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Cameco Reports Q4/Annual Results – News Archive – Media – Cameco

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Cameco announces 2021 financial results; 50% increase to 2022 dividend aligned with 70 million pounds of long-term contracting and improving market fundamentals; Next phase of its supply discipline begins while awaiting further market improvements and contracting progress

Saskatoon, Saskatchewan, Canada, February 9, 2022

Cameco (TSX: CCO; NYSE: CCJ) today reported its consolidated financial and operating results for the fourth quarter and year ended December 31, 2021 in accordance with International Financial Reporting Standards (IFRS).

“Our results reflect the very deliberate execution of our strategy of full-cycle value capture. We have been undertaking work to ensure we have operational flexibility, we are aligning our production decisions with the market fundamentals and our contracting portfolio, and we have been financially disciplined. Since 2016, with our planned and unplanned production cuts, inventory reduction and market purchases, we have removed more than 190 million pounds of uranium from the market, which we believe has contributed to the security of supply concerns in our industry,” said Tim Gitzel, Cameco’s president and CEO.

“In alignment with 70 million pounds of additional long-term contracts added to our portfolio since the beginning of 2021 and the improving market sentiment that provides us with leverage to higher prices under our market-related contracts and for our unencumbered productive capacity, we are pleased to announce that it is time for Cameco to proceed with the next phase of our supply discipline decisions. And it is time to reward those who have supported our strategy. We are laying claim to our tier-one incumbency advantage as we further position the company to capture the value we expect to come from the growing demand for nuclear energy driven by the increasingly undeniable conclusion that it must be an essential part of the clean-energy transition.

“Our plan in no way represents an end to our supply discipline. What we are contemplating for our supply discipline still represents a much greater reduction than any other producer has made. In fact, we are continuing with indefinite supply discipline. Our plan includes both McArthur River/Key Lake and Cigar Lake operating at less than licensed capacity starting in 2024. We are taking a portfolio approach to our supply discipline. In 2021, we were operating at about 75% below productive capacity (100% basis), which came at a significant cost to our business. By 2024, we plan to be operating at about 40% below productive capacity (100% basis). This will remain our production plan until we see further improvements in the uranium market and have made further progress in securing the appropriate homes for our unencumbered, in-ground inventory under long-term contracts, once again demonstrating that we are a responsible supplier of uranium fuel.

“Starting in 2024, it is our plan to produce 15 million pounds per year (100% basis) at McArthur River/Key Lake, 40% below the annual licensed capacity of the operation. At that time, we plan to reduce production at Cigar Lake to 13.5 million pounds per year (100% basis), 25% below its annual licensed capacity, for a combined reduction of 33% of licensed capacity at the two operations. In addition, we plan to keep our tier-two assets on care and maintenance, and production at Inkai will continue to follow the 20% reduction until the end of 2023 unless Kazatomprom further extends its supply reductions.

“It will take us some time to transition McArthur River/Key Lake from care and maintenance to its planned production capacity as we complete critical automation, digitization and other projects, execute maintenance readiness checks, and achieve sufficient recruitment and training. Until we achieve a reasonable production rate, we expect to incur operational readiness costs, which will be expensed directly to cost of sales. In 2022, we could produce up to 5 million pounds (100% basis) depending on our success in completing operational readiness activities and managing the potential risks of the COVID-19 pandemic and related supply chain challenges. We will continue to meet our sales commitments from a combination of lower-cost production, inventory and purchases in order to maximize the value of our sales portfolio. As we ramp up to our 2024 planned production capacity, we expect to see a significant improvement in our earnings and cash flow.

“Our total planned production in 2022 continues to face risks due to the ongoing COVID-19 pandemic, and related global supply chain disruptions, including at Cigar Lake where we expect to produce 15 million pounds (100% basis), which is 20% below licensed capacity, and at Inkai in Kazakhstan.

“Thanks to our deliberate actions and conservative financial management we have been and continue to be resilient. With $1.3 billion in cash and cash equivalents and short-term investments on our balance sheet, improving fundamentals for our business and our decision to prepare McArthur River/Key Lake for production, we have line of sight to a significant improvement in our future financial performance. Our strong balance sheet positions us well to self-manage risk, including any global macro-economic uncertainty and volatility that may arise. Therefore, we are pleased to announce that our board has approved a 50% increase to our annual dividend for 2022. In December 2022 we will pay an annual dividend of $0.12 per common share, up from $0.08 per common share.

