Cameco (TSX: CCO; NYSE: CCJ) today reported its consolidated
financial and operating results for the fourth quarter and year
ended December 31, 2024, in accordance with International Financial
Reporting Standards (IFRS).
“Our 2024 full-year financial performance benefitted from strong
fourth quarter results delivered by our uranium and Westinghouse
segments,” said Tim Gitzel, Cameco’s president and CEO. “Although
both net earnings and adjusted net earnings in 2024 were lower than
in 2023 primarily due to the impact of purchase accounting related
to the Westinghouse acquisition, our other key financial metrics
improved significantly. We expect our strong financial performance
to continue in 2025, driven by the supportive market conditions we
are seeing throughout the fuel cycle and across the nuclear sector,
and through the continued benefits flowing from our investment in
Westinghouse. Over the coming year, we expect to continue investing
to help ensure reliability and sustainability of our existing
operations, while positioning ourselves for future production
flexibility and growth – growth that will be strategic, deliberate,
disciplined, and with a focus on generating full-cycle value.
“It was another positive year for the nuclear industry, with
support for both existing nuclear reactors and nuclear new build
continuing to grow. In fact, we believe the outlook for nuclear
power and nuclear fuel fundamentals is more favourable than it has
been for decades. Continued global geopolitical uncertainty is
bringing energy security and national security into focus, which
puts nuclear in what we believe is a durable growth mode, and as we
see that growth translate into demand and a cycle of replacement
rate contracting, we too expect to be back in durable growth mode.
We believe the risks to uranium and nuclear fuel supplies and
services are greater than the risks to demand, and we expect that
will create a renewed focus on ensuring long-term availability of
nuclear fuel supplies.
“This past year in our uranium segment, despite relatively muted
long-term contracting volumes as utilities focused first on
securing enrichment and conversion services, we continued to
negotiate off-market contracts and selectively add to our long-term
portfolio, which now totals approximately 220 million pounds. That
only represents about a quarter of our current reserve and resource
base, meaning we can be strategically patient in our contracting
discussions, and we are retaining exposure to the improving demand
from our customers. We continue to have a large and growing
pipeline of uranium business under negotiation and our focus
remains on obtaining market-related pricing mechanisms that benefit
from a constructive price environment, while also providing
adequate downside protection. In addition, strong demand driving
prices to historic highs in the conversion market is being captured
in additional long-term contracts in our fuel services segment,
with total contracted volumes of approximately 85 million kgU of
UF6 supporting our fuel services operations for years to come.
“We have more than 35 years of experience operating across the
fuel cycle, and we have designed our strategy of full-cycle value
capture to be resilient. Given the nature of nuclear fuel
contracting and our long-term contract book, we have good
visibility into when and where we need to deliver material,
allowing us to carefully plan and prudently invest in our existing
and potential supply sources, well into the future. When we
consider the supply tools and flexibility we have in place to
self-manage risk and to work with our customers to satisfy their
ongoing fuel requirements, we can be selective and opportunistic
with our sourcing of supply, including spot market purchases, and
we can be disciplined when considering future investments in our
primary supply pipeline.
“The positive market conditions that we expect to benefit our
core uranium and fuel services businesses are also presenting
significant future growth opportunities for Westinghouse, which we
own with our partner Brookfield. In 2024, we saw continued interest
in AP1000® new build opportunities in Poland, Bulgaria, Ukraine and
Slovenia. In early 2025, Westinghouse announced a settlement
agreement in its technology and export dispute with Korea Electric
Power Corporation and Korea Hydro & Nuclear Power Co., Ltd.,
which resolves the dispute and establishes a framework for
additional deployments outside of South Korea, to the mutual and
material benefit of Westinghouse, KEPCO and KHNP.
“Cameco will continue to align our production with our contract
portfolio and market opportunities, demonstrating that we continue
to responsibly manage our supply in accordance with our customers’
needs. We will continue to look for opportunities to improve
operational effectiveness, improve our safety performance and
reduce our impact on the environment, including through the use of
digital and automation technologies to allow us to operate our
assets with more flexibility and efficiency. Thanks to our
disciplined strategy, our balance sheet is strong, and we expect it
will enable us to continue executing our strategy while
self-managing risk, including risks related to global
macro-economic uncertainty and volatility, and uncertain trade
policy decisions.
“We are a responsible, commercial supplier with long-lived,
tier-one assets, and a proven operating track record. We are
invested across the nuclear fuel cycle and believe we have the
right strategy to help achieve a secure energy future in a manner
that reflects our values. Embedded in our decisions is a commitment
to address the risks and opportunities that we believe will make
our business sustainable over the long term.”
