“Heightened geopolitical uncertainty, world manufacturing shortfalls, and transportation challenges in 2023 additional highlighted the rising safety of provide threat at a time after we consider the demand outlook is stronger and extra sturdy than ever. The advantages of nuclear energy have come clearly into focus, with 28 international locations world wide declaring assist for the tripling of capability to assist obtain world net-zero greenhouse gasoline emissions by 2050. The uncertainty about the place nuclear gasoline provides will come from to fulfill rising demand has led to elevated long-term contracting exercise, and in 2023, about 160 million kilos of uranium was positioned beneath long-term contracts by utilities. Costs throughout the nuclear gasoline cycle continued to rise. Spot enrichment costs are up 38% and conversion costs proceed to realize file highs. Uranium spot costs have greater than doubled from round $48 (US) per pound on the finish of 2022 to $100 (US) per pound on the finish of January 2024, after peaking at $106 (US) per pound earlier within the month, and the long-term value for uranium was $72 (US) per pound, a rise of about 38% over the identical interval.
“We proceed to consider that Cameco stays a wonderful alternative to put money into the restoration of the nuclear gasoline cycle. We have now 35 years of expertise on this market and have constructed a powerful popularity as a confirmed and dependable provider with a diversified manufacturing portfolio that gives us with the pliability to work with our prospects to make sure they keep entry to our dependable provides to fulfill their ongoing gasoline necessities. We have now designed our technique of full-cycle worth seize to be resilient. We have now a number of provide choices, together with manufacturing, purchases, stock and loans we are able to draw on to assist guarantee we proceed to satisfy our supply commitments to our prospects. Given the character of our contracts, we’ve got good visibility into when and the place we have to ship materials, and we’ve got put in place plenty of instruments that permit us to self-manage threat.
“We proceed to have success gaining and preserving publicity to the enhancing market fundamentals beneath long-term contracts that may underpin the sustainable operation of our belongings. In our uranium section, our contracting focus has been on acquiring market-related pricing mechanisms, whereas additionally offering enough draw back safety. We proceed to be strategically affected person in our discussions to maximise worth in our contract portfolio and to take care of publicity to larger costs with unencumbered future productive capability.
“With ongoing enhancements available in the market, the brand new long-term contracts we’ve got put in place and our pipeline of contracting discussions, we’re planning to supply 18 million kilos (100% foundation) at every of McArthur River/Key Lake and Cigar Lake in 2024. We have now additionally transformed 73.4 million kilos (100% foundation) (40 million kilos our share) of assets to reserves at Cigar Lake, and plan to start the work mandatory to increase the estimated mine life to 2036. At McArthur River/Key Lake, we’ll undertake an analysis of the work and funding essential to increase manufacturing as much as its annual licensed capability of 25 million kilos (100% foundation), which we anticipate will permit us to make the most of this chance when the time is correct.
“We’re excited to have added a 49% curiosity in Westinghouse to our portfolio of investments in 2023. We consider Westinghouse is well-positioned for long-term development pushed by the anticipated enhance in world demand for nuclear energy. In 2024, we anticipate our share of its adjusted EBITDA to be between $445 million and $510 million. Additional, over the subsequent 5 years, we anticipate its adjusted EBITDA will develop at a compound annual development charge of 6% to 10%.
“Due to the disciplined execution of our technique, together with our conservative monetary administration, our stability sheet stays robust. We anticipate it should allow us to proceed executing our technique and self-managing threat, together with dangers associated to world macro-economic uncertainty and volatility. As of December 31, 2023, we had $567 million in money and money equivalents with roughly $1.8 billion in complete debt. And, we not too long ago initiated a partial compensation of $200 million (US) on the $600 million (US) floating-rate time period mortgage that was used to finance the acquisition of Westinghouse. Our $1.0 billion credit score facility continues to be undrawn.
“With the renewed recognition of the function nuclear energy should play in offering clear and safe baseload energy, we’re optimistic about Cameco’s function in supporting the transition to a net-zero carbon financial system. We have now a plan to realize a 30% absolute discount from our complete Scope 1 and a pair of emissions stage by 2030 from our 2015 baseline, which is the primary main milestone on the journey to realize our ambition of being net-zero. We consider our largest contribution to the net-zero transition comes from the uranium, nuclear gasoline, providers and expertise that we provide to assist the technology of nuclear energy – 100% carbon-free electrical energy. Just lately, we put additional assist behind our dedication to local weather motion and our imaginative and prescient of energizing a clean-air world by becoming a member of Internet Zero Nuclear, an initiative between authorities, business leaders and civil society to triple world nuclear capability to realize carbon neutrality by 2050.
“We consider we’ve got the proper technique to realize our imaginative and prescient of ‘energizing a clean-air world’ and we’ll achieve this in a way that displays our values. Embedded in all our selections is a dedication to addressing the environmental, social and governance dangers and alternatives that we consider will make our enterprise sustainable over the long run.”
