Nuclear Fuel Cycle
LIGHT WATER REACTORS
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CONVERSION OF
UO₃ to UF₆
ENRICHMENT
CONVERSION OF
ENRICHED
UF6 into UO2
FUEL
FABRICATION
LIGHT WATER
REACTORS
SPENT FUEL
STORAGE
Global Laser
Enrichment
(in development)
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Westinghouse
EXPLORATION
MINING + MILLING
CONVERSION
Cameco explores, mines and mills
in Saskatchewan, the USA, Australia and Kazakhstan
Blind River
Refining Facility
Port Hope
Conversion Facility
World's largest commercial
uranium refinery
Canada’s only uranium
conversion facility
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ENERGY GRID
Useable clean energy that powers
homes, hospitals and businesses
CAMECO
CAMECO INVESTMENTS
CONVERSION OF
UO₃ to UO₂
FUEL FABRICATION
Port Hope & Cobourg Fuel
Manufacturing Facilities
Manufactures reactor components
and fuel bundles for CANDU reactors
CANDU
REACTORS
SPENT FUEL
STORAGE
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Mining & Milling
Once an orebody is discovered and defined by exploration,
there are three common ways to mine uranium, depending
on the depth of the orebody and the deposit’s geogolical
characteristics:
● Open pit mining is used if the ore is near the surface.
The ore is usually mined using drilling and blasting.
● Underground mining is used if the ore is too deep to
make open pit mining economical. Tunnels and shafts
provide access to the ore.
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In situ recovery (ISR) does not require large scale
excavation. Instead, holes are drilled into the ore and a
solutioni is used to dissolve the uranium. The solution is
pumped to the surface where the uranium is recovered.
Ore from open pit and underground mines is processed to
extract the uranium and package it as a powder typically
referred to as uranium concentrates (U308) or yellowcake.
The leftover processed rock and other solid waste (tailings)
is placed in an engineered tailings facility.
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Refining
Refining removes impurities from the uranium concentrate
and changes its chemical form to uranium trioxide (UO3).
Conversion
For light water reactors, the UO3 is converted to uranium
hexafluoride (UF6) gas to prepare it for enrichment. For
heavy water reactors, like the CANDU reactors, the UO3 is
converted into powdered uranium dioxide UO2).
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Enrichment
Uranium is made up of two main isotopes: U-238 and
U-235. Only U-235, which makes up 0.7% of natural
uranium, is involved in the nuclear fission reaction and most
of the world’s reactors require an enriched level of U-235.
The enrichment process increases the concentration of
U-235, with most of the existing global reactor fleet requiring
between 3% and 5%. However, to allow for extended
refueling cycles and for some new and advanced reactor
designs, higher levels of enrichment may be required.
Enriched gas is then converted to powdered UO2.
Fuel manufacturing
Natural or enriched UO2 is pressed into pellets, which are
baked at a high temperature. These are packed into zircaloy
or stainless steel tubes, sealed and then assembled into
fuel bundles that are specific to each reactor design.
Generation
Nuclear reactors are used to generate electricity. U-235
atoms in the reactor fuel fission, creating heat that
generated steam to drive turbines. The fuel bundles in
the reactor need tobe replaced as the U-235 atoms are
depleted, typically after one or two years, depending on
the reactor type. The used - or spent fuel - is stored or
reprocessed.
Spent fuel management
The majority of spent fuel is safely stored at the reactor
site. A small amount of spent fuel is reprocessed. The
reprocessed fuel is used in some European and Japanese
reactors.
Management’s discussion and analysis
February 8, 2024
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MARKET OVERVIEW AND DEVELOPMENTS
2023 PERFORMANCE HIGHLIGHTS
OUR VISION, VALUES AND STRATEGY
OUR ESG PRINCIPLES AND PRACTICES
MEASURING OUR RESULTS
FINANCIAL RESULTS
OPERATIONS AND PROJECTS
MINERAL RESERVES AND RESOURCES
ADDITIONAL INFORMATION
2023 CONSOLIDATED FINANCIAL STATEMENTS
This management’s discussion and analysis (MD&A) includes information that will help you understand management’s
perspective of our audited consolidated financial statements (financial statements) and notes for the year ended December 31,
2023. The information is based on what we knew as of February 7, 2024.
We encourage you to read our audited consolidated financial statements and notes as you review this MD&A. You can find
more information about Cameco, including our financial statements and our most recent annual information form, on our
website at cameco.com, on SEDAR+ at www.sedarplus.com or on EDGAR at sec.gov. You should also read our annual
information form before making an investment decision about our securities.
The financial information in this MD&A and in our financial statements and notes is prepared according to International
Financial Reporting Standards (IFRS), unless otherwise indicated.
Unless we have specified otherwise, all dollar amounts are in Canadian dollars.
Throughout this document, the terms we, us, our, the Company and Cameco mean Cameco Corporation and its subsidiaries,
unless otherwise indicated.
Caution about forward-looking information
Our MD&A includes statements and information about our expectations for the future. When we discuss our strategy, plans, future financial
and operating performance, or other things that have not yet taken place, we are making statements considered to be forward-looking
information or forward-looking statements under Canadian and United States (US) securities laws. We refer to them in this MD&A as forward-
looking information.
Key things to understand about the forward-looking information in this MD&A:
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It typically includes words and phrases about the future, such as: anticipate, believe, estimate, expect, plan, will, intend, goal, target,
forecast, project, vision, strategy and outlook (see examples below).
It represents our current views and can change significantly.
It is based on a number of material assumptions, including those we have listed on page 5, which may prove to be incorrect.
Actual results and events may be significantly different from what we currently expect, due to the risks associated with our business. We
list a number of these material risks on page 4. We recommend you also review our most recent annual information form, which includes
a discussion of other material risks that could cause actual results to differ significantly from our current expectations.
Forward-looking information is designed to help you understand management’s current views of our near- 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.
Examples of forward-looking information in this MD&A
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our view that we have the strengths to take advantage of the
world’s rising demand for safe, clean, secure, reliable,
affordable and carbon-free energy, and our vision to
energize a clean-air world
that we will continue to focus on delivering our products
responsibly and addressing the environmental, social and
governance (ESG) risks and opportunities that we believe
will make our business sustainable and will build long-term
value
our expectations about when future reactors will come online
our expectations about 2024 and future global uranium
supply, consumption, contracting, demand, geopolitical
issues and the market including the discussion under the
heading Market overview and developments
our expectations for the future of the nuclear industry and the
potential for new enrichment technology, including that
nuclear power must be a central part of the solution to the
world’s shift to a low-carbon climate-resilient economy and
that our investment in enrichment technology, if successful,
will allow us to participate in the entire nuclear fuel value
chain
our efforts to participate in the commercialization and
deployment of small modular reactors (SMRs) and increase
our contributions to global climate change solutions by
exploring SMRs and other emerging opportunities within the
fuel cycle
our expectations about future demand for SMRs
our views on our ability to self-manage risk
the discussion under the heading Our business
the discussion under the heading Our strategy
our expectations regarding the effect of supply scarcity on
our long-term contract portfolio
our expectations regarding the operation of, and production
levels for, the Cigar Lake mine and McArthur River/Key Lake
operation and the Port Hope UF6 conversion facility, as well
as our exploration activities at these and other sites
our expectations regarding the future average unit cost of
production at McArthur River/Key Lake and at Cigar Lake
2 CAMECO CORPORATION
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our expectation regarding the timing of filing a new technical
report for Cigar Lake
our expectations regarding our licences for McArthur River,
Key Lake and Crow Butte
Kazatomprom’s planned production levels and timing for JV
Inkai
the discussion under the heading Our ESG principles and
practices including our belief there is a significant opportunity
for us to be part of the solution to combat climate change
and that we are well positioned to deliver significant long-
term business value
our expectations for uranium purchases, sales and deliveries
our intentions regarding future dividend payments
the discussion of our expectations relating to our Canada
Revenue Agency (CRA) transfer pricing dispute, including
our confidence that the courts would reject any attempt by
CRA to utilize the same or similar positions for other tax
years currently in dispute, our plan to file a notice of
objection for 2017 and our belief that CRA should return the
full amount of cash and security that has been paid or
otherwise secured by us
our expectations regarding the amount of security we will
need to provide to CRA in connection with the tax debts CRA
considers us owing for 2017
the discussion of our future plans for Cigar Lake and
McArthur River/Key Lake under the heading 2023
performance highlights
our views on our ability to align our production with market
opportunities and our contract portfolio
our expectation regarding opportunities to improve
operational effectiveness and to reduce our impact on the
environment, including through the use of digital and
automation technologies
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the discussion under the heading Outlook for 2024, including
expected business resiliency, expectations for 2024 average
unit cost of sales, average purchase price per pound,
deliveries and production, 2024 financial outlook, our
revenue, expectations for 2024 cash balances, tax rates,
adjusted net earnings and cash flow sensitivity, and our price
sensitivity analysis for our uranium segment
the discussion under the heading Liquidity and capital
resources, including expected liquidity to meet our 2024
obligations and our expectations regarding how the ratings
agencies will consider our investment in Westinghouse in
their analysis
our expectation that the uranium contract portfolio we have
built will continue to provide a solid revenue stream, and our
portfolio management strategy, including our inventory
strategy and the extent of our spot market purchases
our expectation that our cash balances and operating cash
flows will meet our anticipated 2024 capital requirements
our expectations for our and Westinghouse’s future capital
expenditures and sources of funds
our expectation that in 2024 we will be able to comply with all
the covenants in our credit agreements
our expectation that Westinghouse will continue to comply
with the covenants in its credit agreements
life of mine operating cost estimates for the Cigar Lake,
McArthur River/Key Lake and JV Inkai operations
our future plans and expectations for uranium properties,
advanced uranium projects, and fuel services operating
sites, including production levels and suspension of
production at certain properties, pace of advancement and
expansion capacity, carbon reduction targets and mine life,
and that our core growth is expected to come from our
existing tier-one mining and fuel services assets
our expectations related to care and maintenance costs
our mineral reserve and resource estimates
our decommissioning estimates
the discussion of our expectations relating to our acquisition
of a 49% interest in Westinghouse Electric Company
(Westinghouse), including the acquisition expanding our
participation in the nuclear fuel value chain, and providing a
platform for further growth, and various factors and drivers
for Westinghouse’s business segment
our expectation that the acquisition will enhance our
participation in the nuclear fuel cycle
our expectation that the Westinghouse acquisition will be
accretive to us and augment the core of our business
our expectation of Westinghouse being well positioned to
participate in the growing demand profile for nuclear energy
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our plans to update our physical climate risk assessments,
incorporate these findings into our internal risk management
review and developing an adaptation action plan template
and our expectations regarding the timing for implementation
of these plans
our expectations regarding our research and development
expenses for 2024
our expectations regarding the timing of the Canadian
Nuclear Safety Commission’s review of our preliminary
decommissioning cost estimate for the Port Hope conversion
facility
our expectations regarding which extraction methods we will
use in the future
our expectation that Westinghouse’s durable and growing
business will allow Westinghouse to self-fund its approved
annual operating budget, maintain its existing capacity to
service its annual financial obligations from de-risked cash
flows, and pay annual distributions to its owners
our 2024 outlook for Westinghouse’s Adjusted EBITDA,
capital expenditures and revenue
our expectation that strategic initiatives, including the
development of the AP300™ small modular reactor and the
eVinci™ microreactor, will provide new business
opportunities for Westinghouse that will make a meaningful
contribution to Westinghouse’s long-term financial
performance
our expectation for Westinghouse projects generating multi-
year revenue streams and EBITDA for Westinghouse
our expectation that the timing of cash distributions from
Westinghouse will be aligned with the timing of
Westinghouse’s cash flows
our expectation that Westinghouse’s new opportunities will
allow Westinghouse to compete for and win new business
our expectation that Westinghouse’s reputation and position
will benefit its core business as Eastern European countries
seek to develop a reliable fuel supply chain
our expectations regarding the growth of Westinghouse’s
Adjusted EBITDA over the next five years
our estimates in respect of the framework for the timing of
revenue flows and profitability of contracts under a new build
project
our expectation with respect to the development of its AP300
small modular reactor and eVinci microreactor
our expectation on Westinghouse being well-positioned for
future growth
our expectation around the refinancing of our senior
unsecured debentures, our expected cash flow and our plan
to reduce total debt, with a focus on the floating rate term
loan
our expectations regarding when Global Laser Enrichment’s
technology will be deployed at a commercial scale
MANAGEMENT’S DISCUSSION AND ANALYSIS 3
Material risks
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actual sales volumes or market prices for any of our products
or services are lower than we expect, or cost of sales is
higher than we expect, for any reason, including changes in
market prices, loss of market share to a competitor, trade
restrictions, geopolitical issues or the impact of a pandemic
we are adversely affected by changes in currency exchange
rates, interest rates, royalty rates, tax rates, or inflation
our production costs are higher than planned, or necessary
supplies are not available, or not available on commercially
reasonable terms
our strategies may change, be unsuccessful or have
unanticipated consequences, or we may not be able to
achieve anticipated operational flexibility and efficiency
changing views of governments regarding the pursuit of
carbon reduction strategies or our view may prove to be
inaccurate on the role of nuclear power in pursuit of those
strategies
our estimates and forecasts prove to be inaccurate, including
production, purchases, deliveries, cash flow, revenue, costs,
decommissioning, reclamation expenses, or receipt of future
dividends from JV Inkai
that we may not realize the expected benefits from the
Westinghouse acquisition
• Westinghouse fails to generate sufficient cash flow to fund its
approved annual operating budget or make quarterly
distributions to the partners
we are unable to enforce our legal rights under our existing
agreements, permits or licences
we are subject to litigation or arbitration that has an adverse
outcome
that the courts may accept the same, similar or different
positions and arguments advanced by CRA to reach
decisions that are adverse to us for other tax years
the possibility of a materially different outcome in disputes
with CRA for other tax years
that CRA does not agree that the court rulings for the years
that have been resolved in Cameco’s favour should apply to
subsequent tax years
that CRA will not return all or substantially all of the cash and
security that has been paid or otherwise secured in a timely
manner, or at all
there are defects in, or challenges to, title to our properties
our mineral reserve and resource estimates are not reliable,
or there are unexpected or challenging geological,
hydrological or mining conditions
we are affected by environmental, safety and regulatory
risks, including workforce health and safety or increased
regulatory burdens or delays resulting from a pandemic or
other causes
we are adversely affected by subsurface contamination from
current or legacy operations
necessary permits or approvals from government authorities
cannot be obtained or maintained
we are affected by political risks, including any potential
future unrest in Kazakhstan
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4 CAMECO CORPORATION
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operations are disrupted due to problems with our own or our
suppliers’ or customers’ facilities, the unavailability of
reagents, equipment, operating parts and supplies critical to
production, equipment failure, lack of tailings capacity, labour
shortages, labour relations issues, strikes or lockouts,
underground floods, cave-ins, ground movements, tailings
dam failures, transportation disruptions or accidents, aging
infrastructure or other development and operating risks
we are affected by terrorism, sabotage, blockades, civil
unrest, social or political activism, outbreak of illness (such
as a pandemic), accident or a deterioration in political
support for, or demand for, nuclear energy
a major accident at a nuclear power plant
we are impacted by changes in the regulation or public
perception of the safety of nuclear power plants, which
adversely affect the construction of new plants, the
relicensing of existing plants and the demand for uranium
government laws, regulations, policies or decisions that
adversely affect us, including tax and trade laws and
sanctions on nuclear fuel imports
our uranium suppliers or purchasers fail to fulfil their
commitments
our McArthur River development, mining or production plans
are delayed or do not succeed for any reason
our Cigar Lake development, mining or production plans are
delayed or do not succeed for any reason
our production plans for our Port Hope UF6 conversion
facility do not succeed for any reason
the McClean Lake’s mill production plan is delayed or does
not succeed for any reason
water quality and environmental concerns could result in a
potential deferral of production and additional capital and
operating expenses required for the Cigar Lake and
McArthur River/Key Lake operations
JV Inkai’s development, mining or production plans are
delayed or do not succeed for any reason, or JV Inkai is
unable to transport and deliver its production
we may be unsuccessful in pursuing innovation or
implementing advanced technologies, including the risk that
the commercialization and deployment of SMRs or new
enrichment technology may incur unanticipated delays or
expenses, or ultimately prove to be unsuccessful
our expectations relating to care and maintenance costs
prove to be inaccurate
the risk that we may not be able to refinance our debenture
on terms that are as favourable as we expect, or that we
may not realize our expected cash flow, or meet our
expectations in reducing total debt
the risk that we may become unable to pay future dividends
at the expected rate
we are affected by natural phenomena, including inclement
weather, fire, flood and earthquakes
the risks that generally apply to all our operations and
advanced uranium projects that are discussed under the
heading Managing the risks beginning on page 70
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the risks relating to our tier-one uranium operations
discussed under the heading McArthur River mine/Key Lake
mill – Managing Our Risks beginning on page 75, under the
heading Cigar Lake – Managing Our Risks beginning on
page 79, and under the heading Inkai – Managing Our Risks
beginning on page 83
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 and Westinghouse may not be able to meet
sales commitments for any reason
the risk that Westinghouse may not achieve the expected
growth in its business
the risk to Westinghouse’s 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 Westinghouse may not be able to implement its
business objectives in a manner consistent with its or our
environmental, social, governance and other values
Material assumptions
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our expectations regarding sales and purchase volumes and
prices for uranium and fuel services, cost of sales, trade
restrictions, inflation and that counterparties to our sales and
purchase agreements will honour their commitments
our expectations for the nuclear industry, including its growth
profile, market conditions, geopolitical issues and the
demand for and supply of uranium
the continuing pursuit of carbon reduction strategies by
governments and the role of nuclear in the pursuit of those
strategies
the assumptions discussed under the heading 2024
Financial Outlook
our expectations regarding spot prices and realized prices
for uranium, and other factors discussed under the heading
Price sensitivity analysis: uranium segment
• Westinghouse’s ability to generate cash flow and fund its
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approved annual operating budget and make quarterly
distributions to the partners
our ability to compete for additional business opportunities
so as to generate additional revenue for us as a result of the
Westinghouse acquisition
• market conditions and other factors upon which we based
the Westinghouse acquisition and our related forecasts will
be as expected
the success of our plans and strategies relating to the
Westinghouse acquisition
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the risk that Westinghouse’s strategies may change, be
unsuccessful, or have unanticipated consequences
the risk that Westinghouse may be unsuccessful in respect
of its new business
the risk that Westinghouse may be delayed in announcing its
future financial results
the risk that Westinghouse may fail to comply with nuclear
license and quality assurance requirements at its facilities
the risk that Westinghouse may lose protections against
liability for nuclear damage, including discontinuation of
global nuclear liability regimes and indemnities
the risk that increased trade barriers may adversely impact
Westinghouse’s business
the risk that Westinghouse may default under its credit
facilities, impacting adversely Westinghouse’s ability to fund
its ongoing operations and to make distributions
the risk that liabilities at Westinghouse may exceed our
estimates and the discovery of unknown or undisclosed
liabilities
the risk that occupational health and safety issues may arise
at Westinghouse’s operations
the risk that there may be disputes between us and
Brookfield regarding our strategic partnership
the risk that we may default under the governance
agreement with Brookfield, including us losing some or all of
our interest in Westinghouse
that the construction of new nuclear power plants and the
relicensing of existing nuclear power plants will not be more
adversely affected than expected by changes in regulation or
in the public perception of the safety of nuclear power plants
our ability to continue to supply our products and services in
the expected quantities and at the expected times
our expected production levels for Cigar Lake, McArthur
River/Key Lake, JV Inkai and our fuel services operating
sites
our cost expectations, including production costs, operating
costs, and capital costs
our expectations regarding tax payments, tax rates, royalty
rates, currency exchange rates and interest rates
our entitlement to and ability to receive expected refunds and
payments from CRA
in our dispute with CRA, that courts will reach consistent
decisions for other tax years that are based upon similar
positions and arguments
that CRA will not successfully advance different positions
and arguments that may lead to different outcomes for other
tax years
our expectation that we will recover all or substantially all of
the amounts paid or secured in respect of the CRA dispute
to date
our decommissioning and reclamation estimates, including
the assumptions upon which they are based, are reliable
MANAGEMENT’S DISCUSSION AND ANALYSIS 5
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that no major accident at a nuclear power plant will occur
nuclear power and uranium demand, supply, consumption,
long-term contracting, growth in the demand for and global
public acceptance of nuclear energy, and prices
• Westinghouse’s production, purchases, sales, deliveries,
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and costs
the assumptions and discussion set out under the heading
Westinghouse Electric Company – Future Prospects
the market conditions and other factors upon which we have
based Westinghouse’s future plans and forecasts
• Westinghouse’s ability to mitigate adverse consequences of
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delays in production and construction
the success of Westinghouse’s plans and strategies
the absence of new and adverse government regulations,
policies or decisions
that there will not be any significant adverse consequences
to Westinghouse’s business resulting from business
disruptions, including those relating to supply disruptions,
economic or political uncertainty and volatility, labour relation
issues, and operating risks
• Westinghouse’s ability to announce future financial results
when expected
• Westinghouse will comply with the covenants in its credit
agreements
• Westinghouse will comply with nuclear license and quality
assurance requirements at its facilities
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• Westinghouse maintaining protections against liability for
nuclear damage, including continuation of global nuclear
liability regimes and indemnities
that known and unknown liabilities at Westinghouse will not
materially exceed our estimates
the absence of disputes between us and Brookfield
regarding our strategic partnership, and that we do not
default under the governance agreement with Brookfield
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our mineral reserve and resource estimates, and the
assumptions upon which they are based, are reliable
our understanding of the geological, hydrological and other
conditions at our uranium properties
our Cigar Lake and McArthur River development, mining and
production plans succeed
our Key Lake mill production plan succeeds
the McClean Lake mill is able to process Cigar Lake ore as
expected
our production plans for our Port Hope UF6 conversion
facility succeed
JV Inkai’s development, mining and production plans
succeed, and that JV Inkai will be able to transport and
deliver its production
the ability of JV Inkai to pay dividends
that care and maintenance costs will be as expected
our and our contractors’ ability to comply with current and
future environmental, safety and other regulatory
requirements, and to obtain and maintain required regulatory
approvals
that we will be successful in our efforts to renew our
operating license for Crow Butte
that we will be able to refinance our senior unsecured
debentures, and assumptions regarding our expected cash
flow and our ability to reduce total debt
our operations are not significantly disrupted as a result of
political instability, nationalization, terrorism, sabotage,
blockades, civil unrest, breakdown, natural disasters,
outbreak of illness (such as a pandemic), governmental or
political actions, litigation or arbitration proceedings, the
unavailability of reagents, equipment, operating parts and
supplies critical to production, labour shortages, labour
relations issues, strikes or lockouts, underground floods,
cave-ins, ground movements, tailings dam failure, lack of
tailings capacity, transportation disruptions or accidents,
aging infrastructure or other development or operating risks
6 CAMECO CORPORATION
Our business
Our vision is to energize a clean-air world. We have a 35-year proven track record of providing secure and reliable nuclear fuel supplies to a
global customer base to generate safe, secure, and affordable baseload carbon-free energy. Nuclear energy plants around the world use our
uranium and fuel services to generate one of the cleanest sources of electricity available today.
Our operations span the nuclear fuel cycle from exploration to fuel services, which include uranium
production, refining, UO2 and UF6 conversion services and CANDU fuel manufacturing for
heavy water reactors. We sell uranium and fuel services products to nuclear utilities
in 15 countries.
In 2023, we further enhanced our ability to meet our
customers’ growing demand for reliable and
secure nuclear fuel supplies, services and
technologies by investing in Westinghouse
Electric Company (Westinghouse).
Westinghouse’s assets are expected
to augment the core of our business,
providing fuel fabrication for light
water reactors; reactor maintenance
and other services; the design,
engineering and support for the
development of new reactors;
and nuclear sustainability
services. We have also
made an investment
in a third-generation
enrichment technology,
that if successful, we
expect will allow us
to participate in the
entire nuclear fuel
value chain.
URANIUM
Operations
Our uranium production capacity is among the world’s largest. In 2023, as
we continued to ramp-up to our tier-one production run rate, we accounted
for 16% of world production, with total sales commitments of over
205 million pounds of U3O8. We have controlling ownership of the world’s
largest high-grade reserves. Our tier-one assets are licensed, permitted,
long-lived, and are proven reliable and 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.
* operations noted in grey are currently in care and maintenance.
Uranium Exploration (grey shaded)
Our exploration program is directed at replacing mineral reserves as they
are depleted by our production. Our program is focused on Canada, and
we have direct interests in land covering many of the most prospective
exploration areas of the Athabasca Basin in northern Saskatchewan.
FUEL SERVICES
Advanced Uranium Projects
We use a stage gate process to evaluate our uranium projects and will
advance them at a pace aligned with market opportunities, in order to
respond when the market signals a need for more uranium.
We are an integrated uranium fuel supplier, offering refining, conversion
and fuel manufacturing services. We have about 21% of world primary
conversion capacity, with total sales commitments to supply over
75 million kilograms of UF6.
8
CAMECO CORPORATION
Advantages
With extraordinary assets, a proven operating track record, long-term contract portfolio, strong ESG commitment, employee expertise,
comprehensive industry knowledge, and a strong balance sheet, the company is making investments that it expects will create a platform
for strategic growth. We are confident in our ability to increase long-term growth by positioning the company as one of the global leaders
in supporting the clean energy transition. And we are doing so at a time when the world’s prioritization of decarbonization and energy
security is driving growth in demand and when geopolitics are creating concerns about the origin and security of supplies across the
nuclear fuel cycle.
WESTINGHOUSE
In November 2023, we completed the acquisition of a 49% interest
in Westinghouse, a global provider of mission-critical and specialized
technologies, products and services for light-water reactors across
most phases of the nuclear power sector, in a strategic partnership with
Brookfield Renewable. We account for our proportionate interest in
Westinghouse on an equity basis.
OTHER FUEL CYCLE INVESTMENTS
GLOBAL LASER ENRICHMENT LLC (GLE)
We have a 49% interest in GLE which is testing a third-generation
enrichment technology that, if successful, will use lasers to commercially
enrich uranium. GLE is the exclusive licensee of the proprietary SILEX laser
enrichment technology that is in the development phase.
MANAGEMENT’S DISCUSSION AND ANALYSIS
9
Market overview and developments
A market in transition
In 2023, geopolitical uncertainty and heightened concerns about energy security and climate change continued to improve the
demand and supply fundamentals for the nuclear power industry and the fuel cycle that is required to support it. Increasingly,
countries and companies around the globe are recognizing the critical role nuclear power must play in providing clean and
secure baseload power. This growing support has led to a rise in demand as reactors are being saved from earlier retirement,
10- and 20-year life extensions are being sought and approved for existing reactor fleets in several countries, and numerous
commitments and plans are being made for the construction of new nuclear generating capacity. In addition, there is
increasing interest in small modular reactors (SMR), including smaller versions of existing technology and advanced
technology designs, which are expected to add to demand in the decades to come, with several projects already underway.
While demand continues to increase, future supply is not keeping pace. Heightened supply risk caused by growing geopolitical
uncertainty, shrinking secondary supplies and a lack of investment in new capacity over the past decade has motivated utilities
to evaluate their near-, mid- and long-term nuclear fuel supply chains. The uncertainty about where nuclear fuel supplies will
come from to satisfy growing demand has led to increased long-term contracting activity and in 2023, about 160 million
pounds of uranium was placed under long-term contracts by utilities. While it is the highest annual volume contracted since
2012, it remains below replacement rate and includes our contract with Ukraine, which alone accounted for about 30 million of
those pounds. Prices across the nuclear fuel cycle continued to rise in 2023, with spot enrichment prices up 38%, conversion
prices continuing to achieve record highs, uranium spot prices more than doubling from around $48 (US) per pound at the end
of 2022 to $100 (US) per pound at the end of January 2024, after peaking at $106 (US) per pound earlier in the month, and
the long-term price for uranium increasing about 38% over the same period. We expect there will be continued competition to
secure uranium, conversion services and enrichment services under long-term contracts with proven producers and suppliers
who have a diversified portfolio of assets in geopolitically attractive jurisdictions, with strong environmental, social and
governance (ESG) performance, and on terms that help ensure a reliable supply is available to satisfy demand.
DURABLE DEMAND GROWTH
The benefits of nuclear energy have come clearly into focus, supporting a level of durability that, we believe, has not been
previously seen. The durability is being driven not only by accountability for achieving the net-zero carbon targets set by
countries and companies around the world, but also by a geopolitical realignment in energy markets that is causing countries
to reexamine how they plan to address their energy needs. Net-zero carbon targets are turning global attention to a triple
challenge. First, about one-third of the global population must be lifted out of energy poverty by improving access to clean and
reliable baseload electricity. Second, approximately 80% of the current global electricity grids that run on carbon-emitting
sources of thermal power must be replaced with a clean, reliable alternative. And finally, global power grids must grow by
electrifying industries, such as private and commercial transportation, and home and industrial heating, which today are largely
powered with carbon-emitting sources of thermal energy. Additionally, geopolitical uncertainty has deepened concerns about
energy security, highlighting the role of energy policy in balancing three main objectives: providing a clean emissions profile;
providing a reliable and secure baseload profile; and providing an affordable, levelized cost profile. There is increasing
recognition that nuclear power meets these objectives and has a key role to play in achieving decarbonization and energy
security goals. The growth in demand is not just long-term and in the form of new builds, but medium-term in the form of
reactor life extensions, and near-term with early reactor retirement plans being deferred or cancelled and new markets
continuing to emerge. And, we are seeing even more long-term momentum building with the development of SMRs, where the
use case extends beyond just power generation and numerous companies and countries are pursuing projects.
10 CAMECO CORPORATION
Demand and energy policy highlights
• In September, the World Nuclear Association released its biennial Global Nuclear Fuel Report which provides scenarios for
demand and supply availability across the fuel supply chain through 2040. This included a robust demand outlook showing
global nuclear generating capacity increasing to 686 GWe by 2040 in the Reference Scenario, an average annual growth
rate of 3.6%, compared to 2.6% in the 2021 report. This improvement was driven by improved government support, life
extensions, new builds and importantly, that starting in the 2030s, the deployment of SMRs is forecasted to contribute to
capacity growth. Additional key themes include assumed reductions to secondary supply and decreased availability of
mobile inventories, along with the need for a growing volume of future uranium supply requiring higher incentive pricing to
balance the market after 2030.
• At the 28th annual Conference of Parties (COP28), the 2023 United Nations Climate Change Conference held in the United
Arab Emirates, 22 countries (now 28) launched a declaration to triple nuclear energy capacity by 2050. For the first time at
the conference, nuclear energy was recognized alongside other low-emissions technologies for the key role it must play in
reaching global net-zero greenhouse gas emissions by 2050. In addition, the inaugural global stocktake was introduced at
COP28, a process where countries and stakeholders can provide an update every five years to track the world’s progress
toward the Paris Agreement targets. In 2023, the initiative concluded that more action is required, as emissions continue to
rise and put 2030 targets at risk, reinforcing that in order to achieve net zero by 2050, the world needs “absolute economy-
wide emission reduction targets”, which were estimated at a cost of “trillions of dollars”.
• China Nuclear Energy Association published the “China Nuclear Energy Development Report 2023” in April, which
highlighted China’s continuing growth. According to the report, the country is expected to lead the world in installed nuclear
capacity with 110 GWe expected by 2030, rising to 150 GWe expected by 2035, and plans to build over 90% of their major
nuclear power reactors domestically. Additionally, a proposal drafted by 15 Chinese national policy advisors was submitted
to the government advocating for the development of new nuclear power plants at inland sites, which are now being
considered following the end of a post-Fukushima moratorium on proposed inland nuclear power plants.
• In Japan, Takahama unit 2 restarted in September, becoming the country’s 12th reactor to restart since Fukushima.
Onagawa unit 2 and Shimane unit 2 are expected to restart in 2024. In November, the Nuclear Regulation Authority
approved 20-year life extensions (beyond 40 years) for Sendai units 1 and 2; additionally, Takahama units 3 and 4 are
expected to receive similar life extensions, pending generator work in 2026 and 2027. In addition, Japan enacted a bill in
May allowing nuclear reactors to operate beyond the 60-year limit.
• In South Korea, Korea Hydro and Nuclear Power (KHNP) announced in September that they successfully completed fuel
loading at Shin Hanul unit 2, a new 1,400 MWe APR-1400 pressurized water reactor (PWR) unit. This followed an
announcement from the Ministry of Industry and Energy that Shin Hanul units 3 and 4 would be completed by the end of
2024. Additionally, to help achieve the plans set out in their 10th Basic Plan for Electricity Supply and Demand 2030, which
targets more than 30% of its power supply to come from nuclear, the Ministry confirmed a review of the need for new
nuclear power plants was underway.
• In India, the first domestically designed 700 MWe pressurized heavy water reactor, Kakrapar unit 3, reached full operating
capacity in August. Three more units of the same design are expected to come online in the next few years. The country is
targeting an expansion of nuclear generating capacity to 22.5 GWe by 2031.
• In February, the European Nuclear Alliance was launched. Led by France, the initiative commits 11 European countries to
cooperate across the nuclear fuel supply chain, and to promote new nuclear generation projects and technologies, including
the advancement of SMRs. Throughout 2023, the alliance expanded and now includes a commitment from 16 European
countries that will prepare a roadmap to develop an integrated European nuclear industry and target 150 GWe of nuclear
power by 2050.
• In France, plans were advanced to relaunch the country’s reactor construction program: the government committed to life
extensions with a proposed “industrial build” program that initially includes six new European Pressurized Reactors (EPR),
as well as eight additional EPRs in the future. Électricité de France filed an application to build the first pair of 1,650 MWe
EPRs with construction scheduled to begin in 2028.
• In January 2024, the United Kingdom (UK) announced that they are seeking to quadruple their nuclear power output by
2050. Under the “Civil Nuclear Roadmap”, the UK will invest into developing new advanced nuclear fuel, new regulations,
and a new nuclear reactor.
MANAGEMENT’S DISCUSSION AND ANALYSIS 11
• In June, Sweden’s parliament adopted a new energy target, changing its focus to "100% fossil-free" electricity as opposed
to the previously stated focus of "100% renewable". In August, the government announced a target to further expand the
role of nuclear power and in November, announced its intention to build up to 2,500 MWe of new nuclear power capacity by
2035, and up to 10 new reactors by 2045, backed by an offer of loan guarantees.
• In Belgium, the government and nuclear operator ENGIE reached an agreement following prolonged negotiations to extend
the lifespans of the Doel unit 4 and Tihange unit 3 reactors by 10 years, with each now expected to operate until 2035.
• In Bulgaria, the government issued its 30-year energy strategy to 2053, which envisions the construction of four new
nuclear reactor units. In December, parliament approved a government proposal to inject up to 1.5 billion levs ($838 million
(US)) into the state-owned Kozloduy Nuclear Power Plant to fund the planned construction of the first of two proposed
reactors using Westinghouse’s AP1000® technology.
• In Poland, the government adopted a resolution committing to finance the country’s first nuclear power plant. The funds will
go to Polish utility Polskie Elektrownie Jadrowe, which signed a contract with Westinghouse for multiple AP1000 reactors in
February of 2023.
• In the US, Vogtle unit 3 entered commercial service on July 31, after becoming the first Westinghouse AP1000 reactor in
the US to successfully connect to the electrical grid. Vogtle unit 4 is expected to begin operating in the second quarter of
2024.
• Throughout 2023, many US states expressed local support for nuclear: Ohio, Virginia, Kentucky, and Tennessee all began
creating state-level advisory authorities to promote, research and develop nuclear power technologies, and Michigan
formed a new Nuclear Caucus to support the reopening of the Palisades nuclear power plant, and also approved extending
operations at the Monticello nuclear power plant through 2040.
• In Canada, provincial support for nuclear increased in 2023. New Brunswick Power signed a three-year contract with
Ontario Power Generation (OPG) to enhance the operational performance of the Point Lepreau nuclear power plant. In
Ontario, the Minister of Energy announced support to advance the long-term planning required to explore nuclear
expansion options for Bruce Power, outlining the need for nearly 18 GWe in new nuclear capacity to help the province
reach its electrification and net-zero goals. Additionally, in Saskatchewan, Crown Investments Corporation provided around
$479,000 to help local firms build small, advanced, and micro reactors supply chain capacity, while the Alberta government
announced plans to invest around $7 million to study SMRs.
• In January 2024, OPG announced plans to proceed with the refurbishment of the Pickering Nuclear Generating Station’s
“B” units (units 5, 6, 7 and 8). Once the project is completed in the mid-2030s, Pickering would produce a total of 2 GWe of
electricity, to help meet increasing electricity demand and fuel the province’s economic growth.
According to the International Atomic Energy Agency (IAEA), globally there are currently 438 operable reactors and 58
reactors under construction. Several nations are appreciating the clean energy and energy security benefits of nuclear power
and have reaffirmed their commitment with plans underway to support existing reactor units and review policies to encourage
more nuclear generation. Several other non-nuclear countries have emerged as candidates for new nuclear capacity. In the
EU, specific nuclear energy projects have been identified for inclusion under its sustainable financing taxonomy and are
therefore eligible for access to low-cost financing. In Canada, the government revised the Canada Green Bond Framework to
include nuclear energy projects. In some countries where phase-out policies have been in place, policy reversals and
decisions have been made to temporarily keep reactors running, with public opinion polls showing increasing support. With a
number of reactor construction projects recently approved and many more planned, demand for uranium continues to improve.
There is growing recognition of the role nuclear must play in providing safe, affordable, carbon-free baseload electricity to
achieve a low-carbon economy, while being a reliable energy source that helps countries move away from Russian energy
supply.
12 CAMECO CORPORATION
0
1
2
3
4
5
China
Asia
India
CURRENTLY UNDER CONSTRUCTION
9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25
7
8
6
10
8
23
Africa & Middle East
5
Russia
Eastern Europe
Americas
UK
US
European Union
3
3
2
2
1
1
Number of reactors
Source: IAEA
WORLD OPERABLE REACTOR COUNT
451
447
443
439
439
438
s
r
o
t
c
a
e
r
f
o
r
e
b
m
u
N
400
300
200
100
0
2018
2019
2020
2021
2022
2023
Source: IAEA
SUPPLY UNCERTAINTY
Geopolitical uncertainty remained the most notable factor impacting security of supply in 2023. Driven by the Russian invasion
of Ukraine, and more recently, the coup d’état in Niger, many governments and utilities are re-examining supply chains and
procurement strategies that rely on nuclear fuel supplies from these jurisdictions. In addition, sanctions on Russia and Niger,
government restrictions, and restrictions on and cancellations of some cargo insurance coverages continue to create
transportation and supply chain risks for nuclear fuel supplies coming out of Central Asia. There are also transportation risks to
material being shipped from Australia to Europe as a result of the conflict in the Middle East. Despite the recent increase in
market prices, the deepening geopolitical uncertainty and years of underinvestment in new uranium and fuel cycle service
capacities has shifted risk from producers to utilities.
Supply and trade policy highlights
• Sprott Physical Uranium Trust (SPUT) purchased about 4 million pounds U3O8 in 2023, bringing total purchases since
inception to over 45 million pounds U3O8 and increasing the total net asset value to around $7 billion (US). Volatility in
equity markets has impacted SPUT’s valuation (discount or premium to its net asset value) and therefore its ability to raise
funds to purchase uranium.