Summary of Q4 and 2024 results and developments:
- Annual net earnings of $172 million; adjusted net earnings
of $292 million: Annual results reflected a return to our
tier-one production level, with higher sales volumes and an
improvement in average realized prices as market conditions
continued to improve, catalyzed by security of supply concerns. In
2024, we generated $905 million in cash from operations with full
year adjusted EBITDA increasing by approximately 73% to over $1.5
billion compared to $884 million in 2023. Our 2024 annual results
include $483 million in adjusted EBITDA from our investment in
Westinghouse. Adjusted net earnings and adjusted EBITDA are
non-IFRS measures.
- Fourth quarter net earnings of $135 million; adjusted net
earnings of $157 million: Strong fourth quarter results in the
uranium and Westinghouse segments contributed to the strong annual
results. As expected, quarterly results were impacted by normal
variations in contract deliveries and the timing of Westinghouse’s
customer requirements, which were heavily weighted to the fourth
quarter in 2024. Adjusted net earnings is a non-IFRS measure.
- Strong adjusted EBITDA from Westinghouse: Westinghouse
reported a full-year net loss of $218 million (our share) as
expected, due to the impact of purchase accounting, which required
the revaluation of its inventories based on market prices at time
of acquisition, and the expensing of some other non-operating
acquisition-related transition costs. The impact of these items was
largely isolated to the first half of 2024 and are expected to have
a smaller impact in future years, although the increased
depreciation and amortization charges related to purchase
accounting, will impact Westinghouse’s net earnings on an ongoing
basis. Our share of adjusted EBITDA, which we view as a measure
that better reflects Westinghouse’s underlying performance, was
$483 million for the year. Due to normal variability in the timing
of its customer requirements, and delivery and outage schedules, we
saw stronger performance from the Westinghouse segment in the
fourth quarter, which we expect again in the fourth quarter of
2025. See Our earnings from Westinghouse in our annual MD&A for
more information.
- Westinghouse technology export: In January 2025,
Westinghouse reached a resolution in its technology and export
dispute with Korea Electric Power Corporation and Korea Hydro &
Nuclear Power Co., Ltd., which establishes a framework for
additional deployments to the mutual and material benefit of all
parties.
- Westinghouse distribution: In February 2025 we received
$49 million (US), which represents our share of a $100 million (US)
distribution paid by Westinghouse. This is the first distribution
since the acquisition closed.
- Strong uranium and conversion segment performance: In
our uranium segment, we delivered 33.6 million pounds of uranium at
an average realized price of $79.70 per pound. Our share of
production was 23.4 million pounds in 2024, slightly higher than
our expectation of about 23.1 million pounds as a result of record
annual production from the Key Lake mill. In our fuel services
segment, we delivered 12.1 million kgU under contract at an average
realized price of $37.87 per kgU, and produced 13.5 million kgU,
which was within our guidance range for 2024.
- Record production at McArthur River/Key Lake: 2024
packaged production of 20.3 million pounds sets both a new annual
production record for the Key Lake mill, as well as a world record
for annual production from any uranium mill. The increased run rate
was made possible in part by our off-cycle investments during care
and maintenance in automation, digitization and optimization
projects to improve the Key Lake mill. The mill also had access to
sufficient ore feed material that included the ore mined at
McArthur River in 2024 (which was lower than its plan),
supplemented by broken ore inventory at McArthur River and Key Lake
that was carried over from prior years and is now largely depleted.
See Uranium – Tier-one operations – McArthur River/Key Lake in our
2024 annual MD&A.
- Lower JV Inkai production: Production at Inkai continued
to be impacted by the ongoing supply chain issues in Kazakhstan,
most notably, related to the stability of sulfuric acid deliveries.
As a result, total 2024 production from Inkai on a 100% basis was
7.8 million pounds (3.6 million pounds our share), 0.6 million
pounds lower than in 2023. Issues at Inkai carried into 2025 when
production was halted on January 1 at the direction of Kazatomprom,
the controlling partner in the JV, due to the delayed submission of
certain regulatory documents to Kazakhstan’s Ministry of Energy.
Production resumed on January 23, 2025. Cameco and Kazatomprom
continue to work with JV Inkai to determine the impact of the
production suspension on the operation’s 2025 production plans. If
Inkai production and/or deliveries vary from our expectations,
committed purchases may vary and we will rely on our other sources
of supply. See Uranium – Tier-one operations – Inkai in our 2024
annual MD&A.
