Cameco's Q4'20 earnings down YOY, flags uncertain FY'21 uranium production plan

Cameco Corp.'s net earnings in the fourth quarter of 2020 dropped to C$80 million, or 20 Canadian cents per share, from C$128 million, or 32 cents per share, booked a year ago.

Cameco said Feb. 10 that the result included the positive impact of the September 2020 restart of the Cigar Lake uranium mine in Saskatchewan following a monthslong closure due to the COVID-19 pandemic. However, the operation has been suspended since December 2020 after Cameco was forced to shutter it again amid the health crisis.

As a result, the company said its production plan for 2021 remains uncertain. The suspension would result in monthly care and maintenance costs of C$8 million to C$10 million.

Revenue in the last quarter of 2020 dropped year on year to C$550 million from C$874 million. Uranium production rose 4% to 2.8 million pounds but sales volumes slumped 39% to 8.6 million pounds. The average realized price increased 7% to US$38.43 per pound.

In full year 2020, Cameco reported a net loss of C$53 million, or a loss of 13 cents per share, compared with a year-ago net income of C$74 million, or 19 cents per share. Revenue dipped to C$1.80 billion from C$1.86 billion.

Uranium production plummeted 44% year over year to 5.0 million pounds and sales fell 3% to 30.6 million pounds. The average realized price rose 2% to US$34.39/lb.

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