ValOre Metals (TSX:VO) focuses on high-quality metals and projects. The company's flagship uranium asset Angilak is located in Nunavut, Canada, covers 59,583 hectares, and has district-scale potential for uranium along with precious and base metals. The company is also exploring its Brazilian project targeting PGEs and gold.
The Angilak project has significant upside potential due to its land area and deposits. The area represents Canada’s highest grade uranium resource outside Saskatchewan and one of the highest grade uranium resources on a global basis, according to ValOre VP of exploration Colin Smith.
ValOre Metals is also exploring its Pedra Branca PGE project in northeastern Brazil. As another district-scale mining project, the asset covers 56,852 hectares with multiple PGE and gold deposits. Ownership of the asset gives ValOre control of an entire PGE belt. The company has three additional projects for future exploration: Hatchet Lake, Baffin Gold and Genesis.
The company a member of the Discovery Group, an alliance of nine publicly traded companies with a track record of successfully increasing shareholder value, often through tactful exits via mergers and acquisitions.
This ValOre Metals profile is part of a paid investor education campaign.*
Click here to connect with ValOre Metals (TSX:VO) to receive an Investor Presentation
Valore Metals Corp. (TSXV: VO) is pleased to announce that the company will be presenting at Red Cloud's 2022 Fall Mining Showcase. We invite our shareholders and all interested parties to join us there.
The annual conference will be hosted in-person, at the Sheraton Centre Toronto Hotel from November 9-10, 2022.
Jim Paterson, CEO will be presenting on November 10th at 3:40pm Eastern Standard time.
For more information and/or to register for the conference please visit: https://redcloudfs.com/fallminingshowcase2022/.
We look forward to seeing you there.
For further information:
Valore Metals Corp.
Dustin Zinger
1.604.653.9464
contact@valoremetals.com
https://valoremetals.com/
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Cameco (TSX: CCO; NYSE: CCJ) today reported its consolidated financial and operating results for the first quarter ended March 31, 2024, in accordance with International Financial Reporting Standards (IFRS).
"In the first quarter operational performance was strong across our uranium, fuel services and Westinghouse segments. Financial results are in line with the 2024 outlook we provided, which has not changed, and are as expected, reflecting normal quarterly variability and the required purchase accounting and other non-operational acquisition-related costs for Westinghouse," said Tim Gitzel, Cameco's president and CEO.
"Our strategy continues to demonstrate the benefits of aligning our operational, marketing, and financially focused decisions in a market where we are seeing sustained, positive momentum for nuclear energy like never before. We remain in the enviable position of having what we believe are the world's premier, tier-one assets operating in stable geopolitical regions, along with our investments across the fuel cycle and reactor life cycle. That includes our investment in Westinghouse, where we are seeing its long-term business prospects continue to improve. With our position as a proven, reliable supplier operating across the nuclear fuel cycle, our customers recognize our deep understanding of how nuclear fuel markets work, and global policymakers are turning to us as thought leaders in the industry.
"Operationally, production results in the first quarter were strong and are on track with our 2024 plans, with production rates and total production costs in our uranium segment continuing to reflect the transition back to our tier-one cost structure. In the market, we continued to be selective in committing our unencumbered, tier-one, in-ground uranium inventory and UF 6 conversion capacity, building on a contract portfolio that spans more than a decade by successfully layering in additional long-term contracts, increasing our annual commitments to an average of about 28 million pounds per year from 2024 through 2028. Every contract we add reflects the sentiment and dynamics in the market at the time it is negotiated, allowing us to capture greater upside and creating value over the lifetime of the contract. From a risk-managed financial perspective, our resulting expectation of strong cash flow generation is guiding our conservative capital allocation priorities in 2024, with focused debt reduction and prudent refinancing plans.
"Full-cycle support for nuclear energy and the required uranium fuel continues to grow, with increasing public support, positive policy decisions, and market-based solutions underpinning the positive fundamentals and durable long-term demand story for nuclear. The inaugural Nuclear Energy Summit took place in Brussels in March, with representatives from 32 countries joining forces to back supportive measures in areas including financing, regulatory cooperation, technological innovation, and workforce training, enabling the expansion of nuclear power to help address climate change and boost energy security.
"The benefits of nuclear energy as a critical tool in the fight against climate change and the advantage nuclear provides in the context of energy security are not only being recognized and highlighted by governments around the world, but by energy-intensive industries that are advancing faster than policymakers to effectively transition to energy sources that provide clean, constant and reliable power. An increase in public support from tech sector leaders and announcements like the recent acquisition of a 960 MW data centre campus by Amazon Web Services, with a related long-term agreement to secure reliable power from Talen's Energy Corporation's Susquehanna nuclear power plant, are indicative of that industrial focus.
"The geopolitical events that have been amplifying global supply chain and transportation risks are continuing to have a significant impact on nuclear fuel customer procurement strategies. Utilities are adjusting their supply chains to ensure reliable supply, with increasing competition to secure long-term contracts for uranium products and services. We expect that Cameco and Westinghouse, as proven producers of uranium products and services and having demonstrated strong and sustainable performance, can be expected to benefit from the significant tailwinds associated with having licensed and permitted operations in geopolitically stable jurisdictions.
"We are a responsible, commercial supplier with a strong balance sheet, long-lived, tier-one assets, and a proven operating track record. We are invested across the nuclear fuel cycle and believe we have the right strategy to achieve our vision of ‘energizing a clean-air world' and do so in a manner that reflects our values. Embedded in our decisions is a commitment to address the risks and opportunities that we believe will make our business sustainable over the long term."
Consolidated financial results
THREE MONTHS | ||||
HIGHLIGHTS | ENDED MARCH 31 | |||
($ MILLIONS EXCEPT WHERE INDICATED) | 2024 | 2023 | CHANGE | |
Revenue | 634 | 687 | (8)% | |
Gross profit | 187 | 167 | 12% | |
Net earnings (losses) attributable to equity holders | (7) | 119 | >(100)% | |
$ per common share (basic) | (0.02) | 0.27 | >(100)% | |
$ per common share (diluted) | (0.02) | 0.27 | >(100)% | |
Adjusted net earnings (ANE) (non-IFRS, see Non-IFRS measures below) | 56 | 115 | (51)% | |
$ per common share (adjusted and diluted) | 0.13 | 0.27 | (52)% | |
Adjusted EBITDA (non-IFRS, see Non-IFRS measures below) | 345 | 226 | 53% | |
Cash provided by operations (after working capital changes) | 63 | 215 | (71)% | |
The financial information presented for the three months ended March 31, 2023, and March 31, 2024, is unaudited.
