Cameco earnings powered by higher prices for uranium, gold
Cameco 3-month TSX chart
Higher prices for uranium and gold sent earnings sharply higher at Cameco Corp. in the first quarter, the company reported Tuesday.
The Saskatoon-based company said its earnings grew by 145 per cent while its revenues were up 45 per cent, thanks to the price increases and higher sales volume for uranium.
The company said it made $133 million, or 39 cents a share, on revenue of $593 million. In the same January-March period of 2007, Cameco made a profit of $59 million, or 17 cents a share, on revenue of $409 million.
Revenue from Cameco's uranium business increased by $155 million to $338 million on a 55 per cent increase in the average realized selling price for uranium and a 17 per cent increase in reported sales volumes.
"Our realized prices lag the market and continued to rise in the quarter despite lower market prices," the company said.
Cameco also said its gold revenues grew to $113 million from $96 million as the firm's realized price for gold rose to $909 US per ounce in the quarter compared to $645 US per ounce in the same quarter a year ago.
Cameco's pre-tax earnings from Bruce Power LP, which operates the Bruce nuclear generating station in Kincardine, Ont., amounted to $6 million compared to $11 million over the same period in 2007. The company said the drop in earnings was because of more outages. Cameco owns 31.6 per of Bruce Power LP.
On the TSX, shares of Cameco rose 6 cents on Tuesday, closing at $40.34.
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