Cameco reports Q3 adjusted EPS (1c), consensus 18c

Reports Q3 revenue $721M, consensus $535.84M. “Our Q3 operational performance was strong across all segments, supporting our return to a tier-one cost structure,” said CEO Tim Gitzel. “Looking past quarterly earnings, which can vary significantly, there is a clear underlying trend of improving operational performance and cash flow generation, backed by stable and rising market prices. Apart from the impact of a stronger US dollar, our financial outlook for both Cameco (CCJ) and Westinghouse remained strong and unchanged. To recognize the return to our tier-one production rate and the continued strengthening of the industry’s long-term prospects, our board of directors declared an increased 2024 annual dividend of 16c per common share. We are also recommending a dividend growth plan to our board of directors, under which we expect to at least double last year’s dividend of 12c per common share, to 24c per common share, over the fiscal periods 2024 through 2026, subject to annual consideration by our board…From a marketing perspective, we have contracts in both our uranium and fuel services segments that have deliveries spanning more than a decade. However, in a market where we are seeing sustained, positive momentum for nuclear energy, we are continuing to be selective in committing our unencumbered, tier-one, in-ground uranium inventory and UF6 conversion capacity under long-term contracts, to capture greater upside for many years to come”.