- Disciplined long-term contracting continues: As of
December 31, 2024, in our uranium segment, we had commitments to
deliver an average of about 28 million pounds of uranium per year
from 2025 through 2029, with commitment levels higher than the
average in 2025 through 2027, and lower than the average in 2028
and 2029. Our total portfolio of long-term contracts includes
commitments for approximately 220 million pounds of uranium. We
continue to have a large and growing pipeline of business under
discussion. Our focus continues to be on obtaining market-related
pricing mechanisms that benefit from a constructive price
environment, while also providing adequate downside protection. In
addition, with strong demand in the UF6 conversion market, we were
successful in adding new long-term contracts that bring our total
contracted volumes to over 85 million kgU of UF6, underpinning our
fuel services operations for years to come.
- Solid 2025 financial and operational outlook: In our
uranium segment, we continued to execute our strategy in 2024,
ramping up our tier-one assets and continuing to optimize
performance and reliability. With continuing improvement of market
conditions, the long-term contract book we have put in place, and
an ongoing pipeline of both on and off-market contracting
discussions, our plan is to produce 18 million pounds (100% basis)
at each of McArthur River/Key Lake and Cigar Lake in 2025. We are
also undertaking capital projects to help ensure reliability and
sustainability of our existing operations, including projects to
address aging infrastructure and potential bottlenecks at the Key
Lake mill and the advancement of freezing at the McArthur River
mine. While no decision on changes to future production levels has
been made, we will continue to position ourselves for future
production flexibility. Following the halt of production in January
2025 at Inkai, production plans for 2025 and subsequent years
remain uncertain, and we remain in discussions with JV Inkai and
our partner, Kazatomprom, to determine our purchase obligation for
2025. In our fuel services segment, we plan to produce between 13
million and 14 million kgU in 2025 to satisfy our book of long-term
business for conversion and fuel services. As a result of these
plans, we expect strong financial performance in 2025, including
cash flow generation. See Outlook for 2025 and Uranium – Tier-one
operations in our 2025 annual MD&A.
- Maintaining financial discipline and balanced liquidity to
execute on strategy:
- Strong balance sheet: As of December 31, 2024, we had
$600 million in cash and cash equivalents, and $1.3 billion in
total debt. We successfully refinanced $500 million senior
unsecured debentures in 2024. The refinanced debt matures in 2031
with credit spreads reflective of a higher credit rating than we
have currently been assigned. In addition, we have a $1.0 billion
undrawn credit facility, which matures October 1, 2028. We expect
strong cash flow generation in 2025.
- Focused debt reduction: Thanks to our risk-managed
financial discipline and strong cash flow generation, in 2024 we
made repayments of $400 million (US) on the $600 million (US)
floating-rate term loan that was used to finance the acquisition of
Westinghouse. In January 2025, we made the final repayment of $200
million (US), extinguishing the term loan.
- JV Inkai dividend: In 2024, we received a cash dividend
from JV Inkai totaling $129 million (US), net of withholdings. JV
Inkai distributes excess cash, net of working capital requirements,
to the partners as dividends. See Uranium – Tier-one operations –
Inkai in our 2024 annual MD&A.
- Increased annual dividend: In November, the board of
directors approved an increase to the annual dividend from $0.12
per common share in 2023, to $0.16 per common share in 2024. In
addition, to recognize the return to our tier-one run rate, and in
line with the principles of our capital allocation framework, we
have recommended to our board of directors a dividend growth plan
for consideration. Based on this plan, we expect an annual increase
of at least $0.04 per common share in each of 2025 and 2026 to
achieve a doubling of the 2023 dividend from $0.12 per common
share, to $0.24, per common share.
Consolidated financial results
THREE MONTHS ENDED
YEAR ENDED
CONSOLIDATED HIGHLIGHTS
DECEMBER 31
DECEMBER 31
($ MILLIONS EXCEPT WHERE INDICATED)
2024
2023
2024
2023
Revenue
1,183
844
3,136
2,588
Gross profit
250
133
783
562
Net earnings attributable to equity
holders
135
80
172
361
$ per common share (basic)
0.31
0.18
0.40
0.83
$ per common share (diluted)
0.31
0.18
0.39
0.83
Adjusted net earnings (non-IFRS)1
157
108
292
383
$ per common share (adjusted and
diluted)
0.36
0.25
0.67
0.88
Adjusted EBITDA (non-IFRS)
524
336
1,531
884
Cash provided by operations
530
201
905
688
1In 2024, we revised our calculation of
adjusted net earnings to adjust for unrealized foreign exchange
gains and losses as well as for share-based compensation because it
better reflects how we assess our operational performance. We
restated comparative periods to reflect this change.
The 2024 annual financial statements have been audited; however,
the 2023 fourth quarter and 2024 fourth quarter financial
information presented is unaudited. You can find a copy of our 2024
annual MD&A and our 2024 audited financial statements on our
website at cameco.com.
NET EARNINGS
The following table shows what contributed to the change in net
earnings and adjusted net earnings (non-IFRS measure) in the three
months and year ended December 31, 2024, compared to the same
period in 2023.