“Our vision of ‘energizing a clean-air world’ recognizes that we have an important role to play in enabling the vast reductions in greenhouse gas emissions required to accomplish the targets being set by countries and companies around the world to achieve a resilient, net-zero carbon economy. We have operating and idle tier-one assets that are licensed, permitted, long-lived, are proven reliable, and that have expansion capacity. These tier-one assets are backed up by idle tier-two assets and what we think is the best exploration portfolio that leverages existing infrastructure. We are vertically integrated across the nuclear fuel cycle. We have locked in significant value for the fuel services segment of our business in the recent price transition in the conversion market and we are exploring opportunities to further our reach in the nuclear fuel cycle and in innovative, non-traditional commercial uses of nuclear power in Canada and around the world.

“We are optimistic about Cameco’s role in capturing long-term value across the fuel chain and supporting the transition to a net-zero carbon economy. We believe we have the right strategy to achieve our vision and we will do so in a manner that reflects our values. For over 30 years, we have been delivering our products responsibly. Sustainability is at the heart of what we do. Embedded in all our decisions is a commitment to addressing the environmental, social and governance risks and opportunities that we believe will make our business sustainable over the long term.”

Summary of Q4 and 2021 results and developments:

  • Fourth quarter net earnings of $11 million; adjusted net earnings of $23 million: Fourth quarter results are driven by normal quarterly variations in contract deliveries and the continued execution of our strategy. Adjusted net earnings is a non-IFRS measure, see page 5.
  • Annual net loss of $103 million; adjusted net loss of $98 million: Annual results were driven by the continued execution of our strategy and the proactive measures taken due to the COVID-19 pandemic. Adjusted net earnings is a non-IFRS measure, see page 5.
  • COVID-19 pandemic: The health and safety of our workers, their families and their communities continues to be the priority in all our plans. As a result of the four-month precautionary production suspension at our Cigar Lake operation, in our uranium segment we produced only 6.1 million pounds (our share) in 2021, well below our committed sales. Additionally, we incurred $40 million more in care and maintenance costs than those we had planned for. Partially offsetting these costs was the receipt of about $21 million under the Canada Emergency Wage Subsidy program.
  • Received dividends from JV Inkai: In 2021, we received dividend payments from JV Inkai totaling $40 million (US). JV Inkai distributes excess cash, net of working capital requirements, to the partners as dividends. See Uranium – Tier-one operations – Inkai in our 2021 annual MD&A.
  • Contracting continues in strengthened price environment: In our uranium segment, since the beginning of 2021, we have been successful in adding 70 million pounds to our portfolio of long-term uranium contracts, bringing the total volumes added since 2016 to about 185 million pounds. Nevertheless, we maintain leverage to higher prices with significant unencumbered future productive capacity and a large and growing pipeline of uranium business under discussion. However, we are being strategically patient in our discussions to capture as much value as possible in our contract portfolio. In addition to the off-market contracting interest, there has been a re-emergence of on-market requests for proposals from utilities looking to secure their future requirements.
  • Strong balance sheet: As of December 31, 2021, we had $1.3 billion in cash and cash equivalents and short-term investments and $996 million in long-term debt. In addition, we have a $1 billion undrawn credit facility.
  • Tax dispute: In the fourth quarter we filed a notice of appeal with the Tax Court of Canada (Tax Court) in our dispute with Canada Revenue Agency (CRA) to have our $777 million in cash and letters of credit returned. See Transfer Pricing Dispute in our 2021 annual MD&A.
  • Next phase of our supply discipline strategy: Continuing to align our production decisions with the market conditions and our long-term contract portfolio, starting in 2024, we plan for our share of production to be about 45% below our productive capacity. Productive capacity includes licensed capacity at Cigar Lake and McArthur River/Key Lake, and it includes planned production volumes at Rabbit Lake and our US operations prior to curtailment in 2016. In addition, at Inkai, we will continue to follow the 20% reduction until the end of 2023 as announced by Kazatomprom. This will remain our production plan until we see further improvements in the uranium market and contracting progress, demonstrating that we continue to be a responsible supplier of uranium fuel.
  • 2022 guidance provided: Our outlook for 2022 reflects the expenditures necessary to help us achieve our strategy, including the ramp-up to the planned production of 15 million pounds per year (100% basis) at McArthur River/Key Lake by 2024. As in prior years, we will incur care and maintenance costs for the ongoing suspension of our tier-two assets, which are expected to be between $50 million and $60 million. We also expect to incur between $15 million and $17 million per month at McArthur River/Key Lake in operational readiness costs which will be expensed directly to cost of sales until we achieve a reasonable production rate. Operational readiness costs include all of the costs associated with care and maintenance in addition to the costs to complete critical projects, perform maintenance readiness checks, and recruit and train sufficient mine and mill personnel before beginning operations.
    • Over the course of 2022 and 2023, we will undertake all the activities necessary to ramp up at McArthur River/Key Lake to the planned 2024 production. As a result, in 2022, we could produce up to 5 million pounds (100% basis).
    • At Cigar Lake, we expect production of 15 million pounds (100% basis) in 2022.
    • The production outlook reflects the expected impact of the delays and deferrals to development work at Cigar Lake in 2021 and the ongoing pandemic and supply chain challenges we are currently experiencing at all our operations.