Selected segment highlights
THREE MONTHS | |||||
HIGHLIGHTS | ENDED MARCH 31 | ||||
($ MILLIONS EXCEPT WHERE INDICATED) | 2024 | 2023 | CHANGE | ||
Uranium | Production volume (million lbs) | 5.8 | 4.5 | 29% | |
Sales volume (million lbs) | 7.3 | 9.7 | (25)% | ||
Average realized price 1 | ($US/lb) | 57.57 | 45.35 | 27% | |
($Cdn/lb) | 77.33 | 60.98 | 27% | ||
Revenue | 561 | 595 | (6)% | ||
Gross profit | 169 | 137 | 23% | ||
Net earnings attributable to equity holders | 253 | 189 | 34% | ||
Adjusted EBITDA 2 | 303 | 261 | 16% | ||
Fuel services | Production volume (million kgU) | 3.7 | 4.1 | (10)% | |
Sales volume (million kgU) | 1.5 | 2.5 | (40)% | ||
Average realized price 3 | ($Cdn/kgU) | 48.36 | 37.66 | 28% | |
Revenue | 72 | 92 | (22)% | ||
Net earnings attributable to equity holders | 20 | 31 | (35)% | ||
Adjusted EBITDA 2 | 25 | 39 | (36)% | ||
Adjusted EBITDA margin (%) 2 | 35 | 42 | (17)% | ||
Westinghouse | Revenue | 656 | - | n/a | |
(our share) | Net loss | (123) | - | n/a | |
Adjusted EBITDA 2 | 77 | - | n/a | ||
1 Uranium average realized price is calculated as the revenue from sales of uranium concentrate, transportation and storage fees divided by the volume of uranium concentrates sold. | |||||
2 Non-IFRS measure, see Non-IFRS measures below. | |||||
3 Fuel services average realized price is calculated as revenue from the sale of conversion and fabrication services, including fuel bundles and reactor components, transportation and storage fees divided by the volumes sold. | |||||
The table below shows the costs of produced and purchased uranium incurred in the reporting periods (see Non-IFRS measures below). These costs do not include care and maintenance costs, selling costs such as royalties, transportation and commissions, nor do they reflect the impact of opening inventories on our reported cost of sales.
THREE MONTHS | ||||
ENDED MARCH 31 | ||||
($CDN/LB) | 2024 | 2023 | CHANGE | |
Produced | ||||
Cash cost | 19.52 | 23.13 | (16)% | |
Non-cash cost | 9.79 | 10.82 | (10)% | |
Total production cost 1 | 29.31 | 33.95 | (14)% | |
Quantity produced (million lbs) 1 | 5.8 | 4.5 | 29% | |
Purchased | ||||
Cash cost 1 | 87.75 | 66.92 | 31% | |
Quantity purchased (million lbs) 1 | 2.6 | 0.4 | >100% | |
Totals | ||||
Produced and purchased costs | 47.40 | 36.64 | 29% | |
Quantities produced and purchased (million lbs) | 8.4 | 4.9 | 71% | |
1 Due to equity accounting, our share of production from JV Inkai is shown as a purchase at the time of delivery. These purchases will fluctuate during the quarters and timing of purchases will not match production. During the quarter, we purchased 1.1 million pounds from JV Inkai at a purchase price per pound of $129.96 ($96.88 (US)). There were no purchases from JV Inkai in the first quarter of 2023. | ||||
Non-IFRS measures
The non-IFRS measures referenced in this document are supplemental measures, which are used as indicators of our financial performance. Management believes that these non-IFRS measures provide useful information to investors, securities analysts, lenders and other interested parties in assessing our operational performance and our ability to generate cash flows to meet our cash requirements. These measures are not recognized measures under IFRS, do not have standardized meanings, and are therefore unlikely to be comparable to similarly-titled measures presented by other companies. Accordingly, these measures should not be considered in isolation or as a substitute for the financial information reported under IFRS. The following are the non-IFRS measures used in this document.
ADJUSTED NET EARNINGS
Adjusted net earnings is our net earnings attributable to equity holders, adjusted for non-operating or non-cash items such as gains and losses on derivatives and adjustments to reclamation provisions flowing through other operating expenses that we believe do not reflect the underlying financial performance for the reporting period. Other items may also be adjusted from time to time. We also adjust this measure for certain of the items that our equity-accounted investees make in arriving at other non-IFRS measures. Adjusted net earnings is one of the targets that we measure to form the basis for a portion of annual employee and executive compensation (see Measuring our results in our 2023 annual MD&A).
In calculating ANE we adjust for derivatives. We do not use hedge accounting under IFRS and, therefore, we are required to report gains and losses on all hedging activity, both for contracts that close in the period and those that remain outstanding at the end of the period. For the contracts that remain outstanding, we must treat them as though they were settled at the end of the reporting period (mark-to-market). However, we do not believe the gains and losses that we are required to report under IFRS appropriately reflect the intent of our hedging activities, so we make adjustments in calculating our ANE to better reflect the impact of our hedging program in the applicable reporting period. See Foreign exchange in our 2023 annual MD&A for more information.
We also adjust for changes to our reclamation provisions that flow directly through earnings. Every quarter we are required to update the reclamation provisions for all operations based on new cash flow estimates, discount and inflation rates. This normally results in an adjustment to our asset retirement obligation asset in addition to the provision balance. When the assets of an operation have been written off due to an impairment, as is the case with our Rabbit Lake and US ISR operations, the adjustment is recorded directly to the statement of earnings as "other operating expense (income)". See note 10 of our interim financial statements for more information. This amount has been excluded from our ANE measure.