Abstract of This fall and 2023 outcomes and developments:
- 2024 steering: With the enhancements available in the market, the brand new long-term contracts we’ve got put in place, and a pipeline of contracting discussions, our plan is to supply 18 million kilos (100% foundation) at every of McArthur River/Key Lake and Cigar Lake in 2024. We additionally plan to start the work mandatory to increase the estimated mine life at Cigar Lake to 2036. As well as, at McArthur River/Key Lake, we plan to undertake an analysis of the work and funding essential to increase manufacturing as much as its annual licensed capability of 25 million kilos (100% foundation), which we anticipate will permit us to make the most of this chance when the time is correct. Primarily based on Kazatomprom’s (KAP) announcement on February 1, 2024, manufacturing in Kazakhstan is predicted to stay 20% under the extent stipulated in subsoil use agreements, just like in 2023, primarily as a result of sulfuric acid scarcity within the nation. We’re nonetheless in discussions with JV Inkai and KAP to find out how this will influence manufacturing at Inkai in 2024 and thereafter and due to this fact our corresponding buy obligation. At our Port Hope conversion facility, we plan to supply between 13.5 million and 14.5 million kgU, together with 12 million kgU of UF 6 to fulfill our e-book of long-term enterprise for conversion providers and buyer demand at a time when conversion costs are at historic highs. On account of these plans, we anticipate robust monetary efficiency in 2024, together with money move technology. See Outlook for 2024 and Uranium – Tier-one operations in our 2023 annual MD&A.
- Fourth quarter internet earnings of $80 million; adjusted internet earnings of $90 million: Fourth quarter outcomes are pushed by regular quarterly variations in contract deliveries and the continued execution of our technique. Our outcomes embody the addition of a brand new section with the shut of the acquisition of Westinghouse Electrical Firm (Westinghouse) within the fourth quarter. Adjusted internet earnings is a non-IFRS measure, see under.
- Annual internet earnings of $361 million; adjusted internet earnings of $339 million: Annual outcomes mirror the continued transition again to a tier-one price construction. Our outcomes additionally mirror larger gross sales volumes and the advance in common realized costs as uranium and conversion costs continued to extend, catalyzed by safety of provide considerations. In our uranium section, we delivered 32 million kilos of uranium at a mean realized value of $67.31. Manufacturing for 2023 was 17.6 million kilos in our uranium section, barely decrease than anticipated in September. In our gasoline providers section, we delivered 12 million kgU beneath contract at a mean realized value of $35.61 and produced 13.3 million kgU. As well as, we generated $688 million in money from operations and adjusted EBITDA of $831 million. Our annual outcomes embody $101 million in adjusted EBITDA from our funding in Westinghouse. Adjusted internet earnings and adjusted EBITDA are non-IFRS measures, see under.
- Disciplined long-term contracting continues: As of December 31, 2023, in our uranium section, we had commitments requiring supply of a mean of about 27 million kilos of uranium per yr from 2024 by way of 2028, with dedication ranges larger than the typical in 2024 and 2025, and under the typical in 2026 by way of 2028. Our complete portfolio of long-term contracts contains commitments for about 205 million kilos of uranium. These commitments solely characterize about 20% of our present reserve and useful resource base, offering us with a substantial amount of publicity to enhancing demand from our prospects as they give the impression of being to safe their long-term wants. We proceed to have a big and rising pipeline of uranium enterprise beneath dialogue. Our focus continues to be on acquiring market-related pricing mechanisms, whereas additionally offering enough draw back safety. We proceed to be strategically affected person in our discussions to maximise worth in our contract portfolio and to take care of publicity to larger costs with unencumbered future productive capability. As well as, with robust demand within the UF 6 conversion market, we had been profitable in including new long-term contracts that deliver our complete contracted volumes to over 75 million kgU of UF 6 that may underpin our Port Hope conversion facility for years to come back.
- JV Inkai shipments: The primary cargo containing roughly two thirds of our share of Inkai’s 2023 manufacturing was obtained within the fourth quarter. The second cargo with the remaining quantity of our share of 2023 manufacturing has arrived at a Canadian port. We proceed to work carefully with JV Inkai and our three way partnership companion, KAP, to obtain our share of manufacturing through the Trans-Caspian Worldwide Transport Route, which doesn’t depend on Russian rail strains or ports. We might expertise additional delays to our anticipated Inkai deliveries if transportation utilizing this transport route takes longer than anticipated. To mitigate the chance of delays, we’ve got stock, long-term buy agreements and mortgage preparations in place we are able to draw on to satisfy our commitments. Relying on after we obtain shipments of our share of Inkai’s manufacturing, our share of earnings from this equity-accounted investee and the timing of the receipt of our share of dividends from the three way partnership could also be impacted. See Uranium – Tier-one operations – Inkai in our 2023 annual MD&A.