See Outlook for 2022 in our 2021 annual MD&A for more information.

  • 50% increase to 2022 dividend announced: As a result of our deliberate actions and conservative financial management we have been and continue to be resilient. With a strong balance sheet, improving fundamentals for our business, a growing contract portfolio, and our decision to prepare McArthur River/Key Lake to be operationally ready, we have line of sight to a significant improvement in our future earnings and cash flow. Therefore, for 2022, we are increasing our annual dividend. An annual dividend of $0.12 per common share has been declared, payable on December 15, 2022 to shareholders of record on November 30, 2022.
  • Greater focus on technology and its applications: We continue our focus on innovation and accelerating the adoption of advanced digital and automation technologies to allow us to operate our assets with more flexibility.
  • Clean-energy innovation: In 2021, we increased our interest in Global Laser Enrichment LLC (GLE) from 24% to 49% and signed a number of non-binding arrangements to explore several areas of cooperation to advance the commercialization and deployment of small modular reactors (SMRs) in Canada and around the world. This furthers our commitment to responsibly and sustainably manage our business and increase our contributions to global climate change solutions by exploring other emerging and non-traditional opportunities within the fuel cycle.

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Media Advisory: Ministers Stoodley and Davis to Attend Run for Women in Support of Stella's Circle – News Releases – Government of Newfoundland and Labrador

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On Sunday, June 26 the Honourable Sarah Stoodley, Minister of Digital Government and Service NL and the Honourable Bernard Davis, Minister of Environment and Climate Change, will attend the LOVE YOU’ by Shoppers Drug Mart Run for Women, in support of women’s mental health programs at Stella’s Circle.

The event is set to begin at 8:45 a.m. at Quidi Vidi Lake, 115 The Boulevard, St. John’s.

The Run for Women is held in 18 cities throughout Canada and focuses on Women’s Mental Health. Funds raised go to this year’s charity partner, Stella’s Circle, to specifically support programming at Naomi House and the Just Us Women’s Centre. The event also promotes physical movement as a means to creating better positive mental health outcomes.

-30-

Media contacts
Krista Dalton
Digital Government and Service NL
709-729-4748, 685-6492
kristadalton@gov.nl.ca

Lynn Robinson
Environment and Climate Change
709-729-5449, 691-9466
lynnrobinson@gov.nl.ca

2022 06 24
1:40 pm

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Newly appointed Toronto councillor resigns after controversial social media posts resurfaced – CTV News Toronto

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A newly installed Toronto councillor has resigned after her old social media posts, which appear to show homophobic content, were unearthed hours following her appointment.

Rosemarie Bryan was appointed by city council as the new councillor for Ward 1 – Etobicoke North during a special meeting on Friday, filling the vacancy left by Michael Ford, who ran in June’s provincial election and won.

After she was appointed, however, Bryan’s alleged past social media activities, which appears to show her sharing anti-LGBTQ content, were brought to light.

Friday was the start of the Pride Toronto’s Festival Weekend, which features the return of the Pride Parade to downtown streets on Sunday following a two-year hiatus.

Several councillors posted to social media that had they known about Bryan’s posts, they would not have voted for her to fill the seat.

“A majority of councillors would have never this (way) had this information been brought forward. We relied too heavily on the recommendation being made by former councillor,” Coun. Mike Layton tweeted.

“We need to reopen this debate.”

Of the 23 councillors who cast their ballots, 21 voted for Bryan, including Mayor John Tory.