As a result of the change in ownership of Westinghouse when it was acquired by Cameco and Brookfield, Westinghouse's inventories at the acquisition date were revalued based on the market price at that date. As these quantities are sold, Westinghouse's cost of products and services sold reflect these market values, regardless of Westinghouse's historic costs. Our share of these costs is included in earnings from equity-accounted investees and recorded in cost of products and services sold in the investee information (see note 7 to the financial statements). Since this expense is non-cash, outside of the normal course of business and only occurred due to the change in ownership, we have excluded our share from our ANE measure.
Westinghouse has also expensed some non-operating acquisition-related transition costs that the acquiring parties agreed to pay for, which resulted in a reduction in the purchase price paid. Our share of these costs is included in earnings from equity-accounted investees and recorded in other expenses in the investee information (see note 7 to the financial statements). Since this expense is outside of the normal course of business and only occurred due to the change in ownership, we have excluded our share from our ANE measure.
To facilitate a better understanding of these measures, the table below reconciles adjusted net earnings with our net earnings for the first quarter of 2024 and compares it to the same period in 2023.
THREE MONTHS | |||
ENDED MARCH 31 | |||
($ MILLIONS) | 2024 | 2023 | |
Net earnings (losses) attributable to equity holders | (7) | 119 | |
Adjustments | |||
Adjustments on derivatives | 33 | (6) | |
Adjustments to earnings from equity-investees | |||
Inventory purchase accounting (net of tax) | 38 | - | |
Acquisition-related transition costs (net of tax) | 14 | - | |
Adjustments to other operating income | (15) | (2) | |
Income taxes on adjustments | (7) | 4 | |
Adjusted net earnings | 56 | 115 | |
The following table shows the drivers of the change in adjusted net earnings (non-IFRS measure, see above) in the first quarter of 2024 compared to the same period in 2023.
THREE MONTHS | |||
ENDED MARCH 31 | |||
($ MILLIONS) | IFRS | ADJUSTED | |
Net earnings – 2023 | 119 | 115 | |
Change in gross profit by segment | |||
(We calculate gross profit by deducting from revenue the cost of products and services sold, and depreciation and amortization (D&A)) | |||
Uranium | Impact from sales volume changes | (35) | (35) |
Higher realized prices ($US) | 119 | 119 | |
Higher costs | (52) | (52) | |
Change – uranium | 32 | 32 | |
Fuel services | Impact from sales volume changes | (12) | (12) |
Higher realized prices ($Cdn) | 16 | 16 | |
Higher costs | (16) | (16) | |
Change – fuel services | (12) | (12) | |
Other changes | |||
Lower administration expenditures | 4 | 4 | |
Higher exploration expenditures | (1) | (1) | |
Change in reclamation provisions | 15 | 2 | |
Lower earnings from equity-accounted investees | (103) | (51) | |
Change in gains or losses on derivatives | (43) | (4) | |
Change in foreign exchange gains or losses | 19 | 19 | |
Lower finance income | (22) | (22) | |
Change in income tax recovery or expense | 5 | (6) | |
Other | (20) | (20) | |
Net earnings (losses) – 2024 | (7) | 56 | |
EBITDA
EBITDA is defined as net earnings attributable to equity holders, adjusted for the costs related to the impact of the company's capital and tax structure including depreciation and amortization, finance income, finance costs (including accretion) and income taxes.
ADJUSTED EBITDA
Adjusted EBITDA is defined as EBITDA adjusted for the impact of certain costs or benefits incurred in the period which are either not indicative of the underlying business performance or that impact the ability to assess the operating performance of the business. These adjustments include the amounts noted in the ANE definition.
In calculating adjusted EBITDA, we also adjust for items included in the results of our equity-accounted investees that are not adjustments to arrive at our ANE measure. These items are reported as part of other expenses within the investee financial information and are not representative of the underlying operations. These include gains/losses on undesignated hedges, transaction, integration and restructuring costs related to acquisitions and gains/losses on disposition of a business.
The company may realize similar gains or incur similar expenditures in the future.
ADJUSTED EBITDA MARGIN
Adjusted EBITDA margin is defined as adjusted EBITDA divided by revenue for the appropriate period.
EBITDA, adjusted EBITDA and adjusted EBITDA margin are non-IFRS measures which allow us and other users to assess results of operations from a management perspective without regard for our capital structure. To facilitate a better understanding of these measures, the table below reconciles earnings before income taxes with EBITDA and adjusted EBITDA for the first quarter of 2024 and 2023.
