Saskatoon, Saskatchewan, Canada, November 7, 2024

Cameco Corporation (TSX: CCO; NYSE: CCJ) has announced its consolidated financial results for the third quarter ending September 30, 2024. The mining giant showcases improving operational efficiency that underpins its ambitions for dividend growth while bolstering its position amid a surging demand for nuclear power.

Dividend Growth on the Horizon!

Tim Gitzel, Cameco's President and CEO, confidently stated, "Our operational performance was robust across all segments, bringing us back to a tier-one cost structure. While quarterly earnings can fluctuate significantly, we are witnessing a clear upward trend in cash flow aided by stable and rising market prices." The company declared a 2024 annual dividend of $0.16 per share, set to be paid out on December 13, 2024, with plans to potentially double this amount to $0.24 per share by 2026, subject to board approval. This marks a significant move for investors as nuclear energy demand grows.

Positioned for Success Amidst a Nuclear Renaissance

Cameco's strategy aligns marketing and operational decisions to optimize long-term uranium contracts and fuel services. The company is selectively allocating its uranium inventory and UF6 conversion capacity, emphasizing long-term contracts that are expected to yield greater long-run benefits. The recent quarter saw an increase in uranium production forecast for 2024, now expected to reach up to 23.1 million pounds, largely due to strong performance from the McArthur River/Key Lake operations.

Bright Financial Outlook

The company indicated a strong outlook, with total revenue projections rising to between $3.01 billion and $3.16 billion, substantially attributed to a higher anticipated average uranium price of $77.80 per pound. This positive moment comes amidst a favorable shift in government and public support for nuclear power, positioning Cameco as a key player in the global energy transition towards cleaner technologies.

Challenges and Innovations at JV Inkai

However, not all is straightforward. Production from the joint venture at Inkai fell short of expectations due to logistical challenges and unstable acid supplies, leading to revised estimates of about 7.7 million pounds for 2024. Despite this, Cameco remains focused on enhancing production capabilities while navigating external challenges effectively.

Westinghouse Segment Shows Resilience

Cameco's investment in Westinghouse Electric Company is also under the spotlight, recording an adjusted EBITDA of $122 million despite posting a net loss of $57 million. The company is poised for recovery in the fourth quarter as operational schedules stabilize and customer demands rebound.

A Future Fueled by Nuclear Energy

With global energy policies increasingly favoring nuclear power as a clean, reliable source, Cameco stands at the forefront of a potential revolution in energy supply. The company is not only strengthening its financial standing but is also forging valuable long-term contracts that could secure its leadership in the market.

In summary, Cameco’s third quarter results highlight a strengthening operational framework, robust financial outlook, and readiness to capitalize on the growing nuclear energy sector. Investors and stakeholders alike are keenly watching how these developments unfold; with Cameco's proactive strategies, the future looks bright for both the company and the nuclear industry.