Cameco posts net loss of $37M, but touts 'strong balance sheet' in latest earnings report

SASKATOON -

Cameco posted a net loss of $37 million in its second quarter earnings report but says it has a strong balance sheet with $1.2 billion in cash and short-term investments.

The company says the quarterly results were impacted by $8 million in care and maintenance costs from the suspension of production at the Cigar Lake mine until its restart in April.

“While production was suspended, we kept and continued to pay all our employees. These costs were offset by the receipt of $9 million from the Canadian Employment Wage Subsidy for the quarter,” the company said in it’s earnings report.

Cameco says production resumed at the Cigar Lake mine after non-essential personnel were evacuated at the beginning of July because of a nearby forest fire.

“We expect to produce up to 12 million pounds on a 100 per cent basis in 2021, provided there are no further disruptions due to COVID-19, forest fires or any other cause.”

Tim Gitzel, Cameco’s president and CEO, said in a media release accompanying the earnings report that Cameco is also working to “eliminate the care and maintenance costs incurred while our tier-one production is suspended, and to benefit from the very favourable life-of-mine economics our tier-one assets provide.”

Cameco says its deliveries to-date have not been affected by the COVID-19 pandemic or forest fires and doesn’t expect disruptions on remaining 2021 deliveries.