For the quarter ended March 31, 2024:
FUEL | |||||||||||||
($ MILLIONS) | URANIUM | SERVICES | WESTINGHOUSE | OTHER | TOTAL | ||||||||
Net earnings (loss) attributable to equity holders | 253 | 20 | (123 | ) | (157 | ) | (7 | ) | |||||
Depreciation and amortization | 37 | 5 | - | 1 | 43 | ||||||||
Finance income | - | - | - | (6 | ) | (6 | ) | ||||||
Finance costs | - | - | - | 38 | 38 | ||||||||
Income taxes | - | - | - | 31 | 31 | ||||||||
290 | 25 | (123 | ) | (93 | ) | 99 | |||||||
Adjustments on equity investees | |||||||||||||
Depreciation and amortization | 8 | - | 85 | - | |||||||||
Finance income | - | - | (2 | ) | - | ||||||||
Finance expense | - | - | 64 | - | |||||||||
Income taxes | 20 | - | (37 | ) | - | ||||||||
Net adjustments on equity investees | 28 | - | 110 | - | 138 | ||||||||
EBITDA | 318 | 25 | (13 | ) | (93 | ) | 237 | ||||||
Gain on derivatives | - | - | - | 33 | 33 | ||||||||
Other operating income | (15 | ) | - | - | - | (15 | ) | ||||||
303 | 25 | (13 | ) | (60 | ) | 255 | |||||||
Adjustments on equity investees | |||||||||||||
Inventory purchase accounting | - | - | 50 | - | |||||||||
Acquisition-related transition costs | - | - | 19 | - | |||||||||
Other expenses | - | - | 21 | - | |||||||||
Net adjustments on equity investees | - | - | 90 | - | 90 | ||||||||
Adjusted EBITDA | 303 | 25 | 77 | (60 | ) | 345 | |||||||
For the quarter ended March 31, 2023:
FUEL | |||||||||||
($ MILLIONS) | URANIUM | SERVICES | OTHER | TOTAL | |||||||
Net earnings (loss) attributable to equity holders | 189 | 31 | (101 | ) | 119 | ||||||
Depreciation and amortization | 68 | 8 | 1 | 77 | |||||||
Finance income | - | - | (28 | ) | (28 | ) | |||||
Finance costs | - | - | 24 | 24 | |||||||
Income taxes | - | - | 36 | 36 | |||||||
257 | 39 | (68 | ) | 228 | |||||||
Adjustments on equity investees | |||||||||||
Depreciation and amortization | 2 | - | - | - | |||||||
Income taxes | 4 | - | - | - | |||||||
Net adjustments on equity investees | 6 | - | - | 6 | |||||||
EBITDA | 263 | 39 | (68 | ) | 234 | ||||||
Loss on derivatives | - | - | (6 | ) | (6 | ) | |||||
Other operating income | (2 | ) | - | - | (2 | ) | |||||
Adjusted EBITDA | 261 | 39 | (74 | ) | 226 | ||||||
CASH COST PER POUND, NON-CASH COST PER POUND AND TOTAL COST PER POUND FOR PRODUCED AND PURCHASED URANIUM
Cash cost per pound, non-cash cost per pound and total cost per pound for produced and purchased uranium are non-IFRS measures. We use these measures in our assessment of the performance of our uranium business. These measures are not necessarily indicative of operating profit or cash flow from operations as determined under IFRS.
To facilitate a better understanding of these measures, the table below reconciles these measures to cost of product sold and depreciation and amortization for the first quarter of 2024 and 2023.
THREE MONTHS | |||
ENDED MARCH 31 | |||
($ MILLIONS) | 2024 | 2023 | |
Cost of product sold | 355.9 | 390.0 | |
Add / (subtract) | |||
Royalties | (17.8) | (24.7) | |
Care and maintenance costs | (12.2) | (11.9) | |
Other selling costs | (4.9) | (2.7) | |
Change in inventories | 20.4 | (219.8) | |
Cash operating costs (a) | 341.4 | 130.9 | |
Add / (subtract) | |||
Depreciation and amortization | 36.7 | 67.9 | |
Care and maintenance costs | (0.2) | (1.6) | |
Change in inventories | 20.3 | (17.6) | |
Total operating costs (b) | 398.2 | 179.6 | |
Uranium produced & purchased (million lbs) (c) | 8.4 | 4.9 | |
Cash costs per pound (a ÷ c) | 40.64 | 26.71 | |
Total costs per pound (b ÷ c) | 47.40 | 36.64 | |
Management's discussion and analysis (MD&A) and financial statements
The first quarter MD&A and unaudited condensed consolidated interim financial statements provide a detailed explanation of our operating results for the three months ended March 31, 2024, as compared to the same period last year. This news release should be read in conjunction with these documents, as well as our audited consolidated financial statements and notes for the year ended December 31, 2023, and annual MD&A, and our most recent annual information form, all of which are available on our website at cameco.com, on SEDAR+ at www.sedarplus.com , and on EDGAR at sec.gov/edgar.shtml.
Qualified persons
The technical and scientific information discussed in this document for our material properties McArthur River/Key Lake, Cigar Lake and Inkai was approved by the following individuals who are qualified persons for the purposes of NI 43-101:
MCARTHUR RIVER/KEY LAKE
CIGAR LAKE
INKAI
Caution about forward-looking information
This news release includes statements and information about our expectations for the future, which we refer to as forward-looking information. Forward-looking information is based on our current views, which can change significantly, and actual results and events may be significantly different from what we currently expect. Examples of forward-looking information in this news release include: our views regarding the positive momentum for nuclear energy, its continuing full-cycle support, and the transitioning of industries to energy sources that provide clean, constant and reliable power; the impact of geopolitical events on nuclear fuel customer procurement strategies, and our expectation that Cameco and Westinghouse can benefit from having licensed and permitted operations in geopolitically stable jurisdictions; our contracting portfolio strategy, and our expectation of capturing greater upside, creating future value and strong cash flow generation through it and our growing pipeline of business under discussion; our vision of energizing a clean-air world and belief in our strategy for doing so in a manner that reflects our values; our commitment to address risks and opportunities that we believe will make our business sustainable over the longer term; our expectation of achieving the 2024 outlook provided in our 2023 annual MD&A, including expected strong cash flow generation, our estimated consolidated revenue and our share of Westinghouse's 2024 adjusted EBITDA and net loss; expected higher cost Inkai purchases, their cash impact on average unit cost of sales and our expectation of a partial offset through dividends we receive from JV Inkai; our 2024 production estimates at McArthur River/Key Lake and Cigar Lake; our expectations regarding a return to our tier-one cost structure with improving prices, our expected increase in UF 6 conversion production and our expectation for strong cash flow generation in 2024; our intention to prioritize repayment of the remaining outstanding principal of the term loan used to finance the Westinghouse acquisition; our plans to refinance our senior unsecured debenture maturing on June 24, 2024; our expectations regarding JV Inkai's 2024 financial performance and the benefit we would receive from future dividends; our expectations regarding receipt of Inkai deliveries this year, JV Inkai's production target, its ability to secure sufficient volumes of sulfuric acid, and our ability to draw on other sources of supply to mitigate the risk of production shortfalls or delays in expected Inkai deliveries; our view that the long-term business prospects for Westinghouse continue to improve; and the expected date for announcement of our 2024 second quarter results.