- Acquisition of Westinghouse: In November, we introduced the closing of the acquisition of Westinghouse in a strategic partnership with Brookfield Asset Administration alongside its publicly listed affiliate Brookfield Renewable Companions (Brookfield) and institutional companions. Cameco now owns a 49% curiosity and Brookfield owns the remaining 51% in Westinghouse. We consider bringing collectively our experience within the nuclear business with Brookfield’s experience in clear power positions nuclear energy on the coronary heart of the clear power transition and creates a strong platform for strategic development throughout the nuclear sector. In 2024, we anticipate our share of its adjusted EBITDA to be between $445 million and $510 million. Additional, over the subsequent 5 years, we anticipate its adjusted EBITDA will develop at a compound annual development charge of 6% to 10%. Adjusted EBITDA is a non-IFRS measure, see under. See Westinghouse Electrical Firm in our 2023 annual MD&A.
- Sturdy stability sheet: As of December 31, 2023, we had $567 million in money and money equivalents and $1.8 billion in complete debt. As well as, we’ve got a $1.0 billion undrawn credit score facility. We have now a $500 million senior unsecured debenture maturing on June 24, 2024. Over the approaching months, we’ll search for a chance to refinance this debenture, previous to maturity or because it comes due. Finally, our choice might be made with consideration for our money technology, the rate of interest surroundings and different capital allocation issues. As well as, we’ve got initiated a partial compensation of $200 million (US) on the $600 million (US) floating-rate time period mortgage that was used to finance the acquisition of Westinghouse. The prepayment might be utilized to the $300 million (US) tranche, which matures in November 2026. See Financing Actions in our 2023 annual MD&A for extra details about the time period mortgage.
- Obtained dividends from JV Inkai: Within the first quarter of 2023, we disclosed the receipt of a money dividend cost from JV Inkai totaling $79 million (US), internet of withholdings. JV Inkai distributes extra money, internet of working capital necessities, to the companions as dividends. See Uranium – Tier-one operations – Inkai in our 2023 annual MD&A.
- Canada Income Company (CRA) tax dispute: In March, we introduced CRA issued revised reassessments for the 2007 by way of 2013 tax years, which resulted in a refund of $297 million of the $780 million in money and letters of credit score held by CRA on the time. The refund consisted of money within the quantity of $86 million and letters of credit score within the quantity of $211 million, which had been returned within the second quarter. Within the third quarter MD&A, we disclosed the receipt of $12 million from CRA for disbursements associated to prices awarded by the courts, primarily based on their selections in our favour for the 2003, 2005 and 2006 tax years. The prices had been along with the $10 million we obtained from CRA in April 2021 as reimbursement for authorized charges. In late 2023, we obtained a reassessment for the 2017 tax yr primarily based on CRA’s alternate reassessing place and anticipate we might be required to offer letters of credit score of about $70 million as safety. See Switch pricing dispute in our 2023 annual MD&A for extra info.
- Licence renewals: In January, the Canadian Nuclear Security Fee (CNSC) granted a 20-year licence renewal for Cameco Gasoline Manufacturing, which additionally permits for a slight enhance to 1,650 tonnes as UO 2 gasoline pellets (beforehand 1,200 tonnes). In October, the CNSC renewed the licences for McArthur River, Key Lake and Rabbit Lake. We had been happy to obtain 20-year licences for McArthur River and Key Lake and a 15-year licence for Rabbit Lake. We consider that our dedication to defending the well being and security of our staff, the general public and the surroundings is mirrored within the prolonged period of the licences.
Consolidated monetary outcomes
THREE MONTHS ENDED | YEAR ENDED | |||
CONSOLIDATED HIGHLIGHTS | DECEMBER 31 | DECEMBER 31 | ||
($ MILLIONS EXCEPT WHERE INDICATED) | 2023 | 2022 | 2023 | 2022 |
Income | 844 | 524 | 2,588 | 1,868 |
Gross revenue | 133 | 65 | 562 | 233 |
Internet earnings (loss) attributable to fairness holders | 80 | (15) | 361 | 89 |
$ per frequent share (fundamental) | 0.18 | (0.04) | 0.83 | 0.22 |
$ per frequent share (diluted) | 0.18 | (0.04) | 0.83 | 0.22 |
Adjusted internet earnings (loss) (non-IFRS, see under) | 90 | 36 | 339 | 135 |
$ per frequent share (adjusted and diluted) | 0.21 | 0.09 | 0.78 | 0.33 |
Adjusted EBITDA (non-IFRS, see under) 1 | 831 | 431 | ||
Money offered by operations | 201 | 77 | 688 | 305 |
1 We have now solely offered adjusted EBITDA on a year-to-date foundation. |
The 2023 annual monetary statements have been audited; nevertheless, the 2022 fourth quarter and 2023 fourth quarter monetary info introduced is unaudited. You could find a duplicate of our 2023 annual MD&A and our 2023 audited monetary statements on our web site at cameco.com.
