Cameco experiences mixed second quarter

Despite impressive gains in uranium and gold production, Cameco’s (CCO-T) revenue and net earnings fell significantly during the second quarter.

Cameco’s share of uranium production from its four uranium projects (Key Lake, Rabbit Lake, Highland and Crow Butte) totalled 5.2 million lb. U3O8 during the 3-month period, up from 3.9 million lb. U3O8 during the similar period last year.

The production will help fulfill the new long-term contracts that Cameco signed during the first six months of 1997, whereby the firm is committed to delivering about 20 million lb. U3O8 and providing some 16,000 tonnes of uranium conversion services up to the years 2005 and 2008, respectively.

Thanks to the opening of Cameco’s 33%-owned Kumtor mine in Kyrgyzstan, the firm’s total gold production for the second quarter of 1997 soared to 61,455 from 9,755 oz. in the same period last year.

Total output from the 14,500-tonne per day mill at Kumtor is expected to exceed 400,000 oz. gold in 1997, with cash operating costs of less than $200 per oz. gold.

Cameco’s averaged realized selling price for gold during the first six months of 1997 was US$424 per oz.

Revenue for the second quarter of 1997 was $161.5 million, down from $173.9 million in the same period last year, while net earnings for the latest second quarter fell to $28.1 million (or 53 cents per share) from $45.7 million (86 cents per share).

Cameco’s shareholders of record as of Sept. 30 will receive a third-quarter dividend of 12 cents per share, payable on Oct. 15.