Cameco’s first quarter sales grew 7% to $845mn, with double-digit growth in Uranium sales more than compensating for a small decline in Fuel Services. Most of the uplift for Uranium was volume-based, with prices up 2%.
Underlying cash profit (EBITDA) rose 44% to $509mn, with strong performances in Uranium and the Westinghouse joint venture partially offset by a decline in Fuel Services.
Free cash flow fell from a $54mn inflow to a $100mn outflow, reflecting a deterioration in cash management and an increase in capital expenditure. Net cash was $0.1bn.
Guidance for broadly flat production in Uranium and Fuels Services, plus an underlying cash profit contribution of around $0.4bn from Westinghouse remains in place. Cash flow for the full year is expected to be ‘strong’.
The shares were up 2.9% in early trading.
All figures are in Canadian dollars unless otherwise stated
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Cameco key facts
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This article is original Hargreaves Lansdown content, published by Hargreaves Lansdown. It was correct as at the date of publication, and our views may have changed since then. Unless otherwise stated estimates, including prospective yields, are a consensus of analyst forecasts provided by LSEG. These estimates are not a reliable indicator of future performance. Yields are variable and not guaranteed. Investments rise and fall in value so investors could make a loss.
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