NET EARNINGS
The next desk exhibits what contributed to the change in internet earnings and adjusted internet earnings (non-IFRS measure, see under) within the three months and yr ended December 31, 2023, in comparison with the identical interval in 2022.
CHANGES IN EARNINGS | THREE MONTHS ENDED | YEAR ENDED | ||||
($ MILLIONS) | DECEMBER 31 | DECEMBER 31 | ||||
IFRS | ADJUSTED | IFRS | ADJUSTED | |||
Internet earnings (losses) – 2022 | (15) | 36 | 89 | 135 | ||
Change in gross revenue by section | ||||||
(we calculate gross revenue by deducting from income the price of services and products bought, and depreciation and amortization (D&A), internet of hedging advantages) | ||||||
Uranium | Influence from gross sales quantity adjustments | 10 | 10 | 30 | 30 | |
Larger realized costs ($US) | 122 | 122 | 208 | 208 | ||
Overseas change influence on realized costs | 13 | 13 | 95 | 95 | ||
Larger prices | (73) | (73) | (9) | (9) | ||
change – uranium | 72 | 72 | 324 | 324 | ||
Gasoline providers | Influence from gross sales quantity adjustments | 4 | 4 | 9 | 9 | |
Larger realized costs ($Cdn) | 8 | 8 | 32 | 32 | ||
Larger prices | (14) | (14) | (34) | (34) | ||
change – gasoline providers | (2) | (2) | 7 | 7 | ||
Different adjustments | ||||||
Larger administration expenditures | (30) | (30) | (74) | (74) | ||
Larger exploration expenditures | (1) | (1) | (7) | (7) | ||
Change in reclamation provisions | 41 | (7) | 31 | 3 | ||
Change in features or losses on derivatives | 36 | (4) | 111 | (24) | ||
Change in international change features or losses | 2 | 2 | (58) | (58) | ||
Change in earnings from equity-accounted investments | 39 | 59 | 60 | 80 | ||
Cut price buy achieve on CLJV possession curiosity enhance | – | – | (23) | – | ||
Larger (decrease) finance revenue | (3) | (3) | 75 | 75 | ||
Larger finance prices | (24) | (24) | (30) | (30) | ||
Change in revenue tax restoration or expense | (32) | (5) | (130) | (78) | ||
Different | (3) | (3) | (14) | (14) | ||
Internet earnings – 2023 | 80 | 90 | 361 | 339 |
Non-IFRS measures
The non-IFRS measures referenced on this doc are supplemental measures, that are used as indicators of our monetary efficiency. Administration believes that these non-IFRS measures present helpful info to traders, securities analysts, lenders and different events in assessing our operational efficiency and our skill to generate money flows to satisfy our money necessities. These measures should not acknowledged measures beneath IFRS, shouldn’t have standardized meanings, and are due to this fact unlikely to be akin to similarly-titled measures introduced by different firms. Accordingly, these measures shouldn’t be thought of in isolation or as an alternative choice to the monetary info reported beneath IFRS. The next are the non-IFRS measures used on this doc.
ADJUSTED NET EARNINGS
Adjusted internet earnings (ANE) is our internet earnings attributable to fairness holders, adjusted for non-operating or non-cash gadgets comparable to features and losses on derivatives, changes to reclamation provisions flowing by way of different working bills, and cut price buy features, that we consider don’t mirror the underlying monetary efficiency for the reporting interval. Different gadgets may additionally be adjusted every so often. We don’t alter this measure for gadgets that equity-accounted investees make in arriving at different non-IFRS measures. Adjusted internet earnings is without doubt one of the targets that we measure to type the premise for a portion of annual worker and govt compensation (see Measuring our outcomes in our 2023 annual MD&A).
In calculating ANE we alter for derivatives. We don’t use hedge accounting beneath IFRS and, due to this fact, we’re required to report features and losses on all hedging exercise, each for contracts that shut within the interval and those who stay excellent on the finish of the interval. For the contracts that stay excellent, we should deal with them as if they had been settled on the finish of the reporting interval (mark-to-market). Nonetheless, we don’t consider the features and losses that we’re required to report beneath IFRS appropriately mirror the intent of our hedging actions, so we make changes in calculating our ANE to raised mirror the influence of our hedging program within the relevant reporting interval. See Overseas change in our 2023 annual MD&A for extra info.
We additionally alter for adjustments to our reclamation provisions that move straight by way of earnings. Each quarter we’re required to replace the reclamation provisions for all operations primarily based on new money move estimates, low cost and inflation charges. This usually ends in an adjustment to our asset retirement obligation asset along with the supply stability. When the belongings of an operation have been written off as a consequence of an impairment, as is the case with our Rabbit Lake and US ISR operations, the adjustment is recorded on to the assertion of earnings as “different working expense (revenue)”. See word 16 of our annual monetary statements for extra info. This quantity has been excluded from our ANE measure.
