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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.

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“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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Forget Trump — the American media is on trial in New York – The Hill

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Forget Trump — the American media is on trial in New York | The Hill








The views expressed by contributors are their own and not the view of The Hill

It was July 2018, and Michael Avenatti was considering a presidential run. Anyone can consider running for president, I suppose. It’s just that when the lawyer for Stormy Daniels and cable news mainstay did it, important people — theoretically important, at least — in the press took it seriously.

CNN’s Jim Scuitto had Avenatti on to talk about it, and make a bit of a campaign pitch for himself, on July 4. The next day, CNN’s editor-at-large Chris Cillizza, one of the more prominent writers for the website back then, published a piece of analysis with the headline “President Michael Avenatti? Never say never!”

And sure, why not. Avenatti was riding high at the time. A couple months earlier, he was being pitched, according to the New York Times, for a “Crossfire”-like show with Anthony Scaramucci, the rapidly-defenestrated former Trump communications director, by mega-agent Jay Sures, who represents top CNN talent like Jake Tapper and Anderson Cooper. Maybe that’s why Avenatti became so ubiquitous on the network to begin with — embarrassingly so, in retrospect.

But if we look back to April, almost exactly six years ago, that’s when Avenatti truly burst onto the national scene. On April 9, 2018, the FBI raided the office of Michael Cohen, the long-time “fixer” and business associate of then-President Donald Trump. The next day, Avenatti was on Cooper’s CNN show to break it all down — from Stormy Daniels, his porn actress client, to Karen McDougal, the former Playboy playmate, to Cohen himself. It was Avenatti’s chance to craft the narrative for the media, and the media was happy to oblige.

The whole ordeal was portrayed a couple weeks later in a cringe-inducing “Saturday Night Live” cold open, with Ben Stiller playing Cohen, Jimmy Fallon playing Jared Kushner, and Stormy Daniels playing herself. (She struggled to nail the “Live from New York, it’s Saturday Night!” line at the end.)

It’s worth reflecting this week on this bizarre 2018 moment, as it serves as the prelude to the first (and possibly only) trial of Trump in 2024. The trial that officially began on Monday isn’t about “insurrection” or “espionage” or classified documents or RICO. Oh no. It’s this reality TV, trashy tabloid junk about porn stars and Playmates — stuff that belongs more in the National Enquirer than the National Broadcasting Company.

Which is ironic, of course, because the first witness in the case was David Pecker, the former executive in charge of the National Enquirer. (It’s also ironic that Avenatti is now firmly on Team Trump, saying he’d be happy to testify for the defense, although of course he’s also currently in federal prison for wire fraud and tax fraud, so…)

It’s been more than six years since that initial FBI raid, and the original Avenatti media sin. But buckle up, here we go. We’re getting to hear about the way Trump teamed up with the National Enquirer in an effort to boost his 2016 campaign. A bit like how most of the establishment press today is teaming up with the Biden campaign to stop Trump in this cycle.

You know that story about Ted Cruz’s father potentially being involved in the murder of JFK? Totally made up, to help Trump in the primary! None of this is surprising, to any discerning news consumer. But it does allow the media to get on their proverbial high horse over “checkbook journalism” — as if the crusty old legacy press hasn’t been doing a version of it for decades, when ABC or NBC wants to secure a big “get” on their morning show. But the journalistic ethics of the National Enquirer are a red herring — a distraction from the substance of the trial.

After Pecker, we’ll get Cohen, and Daniels, and McDougal as witnesses. Avenatti, at least it seems for now, will stay in prison, and not get to return to the limelight.

This trial is a circus. But the media made their choice way back in 2018. And now they too are on trial.

To get meta for a minute, when I decide to devote my weekly column to a topic, I’m not only deciding the topic to cover, but making a decision about what not to cover as well. On a far larger and more consequential scale, every single news organization makes choices every day about what to focus on, how to cover it and what gets left on the cutting room floor.