• In June, Kazatomprom (KAP) announced plans to start production at a new uranium deposit, Inkai 3 (100% owned by
KAP). KAP expects approval of a Subsoil Use Agreement (SSUA) to produce 10.4 million pounds U3O8 annually for 25
years from Inkai 3’s uranium resources of about 216 million pounds U3O8.
MANAGEMENT’S DISCUSSION AND ANALYSIS 13
• In September, KAP had restated its plan to increase production in 2024 to 90% of SSUAs and announced a ramp up to
100% of SSUAs in 2025, though the company also warned that geopolitical uncertainty, global supply chain issues, and
inflationary pressure could create challenges. On January 12, 2024, KAP announced that it had faced challenges in
completing the development required to achieve the planned 2024 production increase, and that it expected to lower its
2024 uranium production guidance due to limited availability of sulfuric acid and delays in the construction and development
of new assets, including Budenovskoye 6 and 7. On February 1, 2024, KAP rescinded its 2024 target due to the shortage of
sulfuric acid and construction delays in 2023, and they now plan to remain about 20% below SSUAs, expecting to produce
between 55 million and 59 million pounds U3O8 in 2024 (previously 65 million to 66 million pounds U3O8). KAP also warned
that if the acid, supply chain and construction issues persist throughout 2024, the company’s 2025 plan to increase
production to 100% of SSUAs (79 million to 82 million pounds U3O8) may also be affected.
• In April, five of the G7 countries (Canada, France, Japan, UK, and US), entered into a civil nuclear fuel security agreement
that attempts to reduce Russia’s influence in the global nuclear fuel supply chain.
• In December, Urenco announced its decision to expand enrichment capacity at their facility in Almelo, Netherlands,
increasing capacity by 15% or approximately 750,000 separative work units (SWU), by 2027. This followed a prior
announcement of plans to expand enrichment capacity at its Urenco USA site, increasing capacity there by 15% or
approximately 700,000 SWU, by 2025.
• In October, Orano announced a planned enrichment capacity extension project at Georges Besse 2. The project,
forecasted to cost €1.7 billion, seeks to increase capacity by over 30% or approximately 2.5 million SWU, beginning in
2028.
• In July, ConverDyn announced the restart of Honeywell’s Metropolis uranium conversion facility. The restart plan had been
delayed by a safety equipment failure in June, resulting in a special inspection by the US Nuclear Regulatory Commission.
The facility restarted production in July 2023.
• In July, a coup d’état in Niger resulted in a group of military officers removing President Mohamed Bazoum and seizing
power. All exports of uranium and gold to France were suspended and in September, Orano stated that it had halted
uranium processing operations at the company’s majority-owned SOMAIR (Arlit) project in Niger due to logistical
complications caused by international sanctions. This resulted in 2023 production dropping to 3.9 million pounds U3O8,
compared to around 5.2 million pounds U3O8 in 2022.
• In December, the US House of Representatives passed the Prohibiting Russian Uranium Impacts Act. The act proposes to
prohibit the import of Russian low-enriched uranium (LEU) into the US, but includes waivers that allow the import of LEU
from Russia if the US Energy Secretary determines no alternative source can be procured, or if the shipments are of
national interest. The waivers would gradually reduce and eliminate Russian uranium imports by 2028. The bill is awaiting
further action after it was blocked by the US Senate on grounds unrelated to the bill itself. Separately, the US Senate
Energy and Natural Resources Committee passed the Nuclear Fuel Security Act of 2023, which directs the Department of
Energy to create a “Nuclear Fuel Security Program” and strengthen the US nuclear fuel supply chain, including new LEU
and high-assay low-enriched uranium (HALEU) capacity, though no new funding has yet been appropriated. Finally, a
Supplemental Funding Bill is progressing through Congress and includes roughly $111 billion (US) for national security
measures, including a provision for $2.72 billion (US) to be allocated to a new “American Energy Independence Fund”,
which would acquire non-Russian LEU and HALEU, subject to the ban on Russian imports becoming law.
Long-term contracting creates full-cycle value for proven productive assets
Like other commodities, the demand for uranium is cyclical. However, unlike other commodities, uranium is not traded in
meaningful quantities on a commodity exchange. The uranium market is principally based on bilaterally negotiated long-term
contracts covering the annual run-rate requirements of nuclear power plants, with a small spot market to serve discretionary
demand. History demonstrates that in general, when prices are rising and high, uranium is perceived as scarce, and more
contracting activity takes place with proven and reliable suppliers. The higher demand discovered during this contracting cycle
drives investment in higher-cost sources of production, which due to lengthy development timelines, tend to miss the
contracting cycle and ramp up after demand has already been won by proven producers. When prices are declining and low,
there is no perceived urgency to contract, and contracting activity and investment in new supply dramatically decreases. After
years of low prices, and a lack of investment in supply, and as the uncommitted material available in the spot market begins to
thin, security-of-supply tends to overtake price concerns. Utilities typically re-enter the long-term contracting market to ensure
they have a reliable future supply of uranium to run their reactors.
14 CAMECO CORPORATION
300
250
200
150
100
50
8
O
3
U
s
b
l
n
o
i
l
l
i
m
n
i
e
m
u
o
V
l
URANIUM CONTRACTING VOLUMES AND PRICE HISTORY
Spot market
Long-term market
$120.00
$100.00
Average Spot Price
$80.00
8
O
3
U
b
l
/
$
S
U
n
i
e
c
i
r
P
$60.00
$40.00
$20.00
$0.00
0
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
UxC reports that over the last five years approximately 510 million pounds U3O8 equivalent have been locked-up in the long-
term market, while approximately 780 million pounds U3O8 equivalent have been consumed in reactors. We remain confident
that utilities have a growing gap to fill.
We believe the current backlog of long-term contracting presents a substantial opportunity for proven and reliable suppliers
with tier-one productive capacity and a record of honoring supply commitments. As a low-cost producer, we manage our
operations to increase value throughout these price cycles.
Source: UxC estimates
UTILITY UNCOVERED REQUIREMENTS
(2023 - 2040)
US Utilities
Non-US Utilities
8
O
3
U
s
b
l
n
o
i
l
l
i
m
250
200
150
100
50
0
2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040
Source: UxC estimates - December 31, 2023
In our industry, customers do not come to the market right before they need to load nuclear fuel into their reactors. To operate
a reactor that could run for more than 60 years, natural uranium and the downstream services have to be purchased years in
advance, allowing time for a number of processing steps before a finished fuel bundle arrives at the power plant. At present,
we believe there is a significant amount of uranium that needs to be contracted to keep reactors running into the next decade.
UxC estimates that cumulative uncovered requirements are about 2.2 billion pounds to the end of 2040. With the lack of
investment over the past decade, there is growing uncertainty about where uranium will come from to satisfy growing demand,
and utilities are becoming increasingly concerned about the availability of material to meet their long-term needs. In addition,
secondary supplies have diminished, and the material available in the spot market has thinned as producers and financial
funds continue to purchase material. Furthermore, geopolitical uncertainty is causing some utilities to seek nuclear fuel
suppliers whose values are aligned with their own or whose origin of supply better protects them from potential interruptions,
including from transportation challenges or the possible imposition of formal sanctions.
MANAGEMENT’S DISCUSSION AND ANALYSIS 15
We will continue to take the actions we believe are necessary to position the company for long-term success. Therefore, we
will continue to align our production decisions with our customers’ needs under our contract portfolio. We will undertake
contracting activity which is intended to ensure we have adequate protection while maintaining exposure to the benefits that
come from having uncommitted, low-cost supply to place into a strengthening market.
16 CAMECO CORPORATION
2023 performance highlights
It was another positive year for the nuclear energy industry. Demand for nuclear power, including support for existing reactors,
continues to grow, catalyzed by the increasing recognition by policy makers and major industries that nuclear energy must
play an important role in achieving the objectives of providing clean, secure, reliable and affordable energy. We recently
announced our commitment to the Net Zero Nuclear initiative, which is calling for collaboration among government, industry
leaders and civil society to triple global nuclear capacity to achieve carbon neutrality by 2050. We believe nuclear energy is
back in durable growth mode, and we too are back in durable growth mode. This growth will be sought in the same manner as
we approach all aspects of our business; strategic, deliberate, disciplined and responsible and with a focus on generating full-
cycle value.
In our uranium segment, our portfolio of long-term contracts totals approximately 205 million pounds representing only about
20% of our current reserve and resource base, providing us with plenty of exposure to improving demand from our customers
as they look to secure their long-term needs. We continue to have a large and growing pipeline of uranium business under
discussion. Our focus continues to be on obtaining market-related pricing mechanisms, while also providing adequate
downside protection. We continue to be strategically patient in our discussions to maximize value in our contract portfolio and
to maintain exposure to higher prices with unencumbered future productive capacity. In addition, with strong demand in the
UF6 conversion market, we were successful in adding new long-term contracts that bring our total contracted volumes to over
75 million kgU of UF6 that will underpin that operation for years to come.
At McArthur River/Key Lake, we produced 13.5 million pounds (100% basis) of packaged uranium concentrate (14.8 million
pounds at the mine, 13.5 million pounds of which were packaged at the mill), slightly below our most recent estimate of 14
million pounds (100% basis). At Cigar Lake, we produced 15.1 million pounds (100% basis) of packaged uranium, which is in
line with our most recent estimate of up to 16.3 million pounds (100% basis). Any pounds we did not produce in 2023 remain
available to us and, with increasing supply pressures, have potentially become more valuable when delivered in the future.
Through our investment in Inkai, we were impacted by the 20% supply reduction enacted by Kazatomprom (KAP) across all
uranium mines in Kazakhstan and the continued supply chain challenges it has faced. As well, delivery of our share of 2023
production from JV Inkai was delayed due to the challenges of transporting uranium via an alternate route that does not rely on
Russian rail lines or ports. The first shipment, containing approximately two thirds of our share of Inkai’s 2023 production,
arrived in the fourth quarter. The second shipment with the remainder of our share of 2023 production has arrived at a
Canadian port.
Cameco has 35 years of experience in this market, and we have designed our strategy of full-cycle value capture to be
resilient. Given the nature of our contracts, we have good visibility into when and where we need to deliver material, and we
have put in place a number of tools that allow us to self-manage risk.
We have built a strong reputation as a proven and reliable supplier with a diversified production portfolio, that provides us with
the flexibility to work with our customers to ensure they maintain access to our reliable supplies to satisfy their ongoing fuel
requirements. In addition to our production, we can source material from market purchases today, and while these purchases
would be more expensive than our production, our strategy positions us to benefit from added demand for nuclear fuel
supplies and services. We have exposure to higher prices under the market-related contracts in our long-term portfolio and a
pipeline of contracting discussions underway, which we expect will also benefit from the increased focus on securing access to
scarce supplies and generate long-term value for Cameco. Also, we do not have to buy every pound in the spot market. We
can source from inventory, to be replaced by production or purchases later. Further, we have the ability to pull forward long-
term purchase arrangements that we put in place in a much lower-price environment, and with licensed storage facilities, we
have secured the ability to borrow product under the terms of some of our storage agreements.
Global production shortfalls and transportation challenges in 2023 further highlighted the growing security of supply risk at a
time when we believe the demand outlook is stronger and more durable than ever, with 28 countries around the world
committing to triple nuclear power capacity by 2050. In this environment, uncertainty about where nuclear fuel supplies will
come from to satisfy growing demand continues to drive long-term contracting as risk shifts from producers to utilities.
We delivered 32 million pounds of uranium and 12 million kgU in our fuel services segment to our customers in alignment with
our contract portfolio and profitable opportunities in the market. We generated $688 million in cash from operations, with
MANAGEMENT’S DISCUSSION AND ANALYSIS 17
higher sales volumes and higher average realized prices in both our uranium and fuel services segments than in 2022. To
meet our sales commitments and maintain a working inventory we purchased 11.3 million pounds of uranium at an average
cost of $59.42 (US) per pound. While the unit cost of our purchases is significantly higher than the average production costs at
McArthur River/Key Lake and Cigar Lake in 2023, we benefit from higher prices under the market-related portion of our long-
term contract portfolio and higher prices benefit the pounds we have under negotiation. See 2023 financial results by segment
– Uranium starting on page 61 for more information.
Thanks to our disciplined strategy, our balance sheet is strong, and we expect it will enable us to continue executing our
strategy as well as to self-manage risk, including from global macro-economic uncertainty and volatility. As of December 31,
2023, we had $567 million in cash and cash equivalents with $1.8 billion in total debt. In addition, we have a $1.0 billion
undrawn credit facility.
On November 7, 2023, we announced the closing of the acquisition of Westinghouse Electric Company (Westinghouse) in a
strategic partnership with Brookfield Asset Management alongside its publicly listed affiliate Brookfield Renewable Partners
(Brookfield) and institutional partners. Cameco now owns a 49% interest and Brookfield owns the remaining 51% in
Westinghouse. We believe bringing together our expertise in the nuclear industry with Brookfield’s expertise in clean energy
positions nuclear power at the heart of the clean energy transition and creates a powerful platform for strategic growth across
the nuclear sector. See Westinghouse Electric Company beginning on page 94 for more information.
In the current environment, we believe the risk to uranium supply is greater than the risk to uranium demand and expect it will
create a renewed focus on ensuring availability of long-term supply to fuel nuclear reactors. With the improvements in the
market and to help meet our sales commitments, we plan to produce 18 million pounds (100% basis) at each of McArthur
River/Key Lake and Cigar Lake in 2024. Based on KAP’s announcement on February 1, 2024, production in Kazakhstan is
expected to remain 20% below the level stipulated in subsoil use agreements, similar to in 2023, primarily due to the sulfuric
acid shortage in the country. We are still in discussions with JV Inkai and KAP to determine how this may impact production at
Inkai in 2024 and thereafter and therefore our corresponding purchase obligation. We also plan to begin the work necessary to
extend the mine life at Cigar Lake to 2036, subject to approval of Orano’s board, which we expect will be granted in the first
quarter of 2024. In addition, at McArthur River/Key Lake, we plan to undertake an evaluation of the work and investment
necessary to expand production up to its annual licensed capacity of 25 million pounds (100% basis), which we expect will
allow us to take advantage of this opportunity when the time is right. See Uranium – Tier-one operations starting on page 73
for more information.
If we took advantage of all of the tier-one expansion opportunities available to us, our annual share of tier-one supply could be
about 32 million pounds. However, we will continue to align our production with our contract portfolio and market opportunities,
demonstrating that we continue to responsibly manage our supply in accordance with our customers’ needs.
In addition to our uranium production, at our Port Hope UF6 conversion facility we plan to produce 12,000 tonnes in 2024 to
satisfy our book of long-term business and demand for conversion services, at a time when conversion prices are at historic
highs.
We will continue to look for opportunities to improve operational effectiveness, to improve our safety performance and reduce
our impact on the environment, including through the use of digital and automation technologies to allow us to operate our
assets with more flexibility and efficiency. This is key to our ability to continue to align our production decisions with our
contract portfolio commitments and opportunities. With a solid base of contracts to underpin our productive capacity, and a
growing contracting pipeline we plan to return to our tier-one cost structure, which we expect will generate strong financial
performance.
As we execute on our strategy, we will continue to focus on protecting the health and safety of our employees, delivering our
products safely and responsibly and addressing the ESG risks and opportunities that we believe will make our business
sustainable and will build long-term value.
18 CAMECO CORPORATION
Financial performance
HIGHLIGHTS
DECEMBER 31 ($ MILLIONS EXCEPT WHERE INDICATED)
Revenue
Gross profit
Net earnings attributable to equity holders
$ per common share (diluted)
Adjusted net earnings (non-IFRS, see page 41)
$ per common share (adjusted and diluted)
Adjusted EBITDA (non-IFRS, see page 41)
Cash provided by operations
2023
2,588
562
361
0.83
339
0.78
831
688
2022
1,868
233
89
0.22
135
0.33
431
305
CHANGE
39%
>100%
>100%
>100%
>100%
>100%
93%
>100%
Net earnings attributable to equity holders (net earnings) and adjusted net earnings in 2023 significantly outperformed 2022.
See 2023 consolidated financial results beginning on page 39 for more information. Of note:
• generated $688 million in cash from operations
• received refund of $297 million from CRA, consisting of cash in the amount of $86 million and letters of credit in the amount
of $211 million. Also, received $12 million from CRA for disbursements related to the September 2018 Tax Court decision
and cost award. See Transfer pricing dispute on page 46 for more information.
• received a cash dividend of $79 million (US), net of withholdings, from JV Inkai
• completed acquisition of 49% interest in Westinghouse for a $2.1 billion (US) purchase price. To finance the acquisition, we
used $1.5 billion (US) of cash and drew the full amount of both $300 million (US) tranches of the term loan put in place
concurrently with the execution of the acquisition agreement. See Westinghouse Electric Company starting on page 94 for
more information.
• incurred $51 million in care and maintenance costs compared to $218 million in care and maintenance and operational
readiness costs in 2022
Our segment updates and other fuel cycle investment updates
In our uranium segment, we continued to execute our strategy, further ramping up our tier-one assets which had a positive
impact on our operations. Of note in 2023, we:
• delivered 32 million pounds in alignment with the commitments under our contract portfolio and profitable market
opportunities
• produced 15.1 million pounds (100% basis) at Cigar Lake. Production was impacted by delays associated with the first
production from a new mining zone and some unplanned maintenance work.
• produced 13.5 million pounds (100% basis) at McArthur River/Key Lake. Production was impacted by challenges related to
length of time the facility was in care and maintenance, the operational changes that were implemented throughout the mill,
aging infrastructure, availability of personnel with the necessary skills and experience, and the impact of supply chain
challenges on the availability of materials and reagents.
• purchased 11.3 million pounds of uranium, including our spot purchases and committed purchase volumes (including JV
Inkai purchases)
• signed major supply agreement to meet Ukraine’s full nuclear fuel needs through 2035
• received 20-year licence renewals from the Canadian Nuclear Safety Commission (CNSC) for McArthur River, Key Lake
and a 15-year licence renewal for Rabbit Lake
• maintained Rabbit Lake and US ISR operations on care and maintenance
In 2023, in our fuel services segment, we:
• delivered 12.0 million kgU under contract
• produced 13.3 million kgU
• received a 20-year licence renewal from the CNSC for Cameco Fuel Manufacturing (CFM). The licence renewal also grants
CFM’s request for a slight production increase to 1,650 tonnes as UO2 fuel pellets.
• commissioned a Closed Loop Cooling Water system at the Port Hope conversion facility, which is expected to provide
environmental and operational improvements
MANAGEMENT’S DISCUSSION AND ANALYSIS 19
See Operations and projects beginning on page 69 for more information.
HIGHLIGHTS
Uranium
Production volume (million lbs)
Sales volume (million lbs)
Average realized price1
($US/lb)
($Cdn/lb)
Revenue ($ millions)
Gross profit ($ millions)
Net earnings attributable to equity holders
Adjusted EBITDA (non-IFRS, see page 41)
Fuel services
Production volume (million kgU)
Sales volume (million kgU)
Average realized price 2
Revenue ($ millions)
Gross profit ($ millions)
Net earnings attributable to equity holders
Adjusted EBITDA (non-IFRS, see page 41)
Westinghouse
Revenue
(our share)
Net loss attributable to equity holders
Adjusted EBITDA (non-IFRS, see page 41)
2023
17.6
32.0
49.76
67.31
2,152
444
606
835
13.3
12.0
2022
10.4
25.6
44.73
57.85
1,480
121
200
380
13.0
11.1
426
124
129
164
521
(24)
101
365
117
120
153
-
-
-
CHANGE
69%
25%
11%
16%
45%
>100%
>100%
>100%
2%
8%
8%
17%
6%
8%
7%
-
-
-
($Cdn/kgU)
35.61
32.92
1 Uranium average realized price is calculated as the revenue from sales of uranium concentrate, transportation and storage fees divided by the volume of
uranium concentrates sold.
2 Fuel services average realized price is calculated as revenue from the sale of conversion and fabrication services, including fuel bundles and reactor
components, transportation and storage fees divided by the volumes sold.
Industry prices
Uranium ($US/lb U3O8)1
Average annual spot market price
Average annual long-term price
Fuel services ($US/kgU as UF6)1
Average annual spot market price
North America
Europe
Average annual long-term price
North America
Europe
2023
2022
CHANGE
62.51
58.20
41.23
41.23
30.55
30.55
49.81
49.75
31.96
31.96
24.75
24.94
25%
17%
29%
29%
23%
22%
Note: the industry does not publish UO2 prices.
1 Average of prices reported by TradeTech and UxC, LLC (UxC)
On the spot market, where purchases call for delivery within one year, the volume reported by UxC for 2023 decreased to 55
million pounds U3O8 equivalent, compared to 62 million pounds U3O8 equivalent in 2022. In 2023, total spot purchases by
producers, junior uranium companies, financial funds and intermediaries was approximately 42 million pounds U3O8
equivalent, compared to approximately 53 million pounds U3O8 equivalent in 2022; in 2023, these purchases represented over
75% of spot market purchases compared to over 85% in 2022. At the end of 2023, the average reported spot price was $91.00
(US) per pound, up $43.33 (US) per pound from the end of 2022. During the year, the uranium spot price ranged from a
month-end low of $50.48 (US) per pound to a month-end high of $91.00 (US) per pound, averaging $62.51 (US) for the year.
Long-term contracts generally call for deliveries to begin more than two years after the contract is finalized, and use a number
of pricing formulas, including base-escalated prices set at time of contracting and escalated over the term of the contract, and
market referenced prices (spot and long-term indicators) determined near the time of delivery, which also often include floor
20 CAMECO CORPORATION
prices and ceiling prices that are also escalated to time of delivery. The volume of long-term contracting reported by UxC for
2023 was about 160 million pounds U3O8 equivalent, up from about 125 million pounds U3O8 equivalent in 2022, including two
contracts that combined totaled over 60 million pounds. Higher volumes can largely be attributed to utilities turning their
attention to securing their long-term fuel needs to support the durable growth in demand for nuclear power and in light of the
growing uncertainty of supply driven by heightened geopolitical tensions, and ongoing production challenges. The average
reported long-term price at the end of the year was $68.00 (US) per pound, up $16.00 (US) from the end of 2022. During the
year, the uranium long-term price steadily increased from a month-end low of $52.50 (US) per pound in January to a high of
$68.00 (US) per pound in December, averaging $58.20 (US) for the year.
Since the Russian invasion of Ukraine in February 2022, conversion prices in both the North American and European markets
have continued to increase. At the end of 2023, the average reported spot price for North American delivery reached a record
high of $46.00 (US) per kilogram uranium as UF6 (US/kgU as UF6), up $6.00 (US) from the end of 2022. Long-term UF6
conversion prices for North American delivery finished 2023 at $34.25 (US/kgU as UF6), up $7.00 (US) from the end of 2022.
URANIUM (US$/lb U3O8) AND CONVERSION (US$/kgU UF6) PRICES
Spot uranium price
Long-term uranium price
Spot conversion price (North America)
Long-term conversion price (North America)
$100
$90
$80
$70
$60
$50
$40
$30
$20
$10
$0
2017
2018
2019
2020
2021
2022
2023
Source: Average of prices reported from TradeTech and UxC
MANAGEMENT’S DISCUSSION AND ANALYSIS 21
Our vision, values and strategy
Our vision
Our vision – “Energizing a clean-air world” – recognizes that we have an important role to play in enabling the vast reductions
in global GHG emissions required to achieve a resilient net-zero carbon economy. We support climate action that is consistent
with the ambition of the Paris Agreement and the Canadian government’s corresponding commitment to limit global
temperature rise to less than 2⁰C. We believe that this means the world needs to reach net-zero emissions by 2050 or sooner.
The uranium we produce is used around the world in the generation of safe, carbon-free, affordable, base-load nuclear power.
We believe we have the right strategy to achieve our vision and we will do so in a manner that reflects our values. For 35
years, we have been delivering our products responsibly. Building on that strong foundation, we remain committed to our
efforts to reduce our own, already low, greenhouse gas footprint in our ambition to reach net-zero emissions, while identifying
and addressing the ESG risks and opportunities that we believe may have a significant impact on our ability to add long-term
value for our stakeholders.
Committed to our values
Our values are discussed below. They define who we are as a company, are at the core of everything we do and help to
embed ESG principles and practices as we execute on our strategy in pursuit of our vision. They are:
• safety and environment
• people
•
integrity
• excellence
SAFETY AND ENVIRONMENT
The safety of people and protection of the environment are the foundations of our work. All of us share in the responsibility of
continually improving the safety of our workplace and the quality of our environment.
We are committed to keeping people safe and conducting our business with respect and care for both the local and global
environment.
PEOPLE
We value the contribution of every employee, and we treat people fairly by demonstrating our respect for individual dignity,
creativity and cultural diversity. By being open and honest, we achieve the strong relationships we seek.
We are committed to developing and supporting a flexible, skilled, stable and diverse workforce, in an environment that:
• attracts and retains talented people and inspires them to be fully productive and engaged
• encourages relationships that build the trust, credibility and support we need to grow our business
INTEGRITY
Through personal and professional integrity, we lead by example, earn trust, honour our commitments and conduct our
business ethically.
We are committed to acting with integrity in every area of our business, wherever we operate.
EXCELLENCE
We pursue excellence in all that we do. Through leadership, collaboration and innovation, we strive to achieve our full potential
and inspire others to reach theirs.
22 CAMECO CORPORATION
Our strategy
We are a pure-play investment in the growing demand for nuclear energy, focused on taking advantage of the near-, medium-,
and long-term growth occurring in our industry. We provide nuclear fuel and nuclear power products, services, and
technologies across the fuel cycle, augmented by our investment in Westinghouse, that support the generation of clean,
reliable, secure, and affordable energy. Our strategy is set within the context of what we believe is a transitioning market
environment. Increasing populations, a growing focus on electrification and decarbonization, and concerns about energy
security and affordability are driving a global focus on tripling nuclear power capacity by 2050, which is expected to durably
strengthen the long-term fundamentals for our industry. Nuclear energy must be a central part of the solution to the world’s
shift to a low-carbon, climate resilient economy. It is an option that can provide the power needed, not only reliably, but also
safely and affordably, and in a way that will help avoid some of the worst consequences of climate change.
Our strategy is to capture full-cycle value by:
• remaining disciplined in our contracting activity, building a balanced portfolio in accordance with our contracting framework
• profitably producing from our tier-one assets and aligning our production decisions in all segments of the fuel cycle with
contracted demand and customer needs
• being financially disciplined to allow us to:
o
o
o
execute our strategy
invest in new opportunities that are expected to add long-term value
to self-manage risk
• exploring other emerging opportunities within the nuclear power value chain, which align with our commitment to manage
our business responsibly and sustainably, contribute to decarbonization, and help to provide secure and affordable energy
We expect our strategy will allow us to increase long-term value, and we will execute it with an emphasis on safety, people
and the environment.
URANIUM
Uranium production is central to our strategy, as it is the biggest value driver of the nuclear fuel cycle and our business. We
have tier-one assets that are licensed, permitted, long-lived, and are proven reliable with capacity to expand. These tier-one
assets are backed up by idle tier-two assets and what we think is the best exploration portfolio of mineral reserves and
resources that in some cases can leverage our existing infrastructure. Currently, we believe that we have ample productive
capacity with the ability to expand as the demand for nuclear energy and nuclear fuel grows.
We are focused on protecting and extending the value of our contract portfolio, on aligning our production decisions with our
contract portfolio and market opportunities thereby optimizing the value of our lowest cost assets. We also prioritize
maintaining a strong balance sheet, and on efficiently managing the company. We have undertaken a number of deliberate
and disciplined actions, including a focus on operational effectiveness to allow us to operate our assets more efficiently and
with more flexibility.
FUEL SERVICES
Our fuel services segment supports our strategy to capture full-cycle value by providing our customers with access to refining
and conversion services for both heavy-water and light-water reactors, and CANDU fuel and reactor component manufacturing
for heavy-water reactors.
As in our uranium segment, we are focused on securing new long-term contracts and on aligning our production decisions with
our contract portfolio that will allow us to continue to profitably produce and consistently support the long-term needs of our
customers.
In addition, we are pursuing non-traditional markets for our UO2 and fuel fabrication business and have been actively securing
new contracts for reactor components to support refurbishment of Canadian reactors.
WESTINGHOUSE
In 2023, we completed the acquisition of Westinghouse, a global provider of mission
products and services for light-water reactors across most phases of the nuclear power sector, in a strategic partnership with
Brookfield. We own a 49% interest in Westinghouse.
critical and specialized technologies,
‐
MANAGEMENT’S DISCUSSION AND ANALYSIS 23
We are enhancing our ability to compete for more business by investing in additional nuclear fuel cycle assets that we expect
will augment the core of our business and offer more solutions to our customers across the nuclear fuel cycle. Like Cameco,
Westinghouse has nuclear assets that are strategic, proven, licensed and permitted, and that are in geopolitically attractive
jurisdictions. We expect these assets, like ours, will participate in the growing demand profile for nuclear energy.
Westinghouse has a stable and predictable core business generating durable cash flows. Like Cameco, Westinghouse has a
long-term contract portfolio, which we believe positions it well to compete for growing demand for new nuclear reactors and
reactor services, as well as the fuel supplies and services needed to keep the global reactor fleet operating safely and reliably.
This strong base of business also helps protect Westinghouse from macro-economic headwinds as utility customers run their
critical nuclear power plants. Its durable and growing business is expected to allow Westinghouse to self-fund its approved
annual operating budget, to service its annual financial obligations from de-risked cash flows, and to pay annual distributions
to its owners. See Westinghouse starting on page 94 for more information.
OTHER NUCLEAR FUEL CYCLE INVESTMENTS
We continually evaluate investment opportunities within the nuclear fuel value chain, which align well with our commitment to
manage our business responsibly and sustainably, increase our contributions to decarbonization and help provide energy
security. Expanding our participation in the fuel cycle is expected to complement our tier-one uranium and fuel services assets,
creating new revenue opportunities, and it enhances our ability to meet the increasing needs of existing and new customers
for secure, reliable nuclear fuel supplies, services and technologies.
In particular, we are interested in the second largest value driver of the fuel cycle, enrichment, and have a 49% interest in
Global Laser Enrichment LLC (GLE). GLE is the exclusive licensee of the proprietary SILEX laser enrichment technology, a
third-generation uranium enrichment technology. We are the commercial lead for the GLE project with an option to attain a
majority interest of up to 75% ownership. See Global Laser Enrichment starting on page 99 for more information.
Additionally, we have signed a number of non-binding arrangements to explore several areas of cooperation to advance the
commercialization and deployment of small modular reactors in Canada and around the world.
We will make an investment decision when an opportunity is available at the right time and the right price. We strive to pursue
corporate development initiatives that will leave us and our stakeholders in a fundamentally stronger position. As such, an
investment opportunity is never assessed in isolation. Investments must compete for investment capital with our own internal
growth opportunities. They are subject to our capital allocation process described under Capital Allocation – Focus on Value,
starting on page 30.
BUILDING A BALANCED PORTFOLIO
The purpose of our contracting framework is to deliver value. Our approach is to secure a solid base of earnings and cash flow
by maintaining a balanced contract portfolio that optimizes our realized price.
Contracting decisions in all segments of our business need to consider the nuclear fuel market structure, the nature of our
competitors, and the current market environment. The vast majority of run-rate fuel requirements are procured under long-term
contracts. The spot market is thinly-traded where utilities buy small, discretionary volumes. This market structure is reflective
of the baseload nature of nuclear power and the relatively small proportion of the overall operating costs the fuel represents
compared to other sources of baseload electricity. Additionally, about half of the fuel supply typically comes from diversified
mining companies that produce uranium as a by-product, or by state-owned entities with production volume strategies or
ambitions to serve state nuclear power ambitions with low-cost fuel supplies. We evaluate our strategy in the context of our
market environment and continue to adjust our actions in accordance with our contracting framework:
• First, we build a long-term contract portfolio by layering in volumes over time. In addition to our committed sales, we will
compete for customer demand in the market where we think we can obtain value and, in general, as part of longer-term
contracts. We will take advantage of opportunities the market provides, where it makes sense from an economic, logistical,
diversification and strategic point of view. Those opportunities may come in the form of spot, mid-term or long-term
demand, and will be additive to our current committed sales.
• As we build our portfolio of long-term contracts, we decide how to best source material to satisfy that demand, planning our
production in accordance with our contract portfolio and other available sources of supply. We will not produce from our tier-
one assets to sell into an oversupplied spot market.
24 CAMECO CORPORATION
• We do not intend to build an inventory of excess uranium. Excess inventory serves to contribute to the sense that
uranium is abundant and creates an overhang on the market, and it ties up working capital on our balance sheet.
• Depending on the timing and volume of our production, purchase commitments, and our inventory volumes, we may be
active buyers in the market in order to meet our annual delivery commitments. Historically, prior to the supply
curtailments that we began in 2016, we have generally planned our annual delivery commitments to slightly exceed the
annual supply we expect to come from our annual production and our long-term purchase commitments and have
therefore relied on the spot market to meet a small portion of our delivery commitments. In general, if we choose to
purchase material to meet demand, we expect the cost of that material will be more than offset by the volume of
commitments in our sales portfolio that are exposed to market prices at the time of delivery over the long-term.
In addition to this framework, our contracting decisions always factor in who the customer is, our desire for regional
diversification, the product form, and logistical factors.
Ultimately, our goal is to protect and extend the value of our contract portfolio on terms that recognize the value of our assets,
including future development projects, and pricing mechanisms that provide adequate protection when prices go down and
exposure to rising prices. We believe using this framework will allow us to create long-term value. Our focus will continue to be
on ensuring we have the financial capacity to execute on our strategy and self-manage risk.
LONG-TERM CONTRACTING
Uranium is not traded in meaningful quantities on a commodity exchange. Utilities have historically bought the majority of their
uranium and fuel services products under long-term contracts that are bilaterally negotiated with suppliers. The spot market is
discretionary and typically used for one-time volumes, not to satisfy annual demand. We sell uranium and fuel products and
services directly to nuclear utilities around the world as uranium concentrates, UO2 and UF6, conversion services, or fuel
fabrication and reactor components for CANDU heavy water reactors. We have a solid portfolio of long-term sales contracts
that reflect our reputation as a proven, reliable supplier of geographically stable supply, and the long-term relationships we
have built with our customers.
In general, we are active in the market, buying and selling uranium when it is beneficial for us and in support of our long-term
contract portfolio. We undertake activity in the spot and term markets prudently, looking at the prices and other business
factors to decide whether it is appropriate to purchase or sell into the spot or term market. Not only is this activity a source of
profit, but it also gives us insight into underlying market fundamentals.
We deliver the majority of our uranium under long-term contracts each year, some of which are tied to market-related pricing
mechanisms quoted at time of delivery. Therefore, our net earnings and operating cash flows are generally affected by
changes in the uranium price. Market prices are influenced by the fundamentals of supply and demand, market access and
trade policy issues, geopolitical events, disruptions in planned supply and demand, and other market factors.
The objectives of our contracting strategy are to:
• optimize realized price by balancing exposure to future market prices while providing some certainty for our future earnings
and cash flow
• focus on meeting the nuclear industry’s growing annual uncovered requirements with our tier-one production
• establish and grow market share with strategic and regionally diverse customers
We have a portfolio of long-term contracts, each bilaterally negotiated with customers, that have a mix of base-escalated
pricing and market-related pricing mechanisms, including provisions that provide exposure to rising market prices and also
protect us when the market price is declining. This is a balanced and flexible approach that allows us to adapt to market
conditions, put a floor on our average realized price and deliver the best value over the long term.
This approach has allowed our realized price to outperform the market during periods of weak uranium demand, and we
expect it will enable us to realize increases linked to higher market prices in the future.
Base-escalated contracts for uranium: use a pricing mechanism based on a term-price indicator at the time the contract is
accepted and escalated to time of each delivery over the term of the contract.
MANAGEMENT’S DISCUSSION AND ANALYSIS 25
Market-related contracts for uranium: are different from base-escalated contracts in that the pricing mechanism may be
based on either the spot price or the long-term price, and that price is generally set a month or more prior to delivery rather
than at the time the contract is accepted. These contracts may provide for discounts, and typically include floor prices and/or
ceiling prices, which are established at time of contract acceptance and usually escalate over the term of the contract.
Fuel services contracts: the majority of our fuel services contracts use a base-escalated mechanism per kgU and reflect the
market at the time the contract is accepted.
OPTIMIZING OUR CONTRACT PORTFOLIO
We work with our customers to optimize the value of our contract portfolio. With respect to new contracting activity, there is
often a lag from when contracting discussions begin and when contracts are executed. With our large pipeline of business
under negotiation in our uranium segment, and a value driven strategy, we continue to be strategically patient in considering
the commercial terms we are willing to accept. We layer in contracts over time, with higher commitments in the near term and
declining over time in accordance with utilities growing uncovered requirements. Demand may come in the form of off-market
negotiations or through on-market requests for proposals. We remain confident that we can add acceptable new sales
commitments to our portfolio of long-term contracts to underpin the ongoing operation of our productive capacity and capture
long-term value.
Given our view that additional long-term supply will need to be incented to meet the growing demand for safe, clean, reliable,
carbon-free nuclear energy, our preference today is to sign long-term contracts with market-related pricing mechanisms.
However, we believe our customers expect prices to rise and prefer to lock-in today’s prices, with a fixed-price mechanism.
Our goal is to balance all these factors, along with our desire for customer and regional diversification, with product form, and
logistical factors to ensure we have adequate protection and will have exposure to rising market prices under our contract
portfolio, while maintaining the benefits that come from having low-cost supply to deliver into a strengthening market.
With respect to our existing contracts, at times we may also look for opportunities to optimize the value of our portfolio. In
cases where there is a changing policy, operating, or economic environment, we may consider adjusting our contracts in a
manner that allow us to maintain our customer relationships and is mutually beneficial.
CONTRACT PORTFOLIO STATUS
We have executed contracts to sell approximately 205 million pounds of U3O8 with 37 customers worldwide in our uranium
segment, and over 75 million kilograms as UF6 conversion with 33 customers worldwide in our fuel services segment.
Customers – U3O8:
Five largest customers account for 62% of commitments
COMMITTED U3O8 SALES BY REGION
Americas 58%
Asia 16%
Europe 26%
26 CAMECO CORPORATION
Customers – UF6 conversion:
Five largest customers account for 64% of commitments
COMMITTED UF6 SALES BY REGION
Americas 50%
Asia 5%
Europe 45%
MANAGING OUR CONTRACT COMMITMENTS
We allow sales volumes to vary year-to-year depending on:
• the level of sales commitments in our long-term contract portfolio
• market opportunities
• our sources of supply
To meet our delivery commitments and to mitigate risk, we have access to a number of sources of supply, which includes
uranium obtained from:
• our productive capacity
• purchases under our JV Inkai agreement, under long-term agreements and in the spot market
• our inventory in excess of our working requirements
• product loans
OUR SUPPLY DISCIPLINE
As spot is not the fundamental market, true value is built under a long-term contract portfolio and is measured over the full
commodity cycle. Therefore, we align our uranium production decisions with our contract commitments and market
opportunities to avoid carrying excess inventory or having to sell into an oversupplied spot market. In accordance with market
conditions, and to mitigate risk, we evaluate the optimal mix of our production, inventory and purchases in order to satisfy our
contractual commitments and in order to realize the best return over the entire commodity cycle. During a prolonged period of
uncertainty, this could mean leaving our uranium in the ground. For the years 2016 through 2022, we left more than 130
million pounds of uranium in the ground (100% basis) by curtailing our production. We purchased more than 60 million pounds
including spot and long-term purchases and in 2018 we drew down our inventory by almost 20 million pounds. That totals over
210 million pounds (100% basis) of uranium that were not available to the market.