The cut price buy achieve that was acknowledged after we acquired our pro-rata share of Idemitsu Canada Assets Ltd.’s 7.875% taking part curiosity within the Cigar Lake Joint Enterprise has additionally been eliminated in calculating ANE since it’s non-cash, non-operating and outdoors of the conventional course of our enterprise. The achieve was recorded within the assertion of earnings as a part of “different revenue (expense)”.
On account of the change in possession of Westinghouse once they had been acquired by Cameco and Brookfield, their inventories on the acquisition date had been revalued primarily based available on the market value at that date. As these portions are bought, their price of services and products bought mirror these market values, no matter Westinghouse’s historic prices. Since this adjustment is non-cash, outdoors of the conventional course of enterprise and solely occurred as a result of change in possession, it has been excluded from our ANE measure.
The next desk reconciles adjusted internet earnings with our internet earnings for the three months and years ended December 31, 2023, and 2022.
THREE MONTHS ENDED | YEAR ENDED | |||
DECEMBER 31 | DECEMBER 31 | |||
($ MILLIONS) | 2023 | 2022 | 2023 | 2022 |
Internet earnings (loss) attributable to fairness holders | 80 | (15) | 361 | 89 |
Changes | ||||
Changes on derivatives | (59) | (19) | (59) | 76 |
Changes to earnings from equity-investees | 20 | – | 20 | – |
Changes on different working expense (revenue) | 40 | 88 | (2) | 26 |
Adjustment to different revenue | – | – | – | (23) |
Revenue taxes on changes | 9 | (18) | 19 | (33) |
Adjusted internet earnings | 90 | 36 | 339 | 135 |
EBITDA
EBITDA is outlined as internet earnings attributable to fairness holders, adjusted for the prices associated to the influence of the corporate’s capital and tax construction together with depreciation and amortization, finance revenue, finance prices (together with accretion) and revenue taxes.
ADJUSTED EBITDA
Adjusted EBITDA is outlined as EBITDA adjusted for the influence of sure prices or advantages incurred within the interval that are both not indicative of the underlying enterprise efficiency or that influence the power to evaluate the working efficiency of the enterprise. These changes embody the quantities famous within the adjusted internet earnings definition.
In calculating adjusted EBITDA, we additionally alter for gadgets included within the outcomes of our equity-accounted investees. This stuff are reported as a part of advertising, administrative and basic bills throughout the investee monetary info and should not consultant of the underlying operations. These embody achieve/loss on undesignated hedges, transaction prices associated to acquisitions and achieve/loss on disposition of a enterprise.
We additionally alter for the unwinding of the impact of buy accounting on the sale of inventories which is included in our share of earnings from equity-accounted investee and recorded in the price of services and products bought within the investee info (see word 12 to the monetary statements).
The corporate could notice comparable features or incur comparable expenditures sooner or later.
EBITDA and adjusted EBITDA are measures which permit us and different customers to evaluate outcomes of operations from a administration perspective with out regard for our capital construction. To facilitate a greater understanding of those measures, the desk under reconciles earnings earlier than revenue taxes with EBITDA and adjusted EBITDA for the years ended 2023 and 2022.
For the yr ended December 31, 2023:
FUEL | |||||
($ MILLIONS) | URANIUM 1 | SERVICES | WESTINGHOUSE | OTHER | TOTAL |
Internet earnings (loss) attributable to fairness holders | 606 | 129 | (24) | (350) | 361 |
Depreciation and amortization | 175 | 35 | – | 10 | 220 |
Finance revenue | – | – | – | (112) | (112) |
Finance prices | – | – | – | 116 | 116 |
Revenue taxes | (7) | 126 | 119 | ||
Internet changes on fairness investees 2 | 56 | – | 89 | – | 145 |
EBITDA | 837 | 164 | 58 | (210) | 849 |
Loss on derivatives | – | – | – | (59) | (59) |
Different working expense (revenue) | (2) | – | – | – | (2) |
Different revenue | – | – | – | – | – |
Changes on fairness investees 3 | – | – | 43 | – | 43 |
Adjusted EBITDA | 835 | 164 | 101 | (269) | 831 |
1 JV Inkai EBITDA is included within the uranium section. See JV Inkai Non-IFRS measures in our 2023 annual MD&A. |
2 Consists of depreciation and amortization, finance revenue and finance prices of equity-accounted investees (see word 12 to the monetary statements). |
3 For element of changes, see Our 2023 Earnings from Westinghouse in our 2023 annual MD&A. |
For the yr ended December 31, 2022:
FUEL | ||||
($ MILLIONS) | URANIUM 1 | SERVICES | OTHER | TOTAL |
Internet earnings (loss) attributable to fairness holders | 200 | 120 | (231) | 89 |
Depreciation and amortization | 136 | 33 | 8 | 177 |
Finance revenue | – | – | (37) | (37) |
Finance prices | – | – | 86 | 86 |
Revenue taxes | – | – | (4) | (4) |
Internet changes on fairness investees 2 | 41 | – | – | 41 |
EBITDA | 377 | 153 | (178) | 352 |
Loss on derivatives | – | – | 76 | 76 |
Different working expense (revenue) | 26 | – | – | 26 |
Different revenue | (23) | – | – | (23) |
Adjusted EBITDA | 380 | 153 | (102) | 431 |
1 JV Inkai EBITDA is included within the uranium section. See JV Inkai Non-IFRS measures in our 2023 annual MD&A. |
2 Consists of depreciation and amortization, finance revenue and finance prices of equity-accounted investees (see word 12 to the monetary statements) |
The next Westinghouse monetary outlook is reported in Canadian {dollars} and ready in accordance with IFRS and displays Cameco’s 49% possession share. It reconciles the Westinghouse outlook for internet earnings with EBITDA and adjusted EBITDA.
