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Cameco posts $37 million loss in second quarter on lower revenues

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SASKATOON — Uranium miner Cameco Corp. recorded a smaller loss in its latest quarter despite a 32 per cent decrease in revenue amid the suspension of production.

The Saskatoon-based company says it lost $37 million or nine cents per diluted share in the second quarter, a 30 per cent improvement from the loss of $53 million or 13 cents per share a year earlier.

Adjusted profits for the three months ended June 30 were $38 million or 10 cents per share, compared with a loss of $65 million or 16 cents per share in the second quarter of 2020.

Revenues fell to $359 million from $525 million.

Cameco was expected to post a net loss of three cents per share on $379 million of revenues, according to financial data firm Refinitiv.

The loss included $8 million in care and maintenance costs from the four-month suspension of production until the restart of the Cigar Lake mine in mid-April. The continued payment of salaries was offset by $9 million from the Canadian Employment Wage Subsidy program.

“We are not at the regular tier-one run rate of our business," stated CEO Tim Gitzel.

He said the company is taking the necessary steps, including investing in digital and automation technologies, to create more flexibility to align output with demand and reduce costs.

“We are excited about the future of nuclear power generation, about the fundamentals of uranium supply and demand and about the prospects for our company and remain committed to our tier-one strategy and to our vision."

He said traditional and non-traditional uses of nuclear power should grow with the increasing focus on electrification and phasing out of carbon intensive sources of energy continues.

This report by The Canadian Press was first published July 28, 2021.

Companies in this story: (TSX:CCO)

The Canadian Press

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