Toronto-listed Cameco has posted its best-ever year-end results, thanks to a 25% increase in the spot price of U3O8 and record sales for uranium concentrates.
Spot prices of U3O8 jumped to US$12.20 per lb. from US$9.60 in early 1995, in response to increased demand and falling inventories.
Cameco, which supplied 10% of the Western World’s uranium last year, also sold a record volume of uranium concentrates in 1995, up almost 10% over 1994 levels.
Earnings for 1995 amounted to $102 million (or $1.95 per share) on revenue of $395 million, compared with $81 million ($1.56 per share) on $348 million for the previous year.
While uranium products and services, which account for 95% of Cameco’s 1995 revenue, performed well, the company’s emergence as a gold producer was disappointing.
At its two-thirds-owned Contact Lake mine, in northern Saskatchewan, lower-than-expected grades resulted in low production and high unit costs. Over the mine’s projected 6-year life, output is expected to average 60,000 oz. at US$210 per oz. Cameco’s share of 1995 production was 31,623 oz.
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