CAMECO SHARE (49%) | ||
($Cdn MILLIONS – IFRS) | 2024 OUTLOOK | |
Internet earnings (loss) | (170-230) | |
Depreciation and amortization | 335-385 | |
Finance revenue | (2-3) | |
Finance prices | 140-170 | |
Revenue tax expense (restoration) | 10-30 | |
EBITDA | 320-380 | |
Changes on price of services and products bought | 55-60 | |
Changes on advertising, administrative and basic | 50-65 | |
Adjusted EBITDA | 445-510 |
The outlook for Westinghouse’s Adjusted EBITDA for 2024 and its development over the subsequent 5 years are primarily based on the next assumptions:
- An change charge of $1.00 (US) for $1.30 (Cdn)
- A compound annual development charge in income from its core enterprise of 4% to six%, which is barely larger than the anticipated common development charge of the nuclear business primarily based on the World Nuclear Affiliation’s Reference Case. Along with orders for PWR reactor gasoline and providers, this contains orders for VVER and BWR gasoline and providers. The outlook assumes that work is fulfilled on the timelines and scope anticipated primarily based on present orders obtained, and extra work is undertaken primarily based on previous traits. The anticipated margins on this work are aligned with the historic margins of 16% to 19%, with variability anticipated to come back from product combine in comparison with in earlier years.
- Progress from new AP1000® reactor initiatives is predicated on agreements which have been signed and bulletins the place the AP1000 expertise has been chosen, together with Poland, Bulgaria and Ukraine. It’s assumed that work on introduced agreements and introduced alternatives to be performed by Westinghouse would proceed on the timelines and income sample famous beneath the New Construct Framework. The expansion solely assumes Westinghouse undertakes the Engineering and Procurement work required previous to a brand new reactor undertaking breaking floor, which is a small element of the general potential. A delay in undertaking timelines or cancellation of introduced initiatives would end in a development charge close to the underside of the vary.
- Estimates and assumptions, together with growth timelines for each introduced and potential reactor builds are topic to authorities and regulatory approval, in addition to dangers associated to the present macro-economic surroundings, and should differ considerably from these assumed.
- We additionally anticipate that investments in new applied sciences, together with eVinciâ„¢ microreactor and AP300â„¢ small modular reactor, might be made in accordance with Westinghouse’s present marketing strategy and are anticipated to contribute to Westinghouse’s Adjusted EBITDA largely outdoors the 5-year timeframe.
Chosen segmented highlights
THREE MONTHS ENDED | YEAR ENDED | |||||||
DECEMBER 31 | DECEMBER 31 | |||||||
HIGHLIGHTS | 2023 | 2022 | CHANGE | 2023 | 2022 | CHANGE | ||
Uranium | Manufacturing quantity (million lbs) | 5.7 | 3.7 | 54% | 17.6 | 10.4 | 69% | |
Gross sales quantity (million lbs) | 9.8 | 6.9 | 42% | 32.0 | 25.6 | 25% | ||
Common realized value 1 | ($US/lb) | 52.35 | 43.05 | 22% | 49.76 | 44.73 | 11% | |
($Cdn/lb) | 71.65 | 57.87 | 24% | 67.31 | 57.85 | 16% | ||
Income ($ thousands and thousands) | 700 | 397 | 76% | 2,152 | 1,480 | 45% | ||
Gross revenue ($ thousands and thousands) | 96 | 24 | >100% | 444 | 121 | >100% | ||
Internet earnings 2 | 606 | 200 | >100% | |||||
Adjusted EBITDA 2,3 | 835 | 380 | >100% | |||||
Gasoline providers | Manufacturing quantity (million kgU) | 3.7 | 3.7 | – | 13.3 | 13.0 | 2% | |
Gross sales quantity (million kgU) | 4.2 | 3.8 | 11% | 12.0 | 11.1 | 8% | ||
Common realized value 4 | ($Cdn/kgU) | 32.19 | 30.11 | 7% | 35.61 | 32.92 | 8% | |
Income ($ thousands and thousands) | 134 | 115 | 17% | 426 | 365 | 17% | ||
Gross revenue ($ thousands and thousands) | 40 | 41 | (2)% | 124 | 117 | 6% | ||
Internet earnings 2 | 129 | 120 | 8% | |||||
Adjusted EBITDA 2,3 | 164 | 153 | 7% | |||||
Westinghouse | Income 5 | 521 | – | – | ||||
(our share) | Internet loss 2 | (24) | – | |||||
Adjusted EBITDA 2,3 | 101 | – | – |
1 Uranium common realized value is calculated because the income from gross sales of uranium focus, transportation and storage charges divided by the amount of uranium concentrates bought. |
2 We have now solely offered segmented internet earnings (loss) and adjusted EBITDA on a year-to-date foundation. |
3 Non-IFRS measure, see under. |
4 Gasoline providers common realized value is calculated as income from the sale of conversion and fabrication providers, together with gasoline bundles and reactor parts, transportation and storage charges divided by the volumes bought. |
5 We closed the acquisition of Westinghouse on November 7, 2023. Our share of its income is mirrored for the yr ended 2023. We didn’t have an possession curiosity in Westinghouse in 2022. |