CHANGES IN EARNINGS
THREE MONTHS ENDED
YEAR ENDED
($ MILLIONS)
DECEMBER 31
DECEMBER 31
IFRS
ADJUSTED
IFRS
ADJUSTED
Net earnings - 2023
80
108
361
383
Change in gross profit by segment
(we calculate gross profit by deducting
from revenue the cost of products and services sold, and
depreciation and amortization (D&A), net of hedging
benefits)
Uranium
Impact from sales volume changes
29
29
22
22
Higher realized prices ($US)
107
107
390
390
Foreign exchange impact on realized
prices
11
11
26
26
Higher costs
(30
)
(30
)
(203
)
(203
)
change – uranium
117
117
235
235
Fuel services
Impact from sales volume changes
-
-
2
2
Higher realized prices ($Cdn)
13
13
27
27
Higher costs
(16
)
(16
)
(47
)
(47
)
change – fuel services
(3
)
(3
)
(18
)
(18
)
Other changes
Higher administration expenditures
(18
)
(18
)
(7
)
(7
)
Higher exploration expenditures
(7
)
(7
)
(17
)
(17
)
Change in reclamation provisions
70
7
30
(3
)
Change in gains on derivatives
(198
)
(6
)
(221
)
(10
)
Change in unrealized foreign exchange
gains or losses
50
(5
)
50
(6
)
Change in earnings from equity-accounted
investees
10
(32
)
(165
)
(122
)
Change in share-based compensation
-
5
-
(19
)
Lower finance income
(16
)
(16
)
(91
)
(91
)
Higher finance costs
16
16
(31
)
(31
)
Change in income tax recovery or
expense
29
(14
)
41
(7
)
Other
5
5
5
5
Net earnings - 2024
135
157
172
292
Non-IFRS measures
The non-IFRS measures referenced in this document are
supplemental measures, which are used as indicators of our
financial performance. Management believes that these non-IFRS
measures provide useful supplemental information to investors,
securities analysts, lenders and other interested parties in
assessing our operational performance and our ability to generate
cash flows to meet our cash requirements. These measures are not
recognized measures under IFRS, do not have standardized meanings,
and are therefore unlikely to be comparable to similarly-titled
measures presented by other companies. Accordingly, these measures
should not be considered in isolation or as a substitute for the
financial information reported under IFRS. We are not able to
reconcile our forward-looking non-IFRS guidance because we cannot
predict the timing and amounts of discrete items, which could
significantly impact our IFRS results. The following are the
non-IFRS measures used in this document.
ADJUSTED NET EARNINGS
Adjusted net earnings (ANE) is our net earnings attributable to
equity holders, adjusted for non-operating or non-cash items such
as gains and losses on derivatives, unrealized foreign exchange
gains and losses, share-based compensation, and adjustments to
reclamation provisions flowing through other operating expenses,
that we believe do not reflect the underlying financial performance
for the reporting period. In 2024, we revised our calculation of
adjusted net earnings to adjust for unrealized foreign exchange
gains and losses as well as for share-based compensation because it
better reflects how we assess our operational performance. We have
restated comparative periods to reflect this change. Other items
may also be adjusted from time to time. We adjust this measure for
certain of the items that our equity-accounted investees make in
arriving at other non-IFRS measures. Adjusted net earnings is one
of the targets that we measure to form the basis for a portion of
annual employee and executive compensation (see Measuring our
results in our 2024 annual MD&A).
In calculating ANE we adjust for derivatives. We do not use
hedge accounting under IFRS and, therefore, we are required to
report gains and losses on all hedging activity, both for contracts
that close in the period and those that remain outstanding at the
end of the period. For the contracts that remain outstanding, we
must treat them as though they were settled at the end of the
reporting period (mark-to-market). However, we do not believe the
gains and losses that we are required to report under IFRS
appropriately reflect the intent of our hedging activities, so we
make adjustments in calculating our ANE to better reflect the
impact of our hedging program in the applicable reporting period.
See Foreign exchange in our 2024 annual MD&A for more
information.
We also adjust for changes to our reclamation provisions that
flow directly through earnings. Every quarter we are required to
update the reclamation provisions for all operations based on new
cash flow estimates, discount and inflation rates. This normally
results in an adjustment to our asset retirement obligation asset
in addition to the provision balance. When the assets of an
operation have been written off due to an impairment, as is the
case with our Rabbit Lake and US ISR operations, the adjustment is
recorded directly to the statement of earnings as “other operating
expense (income)”. See note 16 of our annual financial statements
for more information. This amount has been excluded from our ANE
measure.
