Cameco Reports Strong Q1 Earnings, Uranium Revenues Up 84% Y/Y, Guidance Raised

Cameco Corp CCJ Q1 2023 revenues rose 73% Y/Y to C$687 million.
Uranium revenues rose 84% Y/Y to C$594 million, led by higher sales volumes (+64% Y/Y) and average realized price (+11% Y/Y).
The company reported uranium production of 4.5 million pounds in Q1 (vs. 1.9 million pounds a year ago), with production ramp-up at McArthur River/Key Lake progressing well (company's share of 2.4 million pounds).
Adjusted net earnings rose significantly to C$115 million in Q1 from C$17 million a year ago.
Cash provided by operating activities rose to C$215 million from C$172 million in the prior-year quarter.
As of Q1, cash and equivalents stood at C$2.5 billion.
2023 Outlook: CCJ raised total revenues outlook to C$2.22 billion- C$2.37 billion (from C$2.12 billion- C$2.27 billion), with uranium revenues now expected to be C$1.83 billion- C$1.92 billion (vs. C$1.73 billion-C$1.82 billion earlier).
The company expects uranium production of 20.3 million pounds and an average realized price of C$61.70/pound in 2023 (vs. C$58.90/pound earlier).
"Our recent contracting success to supply new markets in Eastern Europe clearly demonstrates the desire of our customers to diversify. These are markets where we were previously unable to compete. With these arrangements, we now have contract commitments of approximately 215 million pounds of uranium and more than 70 million kgU of UF6 conversion services with deliveries spanning more than a decade. Many of these contracts contain market-related pricing mechanisms, providing us with exposure to an improving market," said Tim Gitzel, President and CEO.
Price Action: CCJ shares are trading higher by 2.44% at $27.26 on the last check Friday.

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