Administration’s dialogue and evaluation (MD&A) and monetary statements
The 2023 annual MD&A and consolidated monetary statements present an in depth clarification of our working outcomes for the three and twelve months ended December 31, 2023, as in comparison with the identical durations final yr, and our outlook for 2024. This information launch needs to be learn together with these paperwork, in addition to our most up-to-date annual info type, all of which can be found on our web site at cameco.com, on SEDAR+ at www.sedarplus.com , and on EDGAR at sec.gov/edgar.shtml.
Certified individuals
The technical and scientific info mentioned on this doc for our materials properties McArthur River/Key Lake, Cigar Lake and Inkai was accepted by the next people who’re certified individuals for the needs of NI 43-101:
MCARTHUR RIVER/KEY LAKE
- Greg Murdock, basic supervisor, McArthur River, Cameco
- Daley McIntyre, basic supervisor, Key Lake, Cameco
INKAI
- Sergey Ivanov, deputy director basic, technical providers, Cameco Kazakhstan LLP
CIGAR LAKE
- Lloyd Rowson, basic supervisor, Cigar Lake, Cameco
- Scott Bishop, director, technical providers, Cameco
- Alain D. Renaud, principal useful resource geologist, technical providers, Cameco
- Biman Bharadwaj, principal metallurgist, technical providers, Cameco
Warning about forward-looking info
This information launch contains statements and details about our expectations for the longer term, which we discuss with as forward-looking info. Ahead-looking info is predicated on our present views, which may change considerably, and precise outcomes and occasions could also be considerably completely different from what we presently anticipate.
Examples of forward-looking info on this information launch embody: our expectation of robust monetary efficiency as we start to appreciate advantages from our funding in Westinghouse, together with our perception that Westinghouse is well-positioned for long-term development, and our anticipated share of its adjusted EBITDA for 2024 and over the subsequent 5 years; our expectation that Westinghouse’s investments in new applied sciences might be made in accordance with Westinghouse’s present marketing strategy and our expectations relating to the consequences on Westinghouse’s adjusted EBITDA; our views relating to provide and demand for nuclear energy and its development throughout the close to, medium and long run; our skill to profit from market fundamentals and alternatives; the sturdiness of development in our uranium and conversion providers contracting; our skill to function our belongings sustainably, and our expectations relating to the worth they are going to generate for us; our expectations relating to the influence of the completion of a return to a tier-one run charge on our monetary outcomes; our views relating to the influence on the nuclear energy business of geopolitical occasions and ongoing concentrate on local weather disaster; our perception that Cameco is a wonderful alternative to put money into the restoration within the uranium market; the sturdiness of our development, and our skill to pursue development and generate full-cycle worth; our contract portfolio technique and talent to take care of publicity to larger costs with unencumbered future productive capability; our provide plans, together with manufacturing ranges at McArthur River/Key Lake, Cigar Lake and Inkai, in addition to at our Port Hope conversion facility; our intention to increase the estimated mine life at Cigar Lake to 2036, our skill to proceed to obtain manufacturing from Inkai with out reliance on Russian rail strains or ports and our skill to mitigate the chance of cargo delays; our skill to increase manufacturing from our current belongings, and the manufacturing stage we might obtain by way of our tier-one growth alternatives; the components we’ll take into account in making selections relating to increasing manufacturing; our skill to proceed to be resilient; our optimism relating to our function in supporting a transition to a net-zero carbon financial system, and expectations relating to our skill to realize emissions stage reductions inside our anticipated timeframes; our imaginative and prescient of energizing a clean-air world and perception in our technique for doing so in a way that displays our values; our expectations relating to refinancing our debenture previous to maturity or because it comes due; our expectations relating to letter of credit score necessities in reference to CRA’s reassessment for the 2017 tax yr; our views relating to the long-term sustainability of our enterprise and our skill to self-manage threat; and the anticipated date for announcement of our 2024 first quarter outcomes.
