Image source: Shutterstock

Highlights

  • CCO’s Q3FY24 net revenue increased by 25.3% YoY, reaching CAD 720.5 million.
  • Earnings before taxes dropped 75.9% in Q3FY24, reflecting lower operational earnings and increased finance costs
  • For 2024, Cameco projects revenue between CAD 3.01bn and CAD 3.16bn

Cameco Corporation (TSX:CCO) stands as a major global uranium producer. Its key McArthur River mine in Saskatchewan typically contributes about 50% of the company's output under standard market conditions.

In the third quarter of the financial year 2024 (Q3FY24), the company reported net revenue of CAD 720.5 million, reflecting a 25.3% YoY increase from CAD 575.0 million in Q3FY23 (pcp). This growth was primarily driven by higher production and sales volumes in the uranium segment. However, earnings from operations were CAD 100.3 million, down 26.0% compared to CAD 135.5 million in Q3FY23. This decline was mainly due to increased operating expenses.

Earnings before income taxes also saw a decline of 75.9% in Q3FY24, falling to CAD 45.4 million from CAD 188.6 million in the prior year. This drop was largely attributed to lower operational earnings, partially offset by higher finance costs and a loss on the share of earnings from equity-accounted investees. Consequently, net earnings plummeted by 95.0%, totaling just CAD 7.4 million compared to CAD 148.0 million in pcp.

On a positive front, the company achieved higher production and sales volumes of uranium, along with elevated average realized prices in Q3FY24.

Company Outlook

In 2024, the company anticipates healthy financial results as it starts to benefit from its investment in Westinghouse. Additionally, it forecasts revenue to range between CAD 3.01 billion and CAD 3.16 billion.

Top 10 Shareholders

The top 10 shareholders of Cameco collectively own approximately 24.66% of the company's total shares. Fidelity Management & Research Company LLC and Mirae Asset Global Investments (USA) LLC are the largest shareholders, holding around 4.55% and 3.84%, respectively.

Stock Performance

The stock has experienced a slight decline of approximately 0.05% over the past week and a more notable drop of around 9.43% over the last month. Currently, it is trading above the average of its 52-week range which spans from a high of CAD 88.18 and a low of CAD 48.71. As of January 8, 2025, the stock closed at CAD 73.87.

Note 1: Past performance is not a reliable indicator of future performance.
Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels as on January 8, 2025. The reference data in this report has been partly sourced from EODHD/Others.