Post by Zoinkers on May 23, 2006 5:28:35 GMT -5
Cameco Corp. reports net earnings for the first quarter of $117 million
May 1, 2006, 9:57 am
SASKATOON (CP) - High uranium prices drove Cameco Corp. (CCO.TO) profits in the first quarter, powering it to net earnings of $117 million, but a drop in sales volume will likely drag on the next quarter, says the company's CEO.
"These results were particularly strong in terms of revenue, earnings and cash flow," Jerry Grandey, Cameco's president and CEO, said in a conference call Monday.
"However, I feel obligated to remind everyone as we generally do that our quarterly results are relatively lumpy" and can't be relied on to predict future results, Grandey said.
Cameco, the world's largest uranium producer, said it expects uranium deliveries in the second quarter to be about half of what they were in the first quarter.
A high volume of uranium sales in the opening quarter "was unusual and reflects the timing of customer requests for delivery," the company said.
But Cameco expects total uranium sales in 2006 of about 35 million pounds and consolidated revenue to grow by about 50 per cent over 2005 "due to improved uranium markets" and the consolidation of revenue from Ontario nuclear power generator Bruce Power LP, in which the Saskatoon company holds a minority stake.
"Current uranium market prices are increasing our realized prices in the short term and providing the opportunity to lock in long-term contracts at prices higher than at any time in the company's history," Grandey said in an earlier statement.
Net earnings for the first quarter amounted to 32 cents per share diluted and compared to a $26-million or seven cent per share profit in the year-earlier period.
First quarter revenues were up to $542 million, compared to $216 million in 2005, Cameco said.
The company also noted that it is facing delays in construction and expansion at some of its operations, particularly at its McArthur River mine in Saskatchewan and Key Lake mill where it has deferred expansion of annual licensed production capacity to seek environmental regulatory approvals.
It also continues to work on problems at its Cigar Lake mine where water flooded a mine ventillation shaft and delayed the project by an estimated six months.
Cameco said it now expects the capital cost for Cigar Lake to rise to $660 million from the last estimate of $520 million "largely due to greater than anticipated contractor rates driven by the unprecedented levels of construction activity underway in western Canada, increased energy costs and several scope additions."
Cameco holds a 50 per cent stake in the Cigar Lake joint venture which also includes Cogema Resources Inc., a subsidiary of Areva, Idemitsu Uranium Exploration Canada Ltd. and Tepco Resources Inc.
Cameco shares were up 74 cents at $46.23 in Monday trading on the Toronto Stock Exchange.
Cameco is a major uranium producer as well as a supplier of uranium fuel conversion services for the nuclear power industry. The company explores for uranium in North America, Australia and Asia and also holds a majority stake in Centerra Gold. Inc., a Toronto-based miner partly spun off two years ago.
May 1, 2006, 9:57 am
SASKATOON (CP) - High uranium prices drove Cameco Corp. (CCO.TO) profits in the first quarter, powering it to net earnings of $117 million, but a drop in sales volume will likely drag on the next quarter, says the company's CEO.
"These results were particularly strong in terms of revenue, earnings and cash flow," Jerry Grandey, Cameco's president and CEO, said in a conference call Monday.
"However, I feel obligated to remind everyone as we generally do that our quarterly results are relatively lumpy" and can't be relied on to predict future results, Grandey said.
Cameco, the world's largest uranium producer, said it expects uranium deliveries in the second quarter to be about half of what they were in the first quarter.
A high volume of uranium sales in the opening quarter "was unusual and reflects the timing of customer requests for delivery," the company said.
But Cameco expects total uranium sales in 2006 of about 35 million pounds and consolidated revenue to grow by about 50 per cent over 2005 "due to improved uranium markets" and the consolidation of revenue from Ontario nuclear power generator Bruce Power LP, in which the Saskatoon company holds a minority stake.
"Current uranium market prices are increasing our realized prices in the short term and providing the opportunity to lock in long-term contracts at prices higher than at any time in the company's history," Grandey said in an earlier statement.
Net earnings for the first quarter amounted to 32 cents per share diluted and compared to a $26-million or seven cent per share profit in the year-earlier period.
First quarter revenues were up to $542 million, compared to $216 million in 2005, Cameco said.
The company also noted that it is facing delays in construction and expansion at some of its operations, particularly at its McArthur River mine in Saskatchewan and Key Lake mill where it has deferred expansion of annual licensed production capacity to seek environmental regulatory approvals.
It also continues to work on problems at its Cigar Lake mine where water flooded a mine ventillation shaft and delayed the project by an estimated six months.
Cameco said it now expects the capital cost for Cigar Lake to rise to $660 million from the last estimate of $520 million "largely due to greater than anticipated contractor rates driven by the unprecedented levels of construction activity underway in western Canada, increased energy costs and several scope additions."
Cameco holds a 50 per cent stake in the Cigar Lake joint venture which also includes Cogema Resources Inc., a subsidiary of Areva, Idemitsu Uranium Exploration Canada Ltd. and Tepco Resources Inc.
Cameco shares were up 74 cents at $46.23 in Monday trading on the Toronto Stock Exchange.
Cameco is a major uranium producer as well as a supplier of uranium fuel conversion services for the nuclear power industry. The company explores for uranium in North America, Australia and Asia and also holds a majority stake in Centerra Gold. Inc., a Toronto-based miner partly spun off two years ago.