Business
Cameco Reports Q3 2017 Financial and Operating Results
SASKATOON, SASKATCHEWAN--(Marketwired - Oct. 27, 2017) - currency: Cdn (unless noted) Cameco (TSX:CCO)(NYSE:CCJ) today reported its consolidated financial and
About this update from Cameco Corporation
[{"type":"text","content":"SASKATOON, SASKATCHEWAN--(Marketwired - Oct. 27, 2017) - currency: Cdn (unless noted) Cameco (TSX:CCO)(NYSE:CCJ) today reported its consolidated financial and operating results for the third quarter ended September 30, 2017 in accordance with International Financial Reporting Standards (IFRS). \"Our third quarter results were anticipated and in line with the outlook we provided in the second quarter,\" said president and CEO, Tim Gitzel. \"And, they reflect a very deliberate strategy to strengthen the company in the long term. \"There has been little change to the market and we continue to face difficult conditions, with the average year-to-date uranium spot price down about 20% compared to the 2016 annual average. In line with the other disciplined actions we have taken to address these weaker prices, we made some changes during the quarter to the way our global marketing activities are organized. As a result, we incurred $5 million in one-time costs, but expect to reduce costs between $8 million and $10 million per year once fully implemented. \"We have lowered our production outlook for the year to 24.0 million pounds from 25.2 million pounds. The reduction is due to production delays at Key Lake caused by work required on the existing calciner circuit and lower production than expected at Smith Ranch-Highland. Given our inventory position, we are willing to accept some variability in production this year, and expect there could be further variability in the future if current market conditions continue. However, we won't compromise safety, the environment, or the long-term health of the company. \"As a result of our prudent actions, we continue to generate solid cash flows and this year we expect them to exceed the $312 million reported in 2016 despite weaker earnings. \"We can't control the timing of a market recovery, so we continue to focus on our tier-one strategy; on being as streamlined and efficient as possible; responsibly managing our production, inventory and purchases; protecting and extending the value of our contract portfolio, and maximizing cash flow while maintaining our investment-grade rating. Ultimately, our goal is to remain competitive and position the company to ensure we have the ability to be among the first to respond when the market calls for more uranium.\" Summary of third quarter results and devel...