Cameco reports record business results for 2009

Canadian uranium producer Cameco Corporation reported record net earning of CAD1.1bn for 2009, more than doubling the previous year’s figure of CAD450m. Fourth quarter earnings rose from CAD31m to CAD598m (U4567m) YoY.

The company attributed the significant higher results mainly to the sale of its interest in Centerra Gold Inc and recording an after-tax gain of CAD374m. Moreover, net earnings for the full year benefited by a $179m after-tax profit relating to mark-to-market gains on financial instruments, compared to a loss of CAD148m in 2008.

However, after adjustment, net earnings for 2009 reached CAD582m, slightly down YoY from CAD589m. Lower profits from its uranium division on the back of higher unit costs and lower profits from gold due to depressed sales were cited as the key forces in driving the earnings down. However, increased profits from the company’s electricity business as a result of higher selling prices helped to offset the cuts at least partially.

“With the sale of Centerra, we are now fully focused on the growing interest in nuclear energy,” said Jerry Grandey, Cameco’s president and CEO to Marketwire. “Operationally and financially, we are well positioned to meet our goal of doubling annual uranium production by 2018.”