However, today we believe the uranium market is in transition, driven by the growing demand for nuclear energy and the
increasing recognition that it is essential to the clean-energy transition and to energy security. As the market continues to
transition, we expect to continue placing our uranium under long-term contracts and meet rising demand with production from
our best margin operations.
MANAGEMENT’S DISCUSSION AND ANALYSIS 27
With the improvements in the market, the new long-term contracts we have put in place, and a pipeline of contracting
discussions, we plan to produce 18 million pounds (100% basis) at McArthur River/Key Lake and Cigar Lake in 2024. Based
on KAP’s announcement on February 1, 2024, production in Kazakhstan is expected to remain 20% below the level stipulated
in subsoil use agreements, similar to in 2023, primarily due to the sulfuric acid shortage in the country. We are still in
discussions with JV Inkai and KAP to determine how this may impact production at Inkai in 2024 and thereafter and therefore
our corresponding purchase obligation. We also plan to begin the work necessary to extend the mine life at Cigar Lake subject
to approval of Orano’s board. In addition, we plan to undertake the evaluation of the work and investment necessary to expand
production at McArthur River/Key Lake up to its annual licensed capacity of 25 million pounds, which we expect will allow us to
take advantage of this opportunity when the time is right.
Our production decisions will continue to be aligned with market opportunities and our ability to secure the appropriate long-
term contract homes for our unencumbered, in-ground inventory, demonstrating that we continue to responsibly manage our
assets in accordance with our customers’ needs.
In addition to our uranium production plans, we plan to produce 12,000 tonnes at our Port Hope UF6 conversion facility in 2024
to satisfy our book of long-term business for conversion services and customer demand, at a time when conversion prices are
at historic highs.
Our production plans for McArthur River/Key Lake and Cigar Lake are expected to generate strong financial performance by
allowing us to source more of our committed sales from the lower-cost produced pounds. In addition, with conversion demand
elevated, we have been successful in securing long-term sales commitments that will support increased UF6 production at Port
Hope, which is expected to further improve its contribution to our financial results. However, this is not an end to our supply
discipline. We expect to continue to adjust our production in accordance with our contract portfolio. This will remain our
production plan until we see further improvements in the uranium market and contracting progress, once again demonstrating
that we are a responsible fuel supplier.
MANAGING OUR COSTS
Production costs
In order to operate efficiently and cost-effectively, we manage operating costs and improve plant reliability by prudently
investing in production infrastructure, new technology, and business process improvements. Like all mining companies, our
uranium segment is affected by the cost of inputs such as labour and fuel.
2023 URANIUM OPERATING COSTS BY CATEGORY
Production Supplies 31%
Labor 41%
Contracted Services 28%
* Production supplies include reagents, fuel and other items. Contracted services include utilities and camp costs, air charters, mining and maintenance
contractors and security and ground freight.
28 CAMECO CORPORATION
Over the last number of years, the annual cash cost of production reflected the operating cost of mining and milling our share
of Cigar Lake as this was our only operating site. With the restart of the McArthur River/Key Lake operations the annual cost of
production will reflect a combined cost of all our operating uranium assets. See 2023 financial results by segment – Uranium
starting on page 61 for more information. In 2024, our cash production costs may continue to be affected by inflation, the
availability of personnel with the necessary skills and experience, supply chain challenges impacting the availability of
materials and reagents, and our continued efforts to ramp up to planned production at McArthur River/Key Lake.
Operating costs in our fuel services segment are mainly fixed. In 2023, labour accounted for about 56% of the total. The
largest variable operating cost is for anhydrous hydrogen fluoride, followed by zirconium, and energy (natural gas and
electricity).
We continue to look to adopt innovative and advanced digital and automation technologies to improve efficiency and
operational flexibility and to further reduce cost.
Care and maintenance costs
In 2024, we expect to incur between $50 million and $60 million in care and maintenance costs related to the suspension of
production at our Rabbit Lake mine and mill, and our US operations. Production at these operations are higher-cost and a
restart is less certain. We continue to evaluate our options in order to minimize these costs.
Purchases and inventory costs
Our costs are also affected by the purchases of uranium and conversion services we make under long-term contracts and on
the spot market.
To meet our delivery commitments, we make use of our mined production, inventories, purchases of our share of material from
Inkai, purchases under long-term contracts, purchases we make on the spot market and product loans. In 2024, we expect the
price for the majority of our purchases will be quoted at the time of delivery.
The cost of purchased material may be higher or lower than our other sources of supply, depending on market conditions. The
cost of purchased material affects our cost of sales, which is determined by calculating the average of all of our sources of
supply, including opening inventory, production, and purchases, and adding royalties, selling costs, and care and maintenance
costs. Our cost of sales could be impacted if we do not achieve our annual production plan, or if we are unable to source
uranium as planned, and we are required to purchase uranium at prices that differ from our cost of inventory.
Financial impact
The growing demand for nuclear power due to its safety, clean energy, reliability, security and affordability attributes has
contributed to increased demand for nuclear fuel products and services. As a result, we have seen significant price increases
across the nuclear fuel value chain, which reflect the need for capacity increases to satisfy the projected growth.
The deliberate and disciplined actions we took to curtail production and streamline operations over the past decade came with
near-term costs like care and maintenance costs, operational readiness costs, and purchase costs higher than our production
costs. However, we considered these costs as investments in our future.
Today, thanks to our investments, and with our continued ability to secure new long-term sales commitments, we believe we
are well-positioned for growth. Our core growth is expected to come from our existing tier-one mining and fuel services assets.
We do not have to build new capacity to pursue new opportunities. We have sufficient productive capacity to expand, a
position we have not enjoyed in previous price cycles.
And, with the acquisition of a 49% interest in Westinghouse, we expect to be able to expand our growth profile by extending
our reach in the nuclear fuel cycle at a time when there are tremendous tailwinds for the nuclear power industry. We are
extending our reach with an investment in assets, that like ours, are strategic, proven, licensed and permitted, that are located
in geopolitically favourable jurisdictions, and that we expect will be able to grow from their existing footprint. These assets are
also expected to provide new opportunities for our existing suite of uranium and fuel services assets.
We believe our actions and investments have helped position the company to self-manage risk and as we make the transition
back to a tier-one run rate, we expect to generate strong financial performance, allowing us to execute on our strategy while
rewarding our stakeholders for their continued patience and support of our strategy to build long-term value.
MANAGEMENT’S DISCUSSION AND ANALYSIS 29
CAPITAL ALLOCATION – FOCUS ON VALUE
Delivering long-term value is a top priority. While we navigate by our investment-grade rating, we continually evaluate our
investment options to ensure we allocate our capital in a way that we believe will:
• sustain our assets and grow our core business in a manner that we expect will create sustainable long-term value
• maintain a strong balance sheet that will allow us to execute on our strategy, take advantage of strategic opportunities and
self-manage risk
• allow us to sustainably execute on our dividend while considering the cyclical nature of our earnings and cash flow
To deliver value, free cash flow must be productively reinvested in the business. We start by determining how much cash we
have to invest (investable capital). Investable capital takes into account, our expected cash flow from operations, including the
expected cash distributions from JV Inkai and our Westinghouse investment, minus the cash required to satisfy our financing
costs, for working capital purposes, and the other uses of cash we consider to be higher priority, such as dividends. This
investable capital can be reinvested in the core business of the company, including to manage the physical and transition risks
and opportunities associated with changing climate conditions, or to take advantage of new opportunities in line with our long-
term strategy. If after consideration of investment opportunities there is excess investable capital available, it can be
considered for debt reduction, or shareholder returns.
Reinvestment
We have a multidisciplinary capital allocation committee that evaluates all sustaining, capacity replacement, or growth
investment opportunities.
These opportunities are ranked using return criteria that includes both financial and non-financial metrics, with a current priority
focus on five main value drivers:
• cost reduction
• emission reduction
• operational flexibility
• improving safety performance
• enabling digital technology
Only those that meet the required risk-adjusted return criteria are considered for investment. We also must identify, at the
corporate level, the expected impact on cash flow, earnings, and the balance sheet. All project risks must be identified,
including the risks of not investing. Allocation of capital only occurs once an investment has cleared these hurdles.
This may result in some opportunities being held back in favour of higher return investments and should allow us to generate
the best return on investment decisions when faced with multiple prospects, while also controlling our costs and meeting ESG
objectives, including achieving the 30% reduction in our GHG emissions by 2030 compared to 2015 levels.
Return
We believe in returning cash to shareholders under appropriate circumstances but are also focused on protecting the company
and rewarding those shareholders who understand and support our strategy to build long-term value. If we have excess cash
and determine the best use is to return it to shareholders, we can do that through a share repurchase or dividend—an annual
dividend, one-time supplemental dividend or a progressive dividend. The decision to return capital and the type of return is
evaluated regularly by our board of directors with careful consideration of our cash flow, financial position, strategy, and other
relevant factors including appropriate alignment with the cyclical nature of our earnings. For example, in 2022, the board
increased the dividend by 50% to reflect the expected improvement in our financial performance as we began the transition to
our tier-one run rate.
In Action
The current objective of our capital allocation will be to ensure we have the financial capacity to execute on our 2024
production plan and to return to our tier-one cost structure. In addition, we expect to allocate the capital necessary to allow us
to begin work on extending the mine life at Cigar Lake and to undertake evaluation of the work and investment required to
expand production at McArthur River/Key Lake up to its licensed capacity of 25 million pounds per year (100% basis).
30 CAMECO CORPORATION
We will maintain our focus on improving operational effectiveness across the company through for example, the use of digital
and automation technologies. The particular goals of this work being to reduce operating costs, increase operational flexibility,
improve our safety performance and reduce our impact on the environment, including the reduction of our GHG emissions.
Over the coming months, we will look for an opportunity to refinance the $500 million senior unsecured debenture maturing on
June 24, 2024, prior to maturity or as it comes due. Ultimately our decision will be made with consideration for our cash
generation, the interest rate environment and other capital allocation considerations. In addition, we have initiated a partial
repayment of $200 million (US) on the $600 million (US) floating-rate term loan that was used to finance the acquisition of
Westinghouse. The prepayment will be applied to the $300 million (US) tranche which matures in November 2026. See
Liquidity and capital resources – Financing Activities starting on page 54 for more information about the term loan.
We will continue to navigate by our investment-grade rating through close management of our balance sheet metrics,
maintaining sufficient liquidity, including a minimum cash balance for working capital requirements and that would allow us to
pursue other value-adding opportunities. If the market transition continues as expected, our priorities might include
consideration of:
• the opportunities available to add value with our licensed and permitted tier-two assets and brownfield infrastructure
• further value-adding opportunities in the nuclear fuel value chain
• the return of excess cash to shareholders
Any opportunities will be rigorously assessed by our capital allocation committee before an investment decision is made.
Shares and stock options outstanding
At February 6, 2024, we had:
• 434,175,752 common shares and one Class B share outstanding
• 1,396,289 stock options outstanding, with exercise prices ranging from $11.32 to $16.38
Dividend
In 2023, our board of directors declared a dividend of $0.12 per common share, which was paid December 15, 2023. See the
section titled Return on page 30 for more information regarding the factors the board considers in deciding to declare an
annual dividend.
MANAGEMENT’S DISCUSSION AND ANALYSIS 31
Our ESG principles and practices
A key part of our strategy, reflecting our values
We are committed to delivering our products responsibly. We integrate ESG principles and practices into every aspect of our
business, from our corporate objectives and approach to compensation, to our overall corporate strategy, risk management,
and day-to-day operations, and they align with our values. We seek to be transparent with our stakeholders, keeping them
updated on the risks and opportunities that we believe may have a significant impact on our ability to achieve our strategic
plan and add long-term value. We recognize the importance of integrating certain ESG factors, such as safety performance, a
clean environment and supportive communities, into our executive compensation strategy as we see success in these areas
as critical to the long-term success of the company.
Our board of directors holds the highest level of oversight for our business strategy and strategic risks, including ESG matters
and climate-related risks. Oversight of ESG and climate-related reporting and disclosure has been delegated by the board to
the Safety, Health and Environment (SHE) committee of the board. We also have a multi-disciplinary ESG steering committee,
chaired by our senior vice-president and chief corporate officer that includes representatives from across the organization
whose role is to review our ESG governance and reporting, and our current approach to sustainability, against evolving trends.
Additional information about our governance of ESG matters is included in our most recent ESG report.
In an effort to continually evolve the robustness of our sustainability commitments and communications, starting in 2020, we
aligned our ESG performance indicators with the ones recommended by the Sustainability Accounting Standards Board
(SASB). In addition, we began addressing the recommendations of the Task Force on Climate-Related Financial Disclosures
(TCFD) in our ESG report. In 2022, we continued to progress our work, conducting a gap analysis to identify how we could
better align to TCFD recommendations. Key findings from this work were actioned throughout 2022 and 2023, including the
undertaking of physical and transition-related climate scenario analyses to inform our overarching climate strategy. In 2023,
the IFRS published its first two sustainability standards, S1 sustainability disclosure standard and S2 climate-related disclosure
via the International Sustainability Standards Board. While it is unclear when and to what extent the Canadian Securities
Administrators may adopt these standards at this point, we have begun the work to better understand the requirements under
these standards and how our current reporting aligns with these standards.
In July 2023, we published our 2022 ESG report. The report sets out our strategy and the policies and programs we use to
govern and manage ESG issues that are important to our stakeholders. In addition to SASB and TCFD, the report provides
key ESG performance indicator data based on the Global Reporting Initiative’s Sustainability Framework as well as some
unique corporate indicators, to measure and report our performance on environmental, social and economic impacts in the
areas we believe have a significant impact on our sustainability in the long-term and are important to our stakeholders. This is
our ESG report card to our stakeholders. You can find our report at cameco.com/about/sustainability.
ENVIRONMENT
We recognize the critical nature of the fight against climate change, and want our employees, customers, investors, and
community partners near our operations to know we are committed to being an active and constructive partner in addressing
this challenge. The reduction of carbon and greenhouse gas (GHG) emissions is important and necessary in Canada and
around the world. Policy makers and major industries recognize that nuclear power must be a central part of the solution to the
world’s shift to a low-carbon, climate-resilient economy. Several nations have reaffirmed their commitments to nuclear power
and are developing plans to support existing reactors and are reviewing their policies to encourage more nuclear capacity.
There are now 28 countries that have signed on to the declaration that was launched at COP28 to triple nuclear energy
capacity by 2050.
As one of the world’s largest producers of the uranium needed to fuel nuclear reactors, we believe this represents a significant
opportunity for us to be part of the solution to combat climate change given 100% of our product is used to produce clean,
carbon-free base-load electricity. We enable vast emissions reductions globally through nuclear power and are committed to
transforming our already low operational GHG emissions footprint to achieve our ambition of having net-zero emissions while
delivering significant long-term business value. In the 35 years we have been in business, we have sold over 954 million
pounds of product for nuclear power generation. By reducing the need for fossil-fuel based electricity, this has avoided up to
16 billion tonnes of CO2e emissions, equivalent to removing all gas-powered vehicles in the world from operation for 3.5 years.
32 CAMECO CORPORATION
Recently, we put further support behind our commitment to climate action and our vision of energizing a clean-air world by
joining Net Zero Nuclear as a corporate partner. Net Zero Nuclear is an initiative between government, industry leaders and
civil society to triple global nuclear capacity to achieve carbon neutrality by 2050. We join the initiative as a Gold Partner,
deepening industry support for this initiative, which was launched by the World Nuclear Association and the Emirates Nuclear
Energy Corporation, with the support of the Atoms4NetZero initiative launched by the International Atomic Energy Agency at
the 2023 World Nuclear Symposium in London.
In 2022, we undertook a planning process to outline our overarching Low Carbon Transition Plan. Within this plan, we set a
target to reduce our Scope 1 and 2 GHG emissions by 30% by 2030, from 2015 levels. We also identified the practical and
achievable actions that we expect to take to decarbonize our operations and manage climate-related risks. In doing so, we are
demonstrating our alignment with the ambitions of the Paris Agreement to, “limit global temperature rise to well below 2
degrees Celsius (°C), above pre-industrial levels, and to pursue efforts to limit global temperature rise even further to 1.5°C”.
Our Low Carbon Transition Plan provides a foundation for managing our climate-related physical and transition risks, and it
supports us in better aligning with the Government of Canada’s Net Zero Accountability Act and 2030 Emission Reduction
Plan.
We recognize that climate change, including shifts in temperature, precipitation and more frequent severe weather events
could affect our operations in a range of possible ways. As part of our Low Carbon Transition Plan, we have completed climate
change scenario analyses to understand how projected long-term changing climate conditions could impact our employees,
assets, and operations in northern Saskatchewan and Ontario, Canada. We leveraged internal subject matter expertise with
help from a third-party expert to complete the assessments.
The physical risk assessment studies were undertaken to deliver initial forward-looking physical climate risk assessments and
identify possible risk management and adaptation options across our mining, milling and fuel services operations. In 2024, we
will focus on updating the findings from these physical climate risk assessments into our internal risk management review and
developing an adaptation action plan template. The template will support the development of site-specific adaptation plans for
each of our Canadian operations. We are targeting the completion of physical climate risk assessments for all our majority
owned and operated facilities by the end of 2026.
We will continue to explore climate change projections for the areas where we operate and those critical to moving supplies
and products through our value chain. We will use this information to identify where our existing climate-related acute and
chronic risk management practices are expected to remain sufficient in the years to come and where adaptation and other
enhancements may be required.
When it comes to climate change, we have tracked and reported our GHG emissions for more than two decades. A summary
of our activities to understand and mitigate the risks associated with climate change scenarios is reported to the board of
directors on a regular basis in accordance with our Enterprise Risk Management program, including the mitigating controls and
management actions taken to reduce these risks.
To support achieving our 2030 GHG emissions reduction target, we implemented a 2023 compensable target to create tailored
decarbonization pathways for each operationally controlled site. The 2023 work included an evaluation of over 160
decarbonization project ideas solicited from across the organization. Project ideas were evaluated based on cost, emissions
reduction potential, implementation timeline, and other co-benefits as outlined by the climate action factors recently integrated
within our Capital Allocation Committee process. The site-specific decarbonization pathways also included the development of
practical project implementation timelines considering life of asset plans for each operation and technological readiness of the
relevant technologies. Decarbonization efforts are already underway across our five decarbonization themes: efficiency,
electrification, waste to value, fuel switching and carbon economy.
MANAGEMENT’S DISCUSSION AND ANALYSIS 33
Over the past few years, we have put significant effort towards efficiency, our first decarbonization theme. We have been
focused on improving the visibility of energy consumption within our organization and implementing improvements to reduce
energy consumption. We have already enjoyed some significant success in our efforts to reduce our energy use and GHG
emissions to date. For example, at our Port Hope conversion facility, we have achieved a 28% reduction to peak power
demand and more than $2.1 million in annual energy savings with projects such as HVAC and compressed air system
upgrades and lighting efficiency retrofits. In 2023, the Port Hope Closed Loop Cooling Water system was commissioned,
eliminating the need to draw water from the nearby harbour. With the new closed loop system, the operation is no longer
dependent on the temperature or quality of the lake water. This project has positive benefits for both the overall reliability and
our environmental footprint, decreasing the energy required to change the temperature of the water and eliminating the risk of
environmental releases to the lake.
At our northern Saskatchewan mining and milling operations, recent efforts have focused on the implementation of an Energy
Management Information System (EMIS) in alignment with our larger digital transformation efforts. The EMIS improves our
ability to visualize, monitor, and manage our energy use and emissions profile in real time. Ultimately, EMIS gives those
operations the ability to identify where our highest impact emissions reduction opportunities exist and assurance that the
actions we have taken are maintained over time. Two projects were advanced in 2023 at our northern Saskatchewan
operations: LED lighting updates to Key Lake and Ventilation-on-Demand at McArthur River. At Key Lake, we have made
upgrades in lighting, updating to LED, translating to annual reductions of approximately 725,000 kWh electricity savings or 375
tonnes of CO2e. Additionally, this project improves operator comfort and safety when working in these areas. At McArthur
River, the Ventilation-on-Demand project is currently underway. It includes mine ventilation upgrades to surface heater fans
and underground ventilation dampers to enable a reduction in both electricity and propane consumption.
SOCIAL
Our relationships with our workforce, Indigenous Peoples, and local communities are fundamental to our success. The safety
and protection of our workforce and the public is our top priority in our assessment of risk and planning for safe operations and
product transport. To deliver on our vision, we invest in programs to attract and retain a diverse and skilled workforce that
better reflects the communities in which we operate and to increase the participation of underrepresented groups in trades and
technical positions. We want to build a workforce that is dedicated to continuous improvement and shares our values.
We have a five-pillar approach to develop and maintain long-term relationships and provide opportunities to those living in
areas near our operations. The five-pillars include workforce development, business development, community investment,
environmental stewardship, and community engagement. To strengthen relationships and shape them into mutually beneficial
partnerships, we have collaboration agreements in northern Saskatchewan and Ontario that follow this approach. These
agreements allow us to collaboratively determine focus areas based on a community’s unique needs, optimizing benefits to
the community, providing certainty around community investment and local business opportunities.
GOVERNANCE
We believe that sound governance is the foundation for strong corporate performance. Our diverse and independent board of
directors’ primary role is to provide strategic direction and risk oversight in order to help the company achieve its vision of
“energizing a clean-air world”. The board guides the company to operate as a sustainable business, to optimize financial
returns while effectively managing risk, and to conduct business in a way that is transparent, independent, and ethical.
The board has formal governance guidelines that set out our approach to governance and the board’s governance role and
practices. The guidelines ensure we comply with all of the applicable governance rules and legislation in Canada and the US,
conduct ourselves in the best interests of our stakeholders, and meet industry best practices. The guidelines are reviewed and
updated regularly.
Our corporate governance framework includes an established and recognized management system that describes the
policies, processes and procedures we use to help us fulfill all the tasks required to achieve our objectives and strategy. It sets
out our vision, values, and measures of success. It speaks to our strategic planning process, leadership alignment and
accountability, compliance and assessment, people and culture, process identification and work management, risk
management, communications and stakeholder support, knowledge and information management, change management,
problem identification and resolution, and continual improvement.
34 CAMECO CORPORATION
Risk and Risk Management
Our board of directors oversees management’s implementation of appropriate risk management processes and controls. We
have a Risk Policy that is supported by our formal Risk Management Program.
Our Risk Management Program involves a broad, systematic approach to identifying, assessing, monitoring, reporting and
managing the significant risks we face in our business and operations, including consideration of ESG and climate-related
risks and cyber risks that could impact our four measures of success. The program is based on the ISO 31000 Risk
Management guidelines. ISO 31000 provides guidance on risk management activities with internationally recognized practices
and provides sound principles for effective management and governance of risks. Our program applies to all risks facing the
company, including climate-related risks. The program establishes clear accountabilities for employees throughout the
company to take ownership of risks specific to their area and to effectively manage those risks. The program is reviewed
annually to ensure that it continues to meet our needs.
We use a common risk matrix throughout the company. Any risk that has the potential to significantly affect our ability to
achieve our corporate objectives or strategic plan is considered an enterprise risk and is brought to the attention of senior
management and the board. We continually update our risk profile by performing regular monitoring of risks across the
organization. Regular monitoring helps us to properly manage risks and identify any new risks. Detailed risk reporting is
provided on a quarterly basis to senior management and the board and its committees on the status of the mitigating and/or
monitoring plans for each of the enterprise risks. Management also reviews monthly updates on the company’s progress in
managing these risks.
In addition to considering the other information in this MD&A, you should carefully consider the material risks discussed
starting on page 4, under the heading Managing the risks, starting on page 70, and the specific risks discussed under each
operation, advanced project, and other fuel cycle investment update in this document. These risks, however, are not a
complete list of the potential risks our operations, advanced projects, or other investments face. There may be others we are
not aware of or risks we feel are not material today that could become material in the future.
We recommend you also review our annual information form, which includes a discussion of other material risks that could
have an impact on our business.
MANAGEMENT’S DISCUSSION AND ANALYSIS 35
Measuring our results
Targets and Metrics: The link between ESG factors and executive pay
Each year, we set corporate objectives that are aligned with our strategic plan. These objectives fall under our four measures
of success: outstanding financial performance, safe, healthy and rewarding workplace, clean environment and supportive
communities. Performance against specific targets under these objectives forms the foundation for a portion of annual
employee and executive compensation. See our most recent management proxy circular for more information on how
executive compensation is determined.
While we saw a significant improvement in our financial performance (earnings and cash flow) as our tier-one production
increases and our average realized price reflects the improving market, our results still do not reflect our expected long-term
run rate performance. As our long-term contract portfolio continues to grow and our tier-one production continues to ramp up,
we believe that the strategic actions we have taken have helped to pave the way to stronger financial performance over time.
Additionally, we will not compromise our commitment to safety, people and our environment.
2023 OBJECTIVES1
TARGET
RESULTS
OUTSTANDING FINANCIAL PERFORMANCE
Earnings measure
Achieve targeted adjusted net earnings.
• adjusted net earnings was above the target
Cash flow measure
Achieve targeted cash flow from
operations (before working capital
changes).
SAFE, HEALTHY AND REWARDING WORKPLACE
Workplace safety
measure
CLEAN ENVIRONMENT
Environmental
performance
measures
Strive for no injuries at all Cameco-
operated sites. Maintain a long-term
downward trend in combined employee
and contractor total recordable injury
rate while achieving targets on specified
leading indicators.
Achieve corporate environmental
targets.
Develop tailored decarbonization
pathways for operationally controlled
sites.
SUPPORTIVE COMMUNITIES
Stakeholder
support measure
Enhance the skill set of Residents of
Saskatchewan’s North (RSN) for
changing industrial environments
• cash flow from operations was below the target
• we did not achieve our target for TRIR
• performance of the leading indicators was above the
target range
• performance on corporate environmental targets was
within the target range
• Completed decarbonization pathways for all
operationally controlled sites
• RSN skill enhancement was above the target
1 Detailed results for our 2023 corporate objectives and the related targets will be provided in our 2024 management proxy circular prior to our Annual Meeting of
Shareholders on May 9, 2024.
36 CAMECO CORPORATION
2024 objectives
OUTSTANDING FINANCIAL PERFORMANCE
•
Achieve targeted financial measures.
SAFE, HEALTHY AND REWARDING WORKPLACE
•
Improve workplace safety performance at all sites.
CLEAN ENVIRONMENT
•
Improve environmental performance at all sites and continue to execute on our Low Carbon Transition Plan.
SUPPORTIVE COMMUNITIES
•
Build and sustain strong stakeholder support for our activities.
MANAGEMENT’S DISCUSSION AND ANALYSIS 37
Financial results
This section of our MD&A discusses our performance, financial condition and outlook for the future.
39 2023 CONSOLIDATED FINANCIAL RESULTS
51 OUTLOOK FOR 2024
54 LIQUIDITY AND CAPITAL RESOURCES
61 2023 FINANCIAL RESULTS BY SEGMENT
61 ............... URANIUM
62 ............... FUEL SERVICES
63 ............... WESTINGHOUSE
64 FOURTH QUARTER FINANCIAL RESULTS
64 ............... CONSOLIDATED RESULTS
67 ............... URANIUM
68 ............... FUEL SERVICES
38 CAMECO CORPORATION
2023 consolidated financial results
During the fourth quarter, we announced the closing of the acquisition of a 49% interest in Westinghouse. Effective November
7, 2023, we began equity accounting for this investment. Our share of Westinghouse’s earnings has been reflected in our
financial results from that date.
In the second quarter of 2022, we along with Orano acquired Idemitsu Canada Resources Ltd.’s 7.875% participating interest
in the Cigar Lake Joint Venture. Our ownership stake in Cigar Lake now stands at 54.547%, 4.522 percentage points higher
than it was prior to the transaction. Effective May 19, 2022, we have reflected our share of production and financial results
based on this new ownership stake.
HIGHLIGHTS
DECEMBER 31 ($ MILLIONS EXCEPT WHERE INDICATED)
Revenue
Gross profit
Net earnings (loss) attributable to equity holders
$ per common share (basic)
$ per common share (diluted)
Adjusted net earnings (loss) (non-IFRS, see page 41)
$ per common share (adjusted and diluted)
Adjusted EBITDA (non-IFRS, see page 41)
Cash provided by operations
Net earnings
2023
2,588
562
361
0.83
0.83
339
0.78
831
688
2022
1,868
233
89
0.22
0.22
135
0.33
431
305
CHANGE FROM
2021
2022 TO 2023
1,475
2
(103)
(0.26)
(0.26)
(98)
(0.25)
194
458
39%
>100%
>100%
>100%
>100%
>100%
>100%
93%
>100%
The following table shows what contributed to the change in net earnings in 2023 compared to 2022 and 2021.
($ MILLIONS)
2023
2022
2021
Net earnings (losses) - previous year
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), net of hedging benefits)
(103)
89
(53)
Uranium
Fuel services
Impact from sales volume changes
Higher realized prices ($US)
Foreign exchange impact on realized prices
Higher costs
change – uranium
Impact from sales volume changes
Higher realized prices ($Cdn)
Higher costs
change – fuel services
Other changes
Lower (higher) administration expenditures
Lower (higher) exploration expenditures
Change in reclamation provisions
Change in gains or losses on derivatives
Change in foreign exchange gains or losses
Change in earnings from equity-accounted investments
Redemption of Series E debentures in 2020
Canadian Emergency Wage Subsidy
Bargain purchase gain on CLJV ownership interest increase
Higher (lower) finance income
Higher finance costs
Change in income tax recovery or expense
Other
Net earnings (losses) - current year
30
208
95
(9)
324
9
32
(34)
7
(74)
(7)
31
111
(58)
60
-
-
(23)
75
(30)
(130)
(14)
361
(6)
328
44
(137)
229
(21)
33
(13)
(1)
(44)
(3)
(31)
(86)
74
26
-
(21)
23
30
(9)
3
2
89
(4)
5
(72)
(55)
(126)
1
23
(2)
22
17
3
32
(24)
(14)
32
24
(16)
-
(4)
(5)
15
(6)
(103)
MANAGEMENT’S DISCUSSION AND ANALYSIS 39
Average realized prices
Uranium1
$US/lb
$Cdn/lb
2023
49.76
67.31
Fuel services
1 Average realized foreign exchange rate ($US/$Cdn): 2023 – 1.35, 2022 – 1.29 and 2021 – 1.26.
$Cdn/kgU
35.61
Revenue
The following table shows what contributed to the change in revenue for 2023.
($ MILLIONS)
Revenue – 2022
Uranium
Higher sales volume
Higher realized prices ($Cdn)
Fuel services
Higher sales volume
Higher realized prices ($Cdn)
Other
Revenue – 2023
2022
44.73
57.85
32.92
CHANGE FROM
2021
2022 TO 2023
34.53
43.34
29.72
11%
16%
8%
1,868
370
303
28
32
(13)
2,588
See 2023 Financial results by segment on page 61 for more detailed discussion.
THREE-YEAR TREND
In 2022, revenue increased by 27% compared to 2021 due to an increase in the average realized price and sales volume in
the uranium segment. In our fuel services segment, revenue decreased by 10% as a result of a decrease in sales volume
partially offset by an increase in average realized price.
In 2023, revenue increased by 39% compared to 2022 due to a 45% increase in the uranium segment and a 17% increase in
our fuel services segment. Both segments saw increases in the average realized price and sales volume. See notes 18 and 29
in our annual financial statements for more information.
SALES DELIVERY OUTLOOK FOR 2024
For 2024 we have committed sales volumes in our uranium segment of between 32 and 34 million pounds. In general, we are
active in the market, buying and selling uranium when it is beneficial for us and in support of our long-term contract portfolio.
40 CAMECO CORPORATION
In our uranium and fuel services segments, our customers choose when in the year to receive deliveries. As a result, our
quarterly delivery patterns and, therefore, our sales volumes and revenue can vary significantly. We expect the quarterly
distribution of uranium deliveries in 2024 to be more heavily weighted to the first and fourth quarters as shown below.
However, not all delivery notices have been received to date and the expected delivery pattern could change. Typically, we
receive notices six months in advance of the requested delivery date.
ANNUAL DELIVERY VOLUME DISTRIBUTION BY QUARTER
8
O
3
U
s
b
l
n
o
i
l
l
i
m
14
12
10
8
6
4
2
0
Q1
Q2
Q3
Q4
2019
2020
2021
2022
2023
2024 (est)
Source: Cameco reports and estimates
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 supplemental 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 (ANE) is our net earnings attributable to equity holders, adjusted for non-operating or non-cash items
such as gains and losses on derivatives, adjustments to reclamation provisions flowing through other operating expenses, and
bargain purchase gains, 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 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 starting on page 36).
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 starting on page 49 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 16 of our annual
financial statements for more information. This amount has been excluded from our ANE measure.
MANAGEMENT’S DISCUSSION AND ANALYSIS 41
The bargain purchase gain that was recognized when we acquired our pro-rata share of Idemitsu Canada Resources Ltd.’s
7.875% participating interest in the Cigar Lake Joint Venture has also been removed in calculating ANE since it is non-cash,
non-operating and outside of the normal course of our business. The gain was recorded in the statement of earnings as part of
“other income (expense)”.
As a result of the change in ownership of Westinghouse when they were acquired by Cameco and Brookfield, their inventories
at the acquisition date were revalued based on the market price at that date. As these quantities are sold, their cost of
products and services sold reflect these market values, regardless of Westinghouse’s historic costs. Since this adjustment is
non-cash, outside of the normal course of business and only occurred due to the change in ownership, it has been excluded
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 years ended 2023, 2022 and 2021.
($ MILLIONS)
Net earnings (loss) attributable to equity holders
Adjustments
Adjustments on derivatives
Adjustments to earnings from equity-investees
Adjustments on other operating expense (income)
Adjustment to other income
Income taxes on adjustments
Adjusted net earnings (loss)
2023
361
(59)
20
(2)
-
19
339
2022
89
76
-
26
(23)
(33)
135
2021
(103)
13
-
(8)
-
-
(98)
The following table shows what contributed to the change in adjusted net earnings (non-IFRS measure, see above) in 2023
compared to the same period in 2022 and 2021.
42 CAMECO CORPORATION
($ MILLIONS)
Adjusted net earnings (losses) - previous year
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), net of hedging benefits)
2022
(98)
2023
135
2021
(66)
Uranium
Fuel services
Impact from sales volume changes
Higher realized prices ($US)
Foreign exchange impact on realized prices
Higher costs
change – uranium
Impact from sales volume changes
Higher realized prices ($Cdn)
Higher costs
change – fuel services
Other changes
Lower (higher) administration expenditures
Lower (higher) exploration expenditures
Change in reclamation provisions
Change in gains or losses on derivatives
Change in foreign exchange gains or losses
Change in earnings from equity-accounted investments
Redemption of Series E debentures in 2020
Canadian Emergency Wage Subsidy
Higher (lower) finance income
Higher finance costs
Change in income tax recovery or expense
Other
Adjusted net earnings (losses) - current year
EBITDA
30
208
95
(9)
324
9
32
(34)
7
(74)
(7)
3
(24)
(58)
80
-
-
75
(30)
(78)
(14)
339
(6)
328
44
(137)
229
(21)
33
(13)
(1)
(44)
(3)
3
(23)
74
26
-
(21)
30
(9)
(30)
2
135
(4)
5
(72)
(55)
(126)
1
23
(2)
22
17
3
-
34
(14)
32
24
(16)
(4)
(5)
7
(6)
(98)
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, as further-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 adjusted net earnings definition.
In calculating adjusted EBITDA, we also adjust for items included in the results of our equity-accounted investees. These items
are reported as part of marketing, administrative and general expenses within the investee financial information and are not
representative of the underlying operations. These include gain/loss on undesignated hedges, transaction costs related to
acquisitions and gain/loss on disposition of a business.
We also adjust for the unwinding of the effect of purchase accounting on the sale of inventories which is included in our share
of earnings from equity-accounted investee and recorded in the cost of products and services sold in the investee information
(see note 12 to the financial statements).
The company may realize similar gains or incur similar expenditures in the future.
ADJUSTED FREE CASH FLOW
Adjusted free cash flow is defined as adjusted EBITDA less capital expenditures for the period.
ADJUSTED EBITDA MARGIN
Adjusted EBITDA margin is defined as adjusted EBITDA divided by revenue for the appropriate period.
MANAGEMENT’S DISCUSSION AND ANALYSIS 43
EBITDA, adjusted EBITDA, adjusted free cash flow, and adjusted EBITDA margin are 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 years ended 2023 and 2022.
For the year ended December 31, 2023:
($ MILLIONS)
URANIUM1
SERVICES WESTINGHOUSE
OTHER
TOTAL
FUEL
606
175
-
-
129
35
-
-
Net earnings (loss) attributable to equity holders
Depreciation and amortization
Finance income
Finance costs
Income taxes
Net adjustments on equity investees2
EBITDA
Loss on derivatives
Other operating expense (income)
Other income
Adjustments on equity investees3
Adjusted EBITDA
1JV Inkai EBITDA of $235 million is included in the uranium segment. See JV Inkai Non-IFRS measures on page 83.
2Includes depreciation and amortization, finance income and finance costs of equity-accounted investees (see note 12 to the financial statements).
3For detail of adjustments, see Our 2023 Earnings from Westinghouse on page 63.
(350)
10
(112)
116
126
-
(210)
(59)
-
-
-
(269)
(24)
-
-
-
(7)
89
58
-
-
-
43
101
56
837
-
(2)
-
-
835
-
164
-
-
-
-
164
361
220
(112)
116
119
145
849
(59)
(2)
-
43
831
For the year ended December 31, 2022:
($ MILLIONS)
URANIUM1
SERVICES
OTHER
TOTAL
FUEL
Net earnings (loss) attributable to equity holders
Depreciation and amortization
Finance income
Finance costs
Income taxes
Net adjustments on equity investees2
EBITDA
Loss on derivatives
Other operating expense (income)
Other income
Adjusted EBITDA
1JV Inkai EBITDA of $135 million is included in the uranium segment. See JV Inkai Non-IFRS measures on page 83.
2Includes depreciation and amortization, finance income and finance costs of equity-accounted investees (see note 12 to the financial statements).
(231)
8
(37)
86
(4)
-
(178)
76
-
-
(102)
200
136
-
-
-
41
377
-
26
(23)
380
120
33
-
-
-
-
153
-
-
-
153
89
177
(37)
86
(4)
41
352
76
26
(23)
431
CASH COST PER POUND, NON-CASH COST PER POUND AND TOTAL COST PER POUND FOR PRODUCED AND
PURCHASED URANIUM
Cash cost per pound, non-cash cost per pound and total cost per pound for produced and purchased uranium are non-IFRS
measures. We use these measures in our assessment of the performance of our uranium business. These measures are not
necessarily indicative of operating profit or cash flow from operations as determined under IFRS.
44 CAMECO CORPORATION
To facilitate a better understanding of these measures, the table below reconciles these measures to cost of product sold and
depreciation and amortization for the fourth quarter and years ended 2023 and 2022.
