Cameco(CCJ)2023-08-01 16:00Financial Performance - Net earnings for the three months ended June 30, 2023, were $13.693 million, compared to $83.937 million for the same period in 2022[6] - Revenue from products and services for the six months ended June 30, 2023, was $1.168 billion, up from $955.615 million in the same period in 2022[8] - Gross profit for the six months ended June 30, 2023, was $277.152 million, compared to $142.757 million in the same period in 2022[8] - Earnings per common share (basic and diluted) for the six months ended June 30, 2023, were $0.31, unchanged from the same period in 2022[8] - Total comprehensive income for the six months ended June 30, 2023, was $128.756 million, compared to $89.998 million in the same period in 2022[6] - Net earnings for the six months ended June 30, 2023, were $132.66 million, compared to $124.22 million in the same period in 2022[15] - Total comprehensive income for the six months ended June 30, 2023, was $128.76 million, compared to $89.99 million in the same period in 2022[15] - Revenue for the three months ended June 30, 2023 was $13.693 million, compared to $83.979 million for the same period in 2022[68] - Revenue for the six months ended June 30, 2023 was $132.662 million, compared to $124.329 million for the same period in 2022[68] - Net earnings for the three months ended June 30, 2023, were $13,693, compared to $83,937 in the same period in 2022[103][104] - Total revenue for the quarter was $955.6 million, with Uranium Fuel contributing $769.6 million (80.5% of total revenue) and Services contributing $174.6 million (18.3%)[112] - Gross profit for the quarter was $142.8 million, with Uranium Fuel generating $78.0 million and Services generating $66.6 million[112] - Net earnings for the quarter were $124.2 million, after accounting for income tax expense of $25.2 million[112] Cash and Liquidity - Cash and cash equivalents as of June 30, 2023, were $2.453 billion, up from $1.143 billion at December 31, 2022[13] - Net cash provided by operations for the six months ended June 30, 2023, was $302.07 million, compared to $273.74 million in the same period in 2022[19] - Cash and cash equivalents at the end of the period on June 30, 2023, were $2.45 billion, compared to $1.06 billion on June 30, 2022[19] - Cash and cash equivalents as of June 30, 2023 were $2.45396 billion, compared to $1.143674 billion as of December 31, 2022[81] Assets and Liabilities - Total current assets as of June 30, 2023, were $3.593 billion, compared to $3.321 billion at December 31, 2022[13] - Long-term debt as of June 30, 2023, was $497.774 million, down from $997 million at December 31, 2022[13] - Total shareholders' equity attributable to equity holders as of June 30, 2023, was $5.974 billion, up from $5.836 billion at December 31, 2022[13] - Accounts receivable decreased by $106.445 million in the three months ended June 30, 2023, compared to a decrease of $4.234 million in the same period in 2022[69] - Inventories, supplies, and prepaid expenses decreased by $129.521 million in the three months ended June 30, 2023, compared to a decrease of $39.245 million in the same period in 2022[69] - Long-term debt had a carrying value of $(997,000) and a fair value of $(1,014,010) as of December 31, 2022[93] - The fair value of Cameco's long-term debt is determined using quoted market yields ranging from 3.2% to 5.0% as of the reporting date[95] Inventory and Cost of Sales - Cost of sales for the six months ended June 30, 2023, was $891.809 million, up from $812.858 million in the same period in 2022[8] - Cameco expensed $796,178,000 of inventory as cost of sales for the six months ended June 30, 2023, compared to $670,771,000 in the same period of 2022[40] - As of June 30, 2023, Cameco had $479,264,000 worth of uranium concentrate inventory, down from $537,426,000 at December 31, 2022[40] - Cameco's total inventory value decreased to $633,397,000 as of June 30, 2023, from $664,698,000 at December 31, 2022[40] Joint Ventures and Investments - Cameco has a 40% interest in Joint Venture Inkai LLP, a joint arrangement with Kazatomprom, located in Kazakhstan[21] - JV Inkai, in which Cameco holds a 40% interest, reported net earnings of $110,888,000 for the six months ended June 30, 2023, up from $88,228,000 in the same period of 2022[45] - Cameco's share of JV Inkai's net assets was $209,869,000 as of June 30, 2023, down from $260,609,000 at December 31, 2022[45] - Cameco's ownership stake in the Cigar Lake uranium mine increased to 54.547% from 50.025% after acquiring an additional 4.522% interest for $101,681,000[36][37] - The acquisition of the additional interest in Cigar Lake Joint Venture would have added 296,000 pounds to Cameco's share of production if it had occurred at the beginning of 2022[32] - Cameco