As a result of the change in ownership of Westinghouse when it
was acquired by Cameco and Brookfield, Westinghouse’s inventories
at the acquisition date were revalued based on the market price at
that date. As these quantities are sold, Westinghouse’s cost of
products and services sold reflect these market values, regardless
of their historic costs. Our share of these costs is included in
earnings from equity-accounted investees and recorded in cost of
products and services sold in the investee information (see note 12
to the financial statements). Since this expense is non-cash,
outside of the normal course of business and only occurred due to
the change in ownership, we have excluded our share from our ANE
measure.
Westinghouse has also expensed some non-operating
acquisition-related transition costs that the acquiring parties
agreed to pay for, which resulted in a reduction in the purchase
price paid. Our share of these costs is included in earnings from
equity accounted investees and recorded in other expenses in the
investee information (see note 12 to the financial statements).
Since this expense is outside of the normal course of business and
only occurred due to the change in ownership, we have excluded our
share from our ANE measure.
The following table reconciles adjusted net earnings with our
net earnings for the three months and years ended December 31,
2024, and 2023.
THREE MONTHS ENDED
YEAR ENDED
DECEMBER 31
DECEMBER 31
($ MILLIONS)
2024
2023
2024
2023
Net earnings attributable to equity
holders
135
80
172
361
Adjustments
Adjustments on derivatives
133
(59
)
152
(59
)
Unrealized foreign exchange gains
(56
)
(1
)
(66
)
(10
)
Share-based compensation
17
12
44
63
Adjustments on other operating expense
(income)
(23
)
40
(35
)
(2
)
Income taxes on adjustments
(37
)
6
(46
)
2
Adjustments on equity investees (net of
tax):
Inventory purchase accounting
3
20
53
20
Acquisition-related transition costs
-
-
22
-
Unrealized foreign exchange losses
(gains)
(16
)
10
(7
)
8
Long-term incentive plan
1
-
3
-
Adjusted net earnings
157
108
292
383
EBITDA
EBITDA is defined as net earnings attributable to equity
holders, adjusted for the costs related to the impact of the
company’s capital and tax structure including depreciation and
amortization, finance income, finance costs (including accretion)
and income taxes.
ADJUSTED EBITDA
Adjusted EBITDA is defined as EBITDA, as further adjusted for
the impact of certain costs or benefits incurred in the period
which are either not indicative of the underlying business
performance or that impact the ability to assess the operating
performance of the business. These adjustments include the amounts
noted in the adjusted net earnings definition.
In calculating adjusted EBITDA, we also adjust for items
included in the results of our equity-accounted investees. These
items are reported as part of marketing, administrative and general
expenses within the investee financial information and are not
representative of the underlying operations. These include
gain/loss on undesignated hedges, transaction costs related to
acquisitions and gain/loss on disposition of a business.
We also adjust for the unwinding of the effect of purchase
accounting on the sale of inventories which is included in our
share of earnings from equity-accounted investee and recorded in
the cost of products and services sold in the investee information
(see note 12 to the financial statements).
The company may realize similar gains or incur similar
expenditures in the future.
ADJUSTED EBITDA MARGIN
Adjusted EBITDA margin is defined as adjusted EBITDA divided by
revenue for the appropriate period.
EBITDA, adjusted EBITDA, and adjusted EBITDA margin are measures
which allow us and other users to assess results of operations from
a management perspective without regard for our capital structure.
To facilitate a better understanding of these measures, the table
below reconciles earnings before income taxes with EBITDA and
adjusted EBITDA for the fourth quarters and years ended 2024 and
2023.
For the year ended December 31, 2024:
FUEL
($ MILLIONS)
URANIUM1
SERVICES
WESTINGHOUSE
OTHER
TOTAL
Net earnings (loss) attributable to
equity holders
904
108
(218
)
(622
)
172
Depreciation and amortization
239
37
-
5
281
Finance income
-
-
-
(21
)
(21
)
Finance costs
-
-
-
147
147
Income taxes
-
-
-
85
85
1,143
145
(218
)
(406
)
664
Adjustments on equity investees
Depreciation and amortization
23
-
357
-
380
Finance income
(1
)
-
(4
)
-
(5
)
Finance expense
-
-
225
-
225
Income taxes
58
-
(61
)
-
(3
)
Net adjustments on equity investees
80
-
517
-
597
EBITDA
1,223
145
299
(406
)
1,261
Gain on derivatives
-
-
-
152
152
Other operating income
(35
)
-
-
-
(35
)
Share-based compensation
-
-
-
44
44
Unrealized foreign exchange gains
-
-
-
(66
)
(66
)
(35
)
-
-
130
95
Adjustments on equity investees
Inventory purchase accounting
-
-
71
-
71
Acquisition-related transition costs
-
-
29
-
29
Other expenses
-
-
78
-
78
Foreign exchange gains
(9
)
-
2
-
(7
)
Net adjustments on equity investees
(9
)
-
184
-
175
Adjusted EBITDA
1,179
145
483
(276
)
1,531
1JV Inkai EBITDA is included in the
uranium segment. See Financial results by segment – Uranium in our
2024 annual MD&A.
