Cameco Enjoys Banner First Quarter

Cameco Enjoys Banner First Quarter

Monday, May 01, 2006 at 14:36

A large uranium mining company in Saskatchewan apparently did very well over the first three months of this year.

Cameco is reporting net earnings of $117 million in the first quarter of this year — $91 million higher than the same period last year.

The company says a 29 per cent increase in the price for uranium was a big factor, but so was the timing of customer requests for delivery.

Cameco is not expecting a similar performance in the second quarter, due to the uneven timing of uranium deliveries.

However, it expects its uranium mining revenues to increase 20 per cent this year.

CEO Jerry Grandey notes that current uranium prices are providing Cameco with the opportunity to lock in long-term contracts at prices higher than at any time in the company’s history.