Cameco Ord Shs T.CCO

Alternate Symbol(s): CCJ

Energy

Cameco Corporation is engaged in providing uranium fuel to generate clean, reliable baseload electricity around the globe. The Company also offers nuclear fuel processing services, refinery services and manufactures fuel assemblies and reactor components. Its segments include uranium, fuel services and Westinghouse. The uranium segment is involved in the exploration for, mining, milling, purchase and sale of uranium concentrate. The fuel services segment is involved in the refining, conversion and fabrication of uranium concentrate and the purchase and sale of conversion services. The Westinghouse segment is engaged in the nuclear services businesses. Its uranium projects include Millennium, Yeelirrie, and Kintyre. The Cree Extension-Millennium project is a Cameco-operated joint venture located in the southeastern portion of Canada's Athabasca Basin. The Yeelirrie deposit is located approximately 650-kilometer (Km) northeast of Perth and about 750 km south of its Kintyre project.

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Cameco Ord Shs

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Post by retiredcfon Feb 08, 2024 10:23am

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Post# 35869763

RBC

February 8, 2024

Cameco Corporation
Q4/23 and 2024 guidance in line with expectations

TSX: CCO | CAD 64.65 | Outperform | Price Target CAD 70.00

Sentiment: Positive
Actual: $0.21 EPS | RBC $0.26 | Consensus: $0.22

Our view:

We view Q4/23 and 2024 guidance as in line with consensus expectations, although we expect a positive stock reaction with uranium production set to return to nameplate, allaying buyside concerns into the quarter on potential operational issues. We also think the long-term Westinghouse CAGR guidance at 6-10% will be well received, as it confirms our expectations for growth above the previous guidance of at 3.6%.

Summary:

Uranium sales were higher than we forecast (9.8Mlbs actual vs. 9.5Mlbs RBCe) and realized sales prices were also slightly higher (US$52/lb actual vs. US$51/lb RBCe) while costs were above our forecasts (C$57/lb actual vs. C$49/lb RBCe) due to higher purchasing costs. Uranium production in was about in line with our expectations (5.7Mlbs actual vs. 6.0Mlbs RBCe). Fuel service sales volumes were higher than expected (4.2M kgU actual vs. 3.6M kgU RBCe) while prices were slightly lower (C$32/ kgU actual vs. C$36

The company will also begin the work necessary to extend the Cigar Lake mine life to 2036 and evaluate the work required to expand McArthur River production to 25Mlbs (100% basis)

Cameco also provided guidance for 2024 and Westinghouse long-term growth, which we view as in line with our expectations.

• Uranium production of 22.4Mlbs U3O8 vs. RBCe 22.6Mlbs U3O8.
• Uranium sales of 32-34Mlbs U3O8 vs. RBCe 31Mlbs U3O8.
• Westinghouse 2024 attributable EBITDA at $445-510M, vs. RBCe $501M.
• Westinghouse five-year CAGR at 6-10%, with 4-6% core CAGR (5% RBCe) and contributions from nuclear new build activities.