($ MILLIONS)
Cost of product sold
Add / (subtract)
Royalties
Other selling costs
Care and maintenance and operational readiness costs
Change in inventories
Cash operating costs (a)
Add / (subtract)
Depreciation and amortization
Care and maintenance and operational readiness costs
Change in inventories
Total operating costs (b)
Uranium produced & purchased (million lbs) (c)
Cash costs per pound (a ÷ c)
Total costs per pound (b ÷ c)
Corporate expenses
ADMINISTRATION
($ MILLIONS)
Direct administration1
Stock-based compensation1
Reversal (recovery) of fees related to CRA dispute
THREE MONTHS
ENDED DECEMBER 31
2023
573.3
(10.6)
(3.8)
(11.6)
139.1
686.4
31.6
(0.5)
31.3
748.8
12.0
57.20
62.40
2022
355.1
(2.1)
(2.0)
(35.5)
87.4
402.9
18.2
(7.5)
40.2
453.8
9.5
42.41
47.77
YEAR ENDED
DECEMBER 31
2023
2022
1,532.3
1,223.6
(71.7)
(10.9)
(46.7)
(63.0)
1,340.0
175.5
(3.9)
32.6
1,544.2
28.9
46.37
53.43
(23.4)
(5.9)
(178.5)
124.2
1,140.0
135.8
(39.9)
67.6
1,303.5
28.7
39.72
45.42
2023
186
60
2022
143
25
CHANGE
30%
140%
-
246
4
172
(100)%
43%
Total administration
1 Direct administration and stock-based compensation are supplementary financial measures. They are components of administration expense as shown on the
statement of earnings and calculated according to IFRS.
Direct administration costs in 2023 were $43 million higher than in 2022 largely due to the impacts of inflation, higher costs as
a result of digital initiatives, and the restart at McArthur River/Key Lake.
We recorded $60 million in stock-based compensation expenses in 2023, $35 million higher compared to 2022 due to the
increase in our share price from the comparative period. See note 25 to the financial statements.
Administration outlook for 2024
We expect direct administration costs to be between $190 million to $200 million.
EXPLORATION AND RESEARCH & DEVELOPMENT
Our 2023 exploration activities were focused primarily on Canada. Our spending increased from $11 million in 2022 to $18
million in 2023 and reflects higher planned expenditures.
We also had research and development expenditures in 2023 of $21 million compared to $12 million in 2022. These expenses
are related to our investment in Global Laser Enrichment LLC (GLE). See Global Laser Enrichment on page 99.
Exploration and research & development outlook for 2024
We expect exploration expenses to be about $20 million in 2024. The focus for 2024 will be on our core projects in
Saskatchewan. We expect research and development expenses to be about $37 million in 2024, primarily related to our
investment in GLE. See Global Laser Enrichment on page 99.
MANAGEMENT’S DISCUSSION AND ANALYSIS 45
FINANCE COSTS
Finance costs were $116 million, an increase from $86 million in 2022 due to interest and standby fees on the facilities put in
place to finance the acquisition of Westinghouse as well as higher costs related to the unwinding of the discount on our
reclamation provisions. See note 20 to the financial statements.
FINANCE INCOME
Finance income was $112 million compared to $37 million in 2022 mainly due to higher interest rates and a higher short-term
investments balance throughout 2023 due to the proceeds from the October 2022 share issuance that were used to partially
finance the Westinghouse acquisition.
GAINS AND LOSSES ON DERIVATIVES
In 2023, we recorded $38 million in gains on our derivatives compared to $73 million in losses in 2022. The gains reflect a
stronger Canadian dollar compared to the US dollar in 2023 compared to 2022. See Foreign exchange on page 49 and note
27 to the financial statements.
INCOME TAXES
We recorded an income tax expense of $126 million in 2023 compared to a recovery of $4 million in 2022 primarily as a result
of higher earnings in Canada. Equity-accounted investees are included in both Canadian and foreign earnings net of tax paid
in the jurisdictions in which they operate. Foreign earnings include losses in some jurisdictions for which no future tax benefit
has been recognized.
In 2023, we recorded earnings of $562 million in Canada compared to earnings of $100 million in 2022, while in foreign
jurisdictions, we recorded a loss of $75 million compared to a loss of $15 million in 2022.
($ MILLIONS)
Net earnings (loss) before income taxes
Canada
Foreign
Total net earnings before income taxes
Income tax expense (recovery)
Canada
Foreign
Total income tax expense (recovery)
Effective tax rate
TRANSFER PRICING DISPUTE
Background
2023
562
(75)
487
131
(5)
126
26%
2022
100
(15)
85
(8)
4
(4)
(5)%
Since 2008, Canada Revenue Agency (CRA) has disputed our marketing and trading structure and the related transfer pricing
methodology we used for certain intercompany uranium sale and purchase agreements.
For the years 2003 to 2014, CRA shifted Cameco Europe Limited’s income (as recalculated by CRA) back to Canada and
applied statutory tax rates, interest and instalment penalties, and, from 2007 to 2011, transfer pricing penalties. In addition, for
2014 to 2017, CRA has advanced an alternate reassessing position, see Reassessments, remittances and next steps below
for more information.
In September 2018, the Tax Court of Canada (Tax Court) ruled that our marketing and trading structure involving foreign
subsidiaries, as well as the related transfer pricing methodology used for certain intercompany uranium sales and purchasing
agreements, were in full compliance with Canadian law for the tax years in question (2003, 2005 and 2006). On June 26,
2020, the Federal Court of Appeal (Court of Appeal) upheld the Tax Court’s decision.
46 CAMECO CORPORATION
On February 18, 2021, the Supreme Court of Canada (Supreme Court) dismissed CRA’s application for leave to appeal the
June 26, 2020 decision of the Court of Appeal. The dismissal means that the dispute for the 2003, 2005 and 2006 tax years is
fully and finally resolved in our favour. Although not technically binding, there is nothing in the reasoning of the lower court
decisions that should result in a different outcome for the 2007 through 2014 tax years, which were reassessed on the same
basis.
Refund and cost award
The Minister of National Revenue issued new reassessments for the 2003 through 2006 tax years in accordance with the
decision and in July 2021, refunded the tax paid for those years. In October 2023, pursuant to a cost award from the courts,
we received a payment of approximately $12 million for disbursements which is in addition to the $10 million we received from
CRA in April 2021 as reimbursement for legal fees.
Reassessments, remittances and next steps
The Canadian income tax rules include provisions that generally require larger companies like us to remit or otherwise secure
50% of the cash tax plus related interest and penalties at the time of reassessment. Following the Supreme Court’s dismissal
of CRA’s application for leave to appeal, we wrote to CRA requesting reversal of CRA’s transfer pricing adjustments for 2007
through 2013 and the return of the $780 million in cash and letters of credit we paid or provided for those years. Given the
strength of the court decisions received, our request was made on the basis that the Tax Court would reject any attempt by
CRA to defend its reassessments for the 2007 through 2013 tax years applying the same or similar positions already denied
for previous years.
In March 2023, CRA issued revised reassessments for the 2007 through 2013 tax years, which resulted in a refund of $297
million of the $780 million in cash and letters of credit held by CRA at the time. The refund consisted of cash in the amount of
$86 million and letters of credit in the amount of $211 million, which were returned in the second quarter. CRA continues to
hold $483 million ($209 million in cash and $274 million in letters of credit) that we have remitted or secured to date.
The series of court decisions that were completely and unequivocally in our favour for the 2003, 2005 and 2006 tax years,
determined that the income earned by our foreign subsidiary from the sale of non-Canadian produced uranium was not taxable
in Canada. In accordance with these decisions, CRA issued reassessments reducing the proposed transfer pricing adjustment
from $5.1 billion to $3.3 billion, resulting in a reduction of $1.8 billion in income taxable in Canada compared to the previous
reassessments issued to us by CRA for the 2007 through 2013 tax years.
The remaining transfer pricing adjustment of $3.3 billion for the 2007 to 2013 tax years relates to the sale of Canadian-
produced uranium by our foreign subsidiary. We maintain that the clear and decisive court decisions described above apply,
and that CRA should fully reverse the remaining transfer pricing adjustments for these years and return all cash and security
being held.
In October 2021, due to a lack of significant progress on our points of contention, we filed a notice of appeal with the Tax Court
for the years 2007 through 2013. We have asked the Tax Court to order the complete reversal of CRA’s transfer pricing
adjustment for those years and the return of all cash and letters of credit being held, with costs.
In 2020, CRA advanced an alternate reassessing position for the 2014 tax year in the event the basis for its original
reassessment, noted above, is unsuccessful. Subsequent to this, we received a reassessment for the 2015 and 2016 tax
years and in late 2023, we received a reassessment for the 2017 tax year, all reflecting this alternative reassessing position.
CRA did not require additional security for the tax debts they considered owing for 2014 through 2016 but do require additional
letters of credit related to the tax debts they considered owing for 2017 as discussed above, which we expect will be about $70
million.
The new basis of reassessment is inconsistent with the methodology CRA has pursued for prior years and we are disputing it
separately. Our view is that this alternate methodology will not result in a materially different outcome from our 2014 to 2017
filing positions. On October 12, 2022, we filed an appeal with the Tax Court for the years 2014 and 2015, and in March 2023,
filed a notice of objection for 2016. We plan to file a notice of objection for 2017.
MANAGEMENT’S DISCUSSION AND ANALYSIS 47
We will not be in a position to determine the definitive outcome of the dispute for any tax year other than 2003 through 2006
until such time as all reassessments have been issued advancing CRA’s arguments and final resolution is reached for that tax
year. CRA may also advance alternative reassessment methodologies for years other than 2003 through 2006, such as the
alternative reassessing position advanced for 2014 through 2017.
Caution about forward-looking information relating to our CRA tax dispute
This discussion of our expectations relating to our tax dispute with CRA and future tax reassessments by CRA is forward-looking information
that is based upon the assumptions and subject to the material risks discussed under the heading Caution about forward-looking information
beginning on page 2 and also on the more specific assumptions and risks listed below. Actual outcomes may vary significantly.
Assumptions
•
•
the courts will reach consistent decisions for subsequent tax
years that are based on similar positions and arguments
CRA will not successfully advance different positions and
arguments that may lead to a different outcome for other tax
years
Material risks that could cause actual results to differ materially
•
the possibility the courts may accept the same, similar or
different positions and arguments advanced by CRA to reach
decisions that are adverse to us for other tax years
the possibility that we will not be successful in eliminating all
double taxation
the possibility that CRA does not agree that the court
decisions for the years that have been resolved in Cameco’s
favour should apply to subsequent tax years
the possibility CRA will not return all or substantially all of the
cash and security that has been paid or otherwise secured
by Cameco in a timely manner, or at all
the possibility of a materially different outcome in disputes for
other tax years
•
•
•
•
Tax outlook for 2024
Our consolidated tax rate is a blend of the statutory rates applicable to taxable income earned or tax losses incurred in
Canada and in our foreign subsidiaries. Since 2017, our global marketing organization has been mainly consolidated in
Canada in order to achieve efficiencies, resulting in more income earned in Canada. In addition, equity-accounted investees
are included in Canadian and foreign earnings net of tax paid in the jurisdiction in which they operate. We continue to expect
our consolidated tax rate will trend toward the Canadian statutory rate in the longer term.
The actual effective tax rate will vary from year-to-year, primarily due to the actual distribution of earnings among jurisdictions
and differences between accounting earnings and income for tax purposes. In addition, the Organization for Economic Co-
operation and Development has proposed the introduction of rules that would impose a global minimum tax rate of 15%
beginning in 2024. Switzerland, Luxembourg, and Germany have all enacted or substantively enacted these rules.
48 CAMECO CORPORATION
FOREIGN EXCHANGE
The exchange rate between the Canadian dollar and US dollar affects the financial results of our uranium and fuel services
segments.
We sell the majority of our uranium and fuel services products under long-term sales contracts, which are routinely
denominated in US dollars. While our product purchases are denominated in US dollars, our production costs are largely
denominated in Canadian dollars. To provide cash flow predictability, we hedge a portion of our net US/Cdn exposure (e.g.
total US dollar sales less US dollar expenditures and product purchases) to manage shorter term exchange rate volatility. Our
results are therefore affected by the movements in the exchange rate on our hedge portfolio, and on the unhedged portion of
our net exposure.
Our risk management policy is based on a 60-month period and permits us to hedge 35% to 100% of our expected net
exposure in the first 12-month period. Our normal practice is to layer in hedge contracts over a three- to four-year period with
the hedge percentage being highest in the first 12 months and decreasing hedge percentages in subsequent years. The
portion of our net exposure that remains unhedged is subject to prevailing market exchange rates for the period. Therefore,
our results are affected by the movements in the exchange rate on our hedge portfolio (explained below), and on the
unhedged portion of our net exposure. A weakening Canadian dollar would have a positive effect on the unhedged exposure,
and a strengthening Canadian dollar would have a negative effect.
Impact of hedging on IFRS earnings
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.
Impact of hedging on ANE
We designate contracts for use in particular periods, based on our expected net exposure in that period. Hedge contracts are
layered in over time based on this expected net exposure. The result is that our current hedge portfolio is made up of a
number of contracts which are currently designated to net exposures we expect in 2024 and future years and we will recognize
the gains or losses in ANE in those periods.
For the purposes of ANE, gains and losses on derivatives are reported based on the difference between the effective hedge
rate of the contracts designated for use in the particular period and the exchange rate at the time of settlement. This results in
an adjustment to current period IFRS earnings to effectively remove reported gains or losses on derivatives that arise from
contracts put in place for use in future periods. The effective hedge rate will lag the market in periods of rapid currency
movement. See Non-IFRS measures on page 41.
The table below provides a summary of our hedge portfolio at December 31, 2023. You can use this information to estimate
the expected gains or losses on derivatives for 2024 on an ANE basis. Additionally, if we add contracts to the portfolio that are
designated for use in 2024 or if there are changes in the US/Cdn exchange rates in the year, those expected gains or losses
could change.
MANAGEMENT’S DISCUSSION AND ANALYSIS 49
Hedge portfolio summary
DECEMBER 31, 2023
($ MILLIONS)
US dollar forward contracts
Average contract rate 1
US dollar option contracts
Average contract rate range1
Total US dollar hedge contracts
($ millions)
(US/Cdn dollar)
($ millions)
(US/Cdn dollar)
($ millions)
2024
690
1.32
10
1.20 to 1.24
AFTER
2024
870
1.34
-
-
700
870
Average hedge rate
Hedge ratio2
1 The average contract rate is the weighted average of the rates stipulated in the outstanding contracts.
2 Hedge ratio is calculated by dividing the amount (in foreign currency) of outstanding derivative contracts by estimated future net exposures.
(US/Cdn dollar)
52%
1.32
19%
1.34
TOTAL
1,560
1.33
10
1.20 to 1.24
1,570
1.33
22%
At December 31, 2023:
• The value of the US dollar relative to the Canadian dollar was $1.00 (US) for $1.32 (Cdn), down from $1.00 (US) for $1.36
(Cdn) at December 31, 2022. The exchange rate averaged $1.00 (US) for $1.35 (Cdn) over the year.
• The mark-to-market position on all foreign exchange contracts was a $12 million gain compared to a $48 million loss at
December 31, 2022. The mark-to-market position is a component of gain on derivatives as shown on the statement of
earnings and calculated in accordance with IFRS.
We manage counterparty risk associated with hedging by dealing with highly rated counterparties and limiting our exposure. At
December 31, 2023, all of our hedging counterparties had a Standard & Poor’s (S&P) credit rating of A or better.
For information on the impact of foreign exchange on our intercompany balances, see note 27 to the financial statements.
50 CAMECO CORPORATION
Outlook for 2024
Our outlook for 2024 reflects the continued transition of our cost structure back to a tier-one run rate, as we plan our
production to satisfy the growing long-term commitments under our contract portfolio. With our plan to produce 18 million
pounds (100% basis) at each of Cigar Lake and McArthur River/Key Lake, and to produce 12,000 tonnes UF6 at our Port Hope
conversion facility, we expect strong financial performance, including cash flow generation.
Our financial performance and the amount of cash generated will be dependent on sourcing the material required to meet our
deliveries as planned, including achieving our production plans. Therefore, our cash balances may fluctuate throughout the
year.
As in prior years, we will incur care and maintenance costs for the ongoing curtailment of our tier-two assets, which are
expected to be between $50 million and $60 million.
2023 outlook compared to actual
Our actual results were largely in-line with the outlook provided in our third quarter MD&A. In 2022 we announced the restart of
McArthur River/Key Lake. Throughout 2023, the operations continued to ramp up production. We set a production target of
20.3 million pounds (our share) at the beginning of 2023. In September, we revised this to up to 18.7 million pounds (our
share), and we achieved 17.6 million pounds (our share), consisting of 9.4 million pounds (our share) of production at
McArthur River/Key Lake and 8.2 million pounds of production (our share) at Cigar Lake, both slightly below our forecast. See
Uranium – Tier-one production on page 73 for more information.
At the end of the third quarter, average realized price was expected to be $65.50 per pound. This was based on a uranium
spot price of $70.00 (US) per pound (the UxC spot price as of September 25, 2023) and a long-term price indicator of $61.00
(US) per pound (the UxC long-term indicator on September 25, 2023). The spot price averaged $82.21 (US) per pound during
the fourth quarter, and as a result, the actual average realized price was $67.31 per pound, resulting in revenue slightly above
the forecasted range for the uranium segment.
See 2023 Financial results by segment on page 61 for details.
2024 Financial outlook
CONSOLIDATED
URANIUM
Production (owned and operated properties)
Market purchases
Committed purchases (including Inkai purchase
volumes)
Sales/delivery volume
Revenue
Average realized price
Average unit cost of sales (including D&A)
FUEL SERVICES WESTINGHOUSE
13.5 to 14.5 million
kgU
-
-
-
22.4 million lbs
up to 2 million lbs
9 million lbs
-
-
-
-
32 to 34 million lbs 12 to 13 million kgU
$2,850 to 3,000
million
$2,410 to 2,530
million
$430-460 million
-
-
$74.70/lb
-
$57.00-60.00/lb1
$24.50-25.50/kgU2
Direct administration costs
$190-200 million
-
Exploration costs
Capital expenditures
-
$20 million
$215-250 million
-
-
-
-
Adjusted EBITDA (non-IFRS measure see page
41)
1 Uranium average unit cost of sales is calculated as the cash and non-cash costs of the product sold, royalties, care and maintenance and selling costs, divided
$445-510 million
-
-
-
by the volume of uranium concentrates sold.
2 Fuel services average unit cost of sales is calculated as the cash and non-cash costs of the product sold, transportation and weighing and sampling costs, as
well as care and maintenance costs, divided by the volume of products sold.
MANAGEMENT’S DISCUSSION AND ANALYSIS 51
-
-
-
-
-
-
-
-
-
We do not provide an outlook for the items in the table that are marked with a dash.
The following assumptions were used to prepare the outlook in the table above:
• Production – we achieve 22.4 million pounds of production (our share) in our uranium segment. If we do not achieve 22.4
million pounds, the consolidated revenue outlook and outlook for the uranium segment could vary.
• Market purchases – reflect the market purchases we plan to make in 2024. Market purchases may vary if planned
production varies. In addition, if we decide to increase our working inventory from current levels our market purchases could
be higher. Our market purchases could also be lower if, instead of making market purchases, we choose to source the
required volumes by temporarily reducing inventory levels, by pulling forward long-term purchase commitments, or by
drawing on loan arrangements we have in place.
• Committed purchases - are based on the 4.7 million pounds we currently have commitments to acquire under contract in
2024 and our JV Inkai purchases, which we have assumed will be equivalent to our 2023 purchase volume of 4.2 million
pounds. If Inkai production and/or deliveries vary, committed purchases may vary and we may have to rely on our other
sources of supply described above. We equity account for our minority ownership interest in JV Inkai. We record our share
of its production as a purchase. However, this does not reflect our share of the economic benefit. Our share of the
economic benefit is based on the difference between our purchase price and JV Inkai's lower production cost and is
reflected in the line item on our statement of earnings called, “share of earnings from equity-accounted investees". As a
result, increases in the spot price increase our cost of purchases from JV Inkai and also our “share of earnings from equity-
accounted investees”. The benefit is realized, through receipt of a cash dividend, when declared and paid by JV Inkai.
• Our 2024 outlook for sales/delivery volume does not include sales between our uranium and fuel services segments.
• Sales/delivery volume is based on the volumes we currently have commitments to deliver under contract in 2024.
• Uranium revenue and average realized price are based on a uranium spot price of $91.00 (US) per pound (the UxC spot
price on December 25, 2023), a long-term price indicator of $68.00 (US) per pound (the UxC long-term indicator on
December 25, 2023) and an exchange rate of $1.00 (US) for $1.30 (Cdn)
• Uranium average unit cost of sales (including D&A) is based on the expected unit cost of sales for produced material, the
planned market purchases and committed purchases noted in the outlook at an anticipated average purchase price of
about $100 (Cdn) per pound and includes care and maintenance costs of between $50 million and $60 million. We expect
overall unit cost of sales could vary if there are changes in production and market or committed purchase volumes or the
mix of supply sources used to meet our contract deliveries, uranium spot prices, and/or care and maintenance costs in
2023.
• The Adjusted EBITDA outlook for Westinghouse is based on the assumptions listed in the section titled, Westinghouse –
Future Prospects starting on page 94.
• Westinghouse and JV Inkai are accounted for using the equity method for our share. Under equity accounting
Westinghouse and JV Inkai capital expenditures are not presented within our consolidated financial statements and are
therefore not included in our outlook for capital expenditures.
The following table shows how changes in the exchange rate or uranium prices can impact our outlook.
IMPACT ON:
FOR 2024 ($ MILLIONS)
Uranium spot and long-term price1
Value of Canadian dollar vs US dollar
CHANGE
$5(US)/lb increase
$5(US)/lb decrease
One cent decrease in CAD
One cent increase in CAD
REVENUE
9
(22)
22
(22)
ANE
(21)
12
7
(7)
CASH FLOW
(49)
37
5
(5)
1 Assuming change both UxC spot price $91.00 (US) per pound on December 25, 2023 and the UxC long-term price indicator $68.00 (US) per pound on
December 25, 2023.
We have sensitivity to the uranium price through both our sales and purchase commitments. However, at the current price
levels many of the market-related sales contracts we are delivering into in 2024 are subject to ceiling prices and therefore are
generally less sensitive than our purchase commitments.
This sensitivity assumes that 2 million pounds of purchases are sourced from the market. To the extent that our market
purchases vary, our sensitivity of ANE and cash flow to changes in the spot and long-term prices may be impacted. In the
case of decreased market purchasing, our sensitivity would be reduced. In the case of increased market purchasing, our
sensitivity would be greater.
52 CAMECO CORPORATION
Price sensitivity analysis: uranium segment
As discussed under the Long-term contracting section on page 25, our average realized price is based on pricing terms
established in our portfolio of long-term contracts, which includes a mix of base-escalated and market-related contracts that
are layered in over time. Each confidential contract is bilaterally negotiated with the customer and delivery generally does not
begin until two years or more after signing.
• Base-escalated contracts will reflect market conditions and pricing at the time each contract was finalized, with escalation
factors applied based on when the material is delivered.
• Market-related contracts reference a pricing mechanism that may be based on either the spot price or the long-term price,
and that price is generally set a month or more prior to delivery, subject to specific terms unique to each contract, such as
floors and ceilings set relative to market pricing at time of negotiation and typically escalated to time of delivery.
As a result of these contracting dynamics, changes to our average realized price will generally lag changes in market prices in
both rising and falling price conditions. The magnitude and direction of the deviation can vary based on the degree of market
price volatility between the time the contract price is set, and the time the product is delivered.
To help understand how the pricing under our current portfolio of commitments is expected to react at various spot prices at
December 31, 2023, we have constructed the table that follows.
The table is based on the volumes and pricing terms under the long-term commitments in our contract portfolio that have been
finalized as at December 31, 2023. The table does not include volumes and pricing terms in contracts under negotiation or
those that have been accepted but are still subject to contract finalization. Based on the terms and volumes under contracts
that have been finalized, the table is designed to indicate how our average realized price would react under various spot price
assumptions at a point in time. In other words, the prices shown in the table would only be realized if the contract portfolio
remained exactly as it was on December 31, 2023, using the following assumptions:
• The uranium price remains fixed at a given spot level for each annual period shown
• Deliveries based on commitments under finalized contracts include best estimates of the expected deliveries and flexibility
under contract terms
• To reflect escalation mechanisms contained in existing contracts, the long-term US inflation rate target of 2% is used, for
modeling purposes only
It is important to note, that the table is not a forecast of prices we expect to receive. The prices we actually realize will be
different from the prices shown in the table. We intend to update this table each quarter in our MD&A to reflect deliveries made
and changes to our contract portfolio. As a result, we expect the table to change from quarter to quarter.
Expected realized uranium price sensitivity under various spot price assumptions at December 31, 2023
(rounded to the nearest $1.00)
SPOT PRICES
($US/lb U3O8)
2024
2025
2026
2027
2028
$20
38
38
41
41
44
$40
43
43
43
44
46
$60
52
54
56
57
57
$80
56
61
66
68
69
$100
$120
$140
58
64
69
71
72
59
65
70
73
74
59
66
71
74
76
As of December 31, 2023, we had commitments requiring delivery of an average of about 27 million pounds per year from
2024 through 2028, with commitment levels in 2024 and 2025 higher than the average and in 2026 through 2028 lower than
the average, reflecting our disciplined approach to contracting. As the market improves, we expect to continue to layer in
volumes capturing greater upside using market-related pricing mechanisms.
MANAGEMENT’S DISCUSSION AND ANALYSIS 53
Liquidity and capital resources
Our financial objective is to ensure we have the cash and debt capacity to fund our operating activities, investments and other
financial obligations in order to execute our strategy and to allow us to self-manage risk. We have a number of alternatives to
fund future capital requirements, including using our operating cash flow, drawing on our existing credit facilities, entering new
credit facilities, and raising additional capital through debt or equity financings. We regularly consider our financing options so
we can take advantage of favourable market conditions when they arise. In addition, with improving prices under our long-term
contract portfolio and the plan to return to our tier one cost structure, we expect to continue to see strong earnings and cash
flow generation in 2024.
To finance our 49% share of the purchase price of Westinghouse, on November 7, 2023, we used $1.5 billion (US) of cash
and drew the full amount of both $300 million (US) tranches of the term loan. See Westinghouse on page 94 for more
information. At the end of 2023, we had cash and cash equivalents of $567 million, while our total debt amounted to $1.8
billion. Our cash balances and investments are held in government securities or with banks that are party to our lending
facilities. We have a risk management policy that we follow to manage our exposure to banking counterparties, which limits the
amount and tenor of cash or investments based on counterparty credit rating. Our investment decisions prioritize security and
liquidity and consider concentration amongst our banking partners. The majority of our cash balances are with Schedule I
Canadian banks.
We have large, creditworthy customers that continue to need our nuclear fuel products and services even during weak
economic conditions, and we expect the contract portfolio we have built to continue to provide a solid revenue stream. In our
uranium segment, from 2024 through 2028, we have commitments to deliver an average of 27 million pounds per year, with
commitment levels in 2024 and 2025 higher than the average and in 2026 through 2028 lower than the average.
We expect the increased production from our tier one assets will continue to generate strong cash flows. It will allow us to
source more of our committed sales from lower-cost produced pounds. However, cash flow from operations for 2024 will be
dependent on our ability to source the material required to meet our deliveries as planned, including achieving our production
plans.
We expect our cash balances and operating cash flows to meet our capital requirements during 2024, based on the
assumption that we will refinance our $500 million debenture on or prior to its June 2024 maturity. With our expected strong
cash flow generation, and in conjunction with our capital allocation priorities, we plan to reduce total debt, with a focus on the
floating rate term loan. See below for more information on Investing Activities, Financing Activities and Off-Balance Sheet
Arrangements and our Capital Allocation section on page 30 for more information.
With the Supreme Court’s dismissal of CRA’s application for leave, the dispute of the 2003 through 2006 tax years are fully
and finally resolved in our favour. Furthermore, we are confident the courts would reject any attempt by CRA to utilize the
same position and arguments for tax years 2007 through 2014, or its alternate reassessing position for tax years 2014 through
2017 and believe CRA should return all cash and letters of credit (to date, $483 million for 2007 through 2014) being held.
However, timing of any further payments is uncertain, and there can be no assurance that the courts will take this position.
Additionally, we expect to provide approximately $70 million in letters of credit to secure the tax debts CRA considers owing for
2017. See page 46 for more information.
54 CAMECO CORPORATION
Financial condition
Cash position ($ millions)
(cash and cash equivalents and short-term investments)
Cash provided by operations ($ millions)
(net cash flow generated by our operating activities after changes in working capital)
Cash provided by operations/net debt1
(net debt is total consolidated debt, less cash position)
Net debt/total capitalization1
(total capitalization is net debt and equity)
Credit ratings
2023
567
688
57%
17%
2022
2282
305
-24%
-28%
The credit ratings assigned by external ratings agencies are important as they impact our ability to raise capital at competitive
pricing to support our business operations and execute our strategy.
Third-party ratings for our commercial paper and senior debt as of February 7, 2024:
SECURITY
Commercial paper
Senior unsecured debentures
Rating trend / rating outlook
1 On October 12, 2023, DBRS confirmed the rating and outlook.
2 On February 16, 2022, S&P revised Cameco’s rating outlook to stable and affirmed the rating.
DBRS
R-2 (middle)
BBB
Stable1
S&P
A-3
BBB-
Stable2
Although we are required to equity account for our investment in Westinghouse, we expect the ratings agencies will
proportionately consolidate it in their rating analysis. There was no change to our credit ratings upon close of the acquisition.
The rating agencies may revise or withdraw these ratings if they believe circumstances warrant. The rating trend/outlook
represents the rating agency’s assessment of the likelihood and direction that the rating could change in the future.
A change in our credit ratings could affect our cost of funding and our access to capital through the capital markets.
Liquidity
($ MILLIONS)
Cash and cash equivalents and short-term investments at beginning of year
Cash from operations
Investment activities
Additions to property, plant and equipment and acquisitions
Other investing activities
Financing activities
Change in debt
Interest paid
Issue of shares
Dividends
Other financing activities
Exchange rate on changes on foreign currency cash balances
Cash and cash equivalents and short-term investments at end of year
CASH FROM OPERATIONS
2023
2,282
688
(3,183)
-
817
(41)
28
(52)
(3)
31
567
2022
1,332
305
(245)
8
-
(39)
963
(52)
(3)
13
2,282
Cash from operations in 2023 was higher than in 2022 due to higher earnings, the $86 million cash refund from CRA, higher
interest received due to higher cash and investment balances, and lower working capital requirements. Purchases in 2023
were 11.3 million pounds compared to 18.3 million pounds in 2022. Not including working capital requirements, our operating
cash flows in the year were up $330 million. See note 24 to the financial statements.
MANAGEMENT’S DISCUSSION AND ANALYSIS 55
INVESTING ACTIVITIES
Cash used in investing includes acquisitions and capital spending.
Capital spending
We classify capital spending as sustaining, capacity replacement or growth. As a mining company, sustaining capital is the
money we spend to keep our facilities running in their present state, which would follow a gradually decreasing production
curve, while capacity replacement capital is spent to maintain current production levels at those operations. Growth capital is
money we invest to generate incremental production, and for business development. We have a capital allocation process to
approve our capital spend. See Capital Allocation beginning on page 30 for more information.
CAMECO’S SHARE ($ MILLIONS)
Sustaining capital
Uranium
Fuel services
Other
Total sustaining capital
Capacity replacement capital
Uranium
Fuel services
Total capacity replacement capital
Growth capital
Uranium
Fuel services
Total growth capital
Total sustaining, capital and growth
Outlook for investing activities
CAMECO’S SHARE ($ MILLIONS)
Total uranium & fuel services
Sustaining capital
Capacity replacement capital
Growth capital
2023 ACTUAL
2024 PLAN
49
39
6
94
56
-
56
1
3
4
154
80-85
60-65
5-10
145-160
50-60
-
50-60
15-20
5-10
20-30
215-250
2024 PLAN
2025 PLAN
2026 PLAN
215-250
145-160
50-60
20-30
200-250
120-140
30-50
50-60
200-250
110-130
30-50
60-70
Our 2024, 2025 and 2026 capital spending estimates assume that we produce 18 million pounds (100% basis) per year at
McArthur River/Key Lake and at Cigar Lake and produce 12,000 tonnes per year at our UF6 conversion facility. If our
production plans change, then our capital spending estimates may change.
Our estimate for capital spending in 2024 has been increased to between $215 million and $250 million (previously between
$150 million and $200 million) due to the capital required to meet production targets sustainably and reliably, commencement
of work on the Cigar Lake extension and the rescheduling of some expenditures planned in 2023 to 2024.
Our estimate for capital spending in 2025 has been increased to between $200 million and $250 million (previously between
$100 million and $150 million) due to the rescheduling of expenditures and work on the Cigar Lake extension.
Capital expenditures for JV Inkai are expected to be covered by JV Inkai cash flows in 2024 and Westinghouse capital
expenditures are expected to be covered by Westinghouse cash flows, both are included in our overall equity investment.
Major capital expenditures in 2024 include:
• Investments required to refresh aging infrastructure to help ensure reliable and sustainable production at all our operations
as planned
• Fuel services – continued work on our Vision in Motion project
• Cigar Lake – begin work on the Cigar Lake extension. See Cigar Lake starting on page 77.
56 CAMECO CORPORATION
This information regarding currently expected capital expenditures for future periods is forward-looking information and is
based upon the assumptions and subject to the material risks discussed on pages 4 to 6. Our actual capital expenditures for
future periods may be significantly different.
FINANCING ACTIVITIES
Cash from financing includes borrowing and repaying debt, and other financial transactions including paying dividends and
providing financial assurance.
Contractual obligations
DECEMBER 31 ($ MILLIONS)
Debt
Interest on debt
Provision for reclamation
Provision for waste disposal
Other liabilities
Capital commitments
Unconditional product purchase obligations
2025 AND
2027 AND
2024
500
85
36
3
18
61
341
2026
795
121
131
5
12
-
170
2028
400
22
105
2
5
-
18
2029 AND
BEYOND
100
71
1,084
-
77
-
-
TOTAL
1,795
299
1,356
10
112
61
529
Total
1 Debt and interest on debt is calculated assuming that all debt is held to maturity and as such does not incorporate the expected reduction in 2024 of the term
loan outstanding, or any other reductions, and the associated impact on interest payments.
1,234
1,332
1,044
552
4,162
We have contractual capital commitments of approximately $61 million at December 31, 2023. Certain of the contractual
commitments may contain cancellation clauses; however, we disclose the commitments based on management’s intent to fulfil
the contracts.
We have sufficient borrowing capacity with available unsecured lines of credit totalling about $2.7 billion, which include the
following:
• A $1.0 billion unsecured revolving credit facility that matures October 1, 2027. Each calendar year, upon mutual agreement,
the facility can be extended for an additional year. We may increase the revolving credit facility above $1.0 billion, by
increments of no less than $50 million, up to a total of $1.25 billion. The facility ranks equally with all of our other senior
debt. At December 31, 2023, there were no amounts outstanding under this facility.
• Financial assurance facilities with various financial institutions and insurers of approximately $1.7 billion. At December 31,
2023, we had approximately $1.4 billion outstanding on these facilities. We use these facilities mainly to provide financial
assurance for future decommissioning and reclamation of our operating sites, for our obligations relating to the CRA
dispute, and as overdraft protection.
In total we have $1.0 billion in senior unsecured debentures outstanding:
• $500 million bearing interest at 4.19% per year, maturing on June 24, 2024 (classified as current)
• $400 million bearing interest at 2.95% per year, maturing on October 21, 2027
• $100 million bearing interest at 5.09% per year, maturing on November 14, 2042
Additionally, we have approximately $800 million in term loan debt. We have drawn the full amount of the single advance $600
million (US) term loan that was put in place concurrently with the execution of the Westinghouse acquisition agreement, of
which $300 million (US) matures in November 2025 and $300 million (US) matures in November 2026. We have initiated a
partial repayment of $200 million (US) on the $300 million (US) tranche which matures in November 2026. The term loan
facility requires interest rate elections on each tranche, priced at the applicable rate of:
• Term Secured Overnight Financing Rate (SOFR) plus a credit spread adjustment of 0.10% and a margin that currently
ranges from 1.7% to 1.95%, or
• US base rate, plus a margin that currently ranges from 0.7% to 0.95%
The margins are dependent on the company’s credit rating and as such could change over the term if the credit rating
changes.
MANAGEMENT’S DISCUSSION AND ANALYSIS 57
The $280 million (US) bridge commitment that we also secured concurrently with the acquisition agreement was not required
to complete the transaction and was terminated.
Debt covenants
Our credit agreements include the following financial covenants:
• our funded debt to tangible net worth ratio must be 1:1 or less
• other customary covenants and events of default
Funded debt is total consolidated debt less non-recourse debt, $100 million in letters of credit, cash and cash equivalents and
short-term investments.
Not complying with any of these covenants could result in accelerated payment and termination of our credit agreements. At
December 31, 2023, we complied with all covenants, and we expect to continue to comply in 2024.
OFF-BALANCE SHEET ARRANGEMENTS
We had three kinds of off-balance sheet arrangements at the end of 2023:
• purchase commitments
• financial assurances
• other arrangements
Purchase commitments
We make purchases under long-term contracts where it is beneficial for us to do so and to support our long-term contract
portfolio. The following table is based on our purchase commitments in our uranium and fuel services segments at December
31, 20232, but does not include purchases of our share of Inkai production. These commitments include a mix of fixed-price
and market-related contracts. Actual payments will be different as a result of changes to our purchase commitments and, in
the case of contracts with market-related pricing, the market prices in effect at the time of delivery. We will update this table as
required in our MD&A to reflect material changes to our purchase commitments and changes in the prices used to estimate
our commitments under market-related contracts.
DECEMBER 31, 2023 ($ MILLIONS)
2024
2026
2028
BEYOND
TOTAL
2025 AND
2027 AND
2029 AND
Purchase commitments1,2
529
1 Denominated in US dollars and Japanese yen, converted from US dollars to Canadian dollars at the rate of 1.30 and from Japanese yen to Canadian dollars at
341
170
18
-
the rate of $0.01.
2 These amounts have been adjusted for any additional purchase commitments that we have entered into since December 31, 2023, but does not include
deliveries taken under contract since December 31, 2023.
We have commitments of $529 million (Cdn) for the following:
• approximately 8.4 million pounds of U3O8 equivalent from 2024 to 2028
• approximately 0.3 million kgU as UF6 in conversion services in 2024
• about 0.4 million Separative Work Units (SWU) of enrichment services to meet existing forward sales commitments under
agreements with a non-Western supplier
The suppliers do not have the right to terminate agreements other than pursuant to customary events of default provisions.
Financial assurances
We use standby letters of credit and surety bonds mainly to provide financial assurance for the decommissioning and
reclamation of our mining and conversion facilities.
Once we have permanently stopped mining and processing activities at an operating site, we are required to decommission
the site to the satisfaction of the regulators. We have developed preliminary decommissioning plans for our operating sites and
use them to estimate our decommissioning costs. Regulators review and accept our preliminary decommissioning plans on a
regular basis. As the site approaches or goes into decommissioning, regulators review the detailed decommissioning plans.
This can result in further regulatory process, as well as additional requirements, costs and financial assurances.
58 CAMECO CORPORATION
We have submitted updates to all Saskatchewan operations’ Preliminary Decommissioning Plan (PDP) and Preliminary
Decommissioning Cost Estimate (PDCE) documents in accordance with the five-year timeline specified in the regulations.