Coun. Josh Matlow, one of the two councillors who did not vote for Bryan, called for her resignation, tweeting that he does not believe “anyone who supports hate and bigotry should be a Toronto city councillor, or hold any public office for that matter. This is disgraceful.”

On Friday night, Bryan released a statement announcing that she is resigning, saying it’s the best way to continue serving those who love and support her in Etobicoke North.

Bryan said she is devastated that her past online posts are being “thrown against my decades of commitment to the community.”

“I recognize councillors were not aware of those posts before today’s discussion and now that they are, I recognize many would not have cast their vote for me. I don’t want to hurt all those who supported me and I remain committed to helping my community in any and every way I can,” she said.

In a statement, Tory said while Bryan made a “strong case” to council for her appointment, her past social media posts are “not acceptable.”

“I totally disagree with any homophobic or transphobic views. I absolutely support our 2SLGBTQ+ residents. City Councillors are expected to set an example when it comes to consistency with our shared values,” Tory said.

“I would not have voted for this appointment had I been aware of these posts and I know that is the sentiment of the vast majority of council who also voted today.”

He said it was appropriate for Bryan to resign.

“The upset this has caused everyone involved is extremely unfortunate. This is especially unfortunate on the very weekend when we are celebrating the progress we have made together,” Tory said, adding that he has asked staff to review the overall appointment process.

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S.Korean leader's informal media events are a break with tradition – SaltWire Halifax powered by The Chronicle Herald

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By Soo-hyang Choi

SEOUL (Reuters) – South Korean leader Yoon Suk-yeol has departed from years of tradition by holding informal daily media events to field questions on topics ranging from inflation and ties with neighbouring North Korea to the first lady and even boyband BTS.

Such wide-ranging access to the president was previously unheard of. It stems from Yoon’s decision to move his office out of the official Blue House, whose previous occupants largely steered clear of such interactions over more than seven decades.

“It’s apparently helping Yoon dispel worries about his lack of political experience and giving him a sense of where public opinion is at,” said Eom Kyeong-young, a political commentator based in the capital, Seoul.

Yoon, a former prosecutor-general, entered politics just a year ago, before winning the presidency in March by a margin of just 0.7%, the narrowest in South Korea’s history.

Upon his inauguration in May, Yoon moved the presidential office to the compound of South Korea’s defence ministry, describing the official residence as the symbol of an “imperial presidency”, and vowing not to “hide behind” his aides.

His liberal predecessor, Moon Jae-in, had rarely held news conferences, and almost always filtered his communication with the media, and the public, through layers of secretaries.

Analysts see Yoon’s daily freewheeling sessions as part of a broader communications strategy that lets him drive policy initiatives and present himself as a confident, approachable leader.

The campaign has also allayed public suspicions about the newcomer to politics, they say.

Polls show the new strategy helping to win support and much-needed political capital for Yoon in his effort to hasten recovery from the COVID-19 pandemic, in a parliament dominated by the opposition Democratic Party.

Although Yoon’s approval rating dipped to 47.6% in a recent survey, slightly lower than the disapproval figure of 47.9%, another June poll showed communication was the reason most frequently cited by those who favoured him.

“The sweeping victory of Yoon’s conservative party in June local elections shows the public is not so much against the new administration,” said Eom.

Incumbents from Yoon’s People Power Party (PPP) defeated challengers for the posts of mayor in the two biggest cities of Seoul and the port city of Busan in that contest, while its candidates won five of seven parliamentary seats.

Eom attributed Yoon’s low approval rating from the beginning of his term to inflation risks that threaten to undermine an economic recovery and his lack of a support base as a new politician.

But some critics say Yoon’s sessions raise the chances that he could make mistakes.

“He could make one mistake a day,” Yun Kun-young of the opposition party wrote on Facebook last week, saying the new practice could be “the biggest risk factor” for the government.

The presidential office could not immediately be reached for comment.

Yoon has already faced criticism for controversial remarks made during the morning briefings, such as one in defence of his nominee for education minister, who has a record of driving under the influence of alcohol years ago.

But the daily meetings and public reaction would ultimately help the government to shape policy better, said Shin Yul, a professor of political science at Myongji University in Seoul.

“It might be burdensome for his aides for now, but will be an advantage in the long term,” Shin said. “A slip of the tongue cannot be a bigger problem than a policy failure.”

(Reporting by Soo-hyang Choi; Editing by Clarence Fernandez)

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