Cameco pleased with performance in ‘uncertain market’

The majority of the extra capital will be spent on its share of modifications at the McClean Lake mill to cover larger quantities of piping, electrical materials and related labour.

The McClean mill is being ramped up to handle output from the Cigar Lake mine, which is expected to produce between six and eight million pounds of uranium in 2015.

Cameco also said the increase in this year’s capital budget for the McArthur River-Key Lake operations was due mainly to timing issues. The mine-mill operation, which is undergoing equipment maintenance and upgrades, experienced a 29 per cent lower production output in the first quarter compared to last year due to unplanned equipment repairs.

For the quarter ending March 31, Cameco posted a gross profit of $129-million, up from $108-million during the same period in 2014. Revenue jumped 35 per cent to $566-million from $419-million last year.

Cameco landed a major new customer last month finalizing a supply agreement with India, the world’s second fastest growing market for nuclear fuel.

“The sale, into a market that was previously closed to us, provides 7.1 million pounds of uranium concentrate under a long-term contract through 2020 and, we anticipate, marks the beginning of a long and positive relationship with a new customer,” the company stated in a release.

-with files from the Canadian Press.

panews@jpbg.ca

On Twitter: @princealbertnow

by paNOW Staff

Cameco pleased with performance in ‘uncertain market’

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