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Cameco losses mount to $53M in second quarter despite surge in revenues

Media enter the head frame during a Cameco media tour of the uranium mine in Cigar Lake, Sask. Wednesday, September 23, 2015. Liam Richards / The Canadian Press

Cameco Corp. missed earnings expectations as it lost $53 million in the second quarter despite a 35 per cent growth in revenues.

The Saskatoon-based uranium miner says it lost 13 cents per share for the period ended June 30, compared with a loss of six cents per share or $23 million a year earlier.

Read more: Federal Court of Appeal has upheld Tax Court ruling challenged by CRA — Cameco

Chief executive Tim Gitzel says the proactive shutdown of operations because of the COVID-19 pandemic resulted in an additional $37 million in costs and increased reliance on the spot market for uranium supply.

The adjusted loss was $65 million or 16 cents per share, compared with a loss of $18 million or four cents per share in the prior year.

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Revenues increased to $525 million from $388 million.

Read more: Uranium spot prices up amid production disruptions — Cameco

Cameco was expected to report an adjusted loss of five cents per share on $400.4 million of revenues, according to financial markets data firm Refinitiv.

“We expect our business to be resilient. Our customers continue to need uranium fuel to power the carbon-free nuclear electricity that will be part of the critical infrastructure needed to ensure hospitals, care facilities and other essential services are available during this pandemic,” Gitzel said.

The company is planning to restart its Cigar Lake operations at the beginning of September after about six months but will not be able to make up lost production while the pandemic has disrupted global uranium production.

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