Material risks that could lead to different results include: unexpected changes in uranium supply, demand, long-term contracting, and prices; changes in consumer demand for nuclear power and uranium as a result of changing societal views and objectives regarding nuclear power, electrification and decarbonization; the risk that our views regarding nuclear power, its growth profile, and benefits, may prove to be incorrect; the risk that we may not be able to achieve planned production levels for Cigar Lake and McArthur River/Key Lake within the expected timeframes, or that the costs involved in doing so exceed our expectations; the risk that the production levels at Inkai may not be at expected levels or that it may not be able to deliver its production; risks to Westinghouse's business associated with potential production disruptions, the implementation of its business objectives, compliance with licensing or quality assurance requirements, or that it may otherwise be unable to achieve expected growth; the risk that we may not be able to meet sales commitments for any reason; the risks to our business associated with potential production disruptions, including those related to global supply chain disruptions, global economic uncertainty, political volatility, labour relations issues, and operating risks; the risk that we may not be able to implement our business objectives in a manner consistent with our environmental, social, governance and other values; the risk that the strategy we are pursuing may prove unsuccessful, or that we may not be able to execute it successfully; the risk that we may not realize the expected benefits from the Westinghouse acquisition; the risk that Westinghouse may not be able to implement its business objectives in a manner consistent with its or our environmental, social, governance and other values; and the risk that we may be delayed in announcing our future financial results.
In presenting the forward-looking information, we have made material assumptions which may prove incorrect about: uranium demand, supply, consumption, long-term contracting, growth in the demand for and global public acceptance of nuclear energy, and prices; our production, purchases, sales, deliveries and costs; the market conditions and other factors upon which we have based our future plans and forecasts; our contract pipeline discussions; our ability to mitigate adverse consequences of delays in the shipment of our share of Inkai production; assumptions about Westinghouse's production, purchases, sales, deliveries and costs, the absence of business disruptions, and the success of its plans and strategies; the success of our plans and strategies, including planned production; the absence of new and adverse government regulations, policies or decisions; that there will not be any significant adverse consequences to our business resulting from production disruptions, including those relating to supply disruptions, economic or political uncertainty and volatility, labour relation issues, aging infrastructure, and operating risks; the assumptions relating to growth in Westinghouse adjusted EBITDA; and our ability to announce future financial results when expected.
Please also review the discussion in our 2023 annual MD&A and most recent annual information form for other material risks that could cause actual results to differ significantly from our current expectations, and other material assumptions we have made. Forward-looking information is designed to help you understand management's current views of our near-term and longer-term prospects, and it may not be appropriate for other purposes. We will not necessarily update this information unless we are required to by securities laws.
Conference call
We invite you to join our first quarter conference call on Tuesday, April 30, 2024, from 8:00 a.m. until 9:00 am Eastern.
The call will be open to all investors and the media. To join the call, please dial (800) 319-4610 (Canada and US) or (604) 638-5340. An operator will put your call through. The slides and a live webcast of the conference call will be available from a link at cameco.com. See the link on our home page on the day of the call.
A recorded version of the proceedings will be available:
2024 second quarter report release date
We plan to announce our 2024 second quarter results before markets open on Wednesday, July 31, 2024.
Profile
Cameco is one of the largest global providers of the uranium fuel needed to energize a clean-air world. Our competitive position is based on our controlling ownership of the world's largest high-grade reserves and low-cost operations, as well as significant investments across the nuclear fuel cycle, including ownership interests in Westinghouse Electric Company and Global Laser Enrichment. Utilities around the world rely on Cameco to provide global nuclear fuel solutions for the generation of safe, reliable, carbon-free nuclear power. Our shares trade on the Toronto and New York stock exchanges. Our head office is in Saskatoon, Saskatchewan, Canada.
As used in this news release, the terms we, us, our, the Company and Cameco mean Cameco Corporation and its subsidiaries unless otherwise indicated.
View source version on businesswire.com: https://www.businesswire.com/news/home/20240429417611/en/
Investor inquiries:
Cory Kos
306-716-6782
cory_kos@cameco.com
Media inquiries:
Veronica Baker
306-385-5541
veronica_baker@cameco.com
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NexGen Energy Ltd. ("NexGen" or the "Company") (TSX: NXE) (NYSE: NXE) (ASX: NXG) is pleased to announce that it has entered into a placement agreement dated April 30, 2024 (the " Placement Agreement ") with a lead manager and bookrunner in Australia Aitken Mount Capital Partners (the " Lead Manager "), to arrange and manage, and to provide settlement support for, an offering of 16,129,032 common shares (the " Shares ") of the Company, at a price of C$11.11 per Share (based on the daily average exchange rate of C$1.00 = A$0.8963 published by the Bank of Canada on April 29, 2024 ), for aggregate gross proceeds of approximately C$180 million (the " Offering "). Canaccord Genuity acted as Lead Co-Manager to the Offering.
The Offering will be marketed to Australian investors to enhance the liquidity, trading volumes and market capitalization of the Company's CHESS Depositary Interests (" CDIs ") listed on the ASX and will be done in accordance with the terms of the Placement Agreement. The net proceeds of the Offering will be used to fund the continued development and further exploration of the Company's mineral properties, and for general corporate purposes.
Closing of the Offering is expected to occur on or about May 15, 2024 , with settlement to occur through newly-issued CDIs listed on the ASX. Â The ASX uses an uncertificated electronic system called CHESS for the electronic clearance and settlement of trades on the ASX in depositary instruments know as CDIs. CDIs represent the beneficial interest in an underlying Share, which are traded in a manner similar to shares in an Australian company listed on ASX. Each CDI represents a unit of beneficial ownership in one underlying Share.
The Shares will be issued pursuant to a prospectus supplement (the " Prospectus Supplement ") to the Company's final short form base shelf prospectus to be filed in all provinces and territories of Canada dated December 8, 2023 (the " Base Shelf Prospectus "). The CDIs will not be qualified by the Prospectus Supplement or the Base Shelf Prospectus, and may not be offered or sold in Canada . Resales of CDIs in Canada will be restricted under applicable Canadian securities laws. The CDIs and underlying Shares have not been registered under the U.S. Securities Act of 1933, and may not be offered or sold in the United States absent registration thereunder or an applicable exemption from the registration requirements thereof.
Issuance of the Shares is subject to a number of conditions, including receipt of customary TSX and NYSE approvals. The Lead Manager may terminate its obligations under the Placement Agreement, at its discretion, on the basis of certain "market out", "disaster out", and "regulatory out" conditions, in addition to the occurrence of certain stated events.