Upon acceptance of the PDP and PDCE documents by the Saskatchewan Ministry of Environment and Canadian Nuclear
Safety Commission (CNSC) staff, a formal Commission proceeding will be required for final approval of the PDP and PDCE by
the Commission. All Saskatchewan mining operations have received the necessary approvals for the current PDP and PDCE
and all required financial assurances are in place.
The PDP and PDCE for the Blind River refinery were revised in 2020. The CNSC approved the PDCE in February 2022 and
the financial assurance was updated in March 2022. The Cameco Fuel Manufacturing PDP and PDCE were revised in 2021,
and the revised PDCE was approved by the Commission in February 2022 and the financial assurance was updated in March
2022. The PDP and PDCE for the Port Hope conversion facility were revised in 2022 and submitted to CNSC staff in
September 2022 and are currently under review by CNSC staff. A decision on the PDCE is expected by the Commission in
April 2024, after which the financial assurance will be updated.
For Smith Ranch-Highland, the 2023 surety was approved and the credit instruments are being reviewed by the State of
Wyoming. For Crow Butte, the 2023 annual update was submitted to the federal Nuclear Regulatory Commission and
Nebraska Department of Environmental Quality in September 2023.
At the end of 2023, our estimate of total decommissioning and reclamation costs was $1.36 billion. This is the undiscounted
value of the obligation and is based on our current operations. We had accounting provisions of $1.05 billion at the end of
2023 (the present value of the $1.36 billion). Regulatory approval is required prior to beginning decommissioning. The
expected timing for these costs in based on each mine or fuel service facility’s expected operating life. Our required costs for
decommissioning and reclamation in each of the next five years are not expected to be material. However, we may choose to
undertake progressive reclamation activities, for example, as we do at our US assets and through our Vision in Motion project
at our Port Hope fuel services facilities.
We had a total of about $1.06 billion in financial assurances supporting our reclamation liabilities at the end of 2023. All of our
North American operations have financial assurances in place in connection with our preliminary plans for decommissioning of
the sites.
We are also providing letters of credit until the CRA dispute is resolved.
Our financial assurances renew automatically on an annual basis, unless otherwise advised by the issuing institution. At
December 31, 2023 our financial assurances totaled $1.4 billion, down from $1.6 billion at December 31, 2022, largely due to
the return of letters of credit in the amount of $211 million from CRA. See Transfer pricing dispute on page 46.
Other arrangements
We have arranged for standby product loan facilities with various counterparties. The arrangements allow us to borrow up to
2.0 million kgU of UF6 conversion services and 3.5 million pounds of U3O8 over the period 2020 to 2026 with repayment in kind
up to December 31, 2026. Under the loan facilities, standby fees of up to 1% are payable based on the market value of the
facilities and interest is payable on the market value of any amounts drawn at rates ranging from 0.5% to 2.0%. At December
31, 2023, we have 1.8 million kgU of UF6 conversion services and 2.8 million pounds of U3O8 drawn on the loans.
BALANCE SHEET
DECEMBER 31,
($ MILLIONS EXCEPT PER SHARE AMOUNTS)
Inventory
Total assets
Total non-current liabilities
Dividends per common share
2023
692
9,934
2,651
0.12
2022
665
8,633
2,236
0.12
CHANGE
2021
2022 TO 2023
410
7,518
2,318
0.08 -
4%
15%
19%
Total product inventories increased by 4% to $692 million this year due to the higher cost of purchased material. At December
31, 2023, our average cost for uranium was $49.62 per pound, up from $43.45 per pound at December 31, 2022. As of
December 31, 2023, we held an inventory of 10.3 million pounds of U3O8 equivalent (excluding broken ore).
MANAGEMENT’S DISCUSSION AND ANALYSIS 59
At the end of 2023, our total assets amounted to $9.9 billion, an increase of 15% compared to 2022, due mainly to the addition
of Westinghouse as an equity-accounted investee, partially offset by the decrease in cash and cash equivalents and short-
term investments used to fund the acquisition. In 2022, the total asset balance increased by $1.1 billion compared to 2021,
due mainly to an increase in investment balances resulting from the October 2022 issuance of common shares in preparation
for the closing of the Westinghouse transaction as well as higher inventories.
60 CAMECO CORPORATION
2023 financial results by segment
Uranium
HIGHLIGHTS
Production volume (million lbs)
Sales volume (million lbs)
Average spot price
Average long-term price
Average realized price
Average unit cost of sales (including D&A)
Revenue ($ millions)
Gross profit ($ millions)
Gross profit (%)
($US/lb)
($US/lb)
($US/lb)
($Cdn/lb)
($Cdn/lb)
2023
17.6
32.0
62.51
58.20
49.76
67.31
53.41
2,152
444
21
Net earnings attributable to equity holders
Adjusted EBITDA (non-IFRS, see page 41)1
1 Includes JV Inkai EBITDA of $235 million in 2023 and $135 million in 2022. See JV Inkai Non-IFRS measures on page 83.
606
835
2022
10.4
25.6
49.81
49.75
44.73
57.85
53.13
1,480
121
8
200
380
CHANGE
69%
25%
25%
17%
11%
16%
1%
45%
>100%
>100%
>100%
>100%
Production volumes in 2023 increased by 69% compared to 2022. See Uranium – production overview on page 72 for more
information.
Uranium revenues this year were up 45% compared to 2022 due to an increase in sales volumes of 25% and an increase of
16% in the Canadian dollar average realized price due to the impact of the increase in average US dollar spot price on market-
related contracts as well as the weakening of the Canadian dollar. For more information on the impact of spot price changes
on average realized price, see Price sensitivity analysis: uranium segment on page 53.
Total cost of sales (including D&A) increased by 26% ($1.71 billion compared to $1.36 billion in 2022) due primarily to an
increase in sales volume of 25% as well as a 1% increase in unit cost of sales. Unit cost of sales is slightly higher than in the
same period in 2022 due to the higher cost of purchased material in 2023 compared to the same period in 2022 mostly offset
by higher operational readiness costs at McArthur River/Key Lake operations in 2022.
The net effect was a $323 million increase in gross profit for the year.
The following table shows the costs of produced and purchased uranium incurred in the reporting periods (see Non-IFRS
measures starting on page 41). These costs do not include care and maintenance costs, operational readiness costs, selling
costs such as royalties, transportation and commissions, nor do they reflect the impact of opening inventories on our reported
cost of sales.
($CDN/LB)
Produced
Cash cost
Non-cash cost
Total production cost 1
Quantity produced (million lbs)1
Purchased
Cash cost1
Quantity purchased (million lbs)1
Totals
2023
2022
CHANGE
24.12
11.60
35.72
17.6
81.02
11.3
19.24
15.72
34.96
10.4
51.36
18.3
25%
(26)%
2%
69%
58%
(38)%
Produced and purchased costs
18%
Quantities produced and purchased (million lbs)
1%
1 Due to equity accounting for JV Inkai, our share of production is shown as a purchase at the time of delivery. JV Inkai purchases will fluctuate during the quarters
and timing of purchases will not match production. In 2023 we purchased 4.2 million pounds at a purchase price per pound of $92.72 ($67.69 (US)) (2022 – 3.3
million pounds at a purchase price per pound of $62.78 ($47.33 (US))).
53.43
28.9
45.42
28.7
MANAGEMENT’S DISCUSSION AND ANALYSIS 61
The average cash cost of production was 25% higher compared to 2022, due to lower production at Cigar Lake in 2023 as well
as well as inflationary pressures and the ongoing ramp up of production at McArthur/Key Lake.
In 2024, we expect the average unit cost of production at McArthur River/Key Lake to continue to be higher than the average
unit life of mine operating costs reflected in our most recent annual information form as we complete the ramp up of production
and continue work to realize the benefits from the operational improvements that have been made. The average unit
production cost at Cigar Lake is expected to trend down with higher planned production. The estimated average unit life of
mine operating costs reflected in our most recent annual information form are $16 per pound at McArthur River/Key Lake and
$18 per pound at Cigar Lake.
We equity account for our share of JV Inkai. As a result, we record our share of its production as a purchase, which under
Kazakhstan’s pricing regulations, requires we purchase the material at a price equal to the uranium spot price, less a 5%
discount. However, this does not reflect the economic benefit to Cameco. Our share of the economic benefit is based on the
difference between our purchase price and JV Inkai's lower production cost and is reflected in the line item on our statement of
earnings called, “share of earnings from equity-accounted investees." This benefit is realized through receipt of a cash
dividend, when declared and paid by JV Inkai. Excess cash, net of working capital requirements is distributed to the partners
as dividends. If there is a significant disruption to JV Inkai’s operations for any reason, it may not achieve its production plans,
there may be a delay in production, and it may experience increased costs to produce uranium.
Our purchases in 2023, totaled about $916 million, representing an average annual cost of $81.02 per pound, about $45.00
per pound higher than our total unit production cost for the year. Although purchased pounds are transacted in US dollars, we
account for the purchases in Canadian dollars. The average cost of purchased material in Canadian dollar terms increased by
58% this year compared to 2022. The average cash cost of purchased material was $81.02 (Cdn), or $59.42 (US) per pound,
compared to $51.36 (Cdn), or $39.45 (US) per pound in the same period in 2022.
ROYALTIES
We pay royalties on the sale of all uranium extracted at our mines in the province of Saskatchewan. Two types of royalties are
paid:
• Basic royalty: calculated as 5% of gross sales of uranium, less the Saskatchewan resource credit of 0.75%.
• Profit royalty: a 10% royalty is charged on profit up to and including $28.182/kg U3O8 ($12.78/lb) and a 15% royalty is
charged on profit in excess of $28.182/kg U3O8. Profit is determined as revenue less certain operating, exploration,
reclamation and capital costs. Both exploration and capital costs are deductible at the discretion of the producer.
As a resource corporation in Saskatchewan, we also pay a corporate resource surcharge of 3% of the value of resource sales.
Fuel services
(includes results for UF6, UO2, UO3 and fuel fabrication)
HIGHLIGHTS
Production volume (million kgU)
Sales volume (million kgU)
Average realized price
Average unit cost of sales (including D&A)
Revenue ($ millions)
Gross profit ($ millions)
Gross profit (%)
Net earnings attributable to equity holders
Adjusted EBITDA (non-IFRS, see page 41)
($Cdn/kgU)
($Cdn/kgU)
2023
13.3
12.0
35.61
25.23
426
124
29
129
164
2022
13.0
11.1
32.92
22.39
365
117
32
120
153
CHANGE
2%
8%
8%
13%
17%
6%
(9)%
8%
7%
Total revenue increased by 17% from 2022 due to an 8% increase in sales volume and an 8% increase in the realized price.
The increase in realized price was mainly the result of increased prices due to market conditions.
Total cost of products and services sold (including D&A) increased 21% ($301 million compared to $248 million in 2022), due
to the 8% increase in sales volume as well as a 13% increase in average unit cost of sales compared to 2022 due to higher
input costs.
62 CAMECO CORPORATION
The net effect was a $7 million increase in gross profit.
Westinghouse
OUR 2023 EARNINGS FROM WESTINGHOUSE
On November 7, 2023, we announced the closing of the acquisition of Westinghouse in a strategic partnership with Brookfield.
Cameco now owns a 49% interest and Brookfield owns the remaining 51%. Under the equity method of accounting, beginning
on November 7, 2023, we have included our share of Westinghouse’s earnings in our financial results.
($ MILLIONS)
Net loss1
Depreciation and amortization
Finance income
Finance costs
Income tax expense (recovery)
EBITDA2
Adjustments on cost of products and services sold3
Adjustments on marketing, administrative and general
Adjusted EBITDA2
Capital expenditures
Adjusted free cash flow2
Revenue
Adjusted EBITDA margin2
100%
(49)
124
(4)
61
(14)
118
55
34
207
87
120
1,063
19%
49%
(24)
61
(2)
30
(7)
58
27
16
101
42
59
521
19%
1 This table includes results for the period beginning on the date of acquisition until the end of 2023. Comparative figures are not available. See Westinghouse
Non-IFRS measures starting on page 95 for full year results for both 2023 and 2022 prepared in accordance with US GAAP.
2 Non-IFRS measures, see page 41
3 Net earnings for 2023 were impacted by purchase price accounting. Inventories acquired were assigned values based on the market price at the date of the
acquisition. As these quantities are sold, cost of products and services sold reflects these market values, regardless of Westinghouse’s historic costs.
MANAGEMENT’S DISCUSSION AND ANALYSIS 63
Fourth quarter financial results
Consolidated results
HIGHLIGHTS
($ MILLIONS EXCEPT WHERE INDICATED)
Revenue
Gross profit
Net earnings (loss) attributable to equity holders
$ per common share (basic)
$ per common share (diluted)
Adjusted net earnings (non-IFRS, see page 41)
$ per common share (adjusted and diluted)
Cash provided by operations
NET EARNINGS
THREE MONTHS ENDED
DECEMBER 31
2023
844
133
80
0.18
0.18
90
0.21
201
2022
524
65
(15)
(0.04)
(0.04)
36
0.09
77
CHANGE
61%
>100%
>100%
>100%
>100%
>100%
>100%
>100%
The following table shows what contributed to the change in net earnings and adjusted net earnings (non-IFRS measure, see
page 41) in the fourth quarter of 2023 compared to the same period in 2022.
($ MILLIONS)
IFRS
Adjusted
Net earnings (losses) - 2022
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), net of hedging benefits)
(15)
36
Uranium
Fuel services
Impact from sales volume changes
Higher realized prices ($US)
Foreign exchange impact on realized prices
Higher costs
change – uranium
Impact from sales volume changes
Higher realized prices ($Cdn)
Higher costs
change – fuel services
Other changes
Higher administration expenditures
Higher exploration expenditures
Change in reclamation provisions
Change in gains or losses on derivatives
Change in foreign exchange gains or losses
Change in earnings from equity-accounted investments
Lower finance income
Higher finance costs
Change in income tax recovery or expense
Other
Net earnings - 2023
ADJUSTED NET EARNINGS
10
122
13
(73)
72
4
8
(14)
(2)
(30)
(1)
41
36
2
39
(3)
(24)
(32)
(3)
80
10
122
13
(73)
72
4
8
(14)
(2)
(30)
(1)
(7)
(4)
2
59
(3)
(24)
(5)
(3)
90
We use adjusted net earnings, a non-IFRS measure, as a more meaningful way to compare our financial performance from
period to period. See page 41 for more information. The following table reconciles adjusted net earnings with our net earnings.
64 CAMECO CORPORATION
($ MILLIONS)
Net earnings (loss) attributable to equity holders
Adjustments
Adjustments on derivatives
Adjustments to earnings from equity-investees
Adjustments on other operating expense (income)
Income taxes on adjustments
Adjusted net earnings
ADMINISTRATION
($ MILLIONS)
Direct administration
Stock-based compensation
Total administration
THREE MONTHS ENDED
DECEMBER 31
2023
80
(59)
20
40
9
90
2022
(15)
(19)
-
88
(18)
36
THREE MONTHS ENDED
DECEMBER 31
2023
48
11
59
2022
37
(8)
29
CHANGE
30%
238%
103%
Direct administration costs were $48 million in the quarter, $11 million higher than the same period last year. We recorded $11
million in stock-based compensation expenses in the fourth quarter of 2023, $19 million higher compared to 2022 due to the
increase in our share price compared to the same period last year.
Quarterly trends
HIGHLIGHTS
($ MILLIONS EXCEPT PER SHARE AMOUNTS)
Revenue
Net earnings (loss) attributable to equity holders
$ per common share (basic)
$ per common share (diluted)
Adjusted net earnings (loss) (non-IFRS, see page 41)
$ per common share (adjusted and diluted)
Cash provided by (used in) operations (after working
capital changes)
Q4
844
80
0.18
0.18
90
0.21
Q3
575
148
0.34
0.34
137
0.32
Q2
482
14
0.03
0.03
(3)
(0.01)
2023
Q1
687
119
0.27
0.27
115
0.27
Q4
524
(15)
(0.04)
(0.04)
36
0.09
Q3
389
(20)
(0.05)
(0.05)
10
0.03
Q2
558
84
0.21
0.21
72
0.18
2022
Q1
398
40
0.10
0.10
17
0.04
201
185
87
215
77
(47)
102
172
Key things to note:
• The timing of customer requirements, which tends to vary from quarter to quarter, drives revenue in the uranium and fuel
services segments, meaning quarterly results are not necessarily a good indication of annual results due to the variability in
customer requirements.
• Net earnings do not trend directly with revenue due to unusual items and transactions that occur from time to time. We use
adjusted net earnings, a non-IFRS measure, as a more meaningful way to compare our results from period to period (see
page 41 for more information).
• Cash from operations tends to fluctuate as a result of the timing of deliveries and product purchases in our uranium and fuel
services segments.
MANAGEMENT’S DISCUSSION AND ANALYSIS 65
The table that follows presents the differences between net earnings and adjusted net earnings for the previous seven
quarters.
Q4
(15)
Q3
(20)
Q2
84
75
-
(24)
-
(21)
31
-
(19)
(23)
(1)
(19)
-
88
-
(18)
36
10
72
17
2022
Q1
40
(11)
-
(19)
-
7
HIGHLIGHTS
($ MILLIONS EXCEPT PER SHARE AMOUNTS)
Net earnings (loss) attributable to equity holders
Q4
80
Q3
148
Q2
14
Adjustments
Adjustments on derivatives
Adjustments to earnings from equity-investees
Adjustments on other operating expense (income)
Adjustment to other income
Income taxes on adjustments
(59)
20
40
-
9
41
-
(48)
-
(4)
(35)
-
8
-
10
2023
Q1
119
(6)
-
(2)
-
4
Adjusted net earnings (losses) (non-IFRS, see
page 41)
90
137
(3)
115
66 CAMECO CORPORATION
Fourth quarter financial results by segment
Uranium
HIGHLIGHTS
Production volume (million lbs)
Sales volume (million lbs)
Average spot price
Average long-term price
Average realized price
Average unit cost of sales (including D&A)
Revenue ($ millions)
Gross profit ($ millions)
Gross profit (%)
($US/lb)
($US/lb)
($US/lb)
($Cdn/lb)
($Cdn/lb)
THREE MONTHS ENDED
DECEMBER 31
2023
5.7
9.8
82.21
66.00
52.35
71.65
61.90
700
96
14
2022
3.7
6.9
49.94
51.67
43.05
57.87
54.37
397
24
6
CHANGE
54%
42%
65%
28%
22%
24%
14%
76%
>100%
>100%
Production volumes this quarter increased by 54% compared to the fourth quarter of 2022. See Uranium – production
overview on page 72 for more information.
Uranium revenues were up 76% due to a 42% increase in sales volume due to the timing of sales, which were in line with the
delivery pattern disclosed in our 2022 annual MD&A, and a 24% increase in the Canadian dollar average realized price. While
the average US dollar spot price for uranium increased by 65% compared to the same period in 2022, the Canadian dollar
average realized price increased by 24% due to the timing of market changes on our contract portfolio. For more information
on the impact of spot price changes on average realized price, see Price sensitivity analysis: uranium segment on page 53.
Total cost of sales (including D&A) increased by 62% ($605 million compared to $373 million in 2022). This was primarily the
result of the 42% increase in sales volume as well as an increase of 14% in the average unit cost of sales which was due to
the higher cost of purchased material.
The net effect was a $72 million increase in gross profit for the quarter.
The following table shows the costs of produced and purchased uranium incurred in the reporting periods (see Non-IFRS
measures starting on page 41). These costs do not include care and maintenance costs, operational readiness costs, selling
costs such as royalties, transportation and commissions, nor do they reflect the impact of opening inventories on our reported
cost of sales.
($/LB)
Produced
Cash cost
Non-cash cost
Total production cost 1
Quantity produced (million lbs)1
Purchased
Cash cost1
Quantity purchased (million lbs)1
Totals
Produced and purchased costs
Quantities produced and purchased (million lbs)
1 Due to equity accounting for JV Inkai, our share of production will be shown as a purchase at the time of delivery. JV Inkai purchases will fluctuate during the
quarters and timing of purchases will not match production. During the quarter we purchased 2.8 million pounds at a purchase price per pound of $105.74
($77.13 (US)) (Q4 2022 – 2.6 million pounds at a purchase price per pound of $61.27 ($45.60 (US))).
THREE MONTHS ENDED
DECEMBER 31
2023
2022
CHANGE
21.07
10.95
32.02
5.7
89.89
6.3
19.50
13.76
33.26
3.7
57.02
5.8
8%
(20)%
(4)%
54%
58%
9%
62.40
12.0
47.77
9.5
31%
26%
MANAGEMENT’S DISCUSSION AND ANALYSIS 67
The average cash cost of production for the fourth quarter was 8% higher compared to the same period in the prior year. Cash
cost was higher due to the effect of supply chain challenges and inflationary pressures.
Although purchased pounds are transacted in US dollars, we account for the purchases in Canadian dollars. In the fourth
quarter, the average cash cost of purchased material was $89.89 (Cdn) per pound, or $65.67 (US) per pound in US dollar
terms, compared to $57.02 (Cdn) per pound, or $42.18 (US) per pound in the fourth quarter of 2022.
Fuel services
(includes results for UF6, UO2, UO3 and fuel fabrication)
HIGHLIGHTS
Production volume (million kgU)
Sales volume (million kgU)
Average realized price
Average unit cost of sales (including D&A)
Revenue ($ millions)
Gross profit ($ millions)
Gross profit (%)
($Cdn/kgU)
($Cdn/kgU)
THREE MONTHS ENDED
DECEMBER 31
2023
3.7
4.2
32.19
22.69
134
40
30
2022
3.7
3.8
30.11
19.33
115
41
36
CHANGE
-
11%
7%
17%
17%
(2)%
(17)%
Total revenue increased by 17% due to an 11% increase in sales volumes and a 7% increase in average realized price. The
increase in average realized price was mainly the result of increased prices for UF6 due to market conditions.
Total cost of sales (including D&A) increased by 28% to $95 million compared to the fourth quarter of 2022 due to the 11%
increase in sales volumes and an increase of 17% in the average unit cost of sales. Unit cost of sales increased mainly as a
result of higher input costs.
The net effect was a $1 million decrease in gross profit.
68 CAMECO CORPORATION
Operations, projects and investments
This section of our MD&A is an overview of the mining, milling and processing facilities we operate or have an interest in, our
curtailed operations, our advanced uranium projects and our exploration activities, what we accomplished this year, our plans
for the future and how we manage risk. It also includes an overview of our investments in Westinghouse and GLE.
70 MANAGING THE RISKS
72 URANIUM – PRODUCTION OVERVIEW
72 ............... PRODUCTION OUTLOOK
73 URANIUM – TIER-ONE OPERATIONS
73 ............... MCARTHUR RIVER MINE / KEY LAKE MILL
77 ............... CIGAR LAKE
81 ............... INKAI
85 URANIUM – TIER-TWO OPERATIONS
85 ............... RABBIT LAKE
86 ............... US ISR
87 URANIUM – ADVANCED PROJECTS
87 ............... MILLENNIUM
87 ............... YEELIRRIE
87 ............... KINTYRE
89 URANIUM – EXPLORATION
91 FUEL SERVICES
91 ............... BLIND RIVER REFINERY
92 ............... PORT HOPE CONVERSION SERVICES
92 ............... CAMECO FUEL MANUFACTURING INC. (CFM)
94 WESTINGHOUSE ELECTRIC COMPANY
99 OTHER NUCLEAR FUEL CYCLE INVESTMENTS
99 ............... GLOBAL LASER ENRICHMENT (GLE)
MANAGEMENT’S DISCUSSION AND ANALYSIS 69
Managing the risks
The nature of our business means we face many kinds of potential risks and hazards – some that relate to the nuclear energy
industry in general, safety, health and environmental risks associated with any mining and chemical processing company and
others that apply to specific properties, operations, planned operations, Westinghouse or other fuel cycle investments. Our
uranium and fuel services and Westinghouse segments also face unique risks associated with radiation. These risks could
have a significant impact on our business, earnings, cash flows, financial condition, results of operations or prospects, which
may result in a significant decrease in the market price of our common shares.
Risks and hazards generally applicable to the mining, milling and processing facilities we operate, and advanced projects
include:
• catastrophic accidents resulting in large-scale releases
of hazardous chemicals, or a tailings facility failure
• increased workforce health and safety risks or
increased regulatory burdens resulting from a pandemic
or other causes
• fires
• blockades or other acts of social or political activism
• uncertain impact of changing regulations or policy
leading to higher annual operating costs, including
GHG pricing and regulations (e.g., carbon pricing, the
Canadian Clean Fuel Standard)
• natural phenomena, such as forest fires, floods and
earthquakes as well as shifts in temperature,
precipitation, and the impact of more frequent severe
weather conditions on our operations as a result of
climate change
• outbreak of communicable illness (such as a pandemic)
• unusual, unexpected or adverse mining or geological
conditions
• underground water inflows at our mining operations
• ground movement or cave-ins at our mining operations
• industrial safety accidents
• transportation incidents, which may involve radioactive
or other hazardous materials
• labour shortages, disputes or strikes
• availability of personnel with the necessary skills and
experience
• cost increases for labour, contracted or purchased
materials, supplies and services
• shortages of, or interruptions in the supply of, required
materials, supplies and equipment
• transportation and delivery disruptions
• interruptions in the supply of electricity, water, and other
utilities or infrastructure
• inability of our innovation initiatives to achieve the
expected cost saving and operational flexibility
objectives
• equipment failures
• cyberattacks
• joint venture disputes or litigation
• non-compliance with legal requirements, including
exceedances of applicable air or water limits
• subsurface contamination from current or legacy
operations
• inability to obtain and renew the licences and other
approvals needed to restart, operate, and to increase
production at our mines, mills, processing facilities, to
develop new mines, or for Westinghouse to operate its
fuel fabrication or other facilities or undertake its other
commercial activities
Risks and hazards generally applicable to Westinghouse and our ownership interest in Westinghouse include:
• failure to realize any or all of the anticipated benefits from the acquisition
• Westinghouse’s failure to generate sufficient cash flow to fund its approved annual operating budget or make quarterly
distributions to us and Brookfield
• Westinghouse’s failure to comply with nuclear licence and quality assurance requirements at its facilities
• Westinghouse’s loss of protections against liability for nuclear damage, including discontinuation of global nuclear liability
regimes and indemnities
• adverse public perception of nuclear energy
70 CAMECO CORPORATION
• adverse public reaction to an unforeseen nuclear incident resulting in a lessening of demand for nuclear generators
• threat of increased trade barriers adversely impacting Westinghouse’s business
• our inability to control Westinghouse
• liabilities at Westinghouse exceeding our estimates and the discovery of unknown or undisclosed liabilities
• default by Westinghouse under its credit facilities impacting adversely Westinghouse’s ability to fund its ongoing operations
• occupational health and safety issues arising at Westinghouse’s operations
• disputes between us and Brookfield regarding our strategic partnership
• Cameco defaulting under the governance agreement with Brookfield, including us losing some or all of our interest in
Westinghouse
We have a Risk Policy that is supported by our formal Risk Management Program.
Our Risk Management Program involves a broad, systematic approach to identifying, assessing, monitoring, reporting and
managing the significant risks we face in our business and operations, including consideration of ESG and climate-related
risks that could impact our four measures of success. For more information about our risk management program see the Risk
and Risk Management section in this MD&A, as well as our most recent ESG Report at cameco.com.
We have insurance to cover some of these risks and hazards, but not all of them, and not to the full amount of losses or
liabilities that could potentially arise.
In addition to considering the other information in this MD&A and the risks noted above, you should carefully consider the
material risks discussed starting on page 4, and the specific risks discussed under the update for each operation, advanced
project, Westinghouse, and GLE in this section. These risks, however, are not a complete list of the potential risks our
operations, advanced projects, or other investments face. There may be others we are not aware of or risks we feel are not
material today that could become material in the future.
We recommend you also review our most recent annual information form, which includes a discussion of other material risks
that could have an impact on our business.
MANAGEMENT’S DISCUSSION AND ANALYSIS 71
Uranium – production overview
Our share of production in our uranium segment in the fourth quarter was 5.7 million pounds, 54% higher compared to the
same period in 2022, while production for the year was 17.6 million pounds, 69% higher than in 2022. In 2022, there was no
production from McArthur River and Key Lake until the fourth quarter. Total production in 2023 was 1.1 million pounds below
the revised production plan we announced in September.
The Rabbit Lake operation remained in a safe and sustainable state of care and maintenance, and we are no longer
developing new wellfields at Crow Butte and Smith Ranch-Highland. See Uranium – Tier-one operations starting on page 73
and Uranium – Tier-two operations beginning on page 85 for more information.
Uranium production
CAMECO SHARE
(MILLION LBS)
Cigar Lake
McArthur River/Key Lake
THREE MONTHS ENDED
DECEMBER 31
2023
2.6
2022
2.9
YEAR ENDED
DECEMBER 31
2023
8.2
2022
9.6
3.1
5.7
0.8
3.7
9.4
17.6
0.8
10.4
2023 PLAN1
8.9
up to 9.8
up to 18.7
2024 PLAN
9.8
12.6
22.4
Total
1 During the third quarter, we updated our Cigar Lake production forecast to up to 16.3 million pounds (100% basis) in 2023 (previously 18 million pounds).
2 During the third quarter, we updated our McArthur River/Key Lake production forecast to 14 million pounds (100% basis) in 2023 (previously 15 million pounds).
PRODUCTION OUTLOOK
We remain focused on taking advantage of the long-term growth we see coming in our industry, while maintaining the ability to
respond to market conditions as they evolve. Our strategy includes a focus, in our uranium segment, on protecting and
extending the value of our contract portfolio, on aligning our production decisions with our contract portfolio and market
opportunities in order to increase long-term value, and to do that with an emphasis on safety, people and the environment.
In 2024, we are planning production of 22.4 million pounds (our share).
Due to equity accounting, our share of production from Inkai is shown as a purchase. Based on KAP’s announcement on
February 1, 2024, production in Kazakhstan is expected to remain 20% below the level stipulated in subsoil use agreements,
similar to in 2023, primarily due to the sulfuric acid shortage in the country. We are still in discussions with JV Inkai and KAP to
determine how this may impact production at Inkai in 2024 and thereafter and therefore our corresponding purchase
obligation. We expect to purchase the remaining share of our 2023 production entitlement, which has arrived at a Canadian
port.
72 CAMECO CORPORATION
Uranium – Tier-one operations
McArthur River mine / Key Lake mill
2023 Production (our share)
9.4M lbs
2024 Production Outlook (our share)
12.6M lbs
Estimated Reserves (our share)
265.6M lbs
Estimated Mine Life
2044
McArthur River is the world’s largest, high-grade uranium mine, and Key Lake is the world’s largest uranium mill. We are the
operator of both the mine and mill.
McArthur River is considered a material uranium property for us. There is a technical report dated March 29, 2019 (effective
December 31, 2018) that can be downloaded from SEDAR+ (www.sedarplus.com) or from EDGAR (sec.gov).
Location
Ownership
Mine type
Mining methods
End product
Certification
Estimated reserves
Estimated resources
Licensed capacity
Licence term
Saskatchewan, Canada
McArthur River – 69.805%
Key Lake – 83.33%
Underground
Blasthole stoping and raiseboring
Uranium concentrate
ISO 14001 certified
265.6 million pounds (proven and probable), average grade U3O8: 6.72%
4.9 million pounds (measured and indicated), average grade U3O8: 2.28%
1.7 million pounds (inferred), average grade U3O8: 2.90%
Mine and mill: 25.0 million pounds per year
Through October 2043
Total packaged production:
2000 to 2023 340.0 million pounds (McArthur River/Key Lake) (100% basis)
1983 to 2002 209.8 million pounds (Key Lake) (100% basis)
2023 production
2024 production outlook
9.4 million pounds (13.5 million pounds on 100% basis)
12.6 million pounds (18.0 million pounds on 100% basis)
Estimated decommissioning cost
$50.6 million – McArthur River (100% basis)
All values shown, including reserves and resources, represent our share only, unless indicated.
$276.7 million – Key Lake (100% basis)
MANAGEMENT’S DISCUSSION AND ANALYSIS 73
BACKGROUND
Mine description
The mineral reserves at McArthur River are contained within seven zones: zones 1, 2, 3, 4, 4 South, A and B. There are
currently two active mining zones (zone 2 and 4), one with development significantly advanced (zone 1), and one in the early
stages of development (zone 4 South).
Zone 2 has been actively mined since production began in 1999. The ore zone was initially divided into three freeze panels. As
the freeze wall was expanded, the inner connecting freeze walls were decommissioned to recover the inaccessible uranium
around the active freeze pipes. Mining of zone 2 is almost complete. About 3.5 million pounds of mineral reserves remain, and
we expect to recover them using a combination of raisebore and blasthole stope mining.
Zone 4 has been actively mined since 2010. The zone was divided into four freeze panels, and like in zone 2, as the freeze
wall was expanded, the inner connecting freeze walls were decommissioned. Zone 4 has 103.9 million pounds of mineral
reserves secured behind freeze walls, and it will be the main source of production for the next several years. Raisebore and
blasthole stope mining will be used to recover the mineral reserves.
Zone 1 is the next planned mine area to be brought into production. Freeze hole drilling was completed in 2023 and brine
distribution construction work has resumed. A small section of the planned freeze wall is currently actively freezing. Once brine
distribution construction is complete and an active freeze wall has been established, drill and extraction chamber development
will need to be completed prior to the start of production. Once complete, an additional 48.0 million pounds of mineral reserves
will be secured behind freeze walls. Blasthole stope mining is currently planned as the main extraction method in zone 1.
Zone 4 South is in the early development stages. Access development for the freeze drifts has resumed on the lower levels
and freeze drilling began at the end of 2023 on the upper freeze drifts which were established prior to the 2018 shutdown.
We have successfully extracted over 340 million pounds (100% basis) since we began mining in 1999.
Mining methods and techniques
All the mineralized areas discovered to date at McArthur River are in, or partially in, water-bearing ground with significant
pressure at mining depths.
There are three approved mining methods at McArthur River: raisebore mining, blasthole stope mining and boxhole mining.
However, only raisebore and blasthole stope mining remain in use. Before we begin mining an area, we freeze the ground
around it by circulating chilled brine through freeze holes to form an impermeable frozen barrier.
Blasthole stope mining
Blasthole stope mining began in 2011 and is the main extraction method planned for future production. It is planned in areas
where blastholes can be accurately drilled and small stable stopes excavated without jeopardizing the freeze wall integrity.
The use of this method has allowed the site to improve operating costs by increasing overall extraction efficiency by reducing
underground development, concrete consumption, mineralized waste generation and improving extraction cycle time.
Raisebore mining
Raisebore mining is an innovative non-entry approach that we adapted to meet the unique challenges at McArthur River, and it
has been used since mining began in 1999. This method is favourable for mining the weaker rock mass areas of the deposit
and is suitable for massive high-grade zones where there is access both above and below the ore zone.
Initial processing
McArthur River produces two product streams, high grade slurry and low-grade mineralized rock. Both product streams are
shipped to Key Lake mill to produce uranium ore concentrate.
The high-grade material is ground and thickened into a slurry underground and then pumped to surface. The material is then
thickened and blended for grade control and shipped to Key Lake in slurry totes using haul trucks.
The low-grade mineralized material is hoisted to surface and shipped as a dry product to Key Lake using covered haul trucks.
Once at Key Lake, the material is ground, thickened and blended with the high-grade slurry to a nominal 5% U3O8 mill feed
grade. It is then processed into uranium ore concentrate and packaged in drums for further processing offsite.
74 CAMECO CORPORATION
Tailings capacity
Based on the current licence conditions, tailings capacity at Key Lake is sufficient to mill all the known McArthur River mineral
reserves and resources, should they be converted to reserves, with additional capacity to toll mill ore from other regional
deposits.
Licensed annual production capacity
The McArthur River mine and Key Lake mill are both licensed to produce up to 25 million pounds (100% basis) per year. To
achieve annual production at the licensed capacity, additional investment will be required.
2023 UPDATE
Production
The McArthur River and Key Lake operation was in a state of safe care and maintenance from 2018 through 2021 due to weak
market conditions. The operation began transitioning back to production through the first three quarters of 2022, with no
packaged pounds until the fourth quarter of 2022. Production ramp-up activities continued in 2023.
Total packaged production from McArthur River and Key Lake in 2023 was 13.5 million pounds (9.4 million pounds our share),
slightly less than the announced September 3, 2023, forecast of 14 million pounds (9.8 million pounds our share).
The McArthur River mine continued to operate well and achieved its planned mine production for the year. Any ore from
McArthur River that was not immediately processed at Key Lake is stored in inventory for future milling. All required mine
activities have now resumed at McArthur and the site is now considered to be back in normal mine operations.
At the Key Lake mill, the extended period of time the mill was on care and maintenance, the operational changes made, aging
infrastructure, the availability of personnel with the necessary skills and experience, and the impact of supply chain challenges
on the availability of materials and reagents combined to impact production in 2023.
Licensing
In October 2023, the Canadian Nuclear Safety Commission (CNSC) granted 20-year renewals to the licences for both
McArthur River and Key Lake. The renewed licences are expected to allow McArthur River and Key Lake to operate until
October 2043.
Exploration
Underground exploration at McArthur River resumed in June 2023 with the resumption of infill drilling of zone B. Infill drilling of
zone B will continue in 2024.
PLANNING FOR THE FUTURE
Production
We plan to produce 18 million pounds (100% basis) in 2024. Over the last three months, the mill has been running at a rate
that, when annualized, would allow this operation to achieve its 2024 planned production. In 2024, we plan to undertake an
evaluation of the work and investment necessary to expand production up to its annual licensed capacity, which we expect will
allow us to take advantage of this opportunity when the time is right. We will continue to plan our production to align with our
contract portfolio and market opportunities, demonstrating that we continue to be a responsible supplier of uranium fuel.
MANAGING OUR RISKS
The McArthur River deposit presents unique challenges that are not typical of traditional hard or soft rock mines. These
challenges are the result of mining in or near high pressure ground water in challenging ground conditions with significant
radiation concerns due to the high-grade uranium. We take significant steps and precautions to reduce the risks. Mine designs
and mining methods are selected based on their ability to mitigate hydrological, radiological and geotechnical risks.
Operational experience gained since the start of production has resulted in a significant reduction in risk. However, there is no
guarantee that our efforts to mitigate risk will be successful.
In addition to the risks listed on pages 70 to 71, in 2024 we are focused on the management of the following risks:
MANAGEMENT’S DISCUSSION AND ANALYSIS 75
Mine and mill ramp up
With the extended period of time the assets were on care and maintenance, the operational changes made, aging
infrastructure, and commissioning issues that we have worked through at the mill, which caused delays to the production
schedule in 2022 and 2023, there is continued uncertainty regarding the timing of a successful ramp up to planned 2024
production and the associated costs. In addition, inflation, the availability of personnel with the necessary skills and
experience, and the potential impact of supply chain challenges on the availability of materials and reagents carry with them
the risks of not achieving our production plans, production delays and increased costs.
Labour relations
The collective agreement with the United Steelworkers local 8914 expired in December 2022, and we are in negotiations to
reach a new agreement. As in the past, work continues under the terms of the expired collective agreement while negotiations
proceed. There is a risk to the production plan if we are unable to reach an agreement and there is a labour disruption.
Water inflow risk
All the mineralized areas discovered to date at McArthur River are in, or partially in, water-bearing ground with significant
pressure at mining depths. This high-pressure water source is isolated from active development and production areas to
reduce the inherent risk of an inflow. McArthur River relies on pressure grouting and ground freezing, and sufficient pumping,
water treatment and above ground storage capacity to mitigate the risks of the high-pressure ground water.