For the year ended December 31, 2023:
FUEL
($ MILLIONS)
URANIUM1
SERVICES
WESTINGHOUSE
OTHER
TOTAL
Net earnings (loss) attributable to
equity holders
606
129
(24
)
(350
)
361
Depreciation and amortization
175
35
-
10
220
Finance income
-
-
-
(112
)
(112
)
Finance costs
-
-
-
116
116
Income taxes
-
-
-
126
126
781
164
(24
)
(210
)
711
Adjustments on equity investees
Depreciation and amortization
14
-
61
-
75
Finance income
-
-
(2
)
-
(2
)
Finance expense
-
-
30
-
30
Income taxes
42
-
(7
)
-
35
Net adjustments on equity investees
56
-
82
-
138
EBITDA
837
164
58
(210
)
849
Loss on derivatives
-
-
-
(59
)
(59
)
Other operating income
(2
)
-
-
-
(2
)
Share-based compensation
-
-
-
63
63
Unrealized foreign exchange gains
-
-
-
(10
)
(10
)
(2
)
-
-
(6
)
(8
)
Adjustments on equity investees
Inventory purchase accounting
-
-
27
-
27
Other expenses
-
-
8
-
8
Foreign exchange gains
-
-
8
-
8
Net adjustments on equity investees
-
-
43
-
43
Adjusted EBITDA
835
164
101
(216
)
884
1JV Inkai EBITDA is included in the
uranium segment. See Financial results by segment - Uranium in our
2024 annual MD&A.
The following Westinghouse financial outlook for 2025 is
reported in Canadian dollars and prepared in accordance with IFRS
and reflects Cameco’s 49% ownership share. It reconciles the
Westinghouse outlook for net earnings with EBITDA and adjusted
EBITDA.
$USD
CAMECO SHARE (49%)
MILLIONS
Net loss
(20-70)
Depreciation and amortization
260-275
Finance income
(1-2)
Finance costs
120-135
Income tax expense (recovery)
5-(10)
EBITDA
320-370
Inventory purchase accounting
1-5
Restructuring costs
15-30
Other expenses
10-25
Adjusted EBITDA
355-405
The outlook for adjusted EBITDA from Westinghouse for 2025 and
its growth over the next five years are based on the following
assumptions:
- A compound annual growth rate in revenue from its core business
of 6% to 8%, which is slightly higher than the anticipated average
growth rate of the nuclear industry based on the World Nuclear
Association’s Reference Case. In addition to orders for PWR reactor
fuel and services, this includes orders for VVER, BWR fuel and
services, and a phase out of AGR fuel. The outlook assumes that
work is fulfilled on the timelines and scope expected based on
current orders received, and additional work is secured based on
past trends. The expected margins for the core business are aligned
with the historic margins of 16% to 19%, with the variability
expected to come from product mix compared to in previous
years.
- Growth in its new build business from new AP1000 reactor
projects based on agreements that have been signed and
announcements where AP1000 technology has been selected. This
includes Poland, Bulgaria and Ukraine, as well as the expected
benefit over this period for deployment of reactor designs using
Westinghouse’s technology. It is assumed that work on announced
agreements and announced selections to be done by Westinghouse
would proceed on the timelines and revenue pattern noted under the
New Build Framework. A delay in project timelines or cancellation
of announced projects would result in a growth rate near the bottom
of the range. The top of the growth range assumes the announced
projects continue and two additional projects are secured within
the timeframe from the group of planned and proposed projects. For
all new build projects, the growth assumes Westinghouse undertakes
only the Engineering and Procurement work required prior to a new
reactor project breaking ground, which is a small component of the
overall potential.
- Estimates and assumptions, including growth capital timelines,
new build development timelines for both announced and potential
reactor builds which are subject to regulatory approval, as well as
risks related to the current geopolitical and macro-economic
environment, may differ significantly from those assumed.
- Contributions from new technologies are outside the 5-year time
frame. Timelines for investment in research and development for new
technologies, including the eVinci™ microreactor and AP300™ small
modular reactor, may differ from that assumed.
- The outlook for capital expenditures includes growth capex for
expansion of fuel fabrication capabilities, as well as work to
evaluate cost, timeline and infrastructure required to bring back
conversion capacity and consider the potential future opportunities
at the Springfields site in the UK. As with Cameco’s other
investments, planning for this site will align with market
opportunities.