Back during the Trump years, the media spent an inordinate amount of time dissecting every last detail of this tabloid journalism fodder we’re now seeing play out in a New York City courtroom — which is meaningless to the lives of nearly every American. The trial is the culmination of the inconsequential work that ate up so many hours of cable news, and occupied so much space in the most powerful media outlets in America. So much time and energy and resources that could have been devoted to literally any other story, including many that directly relate to Donald Trump. And yet now, here we are.

This trial has to matter for the American press. If it doesn’t, it invalidates their entire existence during 2018. But if the public tunes out — and, can you even imagine if a jury in New York City actually finds Trump not guilty at the end of this thing — well, it’s as much an indictment of the Trump-obsessed Acela media as it is of the system that brought these bizarre charges and salacious case in the first place.

Steve Krakauer, a NewsNation contributor, is the author of “Uncovered: How the Media Got Cozy with Power, Abandoned Its Principles, and Lost the People” and editor and host of the Fourth Watch newsletter and podcast.

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'Nessie' photo at Scotland's Loch Ness puts Canadians in media spotlight – National Post

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The Official Loch Ness Monster Sightings Register sent the photo to one of their experts ‘who said that it was “compelling evidence” ‘ of the creature

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LONDON — Parry Malm and Shannon Wiseman weren’t expecting a “pivotal moment” in their sons’ lives when they visited Scotland’s Loch Ness earlier this month, but that’s exactly what happened.

“Our youngest is turning three next week,” said Wiseman from the family’s home in London, England. “And he tells everyone there have been two pivotal moments in his life: Seeing the world’s largest dinosaur, which he did at the Natural History Museum in January, and seeing Nessie.

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“He tells everyone he encounters. He tells the postman, he tells the guys in the shops and the cafes.”

Malm and Wiseman have been thrust into the limelight after a photo they took during their family vacation showed a shadowy figure poking above the waterline, something that the couple’s children _ and others — firmly believe is the latest sighting of the famed Loch Ness monster.

Malm and Wiseman, who are from Coquitlam B.C., and Calgary respectively, moved to England in 2006.

The couple said the original plan for the spring vacation was to take a boat ride in Loch Ness because their children were “completely captivated by the concept of Nessie.”

“We’d even packed shortbread cookies, which we were told from these books was Nessie’s favourite treat,” Wiseman quipped. “Turned out shortbread cookies were not necessary.”

That’s because the family spotted something sticking out of the water while visiting a lookout at nearby Urquhart Castle.

“We just started watching it more and more, and we could see its head craning above water,” Malm said. “And then it was swimming against the current towards the castle, slowly but surely, like very fastidiously going over the waves (and) coming closer and closer. And then it submerged and disappeared.”

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Malm said the family took a photo of what they saw and decided “for a bit of a laugh” to send the picture to the Official Loch Ness Monster Sightings Register, which he stumbled upon while surfing the internet.

“They got in touch within 24 hours,” Malm recalled. “They were super excited. They sent it to one of their Loch Ness experts who said that it was ‘compelling evidence,’ I believe was the exact phrase.

“And just one thing led to another. I mean, it’s been incredible.”

Since the photo submission, Malm and Wiseman have been featured in British tabloids such as The Sun and the Daily Mirror and digital publication LADbible.

On the Official Loch Ness Monster Sightings Register, the encounter has been recorded as the first Nessie sighting of 2024.

“We’ve both got texts from people who we haven’t heard from in quite some time going, ‘Guess who I just saw on TV?”‘ Malm said.

“I’m just glad that we hit the national media in Canada for spotting the Loch Ness monster and not being on Crime Stoppers.”

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Both Malm and Wiseman said they are happy their experience is bringing some positivity to the daily news cycle, and at least one person they have spoken with thanked them for the picture.

“Our son’s school’s headmaster is Scottish,” Malm said. “And he pulls me aside at pick up one day and he goes, ‘You know what, Perry? You’ve done more for Scottish tourism than anybody else in my lifetime.’

“So, hopefully some people will be inspired to come visit Scotland.”

What isn’t certain, however, is what they actually encountered on that cold April morning on the shore of Loch Ness.

“We don’t know what we saw,” Wiseman said. “Our children believe we saw Nessie, and I believe it for them.