recorded a bargain purchase gain of $22,802,000 from the acquisition of additional interest in Cigar Lake Joint Venture[39] - Cameco entered into a strategic partnership with Brookfield Renewable Partners to acquire a 49% interest in Westinghouse Electric Company[110] Operations and Production - The Company's operations at McArthur River/Key Lake resumed in November 2022 after being suspended in 2018[22] - The Company operates the world's largest commercial refinery in Blind River, Ontario, and controls a significant portion of the world's UF6 primary conversion capacity in Port Hope, Ontario[23] - Cameco loaned 5,400,000 pounds of uranium concentrate to Orano Canada Inc., with 1,828,999 pounds repaid as of June 30, 2023[41] - Cameco expensed $25,693,000 in care and maintenance costs for the six months ended June 30, 2023, compared to $111,732,000 in 2022[101] - Revenue for the uranium segment was $368,308 for the three months ended June 30, 2023, compared to $447,226 in the same period in 2022[103][104] - Revenue for the fuel services segment was $113,459 for the three months ended June 30, 2023, compared to $98,928 in the same period in 2022[103][104] - Uranium sales in the Americas for the six months ended June 30, 2023, were $433,401, contributing significantly to total revenue[55] - Fixed-price contracts accounted for $307,865 of uranium sales for the six months ended June 30, 2023[55] - Cameco purchased uranium concentrate from JV Inkai for $93.4 million ($68.4 million US) in Q2 2023, a significant increase from $44.5 million ($35.0 million US) in the same period in 2022[113] - Cameco received a cash dividend from JV Inkai of $113.6 million ($83.1 million US) in Q2 2023, slightly higher than $104.9 million ($82.9 million US) in Q2 2022[114] Share-Based Compensation and Equity - Share-based compensation for the six months ended June 30, 2023, was $1.76 million, compared to $1.58 million in the same period in 2022[15] - Total share-based compensation expenses for the three months ended June 30, 2023 were $2.045 million, compared to $1.708 million for the same period in 2022[73] - Total share-based compensation expenses for the six months ended June 30, 2023 were $3.807 million, compared to $3.290 million for the same period in 2022[73] - The company granted 232,160 PSUs during the quarter with a weighted average fair value of $37.30 per unit[75] - The company granted 292,553 RSUs during the quarter with a weighted average fair value of $37.30 per unit[76] - Common shares outstanding as of June 30, 2023, were 433,308,237, with 2,263,804 stock options exercisable up to 2027[50] - Weighted average number of common shares outstanding in 2023 was 432,974,012, compared to 398,308,899 in 2022[67] Taxes and Provisions - The company expects to recover $209,125,000 in cash taxes, interest, and penalties related to a tax dispute with Canada Revenue Agency[41] - Deferred tax assets as of June 30, 2023, were $944,375,000, down from $984,071,000 as of December 31, 2022[62] - The Supreme Court of Canada dismissed the CRA's appeal, resolving the 2003, 2005, and 2006 tax years in the company's favor[64] - Total provisions decreased slightly to $1,046,471 as of June 30, 2023, from $1,071,030 at the beginning of the year[49] Financing and Transactions - In 2022, Cameco secured a bridge loan facility of $280 million (US) and term loans totaling $600 million (US) to fund its share of a purchase price[115] - Cameco issued 34,057,250 common shares in a public offering to help fund the acquisition[115] - Transaction costs of $51.7 million were included in supplies and prepaid expenses as of June 30, 2023, up from $41.2 million at the end of 2022[116] Foreign Exchange and Derivatives - Foreign exchange losses for the three months ended June 30, 2023, were $(43,578), compared to gains of $21,372 in the same period in 2022[61] - Foreign currency contracts had a fair value of $(48,251) as of December 31, 2022, compared to $(6,618) as of June 30, 2023[99] - Interest rate contracts had a fair value of $(7,284) as of December 31, 2022, compared to $(8,035) as of June 30, 2023[99] Other Financial Metrics - Additions to property, plant, and equipment for the six months ended June 30, 2023, were $66.90 million, compared to $66.07 million in the same period in 2022[19] - Dividends from equity-accounted investee for the six months ended June 30, 2023, were $113.64 million, compared to $104.94 million in the same period in 2022[19] - Deferred sales increased to $70,266 as of June 30, 2023, compared to $66,845 as of December 31, 2022[47] - Product loans increased significantly to $120,135 as of June 30, 2023, up from $78,094 as of December 31, 2022[47] - Finance costs for the six months ended June 30, 2023, totaled $46,342, up from $39,099 in the same period in 2022[60]