'We see demand for nuclear growing': Cameco posts Q3 loss, but CEO bullish on long-term value

SASKATOON -- Cameco reported an adjusted net loss of $78 million in its third quarter results released Wednesday.

“As expected, our results continue to be impacted by the pro-active operational decisions taken earlier this year,” Tim Gitzel, Cameco’s president and CEO, said in a news release.

“We believe that the actions we have taken to slow the spread of the COVID-19 virus are prudent and reflect our values – placing priority on the health and safety of our employees, their families and their communities. However, our decisions do come with near-term costs.”

He said the company is well-positioned to deal with uncertainty and remains resolved in its strategy to build long-term value.

“In an environment where we think trade policy, like the amendment to the Russian Suspension Agreement in the US, will create opportunities for commercial suppliers like Cameco and where utilities have growing uncovered requirements, we are excited about the fundamentals for our industry. We see demand for nuclear growing driven by an increasing focus on electrification and the recognition that to achieve this while still meeting clean-air and climate change goals, nuclear will be needed in the toolbox,” Gitzel said in the release.

“And this is occurring precisely while there is growing uncertainty and risk around global uranium supply. We believe these fundamentals will lead to security of supply concerns and will allow us to layer in the long-term contracts necessary to support the restart of our McArthur River/Key Lake operations and solidify our role as a low-cost, safe, reliable, commercial supplier of the uranium fuel needed for carbon-free nuclear electricity generation.”

The results also noted the restart of the Cigar Lake mine in September. Its operation will depend on the company’s ability to maintain safe and stable operating protocols along with factors including how the COVID-19 pandemic is impacting the availability of the required workforce, northern Saskatchewan communities and the ability of the McClean Lake mill to continue to operate.