McArthur River has not experienced a significant disruption to its mining or development activities resulting from a water inflow
since 2008. The consequences of another water inflow at McArthur River would depend on its magnitude, location and timing,
but could include a significant interruption or reduction in production, a material increase in costs or a loss of mineral reserves.
76 CAMECO CORPORATION
Uranium – Tier-one operations
Cigar Lake
2023 Production (our share)
8.2M lbs
2024 Production Outlook (our share)
9.8M lbs
Estimated Reserves (our share)
113.8M lbs
Estimated Mine Life
2036
Cigar Lake is the world’s highest grade uranium mine. We are a 54.5% owner and the mine operator. Cigar Lake uranium is
milled at Orano’s McClean Lake mill.
Cigar Lake is considered a material uranium property for us. There is a technical report dated March 29, 2016 (effective
December 31, 2015) that can be downloaded from SEDAR+ (www.sedarplus.com) or from EDGAR (sec.gov).
Location
Ownership
Mine type
Mining method
End product
Certification
Estimated reserves
Estimated resources
Licensed capacity
Licence term
Saskatchewan, Canada
54.547%
Underground
Jet boring system
Uranium concentrate
ISO 14001 certified
113.8 million pounds (proven and probable), average grade U3O8: 17.03%
14.7 million pounds (measured and indicated), average grade U3O8: 5.32%
10.9 million pounds (inferred), average grade U3O8: 5.55%
18.0 million pounds per year (our share 9.8 million pounds per year)
Through June, 2031
Total packaged production: 2014 to 2023
138.4 million pounds (100% basis)
2023 production
2024 production outlook
8.2 million pounds (15.1 million pounds on 100% basis)
9.8 million pounds (18.0 million pounds on 100% basis)
Estimated decommissioning cost
All values shown, including reserves and resources, represent our share only, unless otherwise indicated.
$62 million (100% basis)
BACKGROUND
Mine description
Cigar Lake’s geological setting is similar to McArthur River’s. However, unlike McArthur River, the Cigar Lake deposit is
horizontally oriented.
Mine development is carried out in the basement rocks below the ore horizon. New mine development is required throughout
the mine life to gain access to the ore above.
Mining method
At Cigar Lake, the permeable sandstone which overlays the deposit and basement rocks, contains large volumes of water at
significant pressure. Before we begin mining, we freeze the ore zone and surrounding ground. We use a jet boring system to
mine the ore.
MANAGEMENT’S DISCUSSION AND ANALYSIS 77
Jet boring system (JBS) mining
As a result of the unique geological conditions at Cigar Lake, we are unable to utilize traditional mining methods that require
access above the ore, which necessitated the development of a non-entry mining method specifically adapted for this deposit.
After many years of test mining, we selected jet boring, and it has been used since mining began in 2014. This method
involves:
• drilling a pilot hole into the frozen orebody, inserting a high pressure water jet and cutting a cavity out of the frozen ore
• collecting the ore and water mixture (slurry) from the cavity and pumping it to a storage sump, allowing it to settle
• using a clamshell, transporting the ore from the storage sump to an underground grinding and processing circuit
• once mining is complete, filling each cavity in the orebody with concrete
• starting the process again with the next cavity.
We have divided the orebody into production panels and at least three production panels need to be frozen at one time to
achieve the annual production rate. One JBS machine is located below each frozen panel. Three JBS machines are currently
in operation. Two machines actively mine at any given time while the third is moving, setting up, or undergoing maintenance.
We have successfully extracted approximately 138.4 million pounds (100% basis) since we began mining in 2014.
Initial processing
We carry out initial processing of the extracted ore at Cigar Lake before shipping it to McClean Lake. To accomplish this, we:
• grind the ore and mix it with water to form a slurry in our underground circuit
• pump the slurry 500 metres to the surface and store it in one of two ore slurry holding tanks, where it is blended and
thickened to remove excess water
• the final slurry, at an average grade of approximately 17% U3O8, is pumped into transport truck containers and shipped to
McClean Lake mill on a 69-kilometre all-weather road
Water from this process, including water from underground operations, is treated on the surface. Any excess treated water is
released into the environment.
Milling
All of Cigar Lake’s ore slurry is being processed at the McClean Lake mill, operated by Orano. Given the McClean Lake mill’s
capacity, it is able to:
• process up to 18 million pounds U3O8 per year
• process and package all of Cigar Lake’s current mineral reserves
Licensing annual production capacity
The Cigar Lake mine is licensed to produce up to 18 million pounds (100% basis) per year. Orano’s McClean Lake mill is
licensed to produce 24 million pounds annually.
2023 UPDATE
Production
Total packaged production from Cigar Lake in 2023 was 15.1 million pounds U3O8 (8.2 million pounds our share) compared to
18.0 million pounds U3O8 (9.8 million pounds our share) in 2022.
Productivity was impacted as we completed development and commissioning activities in the first quarter and achieved first
production from a new mining area. We had expected to recover from these delays in the second half of the year. However, in
the third quarter, we determined maintenance work was required on one of the underground circuits, which had not been
planned. The additional time required to complete this work did not allow for the delayed production volumes to be recovered
prior to year-end.
During the year, we:
• executed planned 21-day annual maintenance activities in September
• executed production activities from four production tunnels in the eastern part of the orebody and one, for the first time,
from the western part of the orebody
78 CAMECO CORPORATION
• in alignment with our long-term production planning, brought two new panels online
• continued underground header construction activities and expanded our ground freezing program to ensure continued
frozen ore inventory
• completed our freeze hole drilling program in the second quarter
Underground development
Underground mine development continued in 2023. We completed our second production crosscut in the western portion of
the orebody in preparation for ore mining starting in the second quarter of 2024.
PLANNING FOR THE FUTURE
Production
In 2024, we expect to produce 18 million pounds (100% basis) at Cigar Lake; our share is approximately 9.8 million pounds.
In 2024, we plan to:
• continue production activities focused on bringing one new production panel online
• complete construction and commissioning of freeze distribution infrastructure expansion in support of future production
• continue underground mine development on two new production tunnels as well as expand ventilation and access drifts in
alignment with the long-term mine plan
• commission the surface backfill batch plant to support ongoing operations
• execute an underground geotechnical drilling program
CIGAR LAKE EXTENSION
Completion of a prefeasibility study of the indicated resources contained in the Cigar Lake extension orebody (referred to as
Phase 2 in the technical report filed in 2016), demonstrated the economic feasibility of extracting those resources, allowing us
to convert 73.4 million pounds (100% basis) (40 million pounds our share), to probable reserves and extending the estimated
mine life to 2036. Based on our analyses, we expect our share of the up-front capital cost to complete the mine development
and other capacity replacement projects necessary to access these reserves to be between $250 million and $300 million. We
expect the average life of mine unit cash operating costs for Cigar Lake production to increase to between $19 per pound and
$20 per pound (previously $18.13 per pound) and our share of annual production to be between 9.5 million pounds and 10.0
million pounds.
A new NI 43-101 technical report for Cigar Lake is in the process of being finalized and is expected to be filed under Cameco’s
profile on SEDAR+ within 45 days of this release. More detailed descriptions of the scientific and technical information on
which the mineral reserves and mine plan are based will be included in the relevant sections of the technical report. Once filed,
the new technical report will supersede and replace the current technical report titled “Cigar Lake Operation, Northern
Saskatchewan, Canada” dated March 29, 2016, with an effective date of December 31, 2015. A copy is available on SEDAR+
(www.sedarplus.com), on EDGAR (www.sec.gov/edgar.shtml), and on Cameco’s website (www.cameco.com/media/media-
library).
MANAGING OUR RISKS
The Cigar Lake deposit presents unique challenges that are not typical of traditional hard or soft rock mines. These challenges
are the result of mining in or near high-pressure ground water in challenging ground conditions with significant radiation
concerns due to the high-grade uranium and elements of concern in the orebody with respect to water quality. We take
significant steps and precautions to reduce the risks. Mine designs and the mining method are selected based on their ability
to mitigate hydrological, radiological, and geotechnical risks. Operational experience gained since the start of production has
resulted in a significant reduction in risk. However, there is no guarantee that our efforts to mitigate risk will be successful.
In addition to the risks listed on pages 70 to 71, in 2023 we are focused on the management of the following risks:
Inflation, labour shortages, and supply chain challenges
Inflation, the availability of personnel with the necessary skills and experience, and the impact of supply chain challenges on
the availability of materials and reagents carry with them the risk of not achieving our production plans, production delays and
increased costs in 2024 and future years.
MANAGEMENT’S DISCUSSION AND ANALYSIS 79
Transition to new mining areas
In order to successfully achieve the planned production schedule, we must continue to successfully transition into new mining
areas, which includes mine development and investment in critical support infrastructure, and deployment of the jet boring
method in new areas. If development or infrastructure construction work is delayed for any reason, including availability of
storage capacity for waste rock, or if the performance of our jet boring method is materially different than previously mined
areas, our ability to meet our future production plans may be impacted.
Water inflow risk
The sandstone that overlays the Cigar Lake deposit and basement rocks is water-bearing with significant pressure at mining
depths. This high-pressure water source is isolated from active development and production areas in order to reduce the
inherent risk of an inflow. Cigar Lake relies on ground freezing and sufficient pumping, water treatment and above ground
storage capacity to mitigate the risks of the high-pressure ground water.
Cigar Lake has not experienced a significant disruption resulting from a water inflow since 2008. The consequences of another
water inflow at Cigar Lake would depend on its magnitude, location and timing, but could include a significant interruption or
reduction in production, a material increase in costs or a loss of mineral reserves.
80 CAMECO CORPORATION
Uranium – Tier-one operations
Inkai
2023 Production (100% basis)
8.3M lbs
2024 Production Outlook (100% basis)
See Planning for the future – Production on page 83
Estimated Reserves (our share)
104.7M lbs
Estimated Mine Life
2045 (based on licence term)
Inkai is a very significant uranium deposit, located in Kazakhstan. The operator is JV Inkai limited liability partnership, which
we jointly own (40%)1 with Kazatomprom (KAP) (60%).
Inkai is considered a material uranium property for us. There is a technical report dated January 25, 2018 (effective January 1,
2018) that can be downloaded from SEDAR+ (www.sedarplus.com) or from EDGAR (sec.gov).
Location
Ownership
Mine type
End product
Certifications
Estimated reserves
Estimated resources
Licensed capacity (wellfields)
Licence term
Total packaged production: 2009 to 2023
2023 production
2024 production outlook
South Kazakhstan
40%1
In situ recovery (ISR)
Uranium concentrate
BSI OHSAS 18001
ISO 14001 certified
104.7 million pounds (proven and probable), average grade U3O8: 0.04%
35.6 million pounds (measured and indicated), average grade U3O8: 0.03%
9.6 million pounds (inferred), average grade U3O8: 0.03%
10.4 million pounds per year (our share 4.2 million pounds per year)1
Through July 2045
89.3 million pounds (100% basis)
8.3 million pounds (100% basis)1
See Planning for the future – Production on page 831
Estimated decommissioning cost (100% basis)
All values shown, including reserves and resources, represent our share only, unless indicated.
$20 million (US) (100% basis) (this estimate is currently under review)
1 Our ownership interest in the joint venture is 40% and we equity account for our investment. As such, our share of production is shown as a purchase.
MANAGEMENT’S DISCUSSION AND ANALYSIS 81
BACKGROUND
Mine description
The Inkai uranium deposit is a roll-front type orebody within permeable sandstones. The more porous and permeable units
host several stacked and relatively continuous, sinuous “roll-fronts” of low-grade uranium forming a regional system.
Superimposed over this regional system are several uranium projects and active mines.
Inkai’s mineralization ranges in depths from about 260 metres to 530 metres. The deposit has a surface projection of about 40
kilometres in length, and the width ranges from 40 to 1600 metres. The deposit has hydrogeological and mineralization
conditions favourable for use of in situ recovery (ISR) technology.
Mining and milling method
JV Inkai uses conventional, well-established, and very efficient ISR technology, developed after extensive test work and
operational experience. The process involves five major steps:
• leach the uranium in situ by circulating an acid-based solution through the host formation
• recover it from solution with ion exchange resin (takes place at both main and satellite processing plants)
• precipitate the uranium with hydrogen peroxide
• thicken, dewater, and dry it
• package the uranium peroxide product in drums
Production
Through our investment in Inkai, production continued to be impacted by the 20% supply reduction enacted by KAP across all
uranium mines in Kazakhstan and the continued supply chain challenges it has faced. KAP has the ability to flex production
20% above or below planned production levels (8.3 million to 12.5 million pounds per year). Total 2023 production from Inkai
was 8.3 million pounds (100% basis), the same as in 2022. In 2023, Inkai experienced a number of operational issues related
to interruptions in reagent delivery and wellfield drilling.
The first shipment, containing approximately two thirds of our share of Inkai’s 2023 production, arrived in the fourth quarter.
The second shipment with the remainder of our share of 2023 production has arrived at a Canadian port. We continue to work
closely with JV Inkai and our joint venture partner, KAP, to receive our share of production via the Trans-Caspian International
Transport Route, which does not rely on Russian rail lines or ports.
Production purchase entitlements
Under the terms of a restructuring agreement signed with our partner KAP in 2016, our ownership interest in JV Inkai is 40%
and KAP’s share is 60%. However, during production ramp-up to the licensed limit of 10.4 million pounds, we are entitled to
purchase 57.5% of the first 5.2 million pounds of annual production, and as annual production increases over 5.2 million
pounds, we are entitled to purchase 22.5% of such incremental production, to the maximum annual share of 4.2 million
pounds. Once the ramp-up to 10.4 million pounds annually is complete, we will be entitled to purchase 40% of such annual
production, matching our ownership interest.
Based on an adjustment to the production purchase entitlement under the 2016 JV Inkai restructuring agreement, for 2023 we
were entitled to purchase 4.2 million pounds, or 50% of JV Inkai’s planned 2023 production of 8.3 million pounds. Timing of
our JV Inkai purchases will fluctuate during the quarters and may not match production, and, in particular, in 2023, timing was
impacted by shipping delays. Total purchases in 2023 were 4.2 million pounds, of which 2.8 million pounds were related to our
2023 entitlement.
Cash distribution
Excess cash, net of working capital requirements, will be distributed to the partners as dividends. In 2023, we received a cash
dividend from JV Inkai of $79 million (US), net of withholdings. Our share of dividends follows our production purchase
entitlements as described above.
82 CAMECO CORPORATION
JV INKAI NON-IFRS MEASURE
EBITDA is a supplemental measure which is used by us and other users to assess results of operations for JV Inkai from a
management perspective without regard to its capital structure. We believe that this measure is useful to management,
lenders, investors, security analysts and other interested parties in assessing the underlying performance of JV Inkai’s ongoing
operations and its ability to generate cash flows to fund its cash requirements. See Non-IFRS Measures starting on page 41.
CAMECO SHARE
($ MILLIONS)
Share of earnings from equity-investee
Depreciation and amortization
Finance costs
Income tax expense (recovery)
EBITDA
PLANNING FOR THE FUTURE
Production
2023
179
14
-
42
235
2022
CHANGE
94
10
1
30
135
90%
40%
(100)%
40%
74%
Based on KAP’s announcement on February 1, 2024, production in Kazakhstan is expected to remain 20% below the level
stipulated in subsoil use agreements, similar to in 2023, primarily due to the sulfuric acid shortage in the country. We are still in
discussions with JV Inkai and KAP to determine how this may impact production at Inkai in 2024 and thereafter and therefore
our corresponding purchase obligation.
Our share of production is purchased at a discount to the spot price and included at this value in inventory. In addition, JV
Inkai capital is not included in our outlook for capital expenditures.
MANAGING OUR RISKS
In addition to the risks listed on pages 70 to 71, JV Inkai also manages the following risks:
Production forecast
Presently, JV Inkai is experiencing procurement and supply chain issues, most notably, related to the availability of sulfuric
acid. It is also experiencing challenges related to construction delays and inflationary pressures on its production costs.
Production plans for 2024 and subsequent years are uncertain and being reassessed. A significant disruption to JV Inkai’s
previous production plans for 2024 and subsequent years could result in penalties and further escalation of production costs.
In addition, JV Inkai’s costs could be impacted by potential changes to the tax code in Kazakhstan and by possible increased
financial contributions to social and other state causes, although these risks cannot be quantified or estimated at this time.
Depending on production levels at Inkai and the outcome of our discussions related thereto with JV Inkai and KAP, our share
of production and earnings from this equity-accounted investee and the amount and timing of our dividends from the joint
venture may be impacted.
Transportation
The geopolitical situation continues to cause transportation risks in the region. We could continue to experience delays in our
expected Inkai deliveries from 2023 and for 2024. To mitigate this risk, we have inventory, long-term purchase agreements
and loan arrangements in place we can draw on. Depending on when we receive shipments of our share of Inkai’s production,
our share of earnings from this equity-accounted investee and the timing of the receipt of our share of dividends from the joint
venture may be impacted.
MANAGEMENT’S DISCUSSION AND ANALYSIS 83
Political
Kazakhstan declared itself independent in 1991 after the dissolution of the Soviet Union. Our investment in JV Inkai is subject
to the greater risks associated with doing business in developing countries, which have significant potential for social,
economic, political, legal and fiscal instability. Kazakhstan laws and regulations are complex and still developing and their
application can be difficult to predict. The other owner of JV Inkai is Kazatomprom, an entity majority owned by the
government of Kazakhstan. We have entered into agreements with JV Inkai and Kazatomprom intended to mitigate political
risk. This risk includes the imposition of governmental laws or policies that could restrict or hinder JV Inkai paying us
dividends, or selling us our share of JV Inkai production, or that impose discriminatory taxes or currency controls on these
transactions. The restructuring of JV Inkai, which took effect January 1, 2018, was undertaken with the objective to better align
the interests of Cameco and Kazatomprom and includes a governance framework that provides for protection for us as a
minority owner of JV Inkai.
For more details on this risk, please see our most recent annual information form under the heading political risks.
JV Inkai manages risks listed on pages 70 to 71.
84 CAMECO CORPORATION
Uranium – Tier-two operations
Rabbit Lake
Located in Saskatchewan, Canada, our 100% owned Rabbit Lake operation opened in 1975, and has the second largest
uranium mill in the world. Due to market conditions, we suspended production at Rabbit Lake during the second quarter of
2016.
Location
Ownership
End product
ISO certification
Mine type
Estimated reserves
Estimated resources
Mining methods
Licensed capacity
Licence term
Saskatchewan, Canada
100%
Uranium concentrates
ISO 14001 certified
Underground
-
38.6 million pounds (indicated), average grade U3O8: 0.95%
33.7 million pounds (inferred), average grade U3O8: 0.62%
Vertical blasthole stoping
Mill: maximum 16.9 million pounds per year; currently 11 million
Through October 2038
Total production: 1975 to 2023
2023 production
2024 production outlook
Estimated decommissioning cost
OPERATING STATUS
202.2 million pounds
0 million pounds
0 million pounds
$213 million
The site remained in a safe state of care and maintenance throughout 2023.
While in standby, we continue to evaluate our options in order to minimize care and maintenance costs. We expect care and
maintenance costs to range between $28 million and $32 million annually.
Licensing
In October 2023, the CNSC granted a 15-year renewal of the operating licence for Rabbit Lake, extending the licence term to
October 2038.
FUTURE PRODUCTION
We do not expect any production from Rabbit Lake in 2024.
MANAGING OUR RISKS
We manage the risks listed on pages 70 to 71.
MANAGEMENT’S DISCUSSION AND ANALYSIS 85
US ISR Operations
Located in Nebraska and Wyoming in the US, the Crow Butte and Smith Ranch-Highland (including the North Butte satellite)
operations began production in 1991 and 1975, respectively. Each operation has its own processing facility. Due to market
conditions, we curtailed production and deferred all wellfield development at these operations during the second quarter of
2016.
Ownership
End product
ISO certification
Estimated reserves
100%
Uranium concentrates
ISO 14001 certified
Smith Ranch-Highland:
North Butte-Brown Ranch:
-
-
Estimated resources
Crow Butte:
Smith Ranch-Highland:
-
24.9 million pounds (measured and indicated), average grade U3O8: 0.06%
7.7 million pounds (inferred), average grade U3O8: 0.05%
North Butte-Brown Ranch: 9.4 million pounds (measured and indicated), average grade U3O8: 0.07%
Mining methods
Licensed capacity
Licence term
Crow Butte:
0.4 million pounds (inferred), average grade U3O8: 0.06%
13.9 million pounds (measured and indicated), average grade U3O8: 0.25%
1.8 million pounds (inferred), average grade U3O8: 0.16%
In situ recovery (ISR)
Smith Ranch-Highland:1 Wellfields: 3 million pounds per year; processing plants: 5.5 million pounds per year
Crow Butte:
Processing plants and wellfields: 2 million pounds per year
Smith Ranch-Highland:
Crow Butte:
Through September, 2028
Through October, 2024
Total production: 2002 to 2023
2023 production
2024 production outlook
Estimated decommissioning cost
1 Including Highland mill
PRODUCTION CURTAILMENT
33.0 million pounds
0 million pounds
0 million pounds
Smith Ranch-Highland: $239 million (US), including North Butte
Crow Butte: $62 million (US)
As a result of our 2016 decision, commercial production at the US operations ceased in 2018. We expect ongoing cash and
non-cash care and maintenance costs to range between $12.5 million (US) and $14.5 million (US) for 2024.
FUTURE PRODUCTION
We do not expect any production in 2024.
MANAGING OUR RISKS
The current operating licence for Crow Butte expires in October 2024. Efforts are underway for re-licensing with the Nuclear
Regulatory Commission.
We also manage the risks listed on pages 70 to 71.
86 CAMECO CORPORATION
Uranium – advanced projects
Our advanced projects are part of our project pipeline and these resources are supportive of growth beyond our existing suite
of tier-one and tier-two assets. We plan to advance them at a pace aligned with market opportunities.
Millennium
Location
Ownership
End product
Potential mine type
Saskatchewan, Canada
69.9%
Uranium concentrates
Underground
Estimated resources (our share)
53.0 million pounds (indicated), average grade U3O8: 2.39%
20.2 million pounds (inferred), average grade U3O8: 3.19%
BACKGROUND
The Millennium deposit was discovered in 2000 and was delineated through geophysical surveys and surface drilling work
between 2000 and 2013.
Yeelirrie
Location
Ownership
End product
Potential mine type
Estimated resources
BACKGROUND
Western Australia
100%
Uranium concentrates
Open pit
128.1 million pounds (measured and indicated), average grade U3O8: 0.15%
The deposit was discovered in 1972 and is a near-surface calcrete-style deposit that is amenable to open pit mining
techniques. It is one of Australia’s largest undeveloped uranium deposits.
Kintyre
Location
Ownership
End product
Potential mine type
Estimated resources
BACKGROUND
Western Australia
100%
Uranium concentrates
Open pit
53.5 million pounds (indicated), average grade U3O8: 0.62%
6.0 million pounds (inferred), average grade U3O8: 0.53%
The Kintyre deposit was discovered in 1985 and is amenable to open pit mining techniques.
2023 PROJECT UPDATES
We believe that we have some of the best undeveloped uranium projects in the world. However, our primary focus is on
producing from our tier-one uranium assets at a pace aligned with our contract portfolio and market opportunities.
PLANNING FOR THE FUTURE
2024 Planned activity
No work is planned at Millennium, Yeelirrie or Kintyre in 2024.
MANAGEMENT’S DISCUSSION AND ANALYSIS 87
MANAGING THE RISKS
Project approval
The approval received for Kintyre from the prior state government required substantial commencement of the project by March
2020, being within five years of the grant of the approval, and this was not achieved. The current government declined to grant
us an extension to achieve it. In the future, we can apply for an extension of time to achieve substantial commencement of the
project. If granted by a future government we could commence the Kintyre project, provided we have all other required
regulatory approvals.
The approval for the Yeelirrie project, received from the prior state government, required substantial commencement of the
project by January 2022, and this was not achieved. The current government declined to grant us an extension to achieve it. In
the future, we can again apply for an extension of time to achieve substantial commencement of the project. If granted by a
future government we could commence the Yeelirrie project, provided we have all other required regulatory approvals.
Approval for the Yeelirrie project at the federal level was granted in 2019 and extends until 2043.
For all of our advanced projects, we manage the risks listed on pages 70 to 71.
88 CAMECO CORPORATION
Uranium – exploration
Our exploration program is focused on replacing mineral reserves as they are depleted by our production, which is key to
sustaining our business, meeting our commitments, and ensuring long-term growth. Our global exploration activity is adjusted
annually in line with market signals and at a pace aligned with Cameco’s mining plans and sourcing needs. In recent years, we
have increased exploration spending in response to the significant, positive momentum in the nuclear fuel market that has
provided a clear signal that more uranium production will be required in the next decade, setting the stage for a renewed
exploration cycle.
Our position as one of the world’s largest uranium producers and our continued growth across the nuclear fuel cycle has been
driven by decades of experience and our history of exploration, discovery and mining success. Our land position totals
740,000 hectares (1.8 million acres) that cover exploration and development prospects in Canada, Australia, Kazakhstan and
the US that are among the best in the world. In northern Saskatchewan alone, we have direct interests in 650,000 hectares
(1.6 million acres) that cover many of the most prospective areas of the prolific Athabasca Basin.
In northern Saskatchewan, our well-established infrastructure includes fully licensed and fully permitted uranium mills and
mines in the eastern Athabasca basin, along with a supporting network of roads, airstrips and electricity supply. That
infrastructure provides us with an advantage that not only underpins the potential development of our advanced exploration
projects, but also supports our ongoing work to both delineate existing prospects and deposits, and to identify future
undiscovered uranium potential of the region. Additionally, our decades of work to establish a positive corporate reputation by
prioritizing our relationships with northern Saskatchewan Indigenous communities, confirms our long-term commitment to
continually engage and provide ongoing benefits to the people that call the region home.
The uranium endowment of the Athabasca Basin, where we are involved in 39 projects (including partner-operated joint
ventures), is well known and combined with the basin’s unique geological history, it creates a remarkable mining jurisdiction
hosting the highest uranium grades and some of the largest uranium deposits in the world. On our projects, we have identified
numerous uranium occurrences, prospects, and undeveloped deposits of variable grades and sizes that have progressed
through multiple stages of evaluation. Depending on the potential deposit size, ore and ground quality, evolving mining
technologies and the uranium market environment, some of these prospects are expected to become viable, economic
deposits in a uranium market and price environment that supports new primary production and provides an adequate risk-
adjusted return.
MANAGEMENT’S DISCUSSION AND ANALYSIS 89
The combination of our large land position and proven expertise in discovering and developing world class uranium mines
provides the foundation for future mill-supported exploration projects, ranging from early to advanced stages of greenfield
exploration and for brownfield opportunities to extend the lives of our existing operations.
EXPLORATION AND EVALUATION SPENDING
n
o
i
l
l
i
m
$
$25
$20
$15
$10
$5
$-
$14
$11
$11
$8
$18
$20
2019
2020
2021
2022
2023
2024E
2023 UPDATE
Brownfield and advanced exploration
Brownfield and advanced exploration activities include exploration near our existing operations and expenses for maintaining
advanced projects and delineation drilling where uranium mineralization is being defined. In 2023, we spent about $4.5 million
in Saskatchewan, $1 million in Australia and $1 million in the US on brownfields and advanced exploration projects. The
spending in Saskatchewan was primarily focused on advancing the extension of the mine life at Cigar Lake and advanced
exploration on the Dawn Lake project.
The Dawn Lake project is located approximately 45 km northwest of the Rabbit Lake operation, on the La Rocque Lake
corridor which hosts several historic discoveries and deposits. In 2023, exploration drilling at Dawn Lake expanded the
footprint of known uranium mineralization with mineralized intercepts in excess of 60% U3O8 over several metres. Although the
deposit remains at a very early stage of exploration, the high-grade results and geological conditions observed to date are
comparable to those of other mines and known deposits in the Athabasca Basin, generating interest and a focused effort to
better understand its potential.
Regional exploration
Regional exploration is defined as projects that are considered greenfield. In 2023, we spent about $11 million on regional
exploration programs that are comprised of target generation geophysical surveys and diamond drilling primarily in northern
Saskatchewan.
PLANNING FOR THE FUTURE
We plan to continue to focus on our core projects in Saskatchewan under our long-term exploration framework. Our leadership
position and industry expertise in both exploration and corporate social responsibility makes us a partner of choice and for
properties and projects that meet our investment criteria, we may partner with other companies through strategic alliances,
equity holdings and traditional joint venture arrangements to optimize our exploration activity and spending.
Brownfields and Advanced Exploration
In 2024, we plan to spend about $7 million on brownfields and advanced Exploration, primarily to expand the footprint of the
mineralization identified on in the La Rocque Lake corridor of the Dawn Lake project.
Regional Exploration
We plan to spend about $13 million on diamond drilling and target generation geophysical surveys on our core regional
projects in Saskatchewan, in 2024.
90 CAMECO CORPORATION
Fuel services
Refining, conversion and fuel manufacturing
We have about 21% of world UF6 primary conversion capacity and are a supplier of natural UO2. Our focus is on cost-
competitiveness and operational efficiency, as well as increasing our production of UF6 in line with our contract portfolio and
market opportunities.
Our fuel services segment is strategically important because it helps support the growth of the uranium segment. Offering a
range of products and services to customers helps us broaden our business relationships and meet customer needs.
Blind River Refinery
Licensed Capacity
24.0M kgU as UO3
Licence renewal in
February 2032
Blind River is the world’s largest commercial uranium refinery, refining uranium concentrates from mines around the world into
UO3.
Location
Ownership
End product
ISO certification
Licensed capacity
Ontario, Canada
100%
UO3
ISO 14001 certified
18.0 million kgU as UO3 per year, approved to 24.0 million subject to the completion
of certain equipment upgrades (advancement depends on market conditions)
Licence term
Estimated decommissioning cost
Through February 2032
$58 million
MANAGEMENT’S DISCUSSION AND ANALYSIS 91
Port Hope Conversion Services
Licensed Capacity
12.5M kgU as UF6
2.8M kgU as UO2
Licence renewal in
February 2027
Port Hope is the only uranium conversion facility in Canada and a supplier of UO2 for Canadian-made CANDU heavy-water
reactors.
Location
Ownership
End product
ISO certification
Licensed capacity
Licence term
Estimated decommissioning cost
Ontario, Canada
100%
UF6, UO2
ISO 14001 certified
12.5 million kgU as UF6 per year
2.8 million kgU as UO2 per year
Through February 2027
$129 million
Cameco Fuel Manufacturing Inc. (CFM)
Licensed Capacity
1.65M kgU as UO2 fuel pellets
Licence renewal in
February 2043
CFM produces fuel bundles and reactor components for CANDU heavy-water reactors.
Location
Ownership
End product
ISO certification
Licensed capacity
Licence term
Ontario, Canada
100%
CANDU fuel bundles and components
ISO 9001 certified, ISO 14001 certified
1.65 million kgU as UO2 fuel pellets
Through February 2043
Estimated decommissioning cost
$10.8 million
92 CAMECO CORPORATION
2023 UPDATE
Production
Fuel services produced 13.3 million kgU in 2023, 2% higher than 2022.
Port Hope conversion facility cleanup and modernization (Vision in Motion)
Vision in Motion is a unique opportunity that demonstrates our continued commitment to a clean environment. It has been
made possible by the opening of a long-term waste management facility by the Government of Canada’s Port Hope Area
Initiative project. There is a limited opportunity during the life of this project to engage in clean-up and renewal activities that
address legacy waste at the Port Hope Conversion facility inherited from historic operations. Good progress was made over
the past year with the removal of old buildings and structures on site, and the project will continue to be active in the year
ahead.
PLANNING FOR THE FUTURE
Production
We plan to produce between 13.5 million and 14.5 million kgU in 2024. This includes increasing annual production at our Port
Hope UF6 conversion facility to 12,000 tonnes to satisfy our book of long-term business and demand for conversion services.
Licensing
In January 2023, the CNSC granted a 20-year renewal to the licence for CFM. The licence renewal also grants CFM’s request
for a slight production increase to 1,650 tonnes as UO2 fuel pellets.
MANAGING OUR RISKS
We take significant steps and precautions to reduce risk. However, there is no guarantee that our efforts to mitigate risk will be
successful.
In addition to the risks listed on pages 70 to 71, in 2024 we are focused on the management of the following risk:
Production plans
Inflation, the availability of personnel with the necessary skills and experience, aging infrastructure, and the potential impact of
supply chain challenges on the availability of materials and reagents carry the risk of not achieving our production plans,
production delays, and increased costs in 2024 and future years.
Labour relations
The collective agreement with unionized employees at our fuel manufacturing operations in Port Hope and Cobourg expires in
June 2024. During past negotiations, work has continued under the terms of the expired collective agreement while
negotiations to reach a new agreement proceeded. There is a risk to the production plan if we are unable to reach an
agreement and there is a labour dispute.
MANAGEMENT’S DISCUSSION AND ANALYSIS 93
Westinghouse Electric Company
Westinghouse is a nuclear reactor technology original equipment manufacturer (OEM) and a leading provider of highly
technical aftermarket products and services to commercial nuclear power utilities and government agencies globally.
Westinghouse’s history in the energy industry stretches back over a century, during which time the company became a
pioneer in nuclear energy.
• It is the OEM or a technology provider to about 50% of the global nuclear reactor fleet, delivering capacity of about 190,000
carbon-free MWe.
• It has three fuel fabrication facilities, one in the US, one in Sweden and one in the United Kingdom.
• In addition, it has about 90 facilities, engineering centers, and workshops, with a presence in more than 20 countries.
The company has strong recurring and predictable revenue and cash flow profiles due to the critical and non-discretionary
nature of its products and services to the operation of nuclear power plants around the world.
Like Cameco, Westinghouse enables carbon-free baseload and dispatchable energy that is needed to support the energy
transition and we believe is therefore well-positioned for long-term growth.
Corporate headquarters
Ownership
Business activities
Cranberry Township, Pennsylvania (United States)
49% - equity-accounted
Operations and maintenance of installed base (core business): Designs and
manufactures nuclear fuel supplies and services for light water reactors. Provides
outage and maintenance services, engineering support, instrumentation and controls
equipment, plant modifications, and components and parts to nuclear reactors.
New build: Designs, develops and procures equipment for new nuclear plants.
Certifications
BACKGROUND
ISO 14001
ISO 45001
On November 7, 2023, we announced the closing of the acquisition of Westinghouse in partnership with Brookfield. Brookfield
beneficially owns a 51% interest in Westinghouse, and we beneficially own 49%. Bringing together Cameco’s expertise in the
nuclear industry with Brookfield’s expertise in clean energy positions nuclear power at the heart of the energy transition and
creates a powerful platform for strategic growth across the nuclear sector.
The total enterprise value at time of close was $7.9 billion (US) and was adjusted for working capital balances at that time,
resulting in a final enterprise value of $8.2 billion (US). At time of close, Westinghouse had $3.8 billion (US) in outstanding
debt commitments, for which it maintains responsibility, and which reduced the equity cost of the acquisition.
To finance Cameco’s 49% share of the purchase price, equaling $2.1 billion (US), we used $1.5 billion (US) of cash and drew
the full amount of both $300 million (US) tranches of the term loan put in place concurrently with the execution of the
acquisition agreement, and which mature two years and three years from the date of close. The $280 million (US) bridge
commitment that we also secured concurrently with the acquisition agreement was not required to complete the transaction
and was terminated.
The acquisition of Westinghouse was completed in the form of a limited partnership with Brookfield. The board of directors
governing the limited partnership consists of six directors, three appointed by Cameco and three appointed by Brookfield.
Decision-making by the board corresponds to percentage ownership interests in the limited partnership (51% Brookfield and
49% Cameco). However, decisions with respect to certain reserved matters under the partnership agreement, such as the
approval of the annual budget, require the presence and support of both Cameco and Brookfield appointees to the board as
long as certain ownership thresholds are met.
We believe Westinghouse is well-positioned for long-term growth driven by the expected increase in global demand for nuclear
power. As of November 7, 2023, we receive the economic benefit of our ownership in Westinghouse. We account for our
proportionate interest in Westinghouse on an equity basis.
94 CAMECO CORPORATION
We expect this strategic acquisition will be transformative and accretive to Cameco. We are enhancing our ability to compete
for more business by investing in additional nuclear fuel cycle assets that we expect will augment the core of our business and
offer more solutions to our customers across the nuclear fuel cycle. Like Cameco, Westinghouse has nuclear assets that are
strategic, proven, licensed and permitted, and that are in geopolitically attractive jurisdictions. We expect these assets, like
ours, will participate in the growing demand profile for nuclear energy.
Cash distributions
Annually, we and Brookfield (the partners) approve a budget and business plan which outline Westinghouse’s financial
projections and capital allocation priorities. The determination of whether to make cash distributions to the partners will be
reviewed quarterly based on the approved budgeted expenditures and capital allocation priorities, including growth investment
opportunities, as well as available cash balances. However, the timing of cash distributions is expected to be aligned with the
timing of Westinghouse’s cash flows, which are typically higher in the fourth quarter.
Westinghouse debt
As at December 31, 2023, Westinghouse had the following outstanding debt:
• $3.5 billion (US) term loan with a maturity of August 2025
• credit facilities of $400 million (US), which had drawings of $115 million (US) and mature in June 2026
• drawn financial assurances including letters of credit of $474 million (US) and surety bonds of $262 million (US)
Effective January 25, 2024, Westinghouse refinanced its existing debt and entered into various credit agreements which now
provide total borrowing capacity of $4.6 billion (US), comprised of:
• $3.5 billion (US) term loan which now matures on January 25, 2031, and has quarterly repayments of $8.75 million (US),
with any remaining amounts due at maturity. The term loan is priced at the applicable term SOFR rate plus a margin that is
currently 2.75%.
• credit facilities totaling $500 million (US), which mature in January 2029
• financial assurances including letters of credit in the amount of about $570 million (US) and surety bonds of $262 million
(US)
The credit agreements are non-recourse to Cameco, but come with certain covenants, which if breached, could result in all
amounts outstanding thereunder to be immediately due and payable by Westinghouse. We expect Westinghouse to continue
to comply with these covenants in 2024.
WESTINGHOUSE NON-IFRS MEASURES
EBITDA, adjusted EBITDA and adjusted free cash flow and adjusted EBITDA margin are supplemental measures which are
used by us and other users, including our lenders and investors, to assess the results of operations for Westinghouse from a
management perspective without regard to its capital structure. We believe that these measures are useful to management,
lenders and investors in assessing the underlying performance of Westinghouse’s ongoing operations and its ability to
generate cash flows to fund its cash requirements. See Non-IFRS measures starting on page 41.
The financial information in the table below is provided to allow comparison to, and is in line with the outlook provided in our
November 7, 2023, news release. It is derived from the consolidated financial statements of Westinghouse, which are reported
in US dollars and prepared in accordance with US GAAP, and does not reflect Cameco’s ownership share.
