Cameco expects 2009 revenue to increase 5% to 10% due to higher uranium prices

Cameco CEO Jerry Grandey said he anticipates short-term volatility in the uranium price.

RENO, NV - 

Saskatchewan-based uranium mega miner Cameco says it anticipates revenue to increase 5% to 10% this year as uranium revenue also jumps 5% to 10%.

Cameco anticipates producing 20.2 million pounds of U3O8 this year and 21.5 million pounds in 2010, not including the production forecast for Cigar Lake, which late last month resumed the dewatering process expected to take at least six months and as long as a year before production can begin.

For the first nine months of this year, revenue from Cameco's uranium business increased by C$46 million (US$42.7m) to C$1.1 billion (US$927.6m)due to a 3% increase in the realized selling prices in Canadian dollars and a 1% increase in sales volumes.

Production at the McArthur River for the third quarter exceeded analysts' expectations at 3.8 million pounds of production of U3O8, and has so far yielded 9.3 million pounds for the first nine months of this year. The operation is expected to be the company's biggest producer with 13.1 million pounds of planned production this year.

Cameco will provide new estimates of the planned production date and capital cost for Cigar Lake, "after the mine has been dewatered, the condition of the underground has been evaluated and the mine plan has been updated to reflect any resulting information.

During a conference call Monday to discuss Cameco's financials, CEO Jerry Grandey told analysts he expects volatility in short-term uranium prices, partially because of the decision of the U.S. Department of Energy to sell some of its stockpile and the setback in mine production at the Olympic Dam in Australia.

FINANCIALS

For the first nine months of this year, Cameco reported a net income of C$501 million (US$467m) or C$1.30 per share (US$1.20), up 20% from the C$419 million (US$398m) or C$1.22/sh (US$1.13/sh) reported for the first nine months of 2008.

For the third quarter of this year, Cameco reported a net income of C$172 million (US$160m) or 44-cents per share (US 41-cents/sh), compared to C$135 million (US$125m) or 39-cents/sh (US 36-cents/sh) for the third-quarter 2008.

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responses to this article

Pounds, not ounces I noticed in the article, you keep using ounces when it should be pounds. For example: "has so far yielded 9.3 million ounces for the first nine months". This should be 9.3 million pounds, not ounces. by Aaron on November 03 2009, 09:02 Find this comment inappropriate? Report it

Thank you Thank you very much for catching this, Aaron. I appreciate it. by Dorothy Kosich on November 03 2009, 19:54 Find this comment inappropriate? Report it

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