Selected segmented highlights
THREE MONTHS ENDED
YEAR ENDED
DECEMBER 31
DECEMBER 31
HIGHLIGHTS
2024
2023
CHANGE
2024
2023
CHANGE
Uranium
Production volume (million lbs)
6.1
5.7
7%
23.4
17.6
33%
Sales volume (million lbs)
12.8
9.8
30%
33.6
32.0
5%
Average realized price1
($US/lb)
58.45
52.35
12%
58.34
49.76
17%
($Cdn/lb)
80.90
71.65
13%
79.70
67.31
18%
Revenue ($ millions)
1,035
700
48%
2,677
2,153
24%
Gross profit ($ millions)
213
96
>100%
681
445
53%
Earnings before income taxes
289
122
>100%
904
606
49%
Adjusted EBITDA2
391
231
70%
1,179
835
41%
Fuel services
Production volume (million kgU)
3.6
3.7
(3)%
13.5
13.3
2%
Sales volume (million kgU)
4.2
4.2
-
12.1
12.0
1%
Average realized price 3
($Cdn/kgU)
35.41
32.19
10%
37.87
35.61
6%
Revenue ($ millions)
148
134
10%
459
426
8%
Earnings before income taxes
37
40
(8)%
108
129
(16)%
Adjusted EBITDA2
49
51
(4)%
145
164
(12)%
Adjusted EBITDA margin (%)2
33
38
(13)%
32
38
(16)%
Westinghouse
Revenue
841
521
61%
2,892
521
>100%
(our share)
Net earnings (loss)
9
(24)
>(100%)
(218)
(24)
>100%
Adjusted EBITDA2
162
101
60%
483
101
>100%
1 Uranium average realized price is
calculated as the revenue from sales of uranium concentrate,
transportation and storage fees divided by the volume of uranium
concentrates sold.
2 Non-IFRS measure.
3 Fuel services average realized price is
calculated as revenue from the sale of conversion and fabrication
services, including fuel bundles and reactor components,
transportation and storage fees divided by the volumes sold.
Management's discussion and analysis (MD&A) and financial
statements
The 2024 annual MD&A and consolidated financial statements
provide a detailed explanation of our operating results for the
three and twelve months ended December 31, 2024, as compared to the
same periods last year, and our outlook for 2025. This news release
should be read in conjunction with these documents, as well as our
most recent annual information form, all of which are available on
our website at cameco.com, on SEDAR+ at www.sedarplus.com, and on
EDGAR at sec.gov/edgar.shtml.
Qualified persons
The technical and scientific information discussed in this
document for our material properties McArthur River/Key Lake, Cigar
Lake and Inkai was approved by the following individuals who are
qualified persons for the purposes of NI 43-101:
MCARTHUR RIVER/KEY LAKE
CIGAR LAKE
- Greg Murdock, general manager, McArthur River, Cameco
- Kirk Lamont, general manager, Cigar Lake, Cameco
- Daley McIntyre, general manager, Key Lake, Cameco
INKAI
- Sergey Ivanov, deputy director general, technical services,
Cameco Kazakhstan LLP
Caution about forward-looking information
This news release includes statements and information about our
expectations for the future, which we refer to as forward-looking
information. Forward-looking information is based on our current
views, which can change significantly, and actual results and
events may be significantly different from what we currently
expect.
Examples of forward-looking information in this news release
include: our views regarding the outlook for nuclear energy and
nuclear fuel fundamentals never having been more favourable; our
expectation of strong financial performance and cash flow
generation in 2025 driven by market conditions and through the
continued benefits of our investment in Westinghouse, including our
belief that Westinghouse is well-positioned for long-term growth,
and our expected share of its adjusted EBITDA for 2025 and growth
over the next five years; our expectation that Westinghouse’s
investments in new technologies will be made in accordance with
Westinghouse’s current business plan and our expectations regarding
the effects on Westinghouse’s adjusted EBITDA; our expectation to
continue investing to help ensure reliability and sustainability of
our existing operations, while positioning us for future production
flexibility and growth; our views regarding supply and demand for
nuclear power, that the risks to uranium and nuclear fuel supplies
and services are greater than the risk to demand, and our
expectation of a renewed focus on ensuring long-term availability
of nuclear fuel supplies; our ability to operate our assets
sustainably, and our expectations regarding the value they will
generate for us; our views regarding the impact on the nuclear
power industry of geopolitical events; our ability to invest in our
existing and potential supply sources; the durability of the
nuclear industry and our growth, and our ability to pursue growth
and generate full-cycle value; our contract portfolio strategy and
pipeline of business; our supply plans, including production levels
at McArthur River/Key Lake, Cigar Lake and Inkai, as well as at our
fuel services segment; our capital projects plans; our ability to
continue to be resilient and to position ourselves for future
production flexibility; our belief that we have the right strategy
to help achieve a secure energy future in a manner that reflects
our values; our views regarding the long-term sustainability of our
business and our ability to self-manage risk; our expectations for
dividend payments in 2025 and 2026; and the expected date for
announcement of our 2025 first quarter results.