To create room for the Shares to be distributed under the Base Shelf Prospectus, the Company, Virtu Canada Corp., as Canadian agent, and Virtu Americas, LLC, as U.S. agent (together, the " Agents ") have agreed to amend the Company's previously announced at-the-market program (the " ATM Program ") by reducing the aggregate value of common shares that may be offered and sold from up to C$500,000,000 to up to C$315,000,000 in common shares by amending, as of April 29 , 2024, the equity distribution agreement dated December 11, 2023 between the Company and the Agents (the " Amended Sales Agreement "). The volume and timing of sales under the ATM Program, if any, will be determined in the Company's sole discretion, and at the market price prevailing at the time of each sale, and, as a result, sale prices may vary. To date, an aggregate of 13,000,800 common shares of the Company have been distributed under the ATM Program, for aggregate gross proceeds of C$134,948,304 (the " Prior Sales ").
Offers and sales under the ATM Program, if any, may be made on the TSX and/or the NYSE, and/or any other marketplace for the common shares in Canada or the United States as agreed to between the Agents and the Company, pursuant to a prospectus supplement dated December 11, 2023 (the " ATM Prospectus Supplement ") to the Company's Base Shelf Prospectus and a prospectus supplement (the " U.S. ATM Prospectus Supplement ") to the Company's U.S. Base Prospectus included in the Registration Statement filed with the United States Securities and Exchange Commission on December 8, 2023 (collectively, the ATM Prospectus Supplement, Base Shelf Prospectus, U.S. ATM Prospectus Supplement, the U.S. Base Prospectus and Registration Statement, the " ATM Offering Documents "). As a result of the Amended Sales Agreement and taking into account the Prior Sales, the maximum amount of sales remaining under the ATM Program will be C$180,051,696 .
As outlined in the ATM Offering Documents, the Company intends to use the net proceeds from the ATM Program, if any, to fund the continued development and further exploration of its mineral properties, and for general corporate purposes. The ATM Program will be effective until the earlier of (i) the sale of all of the common shares in the capital of the Company issuable pursuant to the ATM Program (as amended by the Amended Sales Agreement) and (ii) January 8, 2026 , unless terminated prior to such date by the Company or the Agents. The ATM Prospectus Supplement, the Base Shelf Prospectus and the Sales Agreement are available at www.sedarplus.ca and the U.S. ATM Prospectus Supplement, the U.S. Base Prospectus and the Registration Statement are available at www.sec.gov . Alternatively, the Agents will send copies of the ATM Prospectus Supplement and the Base Shelf Prospectus or the U.S. ATM Prospectus Supplement and the U.S. Base Prospectus, as applicable, upon request by contacting: Virtu Canada Corp.; Attn Capital Markets; 222 Bay Street | Suite 1720 | Toronto, ON M5K 1B7; ATMCanada@Virtu.com or Virtu Americas, LLC; Attn Capital Markets; 1633 Broadway | New York, NY 10019; ATM@Virtu.Com .
Potential investors should read the ATM Offering Documents, Amended Sales Agreement and other documents the Company has filed publicly, available at www.sedarplus.ca and www.sec.gov , for more complete information about the Company and the ATM Program.
Farris LLP acted as legal counsel to the Company. Blake, Cassels & Graydon LLP (Canadian counsel) and Skadden, Arps, Slate, Meagher & Flom LLP (U.S. counsel) served as legal advisors to the Agents in connection with the ATM Program.
NexGen is a British Columbia corporation focused on the development of the Rook I Project located in the southwestern Athabasca Basin, Saskatchewan, Canada, into production.
No securities regulatory authority has either approved or disapproved of the contents of this press release. This press release is for information purposes only and does not constitute an offer to sell or the solicitation of an offer to buy the Shares, or CDIs, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.
Forward-Looking Information
The information contained herein contains "forward-looking statements" within the meaning of applicable United States securities laws and regulations and "forward-looking information" within the meaning of applicable Canadian securities legislation. "Forward-looking information" includes, but is not limited to, anticipated sale and distribution of Common Shares under the Offering, the volume and timing of the sale and distribution of Common Shares under the Offering, the expected uses of the net proceeds from any sales of Common Shares, and the filing of the U.S Prospectus Supplement, and the Prospectus Supplement. Generally, but not always, forward-looking information and statements can be identified by the use of words such as "plans", "expects", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates", or "believes" or the negative connotation thereof or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved" or the negative connotation thereof.
Forward-looking information and statements are based on the then current expectations, beliefs, assumptions, estimates and forecasts about NexGen's business and the industry and markets in which it operates. Forward-looking information and statements are made based upon numerous assumptions, including among others, that the mineral reserve and resources estimates and the key assumptions and parameters on which such estimates are based are as set out in the technical report for the property , the results of planned exploration activities are as anticipated, the price and market supply of uranium, the cost of planned exploration activities, that financing will be available if and when needed and on reasonable terms, that third party contractors, equipment, supplies and governmental and other approvals required to conduct NexGen's planned exploration activities will be available on reasonable terms and in a timely manner and that general business and economic conditions will not change in a material adverse manner. Although the assumptions made by the Company in providing forward looking information or making forward looking statements are considered reasonable by management at the time, there can be no assurance that such assumptions will prove to be accurate in the future.
Forward-looking information and statements also involve known and unknown risks and uncertainties and other factors, which may cause actual results, performances and achievements of NexGen to differ materially from any projections of results, performances and achievements of NexGen expressed or implied by such forward-looking information or statements, including, among others, negative operating cash flow and dependence on third party financing; uncertainty of the availability of additional financing; price of uranium; the appeal of alternate sources of energy; exploration and development risks; uninsurable risks; reliance upon key management and other personnel; imprecision of mineral resource estimates; potential cost overruns on any development; pending assay results; changes in climate or increases in environmental regulation; aboriginal title and consultation issues; deficiencies in the Company's title to its properties; information security and cyber threats; failure to manage conflicts of interest; failure to obtain or maintain required permits and licenses; changes in laws, regulations and policy; changes in government policy; competition for resources and financing; volatility in market price of the Common Shares; potentially dilutive future financings; financial and uranium market reactions, as well as effects on individuals on which NexGen relies, as a result of global pandemics (including COVID-19); speculative nature of exploration and development projects; liquidity of securities of NexGen; dilution risks to existing securityholders; risks associated with the sale of securities of NexGen; inability to exploit, expand and replace mineral reserves and mineral resources, as well as those factors or other risks as more fully described in NexGen's Annual Information Form dated March 6, 2024 filed with the securities commissions of all of the provinces and territories of Canada and in NexGen's 40-F filed with the United States Securities and Exchange Commission, which are available on SEDAR+ at www.sedarplus.ca and Edgar at www.sec.gov .
Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in the forward-looking information or statements or implied by forward-looking information or statements, there may be other factors that cause results not to be as anticipated, estimated or intended. Readers are cautioned not to place undue reliance on forward-looking information or statements due to the inherent uncertainty thereof.
There can be no assurance that forward-looking information and statements will prove to be accurate, as actual results and future events could differ materially from those anticipated, estimated or intended. Accordingly, readers should not place undue reliance on forward-looking statements or information. The Company undertakes no obligation to update or reissue forward-looking information as a result of new information or events except as required by applicable securities laws.
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SOURCE NexGen Energy Ltd.
View original content to download multimedia: http://www.newswire.ca/en/releases/archive/April2024/30/c8702.html
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Virtual Investor Conferences, the leading proprietary investor conference series, today announced the agenda for Uranium, Battery, and Precious Metals Virtual Investor Conference to be held April 30 th - May 2 nd . Individual investors, institutional investors, advisors, and analysts are invited to attend.
REGISTER NOW AT : https://bit.ly/3UwFWI7
It is recommended that investors pre-register and run the online system check to expedite participation and receive event updates. There is no cost to log-in, attend live presentations, or schedule 1x1 meetings with management.
"Our Virtual Investor Conferences are a great way for issuers to effectively and seamlessly expand their reach among investors," said Jason Paltrowitz, Executive Vice President of Corporate Services at OTC Markets Group. "We're looking forward to hosting the 3-day Uranium, Battery and Precious Metals Virtual Investor Conference which will feature over 15 different companies currently trading on the OTCQX, OTCQB, and Pink Markets."
April 30 th
| Eastern Time (ET) | Presentation | Ticker(s) |
| 9:30 AM | Bannerman Energy Ltd. | OTCQX: BNNLF | ASX: BMN |
| 10:30 AM | Global Atomic Corp. | OTCQX: GLATF | TSX: GLO |
| 11: 00 AM | F3 Uranium Corp. | OTCQB: FUUFF | TSXV: FUU |
| 11:30 AM | Western Uranium & Vanadium Corp. | OTCQX: WSTRF | CSE: WUC |
| 1:00 PM | Myriad Uranium Corp. | OTCQB: MYRUF | CSE: M |
| 1:30 PM | C2C Metals Corp. | Pink: CTCGF | CSE: CTOC |
May 1 st
| Eastern Time (ET) | Presentation | Ticker(s) |
| 9:30 AM | Novo Resources Corp. | OTCQX: NSRPF | TSX: NVO |
| 10:00 AM | CleanTech Lithium Plc | OTCQX: CTLHF | AIM: CTL |
| 10: 30 AM | Outcrop Silver | OTCQX: OCGSF | TSXV: OCG |
| 11:30 AM | WallBridge Mining Company Ltd. | OTCQB: WLBMF | TSX: WM |
| 12:00 PM | Minera Alamos, Inc. | OTCQX: MAIFF | TSXV: MAI |
| 1:00 PM | Graphite One Inc. | OTCQX: GPHOF | TSXV: GPH |
| 1:30 PM | Spruce Ridge Resources Ltd | OTCQB: SRCGF | TSXV: SHL |
| 2:00 PM | AbraSilver Resource Corp. | OTCQX: ABBRF | TSXV: ABRA |
| 2:30 PM | White Gold Corp. | OTCQX: WHGOF | TSXV: WGO |
May 2 nd
| Eastern Time (ET) | Presentation | Ticker(s) |
| 9:30 AM | Serabi Gold Plc | OTCQX: SRBIF | TSX: SBI |
| 10:30 AM | Silver Range Resources Ltd. | Pink: SLRRF | TSXV: SNG |
| 11: 00 AM | Newcore Gold Ltd. | OTCQX: NCAUF | TSXV: NCAU |
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Media Contact:
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Virtual Investor Conferences Contact:
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OTC Markets Group
(212) 220-2221
johnv@otcmarkets.com
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Ur-Energy Inc. (NYSE American:URG)(TSX:URE) ("Ur-Energy" or the "Company") provides the following updates on 2024 Q1 operations, adjustment to our production guidance for the year, and the early repayment of our State Bond Loan
John Cash, Ur-Energy Chairman and CEO, said of 2024 Q1, "This year has started with a great number of advances in the growth of Ur-Energy, demonstrating a focus on our future in a strengthening market for nuclear energy including our own uranium production at the front-end of the fuel cycle. We were pleased to announce our decision to build our second ISR uranium facility at Shirley Basin, the birthplace of ISR uranium in the 1960s, and related activities have commenced. We anticipate production at Shirley Basin to begin in 2026.
"Meanwhile, ramp-up continues at Lost Creek with additional development and production leading to another shipment of yellowcake being made this month. We continue to overcome ramp-up challenges. Due to those challenges, we are updating and reducing our 2024 production guidance to 550,000 - 650,000 pounds captured."
Lost Creek Production Operations
Ramp-up continues at Lost Creek, with two additional header houses (HH 2-6 and 2-7) coming online in 2024. During Q1, we captured approximately 38,221 pounds, dried and packaged approximately 39,229 pounds, and shipped 35,445 pounds U3O8. At quarter end, our in-process inventory was approximately 80,465 pounds, our drummed inventory was approximately 26,062 pounds, and our finished inventory at the conversion facility was approximately 79,235 pounds U3O8.
