Cameco posts $37M loss on revenue dip

Uranium miner Cameco Corp. recorded a smaller loss in its latest quarter despite a 32 per cent decrease in revenue amid the suspension of production.

The Saskatoon-based company says it lost $37 million, or nine cents per diluted share, in the second quarter, a 30 per cent improvement from the loss of $53 million, or 13 cents per share, a year earlier.

Adjusted profit for the three months ended June 30 was $38 million, or 10 cents per share, compared with a loss of $65 million, or 16 cents per share, in the second quarter of 2020.

Revenue fell to $359 million from $525 million.

Cameco was expected to post a net loss of three cents per share on $379 million of revenue, according to financial data firm Refinitiv.

The loss included $8 million in care and maintenance costs from the four-month suspension of production until the restart of the Cigar Lake mine in mid-April. The continued payment of salaries was offset by $9 million from the Canadian Employment Wage Subsidy program.

“We are not at the regular tierone run rate of our business,” stated CEO Tim Gitzel.

He said the company is taking the necessary steps, including investing in digital and automation technologies, to create more flexibility to align output with demand and reduce costs.