Cameco Announces Election of Directors and Start of Commercial Production at Cigar Lake

Cameco Corp. (TSX:CCO,NYSE:CCJ) announced that it has began commercial production at Cigar Lake operation in the Athabasca Basin in Saskatchewan. The company also announced which board directors were voted in by shareholders at the its annual general meeting.

As quoted in the press release:

Commercial production signals a transition in the accounting treatment for costs incurred at the mine. During May, Cameco met all of the criteria for commercial production, including cycle time and process specifications. Therefore, effective May 1, 2015, all production costs, including depreciation, will be charged to inventory and subsequently recognized in cost of sales as the product is sold as disclosed in our first quarter management discussion and analysis.

Mining at Cigar Lake began in March 2014, with the first packaged uranium concentrate available in October 2014. The operation remains on track to achieve in 2015 the annual production target of 6 million to 8 million packaged pounds (100% basis). Cameco expects Cigar Lake to ramp up to its full annual production rate of 18 million pounds (100% basis) by 2018 (Cameco’s share 9 million pounds). The mine employs more than 600 highly-skilled workers, with the majority being residents of Saskatchewan’s north.

The Cigar Lake operation is owned by Cameco (50.025%), AREVA Resources Canada Inc. (AREVA) (37.1%), Idemitsu Canada Resources Ltd. (7.875%) and TEPCO Resources Inc. (5.0%) and is operated by Cameco.

Also at the meeting held on May 22, 2015, 11 board members were elected. Shareholders elected board members Ian Bruce, Daniel Camus, John Clappison, James Curtiss, Donald Deranger, Catherine Gignac, Tim Gitzel, James Gowans, Nancy Hopkins, Anne McLellan, and Neil McMillan. (Voting results are available below).

Click here to read the full Cameco Corp. (TSX:CCO,NYSE:CCJ) press release.