MANAGEMENT’S DISCUSSION AND ANALYSIS 95
($US MILLIONS – US GAAP)
Net earnings (loss)
Depreciation and amortization
Finance income
Finance costs
Income tax expense (recovery)
EBITDA
Other expenses (income)
(Gain) loss on disposal of fixed assets
Purchase accounting unwind
Restructuring and acquisition-related costs
Gain on disposition of businesses
Adjusted EBITDA
Capital expenditures
Adjusted free cash flow
Revenue
Adjusted EBITDA margin
FUTURE PROSPECTS
2023
(155)
348
(11)
296
4
482
22
6
40
159
(14)
695
200
495
2022
440
371
(2)
202
(392)
619
(5)
(4)
-
92
-
702
165
537
4,281
16%
3,784
19%
Amid the ongoing demand growth and global energy security concerns, we expect there will be new opportunities for
Westinghouse to compete for and win new business. Westinghouse’s reputation as a global leader in the nuclear industry and
its position as the only fully European supplier for certified VVER fuel assemblies are expected to benefit its core business as
Eastern European countries seek to develop a reliable fuel supply chain independent of Russia.
In addition to growth in its core business, the focus on the importance of nuclear power in providing carbon-free, secure and
affordable baseload power as an essential part of the electricity grid in many countries is creating new opportunities for
Westinghouse’s proven AP1000 reactor design, as well as the smaller reactor designs it has in development. Its technology
and experience provide a competitive advantage as the engineering and procurement aspects of new build programs are
initiated.
The following financial outlook is reported in Canadian dollars and prepared in accordance with IFRS and reflects Cameco’s
49% ownership share.
In 2024, we expect our share of Adjusted EBITDA from our equity investment in Westinghouse to be between $445 million and
$510 million. Over the next five years, we expect its Adjusted EBITDA will grow at a compound annual growth rate of 6% to
10%. Adjusted EBITDA is a non-IFRS measure (see Non-IFRS Measures starting on page 41).
CAMECO SHARE (49%)
($Cdn MILLIONS - IFRS)
Net earnings (loss)
Depreciation and amortization
Finance income
Finance costs
Income tax expense (recovery)
EBITDA
Adjustments on cost of products and services sold
Adjustments on marketing, administrative and general
Adjusted EBITDA
2024 OUTLOOK
(170-230)
335-385
(2-3)
140-170
10-30
320-380
55-60
50-65
445-510
The outlook for Adjusted EBITDA for 2024 and its growth over the next five years are based on the following assumptions:
• An exchange rate of $1.00 (US) for $1.30 (Cdn)
96 CAMECO CORPORATION
• A compound annual growth rate in revenue from its core business of 4% to 6%, which is slightly higher than the anticipated
average growth rate of the nuclear industry based on the World Nuclear Association’s Reference Case. In addition to orders
for PWR reactor fuel and services, this includes orders for VVER and BWR fuel and services. The outlook assumes that
work is fulfilled on the timelines and scope expected based on current orders received, and additional work is undertaken
based on past trends. The expected margins on this work are aligned with the historic margins of 16% to 19%, with
variability expected to come from product mix compared to in previous years.
• Growth from new AP1000 reactor projects is based on agreements that have been signed and announcements where the
AP1000 technology has been selected, including Poland, Bulgaria and Ukraine. It is assumed that work on announced
agreements and announced selections to be done by Westinghouse would proceed on the timelines and revenue pattern
noted under the New Build Framework. The growth only assumes Westinghouse undertakes the Engineering and
Procurement work required prior to a new reactor project breaking ground, which is a small component of the overall
potential. A delay in project timelines or cancellation of announced projects would result in a growth rate near the bottom of
the range.
• Estimates and assumptions, including development timelines for both announced and potential reactor builds are subject to
government and regulatory approval, as well as risks related to the current macro-economic environment, and may differ
significantly from those assumed.
• It is also expected that investments in new technologies, including eVinci™ microreactor and AP300™ small modular
reactor, will be made in accordance with the current business plan and are expected to contribute to Adjusted EBITDA
largely outside the 5-year time frame.
New Build
New Build framework
Westinghouse undertakes its role in the design, development, engineering and procurement of equipment for new reactors. It
does not provide construction services or assume any construction risk. This segment has the potential to add significant long-
term value during the construction phase, and then to the core of the business through reactor services and fuel supply
contracts once the reactor begins commercial operation.
Following an announcement of a successful bid, there are a number of contracts that must be signed before work commences
and revenue is realized. The chart below is an illustrative framework and the assumptions used for the expected timing of
revenue flows and profitability as these large, one-time decisions by utilities to construct new nuclear power plants using
Westinghouse’s proven AP1000 reactor design are made.
Assumptions and estimates:
• Cost to construct new AP1000 reactor in the US based on an MIT (Massachusetts Institute of Technology) study: $6 billion
to $8 billion (US), although it can vary significantly depending on in-country labour and construction productivity rates.
There is a measured and noticeable scale effect where multiple reactors have been built – for example, in China, where
four AP1000 reactors are in operation and six more are under construction, and the US, where two were built and one is in
operation.
• Engineering and procurement work: 25% to 40% of total plant cost, depending on the scope of the project – excluding
China, where Westinghouse scope is typically less than 10% of the total project cost.
• EBITDA margin for new build activity is expected to be aligned with the overall core business, although it can vary between
10% to 20%.
MANAGEMENT’S DISCUSSION AND ANALYSIS 97
Illustrative framework of Westinghouse revenue flow for reactor new build project
Other growth opportunities
In addition to its AP1000 reactor design, Westinghouse has submitted its pre-application Regulatory Engagement Plan with
the US Nuclear Regulatory Commission for the development of its AP300 small modular reactor, which is based on the proven
and licensed AP1000 reactor design. Its eVinci microreactor design was recently awarded US Department of Energy funding
for a test reactor FEED (front-end engineering design) at Idaho National Lab. The AP300 small modular reactor and the eVinci
microreactor are expected to offer the same carbon-free baseload benefits as larger nuclear reactor technologies, but are
tailored for specific applications, including industrial, remote mining, off-grid communities, defense facilities and critical
infrastructure. As with the AP1000 reactor, they are expected to have applications beyond electricity generation, including
district and process heat, desalination and hydrogen production. We are optimistic about the future competitiveness of these
technologies and their potential to make a meaningful contribution to Westinghouse’s long-term financial performance.
However, they are presently still in the development phase.
Caution about forward-looking information relating to Westinghouse
This discussion of our expectations relating to the future prospects of Westinghouse is subject to the assumptions and risks that are discussed
under the heading Caution about forward-looking information beginning on page 2 and may be subject to the risks listed under the heading
Managing the risks, starting on page 70, which include:
Assumptions
•
the market conditions and other factors upon which we have
based Westinghouse’s future plans and forecasts
•
• Westinghouse’s ability to mitigate adverse consequences of
delays in production and construction, and the success of its
plans and strategies
the absence of new and adverse government regulations,
policies or decisions, and that Westinghouse will comply with
nuclear licence and quality assurance requirements at its
facilities
that there will not be any significant adverse consequences
to Westinghouse’s business resulting from business
disruptions, including those relating to supply disruptions,
economic or political uncertainty and volatility, labour relation
issues, and operating risks
•
•
•
Material risks that could cause actual results to differ materially
•
the risk that Westinghouse may not be able to meet sales
commitments for any reason
the risk that Westinghouse may not achieve the expected
growth or success in its business
the risk to Westinghouse’s 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 Westinghouse’s strategies may change, be
unsuccessful, or have unanticipated consequences
the risk that Westinghouse may fail to comply with nuclear
licence and quality assurance requirements at its facilities
•
•
We also recommend that you review our most recent AIF, which discusses other material risks that could have an impact on
Westinghouse’s performance. Actual outcomes may vary significantly.
98 CAMECO CORPORATION
Other Nuclear Fuel Cycle Investments
Global Laser Enrichment
Global Laser Enrichment LLC (GLE) is the exclusive worldwide licensee of the proprietary Separation of Isotopes by Laser
EXcitation (SILEX) laser uranium enrichment technology, a third-generation enrichment technology. Cameco is the
commercial lead for the GLE project with a 49% interest and we hold an option to attain a majority interest of 75%. Silex
Systems Ltd. (Silex Systems) owns the other 51% interest in GLE and is the licensor of the SILEX laser enrichment
technology and the technology lead for GLE.
Subject to completion of the technology demonstration program and its progression through to commercialization, GLE has the
potential to offer a variety of advantages to the global nuclear energy sector, including:
• re-enriching depleted uranium tails leftover as a by-product of first-generation gaseous diffusion enrichment operation,
repurposing legacy waste into a commercial source of uranium and conversion products to fuel nuclear reactors and aiding
in the responsible clean-up of legacy tails inventories, as per GLE’s agreement with the US Department of Energy (DOE);
• producing commercial low-enriched uranium (LEU) to fuel the world’s existing and future fleet of large-scale light-water
reactors (and depending on market developments, SMR’s that also require LEU-based fuel) with greater efficiency and
flexibility than current enrichment technologies; and
• producing high-assay low-enriched uranium (HALEU), if a market for that fuel stock develops to serve a number of small
modular reactor (SMR) and advanced reactor designs that might be commercially deployed and require HALEU-based fuel.
Our view is that re-enriching US government inventories of depleted uranium tails into a commercial source of uranium and
conversion is GLE’s lowest-risk path to the market. This opportunity is underpinned by an agreement GLE has with the DOE to
upgrade depleted uranium tails leftover from DOE’s historic enrichment operations, which may help address the growing
supply gap for Western nuclear fuel supplies and services.
With the support of both Cameco and Silex Systems, GLE has accelerated its technology demonstration project activities to
target an earlier delivery of the successful demonstration of Technology Readiness Level 6 (TRL-6). TRL-6 achievement will
confirm large-scale system performance under relevant conditions (pilot-scale demonstration), which represents a major step
up in a technology’s demonstrated readiness. Of note, GLE received the second full-scale laser system module from Silex
Systems last year, which was installed in GLE’s pilot demonstration facility in the US. GLE’s efforts to bring forward planned
activities and expenditures under the technology demonstration program are intended to demonstrate TRL-6 this year. Earlier
TRL-6 demonstration may provide optionality for GLE to pursue government and industry support and funding related to
potential commercial deployment opportunities (LEU and, potentially, HALEU) that could precede tails re-enrichment if the
right conditions exist.
Unless another commercial deployment opportunity materializes, GLE will continue its work to complete the technology
demonstration project with the potential to deploy its enrichment technology at a commercial scale in Western Kentucky under
its agreement with the DOE no later than 2030. GLE’s path to commercialization depends on several factors, including but not
limited to the successful progression and completion of GLE’s technology demonstration and maturation program, a clear
commercial use case, sound market fundamentals, clarity regarding future Russian fuel imports, the ability to secure
substantial government support and funding (specifically, accelerated commercial pathways related to LEU and, potentially,
HALEU are reliant on government funding) and long-term industry support.
MANAGING OUR RISKS
GLE is subject to the risks relating to the nuclear industry discussed under the heading Caution about forward-looking
information beginning on page 2.
MANAGEMENT’S DISCUSSION AND ANALYSIS 99
Mineral reserves and resources
Our mineral reserves and resources are the foundation of our company and fundamental to our success.
We have interests in a number of uranium properties. The tables in this section show the estimates of the proven and probable
mineral reserves, and measured, indicated, and inferred mineral resources at those properties. However, only three of the
properties listed in those tables are material uranium properties for us: McArthur River/Key Lake, Cigar Lake and Inkai. Mineral
reserves and resources are all reported as of December 31, 2023.
We estimate and disclose mineral reserves and resources in five categories, using the definition standards adopted by the
Canadian Institute of Mining, Metallurgy and Petroleum Council, and in accordance with National Instrument 43-101 –
Standards of Disclosure for Mineral Projects (NI 43-101), developed by the Canadian Securities Administrators. You can find
out more about these categories at www.cim.org.
About mineral resources
Mineral resources do not have to demonstrate economic viability but have reasonable prospects for eventual economic
extraction. They fall into three categories: measured, indicated and inferred. Our reported mineral resources are exclusive of
mineral reserves.
• measured and indicated mineral resources can be estimated with sufficient confidence to allow the appropriate application
of technical, economic, marketing, legal, environmental, social and governmental factors to support evaluation of the
economic viability of the deposit
• measured resources: we can confirm both geological and grade continuity to support detailed mine planning
• indicated resources: we can reasonably assume geological and grade continuity to support mine planning
• inferred mineral resources are estimated using limited geological evidence and sampling information. We do not have
enough confidence to evaluate their economic viability in a meaningful way. You should not assume that all or any part of
an inferred mineral resource will be upgraded to an indicated or measured mineral resource, but it is reasonably expected
that the majority of inferred mineral resources could be upgraded to indicated mineral resources with continued exploration.
Our share of uranium in the following mineral resource tables is based on our respective ownership interests. Reported
mineral resources have not demonstrated economic viability.
About mineral reserves
Mineral reserves are the economically mineable part of measured and/or indicated mineral resources demonstrated by at least
a preliminary feasibility study. The reference point at which mineral reserves are defined is the point where the ore is delivered
to the processing plant, except for ISR operations where the reference point is where the mineralization occurs under the
existing or planned wellfield patterns. Mineral reserves fall into two categories:
• proven reserves: the economically mineable part of a measured resource for which at least a preliminary feasibility study
demonstrates that, at the time of reporting, economic extraction could be reasonably justified with a high degree of
confidence
• probable reserves: the economically mineable part of a measured and/or indicated resource for which at least a preliminary
feasibility study demonstrates that, at the time of reporting, economic extraction could be reasonably justified with a degree
of confidence lower than that applying to proven reserves
For properties where we are the operator, we use current geological models, an average uranium price of $54 (US) per pound
U3O8, and current or projected operating costs and mine plans to report our mineral reserves, allowing for dilution and mining
losses. We apply our standard data verification process for every estimate. For properties in which we have an interest but are
not the operator, we will take reasonable steps to ensure that the reserve and resource estimates that we report are reliable.
Our share of uranium in the mineral reserves table below is based on our respective ownership interests.
100 CAMECO CORPORATION
PROVEN AND PROBABLE (P&P) RESERVES, MEASURED AND INDICATED (M&I)
RESOURCES, INFERRED RESOURCES (SHOWING CHANGE FROM 2022)
at December 31, 2023
P&P Reserves 485 M lbs
(+16 M lbs)
M&I Resources 409 M lbs
(-43 M lbs)
Inferred Resources 153 M lbs
(-1 M lbs)
Changes this year
Our share of proven and probable mineral reserves increased from 469 million pounds U3O8 at the end of 2022, to 485 million
pounds at the end of 2023. The change was primarily the result of:
• mineral resource estimate update at Cigar Lake Extension and subsequent conversion of indicated mineral resources
adding 40 million pounds to probable reserves.
partially offset by:
• production at Cigar Lake, Inkai and McArthur River, which removed 22 million pounds of proven and probable reserves
from our mineral inventory
The remaining changes are attributable to other adjustments based on the mineral resource and reserve estimate updates at
Cigar Lake, McArthur River and Inkai.
Our share of measured and indicated mineral resources decreased from 451 million pounds U3O8 at the end of 2022, to 409
million pounds at the end of 2023. Our share of inferred mineral resources decreased from 154 million pounds U3O8 to 153
million pounds.
MANAGEMENT’S DISCUSSION AND ANALYSIS 101
Qualified persons
The technical and scientific information discussed in this MD&A 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
• Greg Murdock, general manager, McArthur River,
Cameco
INKAI
• Alain D. Renaud, principal resource geologist, technical
services, Cameco
• Daley McIntyre, general manager, Key Lake, Cameco
• Alain D. Renaud, principal resource geologist, technical
• Scott Bishop, director, technical services, Cameco
• Biman Bharadwaj, principal metallurgist, technical
services, Cameco
• Biman Bharadwaj, principal metallurgist, technical
services, Cameco
services, Cameco
• Sergey Ivanov, deputy director general, technical
services, Cameco Kazakhstan LLP
CIGAR LAKE
• Lloyd Rowson, general manager, Cigar Lake, Cameco
• Scott Bishop, director, technical services, Cameco
• Alain D. Renaud, principal resource geologist, technical
services, Cameco
• Biman Bharadwaj, principal metallurgist, technical
services, Cameco
Important information about mineral reserve and resource estimates
Although we have carefully prepared and verified the mineral reserve and resource figures in this document, the figures are
estimates, based in part on forward-looking information.
Estimates are based on knowledge, mining experience, analysis of drilling results, the quality of available data and
management’s best judgment. They are, however, imprecise by nature, may change over time, and include many variables
and assumptions, including:
• geological interpretation
• extraction plans
• commodity prices and currency exchange rates
• recovery rates
• operating and capital costs
There is no assurance that the indicated levels of uranium will be produced, and we may have to re-estimate our mineral
reserves based on actual production experience. Changes in the price of uranium, production costs or recovery rates could
make it unprofitable for us to operate or develop a particular site or sites for a period of time. See page 2 for information about
forward-looking information.
Please see our mineral reserves and resources section of our most recent annual information form for the specific
assumptions, parameters and methods used for McArthur River, Inkai and Cigar Lake mineral reserve and resource estimates.
Important information for US investors
We present information about mineralization, mineral reserves and resources as required by National Instrument 43-101 –
Standards of Disclosure for Mineral Projects of the Canadian Securities Administrators (NI 43-101), in accordance with
applicable Canadian securities laws. As a foreign private issuer filing reports with the US Securities and Exchange
Commission (SEC) under the Multijurisdictional Disclosure System, we are not required to comply with the SEC’s disclosure
requirements relating to mining properties. Investors in the United States should be aware that the disclosure requirements of
NI 43-101 are different from those under applicable SEC rules, and the information that we present concerning mineralization,
mineral reserves and resources may not be comparable to information made public by companies that comply with the SEC’s
reporting and disclosure requirements for mining companies.
102 CAMECO CORPORATION
Mineral reserves
As of December 31, 2023 (100% – only the shaded column shows our share)
PROVEN AND PROBABLE
(tonnes in thousands; pounds in millions)
PROPERTY
Cigar Lake
Key Lake
McArthur River
Inkai
MINING
METHOD
UG
OP
UG
ISR
PROVEN
PROBABLE
TOTAL MINERAL RESERVES
RESERVES
GRADE CONTENT
GRADE CONTENT
GRADE CONTENT CONTENT METALLURGICAL
OUR
SHARE
TONNES % U3O8
18.11
0.52
338.1
61.1
2,047.3
239,588.4
7.02
0.04
(LBS U3O8)
135.0
0.7
316.8
208.8
661.2
TONNES % U3O8
15.36
-
217.5
-
520.7
66,046.9
66,785.0
5.55
0.04
-
(LBS U3O8)
TONNES
555.6
61.1
73.7
-
2,568.0
63.8
52.9 305,635.3
190.3 308,820.1
% U3O8
17.03
0.52
(LBS U3O8)
208.6
0.7
(LBS U3O8)
113.8
0.6
6.72
0.04
-
380.5
261.7
851.5
265.6
104.7
484.7
RECOVERY (%)
98.7
95.0
99.0
85.0
-
Total
(UG – underground, OP – open pit, ISR – in situ recovery)
Note that the estimates in the above table:
242,035.0
-
•
•
use a constant dollar average uranium price of approximately $54 (US) per pound U3O8
are based on exchange rates of $1.00 US=$1.26 Cdn and $1.00 US=450 Kazakhstan Tenge
Our estimate of mineral reserves and mineral resources may be positively or negatively affected by the occurrence of one or
more of the material risks discussed under the heading Caution about forward-looking information beginning on page 2, as
well as certain property-specific risks. See Uranium – Tier-one operations starting on page 73.
Metallurgical recovery
We report mineral reserves as the quantity of contained ore supporting our mining plans and provide an estimate of the
metallurgical recovery for each uranium property. The estimate of the amount of valuable product that can be physically
recovered by the metallurgical extraction process is obtained by multiplying the quantity of contained metal (content) by the
planned metallurgical recovery percentage. The content and our share of uranium in the table above are before accounting for
estimated metallurgical recovery.
MANAGEMENT’S DISCUSSION AND ANALYSIS 103
Mineral resources
As of December 31, 2023 (100% – only the shaded columns show our share)
MEASURED, INDICATED AND INFERRED
(tonnes in thousands; pounds in millions)
MEASURED RESOURCES (M)
INDICATED RESOURCES (I)
OUR
SHARE
INFERRED RESOURCES
OUR
SHARE
TOTAL M+I TOTAL M+I
GRADE CONTENT CONTENT CONTENT
(LBS U3O8)
% U3O8
14.7
5.33
(LBS U3O8)
16.9
(LBS U3O8)
27.0
TONNES
143.6
-
-
-
-
-
PROPERTY
Cigar Lake
Fox Lake
Kintyre
TONNES % U3O8
5.32
GRADE CONTENT
(LBS U3O8)
10.1
86.3
-
-
-
-
-
-
McArthur River
78.7
2.27
3.9
Millennium
Rabbit Lake
Tamarack
Yeelirrie
Crow Butte
Gas Hills - Peach
Inkai
North Butte - Brown
Ranch
Ruby Ranch
Shirley Basin
Smith Ranch - Highland
-
-
-
-
-
-
-
-
-
27,172.9
1,558.1
687.2
87,192.7
0.16
0.19
0.11
0.03
604.2
0.08
6.6
1.7
56.1
1.1
-
-
-
89.2
3,703.5
0.15
0.10
0.3
7.9
3,897.7
60.6
1,442.6
1,836.5
183.8
939.3
3,626.1
65,236.0
0.62
2.30
2.39
0.95
4.42
0.12
0.35
0.15
0.02
5,530.3
0.07
2,215.3
1,638.2
14,372.3
0.08
0.11
0.05
53.5
3.1
75.9
38.6
17.9
32.2
7.3
11.6
32.9
8.4
4.1
4.1
17.0
Total
Note that mineral resources:
•
•
•
do not include amounts that have been identified as mineral reserves
do not have demonstrated economic viability
totals may not add due to rounding
INFERRED
GRADE CONTENT CONTENT
(LBS U3O8)
% U3O8
10.9
5.55
(LBS U3O8)
20.0
7.99
0.53
2.90
3.19
0.62
1.02
68.1
6.0
2.4
29.0
33.7
1.0
53.3
6.0
1.7
20.2
33.7
0.6
TONNES
163.4
386.7
517.1
37.2
412.4
2,460.9
45.6
53.5
7.0
75.9
38.6
17.9
53.5
4.9
53.0
38.6
10.3
13.9
13.3
35.6
9.4
4.1
4.4
531.4
3,307.5
36,165.2
0.16
0.08
0.03
294.5
0.06
56.2
508.0
0.13
0.10
0.05
24.9
6,861.0
1.8
6.0
23.9
0.4
0.2
1.1
7.7
1.8
6.0
9.6
0.4
0.2
1.1
7.7
13.9
13.3
89.1
9.4
4.1
4.4
24.9
507.1
121,172.8
-
183.7
113,300.7
-
323.4
408.8
51,747.1
-
201.3
153.2
95.9
12,178.3
128.1
128.1
-
-
-
-
104 CAMECO CORPORATION
Additional information
Due to the nature of our business, we are required to make estimates that affect the amount of assets and liabilities, revenues
and expenses, commitments and contingencies we report. We base our estimates on our experience, our best judgment,
guidelines established by the Canadian Institute of Mining, Metallurgy and Petroleum and on assumptions we believe are
reasonable.
We believe the following critical accounting estimates reflect the more significant judgments used in the preparation of our
financial statements. These estimates affect all of our segments, unless otherwise noted.
Decommissioning and reclamation
In our uranium and fuel services segments, we are required to estimate the cost of decommissioning and reclamation for each
operation, but we normally do not incur these costs until an asset is nearing the end of its useful life. Regulatory requirements
and decommissioning methods could change during that time, making our actual costs different from our estimates. A
significant change in these costs or in our mineral reserves could have a material impact on our net earnings and financial
position. See note 16 to the financial statements.
Carrying value of assets
We depreciate property, plant and equipment primarily using the unit-of-production method, where the carrying value is
reduced as resources are depleted. A change in our mineral reserves would change our depreciation expenses, and such a
change could have a material impact on amounts charged to earnings.
We assess the carrying values of property, plant and equipment, intangibles and investments in associates and joint ventures
every year, or more often if necessary. If we determine that we cannot recover the carrying value of an asset, we write off the
unrecoverable amount against current earnings. We base our assessment of recoverability on assumptions and judgments we
make about future prices, production costs, our requirements for sustaining capital, our ability to economically recover mineral
reserves and the impact of geopolitical events. A material change in any of these assumptions could have a significant impact
on the potential impairment of these assets.
In performing impairment assessments of long-lived assets, assets that cannot be assessed individually are grouped together
into the smallest group of assets that generates cash inflows that are largely independent of the cash inflows from other assets
or groups of assets. Management is required to exercise judgment in identifying these cash generating units.
Taxes
When we are preparing our financial statements, we estimate taxes in each jurisdiction we operate in, taking into consideration
different tax rates, non-deductible expenses, valuation of deferred tax assets, changes in tax laws and our expectations for
future results.
We base our estimates of deferred income taxes on temporary differences between the assets and liabilities we report in our
financial statements, and the assets and liabilities determined by the tax laws in the various countries we operate in. We
record deferred income taxes in our financial statements based on our estimated future cash flows, which includes estimates
of non-deductible expenses, future market conditions, production levels and intercompany sales. If these estimates are not
accurate, there could be a material impact on our net earnings and financial position.
Controls and procedures
We have evaluated the effectiveness of our disclosure controls and procedures and internal control over financial reporting as
of December 31, 2023, as required by the rules of the US Securities and Exchange Commission and the Canadian Securities
Administrators.
MANAGEMENT’S DISCUSSION AND ANALYSIS 105
Management, including our Chief Executive Officer (CEO) and our Chief Financial Officer (CFO), supervised and participated
in the evaluation, and concluded that our disclosure controls and procedures are effective to provide a reasonable level of
assurance that the information we are required to disclose in reports we file or submit under securities laws is recorded,
processed, summarized and reported accurately, and within the time periods specified. It should be noted that, while the CEO
and CFO believe that our disclosure controls and procedures provide a reasonable level of assurance that they are effective,
they do not expect the disclosure controls and procedures or internal control over financial reporting to be capable of
preventing all errors and fraud. A control system, no matter how well conceived or operated, can provide only reasonable, not
absolute, assurance that the objectives of the control system are met.
Management, including our CEO and our CFO, is responsible for establishing and maintaining internal control over financial
reporting and conducted an evaluation of the effectiveness of our internal control over financial reporting based on the Internal
Control — Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission
(COSO). Based on this evaluation, management concluded that our internal control over financial reporting was effective as of
December 31, 2023.
There have been no changes in our internal control over financial reporting during the year that have materially affected, or are
reasonably likely to materially affect, our internal control over financial reporting.
New standards adopted
A number of amendments to existing standards became effective January 1, 2023, but they did not have an effect on our
financial statements.
A number of amendments to existing standards are not yet effective for the year ended December 31, 2023, and have not
been applied in preparing these consolidated financial statements. We do not intend to early adopt any of the amendments
and do not expect them to have a material impact on our financial statements.
106 CAMECO CORPORATION
Cameco Corporation
2023 consolidated financial statements
February 7, 2024
2023 CONSOLIDATED FINANCIAL STATEMENTS AND NOTES 107
Report of management’s accountability
The accompanying consolidated financial statements have been prepared by management in accordance with International
Financial Reporting Standards as issued by the International Accounting Standards Board. Management is responsible for
ensuring that these statements, which include amounts based upon estimates and judgments, are consistent with other
information and operating data contained in the annual financial review and reflect the corporation's business transactions and
financial position.
Management is also responsible for the information disclosed in the management’s discussion and analysis including
responsibility for the existence of appropriate information systems, procedures and controls to ensure that the information
used internally by management and disclosed externally is complete and reliable in all material respects.
In addition, management is responsible for establishing and maintaining an adequate system of internal control over financial
reporting. The internal control system includes an internal audit function and a code of conduct and ethics, which is
communicated to all levels in the organization and requires all employees to maintain high standards in their conduct of the
Company's affairs. Such systems are designed to provide reasonable assurance that the financial information is relevant,
reliable and accurate and that the Company’s assets are appropriately accounted for and adequately safeguarded.
Management conducted an evaluation of the effectiveness of the system of internal control over financial reporting based on
the criteria established in “Internal Control – Integrated Framework (2013)” issued by the Committee of Sponsoring
Organizations of the Treadway Commission. Based on this evaluation, management concluded that the Company’s system of
internal control over financial reporting was effective as of December 31, 2023.
KPMG LLP has audited the consolidated financial statements in accordance with the standards of the Public Company
Accounting Oversight Board (United States).
The board of directors annually appoints an audit and finance committee comprised of directors who are not employees of the
corporation. This committee meets regularly with management, the internal auditor and the shareholders' auditors to review
significant accounting, reporting and internal control matters. Both the internal and shareholders' auditors have unrestricted
access to the audit and finance committee. The audit and finance committee reviews the consolidated financial statements,
the report of the shareholders' auditors, and management’s discussion and analysis and submits its report to the board of
directors for formal approval.
Original signed by Tim S. Gitzel
President and Chief Executive Officer
February 7, 2024
Original signed by Grant E. Isaac
Executive Vice-President and Chief Financial Officer
February 7, 2024
108 CAMECO CORPORATION
Report of independent registered public accounting firm
To the Shareholders and Board of Directors of Cameco Corporation
Opinion on the consolidated financial statements
We have audited the accompanying consolidated statements of financial position of Cameco Corporation (the “Company”) as
of December 31, 2023 and 2022, the related consolidated statements of earnings, comprehensive income, changes in equity
and cash flows for each of the years then ended, and the related notes (collectively, the “consolidated financial statements”).
In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the
Company as of December 31, 2023 and 2022, and its financial performance and its cash flows for each of the years then
ended, in conformity with International Financial Reporting Standards as issued by the International Accounting Standards
Board.
We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States)
(“PCAOB”), the Company’s internal control over financial reporting as of December 31, 2023, based on criteria established in
Internal Control – Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway
Commission (COSO), and our report dated February 7, 2024 expressed an unqualified opinion on the effectiveness of the
Company’s internal control over financial reporting.
Basis for opinion
These consolidated financial statements are the responsibility of the Company's management. Our responsibility is to express
an opinion on these consolidated financial statements based on our audits. We are a public accounting firm registered with the
PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws
and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform
the audit to obtain reasonable assurance about whether the consolidated financial statements are free of material
misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material
misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures that respond
to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the
consolidated financial statements. Our audits also included evaluating the accounting principles used and significant estimates
made by management, as well as evaluating the overall presentation of the consolidated financial statements. We believe that
our audits provide a reasonable basis for our opinion.
Critical audit matter
The critical audit matter communicated below is a matter arising from the current period audit of the consolidated financial
statements that was communicated or required to be communicated to the audit and finance committee and that: (1) relates to
accounts or disclosures that are material to the consolidated financial statements and (2) involved our especially challenging,
subjective, or complex judgments. The communication of a critical audit matter does not alter in any way our opinion on the
consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matter below,
providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates.
Assessment of recoverability of deferred tax assets
As discussed in note 22 to the consolidated financial statements, as of December 31, 2023 the Company has recorded a
deferred tax asset of $892,860,000. The realization of this deferred tax asset is dependent on the generation of future taxable
income in certain jurisdictions during the periods in which the Company’s deferred tax assets are available. Based on
projections of future taxable income over the periods in which the deferred tax assets are available, realization of these
deferred tax assets is probable. As discussed in note 5D, the calculation of income taxes requires the use of judgment and
estimates. The determination of the recoverability of deferred tax assets is dependent on assumptions and judgments
regarding future market conditions and production rates, which can materially impact estimated future taxable income.
2023 CONSOLIDATED FINANCIAL STATEMENTS AND NOTES 109
We identified the assessment of the recoverability of the deferred tax asset as a critical audit matter due to the high degree of
judgment required in assessing the significant assumptions and judgments that are reflected in the projections of future
taxable income.
The following are the primary procedures we performed to address this critical audit matter. We evaluated the design and
tested the operating effectiveness of certain internal controls related to the Company’s assessment of the recoverability of the
deferred tax asset, including controls related to the assumptions and judgments used in the projections of future taxable
income. To assess the Company’s ability to estimate future taxable income, we compared the Company’s previous forecasts
to actual results. To assess the Company’s estimate of future taxable income, we evaluated certain significant assumptions in
the projections. We compared forecast production rates to historical data, board approved budgets and life of mine plans. We
involved income tax professionals with specialized skills and knowledge to assist in assessing the Company’s application of
the tax regulations in relevant jurisdictions.
Original signed by KPMG LLP
Chartered Professional Accountants
We have served as the Company’s auditor since 1988.
Saskatoon, Canada
February 7, 2024
110 CAMECO CORPORATION
Report of independent registered public accounting firm
To the Shareholders and Board of Directors of Cameco Corporation
Opinion on internal control over financial reporting
We have audited Cameco Corporation’s (the “Company”) internal control over financial reporting as of December 31, 2023,
based on criteria established in Internal Control – Integrated Framework (2013) issued by the Committee of Sponsoring
Organizations of the Treadway Commission. In our opinion, the Company maintained, in all material respects, effective
internal control over financial reporting as of December 31, 2023, based on criteria established in Internal Control – Integrated
Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission.
We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States)
(“PCAOB”), the consolidated statements of financial position of the Company as of December 31, 2023 and 2022, the related
consolidated statements of earnings, comprehensive income, changes in equity and cash flows for each of the years then
ended, and the related notes (collectively, the "consolidated financial statements") and our report dated February 7, 2024
expressed an unqualified opinion on those consolidated financial statements.
Basis for opinion
The Company’s management is responsible for maintaining effective internal control over financial reporting and for its
assessment of the effectiveness of internal control over financial reporting, included in the accompanying Report of
management’s accountability. Our responsibility is to express an opinion on the Company’s internal control over financial
reporting based on our audit. We are a public accounting firm registered with the PCAOB and are required to be independent
with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the
Securities and Exchange Commission and the PCAOB.
We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform
the audit to obtain reasonable assurance about whether effective internal control over financial reporting was maintained in all
material respects. Our audit of internal control over financial reporting included obtaining an understanding of internal control
over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and
operating effectiveness of internal control based on the assessed risk. Our audit also included performing such other
procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our
opinion.
Definition and limitations of internal control over financial reporting
A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the
reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally
accepted accounting principles. A company’s internal control over financial reporting includes those policies and procedures
that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and
dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to
permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and
expenditures of the company are being made only in accordance with authorizations of management and directors of the
company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or
disposition of the company’s assets that could have a material effect on the financial statements.
Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also,
projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate
because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
2023 CONSOLIDATED FINANCIAL STATEMENTS AND NOTES 111
Original signed by KPMG LLP
Chartered Professional Accountants
Saskatoon, Canada
February 7, 2024
112 CAMECO CORPORATION
Consolidated statements of earnings
For the years ended December 31
($Cdn thousands, except per share amounts)
Revenue from products and services
Cost of products and services sold
Depreciation and amortization
Cost of sales
Gross profit
Administration
Exploration
Research and development
Other operating expense (income)
Loss on disposal of assets
Earnings from operations
Finance costs
Gain (loss) on derivatives
Finance income
Share of earnings from equity-accounted investees
Other income
Earnings before income taxes
Income tax expense (recovery)
Net earnings
Net earnings (loss) attributable to:
Equity holders
Non-controlling interest
Net earnings
Earnings per common share attributable to equity holders:
Basic
Diluted
See accompanying notes to consolidated financial statements.
Note
2023
2022
18
$ 2,587,758 $ 1,868,003
1,805,768
220,324
1,457,336
177,376
29
2,026,092
1,634,712
16
20
27
12
21
22
561,666
245,539
17,551
21,036
(7,509)
2,188
282,861
(115,869)
37,791
111,670
154,462
16,238
487,153
126,337
233,291
172,029
10,578
12,175
22,944
514
15,051
(85,728)
(72,949)
37,499
93,988
96,934
84,795
(4,469)
$
360,816 $
89,264
360,847
(31)
89,382
(118)
$
360,816 $
89,264
23
23
$
$
0.83 $
0.83 $
0.22
0.22
2023 CONSOLIDATED FINANCIAL STATEMENTS AND NOTES 113
Consolidated statements of comprehensive income
For the years ended December 31
($Cdn thousands)
Net earnings
Other comprehensive income (loss), net of taxes:
Items that will not be reclassified to net earnings:
Remeasurements of defined benefit liability1
Remeasurements of defined benefit liability - equity-accounted
investee2
Items that are or may be reclassified to net earnings:
Exchange differences on translation of foreign operations
Gains on derivatives designated as cash flow hedges -
equity-accounted investee3
Exchange differences on translation of foreign operations -
equity-accounted investee
Other comprehensive loss, net of taxes
Total comprehensive income
Other comprehensive income (loss) attributable to:
Equity holders
Non-controlling interest
Other comprehensive loss for the year
Total comprehensive income (loss) attributable to:
Equity holders
Non-controlling interest
Total comprehensive income for the year
1 Net of tax (2023 - $1,581; 2022 - $(5,440))
2 Net of tax (2023 - $5,144; 2022 - $0)
3 Net of tax (2023 - $(909); 2022 - $0)
See accompanying notes to consolidated financial statements.
Note
2023
2022
$
360,816 $
89,264
26
(5,205)
19,242
(20,199)
-
(76,960)
(38,141)
3,506
23,520
-
-
(75,338)
(18,899)
$
285,478 $
70,365
$
$
$
(75,338) $
-
(18,901)
2
(75,338) $
(18,899)
285,509 $
(31)
70,481
(116)
$
285,478 $
70,365
114 CAMECO CORPORATION
Consolidated statements of financial position
As at December 31
($Cdn thousands)
Assets
Current assets
Cash and cash equivalents
Short-term investments
Accounts receivable
Current tax assets
Inventories
Supplies and prepaid expenses
Current portion of long-term receivables, investments and other
Total current assets
Property, plant and equipment
Intangible assets
Long-term receivables, investments and other
Investment in equity-accounted investees
Deferred tax assets
Total non-current assets
Total assets
Liabilities and shareholders' equity
Current liabilities
Accounts payable and accrued liabilities
Current tax liabilities
Current portion of long-term debt
Current portion of other liabilities
Current portion of provisions
Total current liabilities
Long-term debt
Other liabilities
Provisions
Total non-current liabilities
Shareholders' equity
Share capital
Contributed surplus
Retained earnings
Other components of equity
Total shareholders' equity attributable to equity holders
Non-controlling interest
Total shareholders' equity
Total liabilities and shareholders' equity
Commitments and contingencies [notes 9, 16, 22]
See accompanying notes to consolidated financial statements.