Material risks that could lead to different results include:
unexpected changes in uranium supply, demand, long-term
contracting, and prices; changes in consumer demand for nuclear
power and uranium as a result of changing societal views and
objectives regarding nuclear power, electrification and
decarbonization; risks to Westinghouse’s business associated with
potential production disruptions, the implementation of its
business objectives, compliance with licensing or quality assurance
requirements, or otherwise be unable to achieve expected growth;
the risk that we may not be able to implement changes to future
operating and production levels for Cigar Lake and McArthur
River/Key Lake and Inkai, or at our fuel services segment, to the
planned levels within the expected timeframes, or that the costs
involved in doing so, exceed our expectations; the risk that our
revenues and cash flows may not achieve the levels expected; the
risk of Inkai shipment delays due to the continuation or outcome of
the conflict between Ukraine and Russia; the risk that we may not
be able to meet sales commitments for any reason; the risk that we
may not be able to continue to be resilient or continue to improve
our financial performance; the risks to our business associated
with potential production disruptions, including those related to
global supply chain disruptions, global economic uncertainty and
political volatility; risks associated with the application of, or
developments in, laws or regulations that affect us or any of our
joint ventures, including mining regulations, taxes, tariffs and
sanctions; the risk that we may not be able to implement our
business objectives in a manner consistent with our values; the
risk that any of the strategies that we or any of our joint
ventures are pursuing may prove unsuccessful, or that that may not
be executed successfully; and the risk that we may be delayed in
announcing our future financial results.
In presenting the forward-looking information, we have made
material assumptions which may prove incorrect about: uranium
demand, supply, consumption, long-term contracting, growth in the
demand for and global public acceptance of nuclear energy, and
prices; our production, purchases, sales, deliveries and costs; the
market conditions and other factors upon which we have based our
future plans and forecasts; the success of our plans and
strategies, including planned operating and production changes;
assumptions about Westinghouse’s production, purchases, sales,
deliveries and costs, the absence of business disruptions, and the
success of its plans and strategies; the absence of new and adverse
government regulations, policies or decisions, including the
application of, or developments in, laws that may adversely affect
us, such as mining regulations, taxes, tariffs and sanctions; that
there will not be any significant unanticipated adverse
consequences to our business resulting from production disruptions,
including those relating to supply disruptions, and economic or
political uncertainty and volatility; and our ability to announce
future financial results when expected.
Please also review the discussion in our 2024 annual MD&A
and most recent annual information form for other material risks
that could cause actual results to differ significantly from our
current expectations, and other material assumptions we have made.
Forward-looking information is designed to help you understand
management’s current views of our near-term and longer-term
prospects, and it may not be appropriate for other purposes. We
will not necessarily update this information unless we are required
to by securities laws.
Conference call
We invite you to join our fourth quarter conference call on
Thursday, February 20, 2025, at 8:00 a.m. Eastern.
The call will be open to all investors and the media. To join
the call, please dial (844) 763-8274 (Canada and US) or (647)
484-8814. An operator will put your call through. The slides and a
live webcast of the conference call will be available from a link
at cameco.com. See the link on our home page on the day of the
call.
A recorded version of the proceedings will be available:
- on our website, cameco.com, shortly after the call
- on post view until midnight, Eastern, April 20, 2025, by
calling (855) 669-9658 (Canada and US) or (412) 317-0088 (Passcode
6056817)
2025 first quarter report release date
We plan to announce our 2025 first quarter results before
markets open on May 1, 2025.
Profile
Cameco is one of the largest global providers of the uranium
fuel needed to energize a clean-air world. Our competitive position
is based on our controlling ownership of the world’s largest
high-grade reserves and low-cost operations, as well as significant
investments across the nuclear fuel cycle, including ownership
interests in Westinghouse Electric Company and Global Laser
Enrichment. Utilities around the world rely on Cameco to provide
global nuclear fuel solutions for the generation of safe, reliable,
carbon-free nuclear power. Our shares trade on the Toronto and New
York stock exchanges. Our head office is in Saskatoon,
Saskatchewan, Canada.
As used in this news release, the terms we, us, our, the Company
and Cameco mean Cameco Corporation and its subsidiaries unless
otherwise indicated.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20250219674310/en/
Investor inquiries: Cory Kos 306-716-6782
cory_kos@cameco.com
Media inquiries: Veronica Baker 639-994-0079
veronica_baker@cameco.com
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