While we have experienced some additional equipment and operational challenges, we are seeing more consistent drying and packaging, with 19,331 pounds U3O8 packaged since quarter end and dryer operations keeping pace with wellfield production. We have 13 drill rigs onsite, with an additional rig scheduled to commence work in early May. Drilling has advanced into HH 2-11 with completion work nearly finished in HH 2-8. Fabrication of HH 2-8 and 2-9 is complete, and work on HH 2-10 and 2-11 is advancing in our Casper construction shop. HH 2-8 is expected to come online in May.
Shirley Basin Development
We were pleased to announce our decision in Q1 to proceed with the buildout of a satellite facility at our wholly owned, fully permitted and licensed Shirley Basin Project in Carbon County, Wyoming. The decision will nearly double our annual permitted mine production to 2.2 million pounds U3O8 while diversifying our supply.
The satellite plant will be a relatively low-cost facility consisting of ion exchange, wastewater, and groundwater restoration circuits. The ion exchange resin at Shirley Basin will be loaded with uranium from the mine and shipped to our Lost Creek ISR facility for processing before being recycled back into operations at Shirley Basin. This satellite approach will help minimize initial facility capital costs to approximately $24.4 million and pre-operational wellfield development costs to $16.3 million.
The satellite plant will be designed with a flow rate of up to 6,000 gallons per minute and capacity to produce up to 1.0 million pounds of U3O8 per year. Our permits and license allow for the construction of the elution, precipitation and drying circuits should it become economically advantageous. No amendments to the existing permits or licenses would be required.
The estimated time to finalize designs, order materials and construct the satellite plant and initial wellfield recovery area is approximately 24 months. Work has already been initiated on long-lead items, including detailed engineering and additional geologic pattern planning for the wellfield. Planning has been completed for the monitor well ring for the first mine unit, with plans to install approximately 120 wells in 2024 Q2 - Q3. This installation will enable hydrologic testing and baseline water quality analyses to proceed prior to the start of installation of production patterns in mid-2025. Significantly, the bid process and award for fabrication of IX columns has been completed. This procurement represents one of the longest lead items in the facility.
Sales and Prepayment of State Bond Loan
As previously announced, we completed two additional uranium sales agreements during 2024 Q1. Our fourth agreement calls for deliveries of a base annual quantity ranging from 100,000 to 350,000 pounds U3O8 from 2026 through 2030. The purchaser may flex the annual quantity up or down by as much as ten percent. This agreement provides in part for market-related pricing. Our fifth U3O8 sales agreement includes delivery commitments for five years beginning in 2026, with an initial delivery of 50,000 pounds U3O8 in 2026 and annual deliveries of 200,000 pounds U3O8 in 2027 through 2030. All sales under this agreement will be made at fixed prices, escalated from the agreed base price.
Subsequent to quarter end, we sold 75,000 pounds U3O8 for which we will receive $4.6 million in early May. In total, we anticipate selling 570,000 pounds U3O8, under two contracts secured in 2022.
As planned, on March 27, we completed the pre-payment of the remaining $4.4 million on our State Bond Loan and now are debt free. At March 31, 2024, we had cash and cash equivalents of $53.9 million.
About Ur-Energy
Ur-Energy is a uranium mining company operating the Lost Creek in-situ recovery uranium facility in south-central Wyoming. We have produced and packaged approximately 2.8 million pounds U3O8 from Lost Creek since the commencement of operations. Ur-Energy now has all major permits and authorizations to begin construction at Shirley Basin, the Company's second in situ recovery uranium facility in Wyoming and is in the process of obtaining remaining amendments to Lost Creek authorizations for expansion of Lost Creek. Ur‑Energy is engaged in uranium mining, recovery and processing activities, including the acquisition, exploration, development, and operation of uranium mineral properties in the United States. The primary trading market for Ur‑Energy's common shares is on the NYSE American under the symbol "URG." Ur‑Energy's common shares also trade on the Toronto Stock Exchange under the symbol "URE." Ur-Energy's corporate office is in Littleton, Colorado and its registered office is in Ottawa, Ontario.
FOR FURTHER INFORMATION, PLEASE CONTACT
John W. Cash, Chairman, CEO & President
720-981-4588, ext. 303
John.Cash@Ur-Energy.com
Cautionary Note Regarding Forward-Looking Information
This release may contain "forward-looking statements" within the meaning of applicable securities laws regarding events or conditions that may occur in the future (e.g., when ramp-up challenges will be overcome to reach steady-state production and our adjusted 2024 production guidance; the timing to complete ongoing development work to bring on header houses and recovery as currently projected; whether the current projections for the timing and ability to complete build out of Shirley Basin will be met; whether we will secure additional off-take sales agreements at advantageous pricing, and whether our current purchasers may exercise the flex option, up or down, in certain agreements) and are based on current expectations that, while considered reasonable by management at this time, inherently involve a number of significant business, economic and competitive risks, uncertainties and contingencies. Generally, forward-looking statements can be identified by the use of forward-looking terminology such as "plans," "expects," "does not expect," "is expected," "is likely," "estimates," "intends," "anticipates," "does not anticipate," or "believes," or variations of the foregoing, or statements that certain actions, events or results "may," "could," "might" or "will be taken," "occur," "be achieved" or "have the potential to." All statements, other than statements of historical fact, are considered to be forward-looking statements. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements express or implied by the forward-looking statements. Factors that could cause actual results to differ materially from any forward-looking statements include, but are not limited to, capital and other costs varying significantly from estimates; failure to establish estimated resources and reserves; the grade and recovery of ore which is mined varying from estimates; production rates, methods and amounts varying from estimates; delays in obtaining or failures to obtain required governmental, environmental or other project approvals; inflation; changes in exchange rates; fluctuations in commodity prices; delays in development and other factors described in the public filings made by the Company at www.sedarplus.ca and www.sec.gov. Readers should not place undue reliance on forward-looking statements. The forward-looking statements contained herein are based on the beliefs, expectations and opinions of management as of the date hereof and Ur-Energy disclaims any intent or obligation to update them or revise them to reflect any change in circumstances or in management's beliefs, expectations or opinions that occur in the future.
SOURCE: Ur-Energy Inc.
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