Materials dangers that might result in completely different outcomes embody: sudden adjustments in uranium provide, demand, long-term contracting, and costs; adjustments in client demand for nuclear energy and uranium because of altering societal views and targets relating to nuclear energy, electrification and decarbonization; the chance that we could not proceed with our provide self-discipline technique; dangers to Westinghouse’s enterprise related to potential manufacturing disruptions, the implementation of its enterprise targets, compliance with licensing or high quality assurance necessities, or in any other case be unable to realize anticipated development; the chance that we could not be capable to implement adjustments to future working and manufacturing ranges for Cigar Lake and McArthur River/Key Lake and Inkai, or at our Port Hope conversion facility, to the deliberate ranges throughout the anticipated timeframes, or that the prices concerned in doing so, exceed our expectations; the chance that our revenues and money flows could not enhance to the extent anticipated; the chance of Inkai cargo delays as a result of continuation or consequence of the battle between Ukraine and Russia; the chance that we could not be capable to meet gross sales commitments for any purpose; the chance that we could not be capable to proceed to be resilient or proceed to enhance our monetary efficiency; the dangers to our enterprise related to potential manufacturing disruptions, together with these associated to world provide chain disruptions, world financial uncertainty and political volatility; the chance that we could not be capable to implement our enterprise targets in a way according to our environmental, social, governance and different values; the chance that the technique we’re pursuing could show unsuccessful, or that we could not be capable to execute it efficiently; the chance that we is probably not profitable in pursuing innovation or implementing superior applied sciences; the chance that we could not be capable to refinance our debenture on phrases which are as beneficial as we anticipate; and the chance that we could also be delayed in saying our future monetary outcomes.
In presenting the forward-looking info, we’ve got made materials assumptions which can show incorrect about: uranium demand, provide, consumption, long-term contracting, development within the demand for and world public acceptance of nuclear power, and costs; our manufacturing, purchases, gross sales, deliveries and prices; the market situations and different components upon which we’ve got primarily based our future plans and forecasts; the success of our plans and techniques, together with deliberate working and manufacturing adjustments; assumptions about Westinghouse’s manufacturing, purchases, gross sales, deliveries and prices, the absence of enterprise disruptions, and the success of its plans and techniques; the absence of recent and adversarial authorities rules, insurance policies or selections; that there is not going to be any vital unanticipated adversarial penalties to our enterprise ensuing from manufacturing disruptions, together with these relating to provide disruptions, and financial or political uncertainty and volatility; and our skill to announce future monetary outcomes when anticipated.
Please additionally evaluation the dialogue in our 2023 annual MD&A and most up-to-date annual info type for different materials dangers that might trigger precise outcomes to vary considerably from our present expectations, and different materials assumptions we’ve got made. Ahead-looking info is designed that will help you perceive administration’s present views of our near-term and longer-term prospects, and it is probably not applicable for different functions. We is not going to essentially replace this info until we’re required to by securities legal guidelines.
Convention name
We invite you to hitch our fourth quarter convention name on Thursday, February 8, 2024, at 8:00 a.m. Jap.
The decision might be open to all traders and the media. To hitch the decision, please dial (800) 319-4610 (Canada and US) or (604) 638-5340. An operator will put your name by way of. The slides and a reside webcast of the convention name might be accessible from a hyperlink at cameco.com. See the hyperlink on our residence web page on the day of the decision.
A recorded model of the proceedings might be accessible:
- on our web site, cameco.com, shortly after the decision
- on publish view till midnight, Jap, March 8, 2024, by calling (800) 319-6413 (Canada and US) or (604) 638-9010 (Passcode 0554)
2024 first quarter report launch date
We plan to announce our 2024 first quarter outcomes earlier than markets open on April 30, 2024.
Profile
Cameco is without doubt one of the largest world suppliers of the uranium gasoline wanted to energise a clean-air world. Our aggressive place is predicated on our controlling possession of the world’s largest high-grade reserves and low-cost operations, in addition to vital investments throughout the nuclear gasoline cycle, together with possession pursuits in Westinghouse Electrical Firm and World Laser Enrichment. Utilities world wide depend on Cameco to offer world nuclear gasoline options for the technology of secure, dependable, carbon-free nuclear energy. Our shares commerce on the Toronto and New York inventory exchanges. Our head workplace is in Saskatoon, Saskatchewan, Canada.
As used on this information launch, the phrases we, us, our, the Firm and Cameco imply Cameco Company and its subsidiaries until in any other case indicated.
View supply model on businesswire.com: https://www.businesswire.com/news/home/20240207373185/en/
Investor inquiries:
Rachelle Girard
306-956-6403
rachelle_girard@cameco.com
Media inquiries:
Veronica Baker
306-385-5541
veronica_baker@cameco.com
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