“I believe that we saw something that could be Nessie, and that is a very broad possibility.”

Malm said the wonder that the sighting has inspired in his children, and others resonating with the photo, is more important than the question of what they encountered.

“It’s really charming,” he said of the outpouring of reactions. “Because in a world where the news is about a war here and an atrocity there, it’s just nice that people are interested in something that’s just lighthearted, a little bit silly and a little bit unbelievable.”

Our website is the place for the latest breaking news, exclusive scoops, longreads and provocative commentary. Please bookmark nationalpost.com and sign up for our daily newsletter, Posted, here.

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B.C. online harms bill on hold after deal with social media firms

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The British Columbia government is putting its proposed online harms legislation on hold after reaching an agreement with some of the largest social media platforms to increase safety online.

Premier David Eby says in a joint statement with representatives of the firms Meta, TikTok, X and Snapchat that they will form an online safety action table, where they’ll discuss “tangible steps” toward protecting people from online harms.

Eby added the proposed legislation remains, and the province will reactivate it into law if necessary.

“The agreement that we’ve struck with these companies is that we’re going to move quickly and effectively, and that we need meaningful results before the end of the term of this government, so that if it’s necessary for us to bring the bill back then we will,” Eby said Tuesday.

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The province says the social media companies have agreed to work collaboratively with the province on preventing harm, while Meta will also commit to working with B.C.’s emergency management officials to help amplify official information during natural disasters and other events.

The announcement to put the Bill 12, also known as the Public Health Accountability and Cost Recovery Act, on hold is a sharp turn for the government, after Eby announced in March that social media companies were among the “wrongdoers” that would pay for health-related costs linked to their platforms.

At the time, Eby compared social media harms to those caused by tobacco and opioids, saying the legislation was similar to previous laws that allowed the province to sue companies selling those products.

A white man and woman weep at a podium, while a white man behind them holds a picture of a young boy.
Premier David Eby is pictured with Ryan Cleland and Nicola Smith, parents of Carson Cleland, during a news conference announcing Bill 12. (Ben Nelms/CBC)

Eby said one of the key drivers for legislation targeting online harm was the death of Carson Cleland, the 12-year-old Prince George, B.C., boy who died by suicide last October after falling victim to online sextortion.

“In the real world we would never allow a company to set up a space for kids where grown adults could be invited in to contact them, encourage them to share photographs and then threaten to distribute those photographs to their family and friends,” Eby said when announcing the legislation.

The premier said previously that companies would be shut down and their owners would face jail terms if their products were connected to harms to young people.

In announcing the pause, the province says that bringing social media companies to the table for discussion achieves the same purpose of protecting youth from online harm.

“Our commitment to every parent is that we will do everything we can to keep their families safe online and in our communities,” said Eby.

Ryan Cleland, Carson’s father, said in a statement on Tuesday that he “has faith” in Eby and the decision to suspend the legislation.

“I don’t think he is looking at it from a political standpoint as much as he is looking at it as a dad,” he said of Eby. “I think getting the social media giants together to come up with a solution is a step in the right direction.”

Business groups were opposed

On Monday, the opposition B.C. United called for a pause to Bill 12, citing potential “serious legal and economic consequences for local businesses.”

Opposition Leader Kevin Falcon said in a statement that his party pushed Eby’s government to change course, noting the legislation’s vague language on who the province can sue “would have had severe unintended consequences” for local businesses and the economy.

“The government’s latest retreat is not only a win for the business community but for every British Columbian who values fairness and clarity in the law,” Falcon said.

A white man wearing a blue tie speaks in a legislature building.
B.C. United Leader Kevin Falcon says that Bill 12 could have had unintended consequences. (Chad Hipolito/The Canadian Press)

The Greater Vancouver Board of Trade said they are pleased to see the legislation put on hold, given the “potential ramifications” of the proposal’s “expansive interpretation.”

“We hope that the government chooses not to pursue Bill 12 in the future,” said board president and CEO Bridgitte Anderson in a statement. “Instead, we would welcome the opportunity to work with the government to develop measures that are well-targeted and effective, ensuring they protect British Columbians without causing unintended consequences.”

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