Cameco Corp. said it earned $28 million in its latest quarter compared with a loss in the same quarter last year.
The Saskatoon-based uranium miner said the profit amounted to seven cents per share for the quarter ended Sept. 30 compared with a loss of $124 million or 31 cents per share a year ago.
Revenue totalled $488 million, up from $486 million.
“The uranium market is showing a marked improvement compared to a year ago, in fact relative to the first half of the year, but there is still a long way to go,” said Cameco president and CEO Tim Gitzel in a statement.
“There are a lot of moving parts in the market right now, largely driven by market access and trade policy issues, and there continues to be a lack of acceptable long-term contracting opportunities.”
On an adjusted basis, Cameco said it earned $15 million or four cents per share for the quarter compared with an adjusted loss of $50 million or 13 cents per share a year ago.
Analysts on average had expected a profit of three cents per share, according to Thomson Reuters Eikon.
“Our results and the updates to our outlook reflect the impact of our decision to extend the shutdown at McArthur River/Key Lake, and the tax case ruling that was unequivocally in our favour,” Gitzel said.
“As a result of the updates to our outlook, we expect a strong finish in the fourth quarter.”
Cameco announced an extended shutdown in July of its McArthur River and Key Lake operations that resulted in the permanent layoff of approximately 520 site employees.
In addition, the company cut its corporate office workforce by about 150 positions.
In September, the Tax Court ruled in favour of Cameco in its dispute with the Canada Revenue Agency (CRA) over reassessments.
The dispute revolved around the company’s use of a subsidiary to market uranium.
The CRA is appealing the decision in the Federal Court of Appeal.
– With files from the Canadian Press
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