 2023, it had $2.5 billion in cash and cash equivalents and short-term investments and $1.0 billion in total debt. In addition, the company has a $1.0 billion undrawn credit facility which matures October 1, 2026.
President and CEO Tim Gitzel commented, "Our financial performance, which reflects the expected quarterly variation in our contract deliveries this year, is benefitting from our strategic decisions, with gross profit improving as we transition to our tier-one run rate.
"The significant momentum seen in the nuclear energy industry and the heightened supply risk caused by geopolitical developments are translating into increased opportunities for Cameco. As a result, for 2023, we have increased our consolidated revenue outlook, which is primarily driven by higher expected average realized prices under our contract portfolio and increased deliveries in our uranium segment."
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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