For the first time since going public more than a decade ago, uranium miner Cameco (CCO-T) announced on Friday that it will boost its annual dividend by a dime to 60.
Shareholders of record at the end of the 2003 first quarter are eligible for the dividend.
The Saskatoon, Sask.-based company’s CEO Bernard Michel said in a prepared statement, “We are confident that Cameco’s strong cash flow will increase in the coming years, particularly with the contribution from our investment in Bruce Power. This will allow us to increase our dividend to shareholders, fund our current commitments and maintain the flexibility to pursue nuclear growth opportunities in the future.”
In the first nine months of 2002, Cameco’s cash flow from operations was $237 million, a significant increase from the year-ago $54 million.
Cameco has a 15% stake in the Bruce power nuclear station in Ontario. The company recently said it would increase to $125 million its financial guarantees for Bruce Power, but only until ownership of the nuclear power generator changes. The guarantee came in tandem with the British government’s agreement to extend interim funding for cash-starved British Energy, Bruce Power’s majority owner with a 82.4% interest.
Cameco is looking to boost its position in Bruce Power, but if it fails its commitment will finish on Dec. 16, and its total exposure will revert to the $102 million under the original deal for its 15% stake in Bruce Power.
Cameco shares were up 70 in late afternoon trade in Toronto on Dec. 6.
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