Cameco Highlights 2023 Growth: 'Benefits Of Nuclear Power Are Clearly In Focus,' CEO Says

Canadian uranium producer Cameco CCJ showcased robust performance in 2023.

According to the company’s fourth quarter (Q4) and fiscal year earnings:

• Revenue: CA$2.59 billion (vs. CA$1.87 billion in 2022)
• Gross profit: CA$562 million (vs. CA$233 million in 2022)
• Net earnings: CA$361 million (vs. CA$89 million in 2022)

"The benefits of nuclear power have come clearly into focus, with 28 countries around the world declaring support for the tripling of capacity to help achieve global net-zero greenhouse gas emissions by 2050," Cameco's President and CEO, Tim Gitzel said.

Gitzel highlighted increased sales volumes and realized prices in uranium and fuel services segments. This led to more than doubled net earnings, adjusted net earnings, and cash from operations compared to 2022.

Uncertainties include production issues by the largest global supplier, Kazatomprom NATKY, and a potential U.S. Congressional ban on Russian uranium.

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“Heightened geopolitical uncertainty, global production shortfalls, and transportation challenges in 2023 further highlighted the growing security of supply risk at a time when we believe the demand outlook is stronger and more durable than ever,” Gitzel noted.

About 160 million pounds of uranium were placed under long-term contracts in 2023. Prices increased to $72 per pound, or about 38% compared to 2022. Spot prices have more than doubled, rising from $48 per pound at the end of 2022 to $100 per pound in January 2024.

Cameco’s strategic approach involves disciplined long-term contracting, and as of Dec. 31, the company had commitments requiring the delivery of an average of about 27 million pounds of uranium per year from 2024 through 2028.

Per current production plans, the company expects to produce 18 million pounds at each of the McArthur River/Key Lake and Cigar Lake sites. Eventually, the company plans to expand production up to 25 million pounds.

Gitzel also noted the company's acquisition of Westinghouse in partnership with Brookfield BN, which closed last November. He expects a 49% stake to produce adjusted EBITDA between $445 million and $510 million, growing at a compound annual rate of 6% to 10% over the next five years.

As of Dec. 31, the company had $567 million in cash and cash equivalents with approximately $1.8 billion in total debt, with an undrawn $1 billion credit facility.

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