TSX: CCO www.cameco.com
Mr. Tim Gitzel reports:
SASKATOON, Saskatchewan, Feb. 10, 2021 (GLOBE NEWSWIRE) -- Cameco (TSX: CCO; NYSE: CCJ) today reported its consolidated financial and operating results for the fourth quarter and year ended December 31, 2020 in accordance with International Financial Reporting Standards (IFRS). “As we head into 2021, we remain positive about the long-term fundamentals for the uranium market,” said Tim Gitzel, Cameco’s president and CEO. “Around the globe, we are seeing an increasing focus on electrification for various reasons. There are those that are installing baseload power, those who are looking for a reliable replacement to fossil fuel sources, and finally, there is new demand for things like the electrification of transportation. This is occurring precisely at the same time countries and companies around the world are making net-zero commitments, including in the US where the new administration has expressed support for maintaining the existing domestic nuclear power fleet and the construction of advanced reactors, it has recommitted the US to the global Paris Agreement and has ambitions to re-establish the country’s position as a global leader in the development of commercial nuclear technologies. From a policy point of view, there is recognition that nuclear will be needed in the toolbox to sustainably achieve both electrification and decarbonization.
“So, demand for nuclear power is growing and not just the traditional uses of nuclear power. There is a real focus on, and significant investments being made in the development of non-traditional uses, like small modular reactors. Growing demand for nuclear power means growing demand for uranium. However, on the supply side there are some big question marks about where uranium will come from to fuel the world’s growing demand for nuclear power due to years of persistently low prices that have led to planned production curtailments, lack of investment, the end of reserve life for some mines, shrinking secondary supplies, and trade policy issues, which are currently being amplified by unplanned disruptions due to the COVID-19 pandemic.
“These are the fundamentals that give us growing confidence the uranium market will undergo a transition similar to the conversion and enrichment markets. It is why we remain committed to our vision of energizing a clean air world, which recognizes that we have an important role to play in enabling the vast reductions in greenhouse gas emissions required to achieve a resilient, net-zero carbon economy. As we seek to achieve our vision, we are committed to doing it in a manner that reflects our values. Those values have not changed, they have always guided our actions.
“We believe that our tier-one strategy that includes production discipline, marketing discipline and conservative balance sheet management, is the right strategy to achieve our vision. You can see the resiliency our conservative financial management provides us in our balance sheet. Despite the unprecedentedly challenging year globally, and the significant costs we incurred as a result of the disruptions to our business caused by the COVID-19 pandemic, we finished the year with more than $940 million in cash and a $1 billion undrawn credit facility.
“As a pure-play supplier of the uranium fuel needed to produce clean, carbon-free, baseload electricity, we are excited about the future for our industry and our company as we execute on our strategy and pursue our role in supporting the transition to a net-zero carbon economy through both traditional and non-traditional uses of nuclear power.”
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