Note
2023
2022
7
8
11
9
10
11
12
22
$
566,809 $ 1,143,674
1,138,174
183,944
1,056
664,698
157,910
32,180
3,321,636
-
422,333
974
692,261
149,352
10,161
1,841,890
3,368,772
43,577
613,773
3,173,185
892,860
8,092,167
3,473,490
47,117
595,507
210,972
984,071
5,311,157
$ 9,934,057 $ 8,632,793
13
$
577,550 $
14
15
16
14
15
16
24,076
499,821
48,544
39,113
1,189,104
1,284,353
343,420
1,022,871
2,650,644
374,714
6,498
-
131,324
48,305
560,841
997,000
216,162
1,022,725
2,235,887
2,914,165
215,679
2,979,743
(15,282)
6,094,305
2,880,336
224,687
2,696,379
34,652
5,836,054
4
6,094,309
11
5,836,065
$ 9,934,057 $ 8,632,793
2023 CONSOLIDATED FINANCIAL STATEMENTS AND NOTES 115
Consolidated statements of changes in equity
Attributable to equity holders
Foreign
Equity
Share Contributed
Retained
currency Cash flow
investments
Non-
controlling
($Cdn thousands)
capital
surplus
earnings
translation
hedges
at FVOCI
Total
interest
Total
equity
Balance at January 1, 2023
$ 2,880,336 $
224,687 $ 2,696,379 $
35,400 $
- $
(748) $ 5,836,054 $
11 $ 5,836,065
Net earnings (loss)
Other comprehensive
income (loss)
Total comprehensive
income (loss)
Share-based compensation
Stock options exercised
Restricted share units
released
Dividends
Transactions with owners -
contributed equity
-
-
-
-
33,829
-
-
-
-
360,847
-
-
-
360,847
(31)
360,816
-
(25,404)
(53,440)
3,506
-
335,443
(53,440)
3,506
3,692
(6,292)
(6,408)
-
-
-
-
-
(52,079)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(75,338)
-
(75,338)
285,509
(31)
285,478
3,692
27,537
(6,408)
(52,079)
-
-
-
-
3,692
27,537
(6,408)
(52,079)
-
24
24
Balance at December 31, 2023
$ 2,914,165 $
215,679 $ 2,979,743 $
(18,040) $
3,506 $
(748) $ 6,094,305 $
4 $ 6,094,309
Balance at January 1, 2022
$ 1,903,357 $
230,039 $ 2,639,650 $
73,543 $
- $
(748) $ 4,845,841 $
127 $ 4,845,968
Net earnings (loss)
Other comprehensive
income (loss)
Total comprehensive
income (loss)
Share-based compensation
Stock options exercised
Restricted share units
released
Dividends
-
-
-
-
12,101
-
-
Equity issuance [note 17]
964,878
-
-
89,382
-
19,242
(38,143)
-
108,624
(38,143)
3,318
(2,469)
(6,201)
-
-
-
-
-
(51,895)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
89,382
(118)
89,264
(18,901)
2
(18,899)
70,481
(116)
70,365
3,318
9,632
(6,201)
(51,895)
964,878
-
-
-
-
-
3,318
9,632
(6,201)
(51,895)
964,878
Balance at December 31, 2022
$ 2,880,336 $
224,687 $ 2,696,379 $
35,400 $
- $
(748) $ 5,836,054 $
11 $ 5,836,065
See accompanying notes to consolidated financial statements.
116 CAMECO CORPORATION
Consolidated statements of cash flows
For the years ended December 31
($Cdn thousands)
Operating activities
Net earnings
Adjustments for:
Depreciation and amortization
Deferred sales
Unrealized loss (gain) on derivatives
Share-based compensation
Loss on disposal of assets
Finance costs
Finance income
Share of earnings from equity-accounted investees
Other income
Other operating expense (income)
Income tax expense (recovery)
Interest received
Income taxes received (paid)
Dividends from equity-accounted investee
Other operating items
Net cash provided by operations
Investing activities
Additions to property, plant and equipment
Acquisitions
Decrease (increase) in short-term investments
Decrease (increase) in long-term receivables, investments and other
Proceeds from sale of property, plant and equipment
Net cash used in investing
Financing activities
Increase in long-term debt
Interest paid
Proceeds from issuance of shares, stock option plan
Proceeds from issuance of shares, net of issue costs
Lease principal payments
Dividends paid
Net cash provided by financing
Decrease in cash and cash equivalents, during the year
Exchange rate changes on foreign currency cash balances
Cash and cash equivalents, beginning of year
Cash and cash equivalents, end of year
Cash and cash equivalents is comprised of:
Cash
Cash equivalents
Cash and cash equivalents
See accompanying notes to consolidated financial statements.
Note
2023
2022
$
360,816 $
89,264
25
20
12
21
16
22
32
24
9
6
14
17
220,324
(21,468)
(61,658)
3,692
2,188
115,869
(111,670)
(154,462)
(16,238)
(7,509)
126,337
113,797
70,372
113,642
(65,896)
688,136
177,376
43,528
82,636
3,318
514
85,728
(37,499)
(93,988)
(96,934)
22,944
(4,469)
35,443
(1,521)
117,698
(119,431)
304,607
(153,631)
(3,028,977)
1,136,687
1,000
69
(2,044,852)
(143,448)
(101,681)
(1,044,473)
(2,000)
780
(1,290,822)
816,582
(40,798)
27,537
-
(2,430)
(52,079)
748,812
-
(38,856)
9,632
953,285
(2,908)
(51,895)
869,258
(607,904)
31,039
1,143,674
566,809 $
(116,957)
13,184
1,247,447
1,143,674
229,732 $
337,077
566,809 $
701,818
441,856
1,143,674
$
$
$
2023 CONSOLIDATED FINANCIAL STATEMENTS AND NOTES 117
Notes to consolidated financial statements
For the years ended December 31, 2023 and 2022
1. Cameco Corporation
Cameco Corporation is incorporated under the Canada Business Corporations Act. The address of its registered office is 2121
11th Street West, Saskatoon, Saskatchewan, S7M 1J3. The consolidated financial statements as at and for the year ended
December 31, 2023 comprise Cameco Corporation and its subsidiaries (collectively, the Company or Cameco) and the
Company’s interests in associates and joint arrangements.
Cameco is one of the world’s largest providers of the uranium needed to generate clean, reliable baseload electricity around
the globe. The Company has operations in northern Saskatchewan and the United States, as well as a 40% interest in Joint
Venture Inkai LLP (JV Inkai), a joint arrangement with Joint Stock Company National Atomic Company Kazatomprom
(Kazatomprom), located in Kazakhstan. Cameco also has a 49% interest in Westinghouse Electric Company (Westinghouse),
a joint venture with Brookfield Renewable Partners and its institutional partners (collectively, Brookfield). Westinghouse is one
of the world’s largest nuclear services businesses with corporate headquarters in Pennsylvania and operations around the
world. Both JV Inkai and Westinghouse are accounted for on an equity basis (see note 12).
Cameco has two operating mines, Cigar Lake and McArthur River. Operations at McArthur River/Key Lake, which had been
suspended in 2018, resumed in November of 2022. The Rabbit Lake operation was placed in care and maintenance in 2016.
Cameco’s operations in the United States, Crow Butte and Smith Ranch-Highland, are not currently producing as the decision
was made in 2016 to curtail production and defer all wellfield development. See note 29 for the financial statement impact.
The Company is also a leading provider of nuclear fuel processing services, supplying much of the world’s reactor fleet with
the fuel to generate one of the cleanest sources of electricity available today. It operates the world’s largest commercial
refinery in Blind River, Ontario, controls a significant portion of the world UF6 primary conversion capacity in Port Hope,
Ontario and is a leading manufacturer of fuel assemblies and reactor components for CANDU reactors at facilities in Port
Hope and Cobourg, Ontario.
2. Material accounting policies
A. Statement of compliance
These consolidated financial statements have been prepared in accordance with International Financial Reporting Standards
(IFRS) as issued by the International Accounting Standards Board (IASB).
These consolidated financial statements were authorized for issuance by the Company’s board of directors on February 7,
2024.
B. Basis of presentation
These consolidated financial statements are presented in Canadian dollars, which is the Company’s functional currency. All
financial information is presented in Canadian dollars, unless otherwise noted. Amounts presented in tabular format have been
rounded to the nearest thousand except per share amounts and where otherwise noted.
The consolidated financial statements have been prepared on the historical cost basis except for the following material items
which are measured on an alternative basis at each reporting date:
118 CAMECO CORPORATION
Derivative financial instruments
Equity investments
Liabilities for cash-settled share-based payment arrangements
Net defined benefit liability
Fair value through profit or loss (FVTPL)
Fair value through other comprehensive income
(FVOCI)
FVTPL
Fair value of plan assets less the present value of the
defined benefit obligation
The preparation of the consolidated financial statements in conformity with IFRS requires management to make judgments,
estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities,
revenue and expenses. Actual results may vary from these estimates.
Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in
the period in which the estimates are revised and in any future periods affected. The areas involving a higher degree of
judgment or complexity, or areas where assumptions and estimates are significant to the consolidated financial statements are
disclosed in note 5.
This summary of material accounting policies is a description of the accounting methods and practices that have been used in
the preparation of these consolidated financial statements and is presented to assist the reader in interpreting the statements
contained herein. These accounting policies have been applied consistently to all entities within the consolidated group.
C. Consolidation principles
i. Business combinations
The acquisition method of accounting is used to account for the acquisition of subsidiaries by the Company. The Company
measures goodwill at the acquisition date as the fair value of the consideration transferred, including the recognized amount of
any non-controlling interests in the acquiree, less the net recognized amount (generally fair value) of the identifiable assets
acquired and liabilities assumed, all measured as of the acquisition date. When the excess is negative, a bargain purchase
gain is recognized immediately in earnings. In a business combination achieved in stages, the acquisition date fair value of the
Company’s previously held equity interest in the acquiree is also considered in computing goodwill.
Consideration transferred includes the fair values of the assets transferred, liabilities incurred and equity interests issued by
the Company. Consideration also includes the fair value of any contingent consideration and share-based compensation
awards that are replaced mandatorily in a business combination.
The Company elects on a transaction-by-transaction basis whether to measure any non-controlling interest at fair value, or at
their proportionate share of the recognized amount of the identifiable net assets of the acquiree, at the acquisition date.
Acquisition-related costs are expensed as incurred, except for those costs related to the issue of debt or equity instruments.
ii. Subsidiaries
The consolidated financial statements include the accounts of Cameco and its subsidiaries. Subsidiaries are entities over
which the Company has control. Subsidiaries are fully consolidated from the date on which control is acquired by the Company
and are deconsolidated from the date that control ceases.
iii. Joint arrangements
A joint arrangement can take the form of a joint operation or joint venture. All joint arrangements involve a contractual
arrangement that establishes joint control.
2023 CONSOLIDATED FINANCIAL STATEMENTS AND NOTES 119
A joint operation is a joint arrangement whereby the parties that have joint control of the arrangement have rights to the
assets, and obligations for the liabilities, relating to the arrangement. A joint operation may or may not be structured through a
separate vehicle. These arrangements involve joint control of one or more of the assets acquired or contributed for the
purpose of the joint operation. The consolidated financial statements of the Company include its share of the assets in such
joint operations, together with its share of the liabilities, revenues and expenses arising jointly or otherwise from those
operations. All such amounts are measured in accordance with the terms of each arrangement.
A joint venture is a joint arrangement whereby the parties that have joint control of the arrangement have rights to the net
assets of the arrangement. A joint venture is always structured through a separate vehicle. It operates in the same way as
other entities, controlling the assets of the joint venture, earning its own revenue and incurring its own liabilities and expenses.
Interests in joint ventures are accounted for using the equity method of accounting, whereby the Company’s proportionate
interest in the assets, liabilities, revenues and expenses of jointly controlled entities are recognized on a single line in the
consolidated statements of financial position and consolidated statements of earnings. The share of joint ventures results is
recognized in the Company’s consolidated financial statements from the date that joint control commences until the date at
which it ceases.
When acquiring an additional interest in a joint arrangement, previously held interests are not remeasured at fair value. In an
acquisition of an asset or group of assets that does not constitute a business, the directly attributable transaction costs are
included in the cost of the asset or group of assets.
iv. Investments in equity-accounted investees
Cameco’s investments in equity-accounted investees include investments in joint ventures and an associate.
Associates are those entities over which the Company has significant influence, but not control or joint control, over the
financial and operating policies. Significant influence is presumed to exist when the Company holds between 20% and 50% of
the voting power of another entity but can also arise where the Company holds less than 20% if it has the power to be actively
involved and influential in policy decisions affecting the entity. A joint venture is an arrangement in which the Company has
joint control, whereby it has rights to the net assets of the arrangement, rather than rights to its assets and obligations for its
liabilities.
Investments in the joint ventures and associate are accounted for using the equity method. The equity method involves the
recording of the initial investment at cost and the subsequent adjusting of the carrying value of the investment for Cameco’s
proportionate share of the earnings or loss and OCI and any other changes in the associates’ net assets, such as dividends.
The cost of the investment includes transaction costs.
Adjustments are made to align the accounting policies of the joint ventures and associate with those of the Company before
applying the equity method. When the Company’s share of losses exceeds its interest in an equity-accounted investee, the
carrying amount of that interest is reduced to zero, and the recognition of further losses is discontinued except to the extent
that the Company has incurred legal or constructive obligations or made payments on behalf of the associate. If the associate
subsequently reports profits, Cameco resumes recognizing its share of those profits only after its share of the profits equals
the share of losses not recognized.
v. Transactions eliminated on consolidation
Intra-group balances and transactions, and any unrealized income and expenses arising from intra-group transactions, are
eliminated in preparing the consolidated financial statements. Unrealized gains arising from transactions with its equity-
accounted investees JV Inkai and Westinghouse are eliminated against the investment to the extent of the Company’s interest
in the investee. Unrealized losses are eliminated in the same manner as unrealized gains, but only to the extent that there is
no evidence of impairment.
120 CAMECO CORPORATION
D. Foreign currency translation
Items included in the financial statements of each of Cameco’s subsidiaries, associates and joint arrangements are measured
using their functional currency, which is the currency of the primary economic environment in which the entity operates. The
consolidated financial statements are presented in Canadian dollars, which is Cameco’s functional and presentation currency.
i. Foreign currency transactions
Foreign currency transactions are translated into the respective functional currency of the Company and its entities using the
average monthly exchange rates prevailing at the date of the transactions. At the reporting date, monetary assets and
liabilities denominated in foreign currencies are translated to the functional currency at the exchange rate at that date. Non-
monetary items that are measured in terms of historical cost in a foreign currency are translated using the average monthly
exchange rate at the date of the transaction. The applicable exchange gains and losses arising on these transactions are
reflected in earnings with the exception of foreign exchange gains or losses on provisions for decommissioning and
reclamation activities that are in a foreign currency, which are capitalized in property, plant and equipment.
ii. Foreign operations
The assets and liabilities of foreign operations, including goodwill and fair value adjustments arising on acquisition, are
translated to Canadian dollars at exchange rates at the reporting dates. The revenues and expenses of foreign operations are
translated to Canadian dollars at the average monthly exchange rate at the dates of the transactions.
Foreign currency differences are recognized in other comprehensive income. When a foreign operation is disposed of, in
whole, the relevant amount in the foreign currency translation account is transferred to earnings as part of the gain or loss on
disposal.
When the settlement of a monetary item receivable from or payable to a foreign operation is neither planned nor likely in the
foreseeable future, foreign exchange gains and losses arising from such a monetary item are considered to form part of the
net investment in a foreign operation, and are recognized in other comprehensive income and presented within equity in the
foreign currency translation account.
E. Cash and cash equivalents
Cash and cash equivalents consists of balances with financial institutions and investments in money market instruments,
which have a term to maturity of three months or less at the time of purchase and are measured at amortized cost.
F. Short-term investments
Short-term investments are comprised of money market instruments with terms to maturity between three and 12 months and
are measured at amortized cost.
G. Inventories
Inventories of broken ore, uranium concentrates, and refined and converted products are measured at the lower of cost and
net realizable value. The cost of inventories is based on the weighted average method.
Cost includes direct materials, direct labour, operational overhead expenses and depreciation. Net realizable value is the
estimated selling price in the ordinary course of business, less the estimated costs of completion and selling expenses.
Consumable supplies and spares are valued at the lower of cost or replacement value.
2023 CONSOLIDATED FINANCIAL STATEMENTS AND NOTES 121
H. Property, plant and equipment
i. Buildings, plant and equipment and other
Items of property, plant and equipment are measured at cost less accumulated depreciation and impairment charges. The cost
of self-constructed assets includes the cost of materials and direct labour, borrowing costs and any other costs directly
attributable to bringing the assets to the location and condition necessary for them to be capable of operating in the manner
intended by management, including the initial estimate of the cost of dismantling and removing the items and restoring the site
on which they are located.
When components of an item of property, plant and equipment have different useful lives, they are accounted for as separate
items of property, plant and equipment and depreciated separately.
Gains and losses on disposal of an item of property, plant and equipment are determined by comparing the proceeds from
disposal with the carrying amount of property, plant and equipment, and are recognized in earnings.
ii. Mineral properties and mine development costs
The decision to develop a mine property within a project area is based on an assessment of the commercial viability of the
property, the availability of financing and the existence of markets for the product. Once the decision to proceed to
development is made, development and other expenditures relating to the project area are deferred as part of assets under
construction and disclosed as a component of property, plant and equipment with the intention that these will be depreciated
by charges against earnings from future mining operations. No depreciation is charged against the property until the
production stage commences. After a mine property has been brought into the production stage, costs of any additional work
on that property are expensed as incurred, except for large development programs, which will be deferred and depreciated
over the remaining life of the related assets.
The production stage is reached when a mine property is in the condition necessary for it to be capable of operating in the
manner intended by management. The criteria used to assess the start date of the production stage are determined based on
the nature of each mine construction project, including the complexity of a mine site. A range of factors is considered when
determining whether the production stage has been reached, which includes, but is not limited to, the demonstration of
sustainable production at or near the level intended (such as the demonstration of continuous throughput levels at or above a
target percentage of the design capacity).
iii. Depreciation
Depreciation is calculated over the depreciable amount, which is the cost of the asset less its residual value. Assets which are
unrelated to production are depreciated according to the straight-line method based on estimated useful lives as follows:
Land
Buildings
Plant and equipment
Furniture and fixtures
Other
Not depreciated
15 - 25 years
3 - 15 years
3 - 10 years
3 - 5 years
Mining properties and certain mining and conversion assets for which the economic benefits from the asset are consumed in a
pattern which is linked to the production level are depreciated according to the unit-of-production method. For conversion
assets, the amount of depreciation is measured by the portion of the facilities' total estimated lifetime production that is
produced in that period. For mining assets and properties, the amount of depreciation or depletion is measured by the portion
of the mines' proven and probable mineral reserves recovered during the period.
Depreciation methods, useful lives and residual values are reviewed at each reporting period and are adjusted if appropriate.
122 CAMECO CORPORATION
iv. Repairs and maintenance
The cost of replacing a component of property, plant and equipment is capitalized if it is probable that future economic benefits
embodied within the component will flow to the Company. The carrying amount of the replaced component is derecognized.
Costs of routine maintenance and repair are charged to products and services sold.
I. Goodwill and intangible assets
Goodwill arising from the acquisition of subsidiaries is initially recognized at cost, measured as the excess of the fair value of
the consideration paid over the fair value of the identifiable net assets acquired. Goodwill is subsequently measured at cost,
less accumulated impairment losses.
Intangible assets acquired individually or as part of a group of assets are initially recognized at cost and measured
subsequently at cost less accumulated amortization and impairment losses. Subsequent expenditure is capitalized only when
it increases the future economic benefits embodied in the specific asset to which it relates. The cost of a group of intangible
assets acquired in a transaction, including those acquired in a business combination that meet the specified criteria for
recognition apart from goodwill, is allocated to the individual assets acquired based on their relative fair values.
Intangible assets that have finite useful lives are amortized using the units of production method over their estimated
remaining useful lives. Amortization methods and useful lives are reviewed at each reporting period and are adjusted if
appropriate.
J. Leases
Cameco recognizes a right-of-use asset and a lease liability at the lease commencement date. The right-of-use asset is
initially measured at cost, which is the initial amount of the lease liability adjusted for any lease payments made at or before
the commencement date, plus any initial direct costs incurred, less any lease incentives received, and subsequently at cost
less any accumulated depreciation and impairment losses. The right-of-use asset is subsequently depreciated using the
straight-line method from the commencement date to the end of the lease term, unless the cost of the right-of-use asset
reflects that the Company will exercise a purchase option, in which case the right-of-use asset will be depreciated on the same
basis as that of property, plant and equipment.
The lease liability is measured at amortized cost using the effective interest method. It is initially measured at the present value
of the lease payments that are not paid at the commencement date, discounted using the interest rate implicit in the lease, or,
if that rate cannot be readily determined, the Company’s incremental borrowing rate. Generally, Cameco uses its incremental
borrowing rate as the discount rate. Current borrowing rates available for classes of leased assets are compared with the rates
of Cameco’s existing debt facilities to ensure that use of the Company’s incremental borrowing rate is reasonable.
The lease liability is subsequently increased by the interest cost on the lease liability and decreased by lease payments made.
It is remeasured when there is a change in future lease payments arising from a change in an index or rate, a change in the
estimate of the amount expected to be payable under a residual value guarantee, or as appropriate, changes in the
assessment of whether a purchase or extension option is reasonably certain to be exercised or a termination option is
reasonably certain not to be exercised.
Cameco uses judgement in determining the lease term for some lease contracts that include renewal options. The assessment
of whether the Company is reasonably certain to exercise such options impacts the lease term, which affects the amount of
lease liabilities and right-of-use assets recognized.
The Company has elected not to recognize right-of-use assets and lease liabilities for leases of low-value assets and short-
term leases that have a lease term of 12 months or less. The lease payments associated with these leases are recognized as
an expense on a straight-line basis over the lease term.
2023 CONSOLIDATED FINANCIAL STATEMENTS AND NOTES 123
K. Finance income and finance costs
Finance income comprises interest income on funds invested. Interest income and interest expense are recognized in
earnings as they accrue, using the effective interest method. Finance costs are comprised of interest and fees on borrowings
and unwinding of the discount on provisions.
Borrowing costs that are not directly attributable to the acquisition, construction or production of a qualifying asset are
expensed in the period incurred.
L. Research and development costs
Expenditures on research are charged against earnings when incurred. Development costs are recognized as assets when the
Company can demonstrate technical feasibility and that the asset will generate probable future economic benefits.
M. Impairment
i. Non-derivative financial assets
Cameco recognizes loss allowances for expected credit losses (ECLs) on financial assets measured at amortized cost and
contract assets. It measures loss allowances at an amount equal to lifetime ECLs, except for debt securities that are
determined to have low credit risk at the reporting date and other debt securities, loans advanced and bank balances for which
credit risk has not increased significantly since initial recognition. For these, loss allowances are measured equal to 12-month
ECLs.
Lifetime ECLs are the ECLs that result from all possible default events over the expected life of a financial instrument while 12-
month ECLs are the portion of ECLs that result from default events that are possible within the 12 months after the reporting
date (or a shorter period if the expected life of the instrument is less than 12 months). The maximum period considered when
estimating ECLs is the maximum contractual period over which the Company is exposed to credit risk.
ECLs are a probability-weighted estimate of credit losses. Credit losses are measured as the present value of the difference
between the cash flows due to the entity in accordance with the contract and the cash flows that the Company expects to
receive. ECLs are discounted at the effective interest rate of the financial asset.
When determining whether the credit risk of a financial asset has increased significantly since initial recognition and when
estimating ECLs, the Company considers reasonable and supportable information that is relevant and available without undue
cost or effort. This includes both quantitative and qualitative information and analysis, based on the Company’s historical
experience and informed credit assessment and including forward-looking information.
The Company considers a financial asset to be in default when the borrower is unlikely to pay its credit obligations in full,
without recourse by Cameco to actions such as realizing security (if any is held).
The Company considers a debt security to have low credit risk when it is at least an A (low) DBRS or A- S&P rating.
Financial assets carried at amortized cost. A financial asset is ‘credit-impaired’ when one or more events that have a
detrimental effect on the estimated future cash flows of the financial asset have occurred. Evidence can include significant
financial difficulty of the borrower or issuer, a breach of contract, restructuring of an amount due to the Company on terms that
the Company would not consider otherwise, indications that a debtor or issuer will enter bankruptcy or other financial
reorganization, or the disappearance of an active market for a security.
Loss allowances for financial assets measured at amortized cost are deducted from the gross carrying amount of the assets.
The gross carrying amount of a financial asset is written off when the Company has no reasonable expectations of recovering
a financial asset in its entirety or a portion thereof.
124 CAMECO CORPORATION
ii. Non-financial assets
The carrying amounts of Cameco’s non-financial assets are reviewed throughout the year to determine whether there is any
indication of impairment. If any such indication exists, then the asset’s recoverable amount is estimated. Goodwill is tested
annually for impairment.
For impairment testing, assets are grouped together into CGUs which are the smallest group of assets that generate cash
inflows from continuing use that are largely independent of the cash inflows of other assets or CGUs. Goodwill arising from a
business combination is allocated to CGUs or groups of CGUs that are expected to benefit from the synergies of the
combination.
The recoverable amount of an asset or CGU is the greater of its value in use and its fair value less costs to sell. Value in use is
based on the estimated future cash flows, discounted to their present value using a pre-tax discount rate that reflects current
market assessments of the time value of money and the risks specific to the asset or CGU. Fair value is determined as the
amount that would be obtained from the sale of the asset or CGU in an arm’s-length transaction between knowledgeable and
willing parties. For exploration properties, fair value is based on the implied fair value of the resources in place using
comparable market transaction metrics.
An impairment loss is recognized if the carrying amount of an asset or its CGU exceeds its recoverable amount. Impairment
losses are recognized in earnings. Impairment losses recognized in respect of CGUs are allocated first to reduce the carrying
amount of any goodwill allocated to the CGU, and then to reduce the carrying amounts of the other assets in the CGU on a pro
rata basis.
Impairment losses recognized in prior periods are assessed throughout the year, whenever events or changes in
circumstances indicate that the impairment may have reversed. If the impairment has reversed, the carrying amount of the
asset is increased to its recoverable amount. An impairment loss is reversed only to the extent that the asset’s carrying
amount does not exceed the carrying amount that would have been determined, net of depreciation or amortization, if no
impairment loss had been recognized. A reversal of an impairment loss is recognized immediately in earnings. An impairment
loss in respect of goodwill is not reversed.
N. Exploration and evaluation expenditures
Exploration and evaluation expenditures are those expenditures incurred by the Company in connection with the exploration
for and evaluation of mineral resources before the technical feasibility and commercial viability of extracting a mineral resource
are demonstrable. These expenditures include researching and analyzing existing exploration data, conducting geological
studies, exploratory drilling and sampling, and compiling prefeasibility and feasibility studies. Exploration and evaluation
expenditures are charged against earnings as incurred, except when there is a high degree of confidence in the viability of the
project and it is probable that these costs will be recovered through future development and exploitation.
Exploration and evaluation costs that have been acquired in a business combination or asset acquisition are capitalized under
the scope of IFRS 6, Exploration for and Evaluation of Mineral Resources, and are reported as part of property, plant and
equipment.
O. Provisions
A provision is recognized if, as a result of a past event, the Company has a present legal or constructive obligation that can be
estimated reliably, and it is probable that an outflow of economic benefits will be required to settle the obligation. Provisions
are determined by discounting the risk-adjusted expected future cash flows at a pre-tax risk-free rate that reflects current
market assessments of the time value of money. The unwinding of the discount is recognized as a finance cost.
2023 CONSOLIDATED FINANCIAL STATEMENTS AND NOTES 125
i. Environmental restoration
The mining, extraction and processing activities of the Company normally give rise to obligations for site closure and
environmental restoration. Closure and restoration can include facility decommissioning and dismantling, removal or treatment
of waste materials, as well as site and land restoration. The Company provides for the closure, reclamation and
decommissioning of its operating sites in the financial period when the related environmental disturbance occurs, based on the
estimated future costs using information available at the reporting date. Costs included in the provision comprise all closure
and restoration activity expected to occur gradually over the life of the operation and at the time of closure. Routine operating
costs that may impact the ultimate closure and restoration activities, such as waste material handling conducted as a normal
part of a mining or production process, are not included in the provision.
The timing of the actual closure and restoration expenditure is dependent upon a number of factors such as the life and nature
of the asset, the operating licence conditions and the environment in which the mine operates. Closure and restoration
provisions are measured at the expected value of future cash flows, discounted to their present value using a current pre-tax
risk-free rate. Significant judgments and estimates are involved in deriving the expectations of future activities and the amount
and timing of the associated cash flows.
At the time a provision is initially recognized, to the extent that it is probable that future economic benefits associated with the
reclamation, decommissioning and restoration expenditure will flow to the Company, the corresponding cost is capitalized as
an asset. The capitalized cost of closure and restoration activities is recognized in property, plant and equipment and
depreciated on a unit-of-production basis. The value of the provision is gradually increased over time as the effect of
discounting unwinds. The unwinding of the discount is an expense recognized in finance costs.
Closure and rehabilitation provisions are also adjusted for changes in estimates. The provision is reviewed at each reporting
date for changes to obligations, legislation or discount rates that effect change in cost estimates or life of operations. The cost
of the related asset is adjusted for changes in the provision resulting from changes in estimated cash flows or discount rates,
and the adjusted cost of the asset is depreciated prospectively.
ii. Waste disposal
The refining, conversion and manufacturing processes generate certain uranium-contaminated waste. The Company has
established strict procedures to ensure this waste is disposed of safely. A provision for waste disposal costs in respect of
these materials is recognized when they are generated. Costs associated with the disposal, the timing of cash flows and
discount rates are estimated both at initial recognition and subsequent measurement.
P. Employee future benefits
i. Pension obligations
The Company accrues its obligations under employee benefit plans. The Company has both defined benefit and defined
contribution plans. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a
separate entity. A defined benefit plan is a pension plan other than a defined contribution plan.
The liability recognized in the consolidated statements of financial position in respect of defined benefit pension plans is the
present value of the defined benefit obligation at the reporting date less the fair value of plan assets. The defined benefit
obligation is calculated annually, by qualified independent actuaries using the projected unit credit method prorated on service
and management's best estimate of expected plan investment performance, salary escalation, retirement ages of employees
and expected health care costs. The present value of the defined benefit obligation is determined by discounting the estimated
future cash outflows using interest rates of high-quality corporate bonds that are denominated in the currency in which the
benefits will be paid, and that have terms to maturity approximating the terms of the related pension liability.
126 CAMECO CORPORATION
The Company recognizes all actuarial gains and losses arising from defined benefit plans in other comprehensive income, and
reports them in retained earnings. When the benefits of a plan are improved, the portion of the increased benefit relating to
past service by employees is recognized immediately in earnings.
For defined contribution plans, the contributions are recognized as employee benefit expense in earnings in the periods during
which services are rendered by employees. Prepaid contributions are recognized as an asset to the extent that a cash refund
or a reduction in future payments is available.
ii. Other post-retirement benefit plans
The Company provides certain post-retirement health care benefits to its retirees. The entitlement to these benefits is usually
conditional on the employee remaining in service up to retirement age and the completion of a minimum service period. The
expected costs of these benefits are accrued over the period of employment using the same accounting methodology as used
for defined benefit pension plans. Actuarial gains and losses are recognized in other comprehensive income in the period in
which they arise. These obligations are valued annually by independent qualified actuaries.
iii. Short-term employee benefits
Short-term employee benefit obligations are measured on an undiscounted basis and are expensed as the related service is
provided. A liability is recognized for the amount expected to be paid under short-term cash bonus plans if the Company has a
present legal or constructive obligation to pay this amount as a result of past service provided by the employee, and the
obligation can be measured reliably.
iv. Termination benefits
Termination benefits are payable when employment is terminated by the Company before the normal retirement date, or
whenever an employee accepts an entity’s offer of benefits in exchange for termination of employment. Cameco recognizes
termination benefits as an expense at the earlier of when the Company can no longer withdraw the offer of those benefits and
when the Company recognizes costs for a restructuring. If benefits are payable more than 12 months after the reporting
period, they are discounted to their present value.
v. Share-based compensation
For equity-settled plans, the grant date fair value of share-based compensation awards granted to employees is recognized as
an employee benefit expense, with a corresponding increase in equity, over the period that the employees unconditionally
become entitled to the awards. The amount recognized as an expense is adjusted to reflect the number of awards for which
the related service and vesting conditions are expected to be met, such that the amount ultimately recognized as an expense
is based on the number of awards that meet the related service and non-market performance conditions at the vesting date.
For cash-settled plans, the fair value of the amount payable to employees is recognized as an expense, with a corresponding
increase in liabilities, over the period that the employees unconditionally become entitled to payment. The liability is re-
measured at each reporting date and at settlement date. Any changes in the fair value of the liability are recognized as
employee benefit expense in earnings.
When the terms and conditions of equity-settled plans at the time they were granted are subsequently modified, the fair value
of the share-based payment under the original terms and conditions and under the modified terms and conditions are both
determined at the date of the modification. Any excess of the modified fair value over the original fair value is recognised over
the remaining vesting period in addition to the grant date fair value of the original share-based payment. The share-based
payment expense is not adjusted if the modified fair value is less than the original fair value.
Cameco’s contributions under the employee share ownership plan are expensed during the year of contribution. Shares
purchased with Company contributions and with dividends paid on such shares become unrestricted on January 1 of the
second plan year following the date on which such shares were purchased.
2023 CONSOLIDATED FINANCIAL STATEMENTS AND NOTES 127
Q. Revenue recognition
Cameco supplies uranium concentrates, uranium conversion services, fabrication services and other services. Revenue is
measured based on the consideration specified in a contract with a customer. The Company recognizes revenue when it
transfers control, as described below, over a good or service to a customer. Customers do not have the right to return
products, except in limited circumstances.
Cameco’s sales arrangements with its customers are pursuant to enforceable contracts that indicate the nature and timing of
satisfaction of performance obligations, including significant payment terms, where payment is usually due in 30 days. Each
delivery is considered a separate performance obligation under the contract.
Uranium supply
In a uranium supply arrangement, Cameco is contractually obligated to provide uranium concentrates to its customers.
Cameco-owned uranium may be physically delivered to either the customer or to conversion facilities (Converters).
For deliveries to customers, terms in the sales contract specify the location of delivery. Revenue is recognized when the
uranium has been delivered and accepted by the customer at that location.
When uranium is delivered to Converters, the Converter will credit Cameco’s account for the volume of accepted uranium.
Based on delivery terms in the sales contract with its customer, Cameco instructs the Converter to transfer title of a
contractually specified quantity of uranium to the customer’s account at the Converter’s facility. At this point, control has been
transferred and Cameco recognizes revenue for the uranium supply.
Toll conversion services
In a toll conversion arrangement, Cameco is contractually obligated to convert customer-owned uranium to a chemical state
suitable for enrichment. Based on delivery terms in a sales contract with its customer, Cameco either (i) physically delivers
converted uranium to enrichment facilities (Enrichers) where it instructs the Enricher to transfer title of a contractually specified
quantity of converted uranium to the customer’s account at the Enricher’s facility, or (ii) transfers title of a contractually
specified quantity of converted uranium to either an Enricher’s account or the customer’s account at Cameco’s Port Hope
conversion facility. At this point, the customer obtains control and Cameco recognizes revenue for the toll conversion services.
Conversion supply
A conversion supply arrangement is a combination of uranium supply and toll conversion services. Cameco is contractually
obligated to provide converted uranium to its customers. Based on delivery terms in the sales contract, Cameco either (i)
physically delivers converted uranium to the Enricher where it instructs the Enricher to transfer title of a contractually specified
quantity of converted uranium to the customer’s account at the Enricher’s facility, or (ii) transfers title of a contractually
specified quantity of converted uranium to either an Enricher’s account or a customer’s account at Cameco’s Port Hope
conversion facility. At this point, the customer obtains control and Cameco recognizes revenue for both the uranium supplied
and the conversion service provided.
Fabrication services
In a fabrication services arrangement, Cameco is contractually obligated to provide fuel bundles or reactor components to its
customers. In a contract for fuel bundles, the bundles are inspected and accepted by the customer at Cameco’s Port Hope
fabrication facility or another location based on delivery terms in the sales contract. At this point, the customer obtains control
and Cameco recognizes revenue for the fabrication services.
128 CAMECO CORPORATION
In some contracts for reactor components, the components are made to a customer’s specification and if a contract is
terminated by the customer, Cameco is entitled to reimbursement of the costs incurred to date, including a reasonable margin.
Since the customer controls all of the work in progress as the products are being manufactured, revenue and associated costs
are recognized over time, before the goods are delivered to the customer’s premises. Revenue is recognized on the basis of
units produced as the contracts reflect a per unit basis. Revenue from these contracts represents an insignificant portion of
Cameco’s total revenue. In other contracts where the reactor components are not made to a specific customer’s specification,
when the components are delivered to the location specified in the contract, the customer obtains control and Cameco
recognizes revenue for the services.
Other services
Uranium concentrates and converted uranium are regulated products and can only be stored at regulated facilities. In a
storage arrangement, Cameco is contractually obligated to store uranium products at its facilities on behalf of the customer.
Cameco invoices the customer in accordance with the contract terms and recognizes revenue on a monthly basis.
Cameco also provides customers with transportation of its uranium products. In the contractual arrangements where Cameco
is acting as the principal, revenue is recognized as the product is delivered.
R. Financial instruments
A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity
instrument of another.
Trade receivables and debt securities are initially recognized when they are originated. All other financial assets and liabilities
are initially recognized when the company becomes a party to the contractual provisions of the instrument. A financial asset
(unless it is a trade receivable without a significant financing component) or financial liability is initially measured at fair value
plus, for an item not at fair value through profit or loss, transaction costs that are directly attributable to its acquisition or issue.
A trade receivable without a significant financing component is initially measured at the transaction price.
i. Financial assets
On initial recognition, financial assets are classified as measured at: amortized cost, fair value through other comprehensive
income, or fair value through profit or loss based on the Company’s business model for managing its financial assets and their
cash flow characteristics. Classifications are not changed subsequent to initial recognition unless the Company changes its
business model for managing its financial assets, in which case all affected financial assets are reclassified on the first day of
the first reporting period following the change in business model.
Amortized cost
A financial asset is measured at amortized cost if it is not designated as at fair value through profit or loss, is held within a
business model whose objective is to hold assets to collect contractual cash flows and its contractual terms give rise to cash
flows on specified dates that are solely payments of principal and interest on the principal amount outstanding. Assets in this
category are subsequently measured at amortized cost using the effective interest method. The amortized cost is reduced by
impairment losses. Interest income, foreign exchange gains and losses and impairment are recognized in profit or loss, as is
any gain or loss on derecognition. The Company’s financial assets measured at amortized cost include cash and cash
equivalents, short-term investments and accounts receivable.
2023 CONSOLIDATED FINANCIAL STATEMENTS AND NOTES 129
Fair value through other comprehensive income (FVOCI)
A debt investment is measured at FVOCI if it is not designated as at fair value through profit or loss, is held within a business
model whose objective is achieved by both collecting contractual cash flows and selling financial assets and its contractual
terms give rise to cash flows on specified dates that are solely payments of principal and interest on the principal amount
outstanding. These assets are subsequently measured at fair value. Interest income calculated using the effective interest
method, foreign exchange gains and losses and impairment are recognized in profit or loss. Other net gains and losses are
recognized in other comprehensive income (OCI). On derecognition, gains and losses accumulated in OCI are reclassified to
profit or loss.
On initial recognition of an equity investment that is not held for trading, Cameco may irrevocably elect to present subsequent
changes in the investments fair value in OCI. This election is made on an investment-by-investment basis. These assets are
subsequently measured at fair value. Dividends are recognized as income in profit or loss unless the dividend clearly
represents a recovery of part of the cost of the investment. Other net gains and losses are recognized in OCI and are never
reclassified to profit or loss.
Fair value through profit or loss (FVTPL)
All financial assets not classified as measured at amortized cost or FVOCI are measured at FVTPL. This includes all derivative
financial assets. On initial recognition, the Company may irrevocably designate a financial asset that otherwise meets the
requirements to be measured at amortized cost or at FVOCI as at FVTPL if doing so eliminates or significantly reduces an
accounting mismatch that would otherwise arise. These assets are subsequently measured at fair value. Net gains and losses,
including any interest or dividend income, are recognized in profit or loss. The Company’s financial assets measured at FVTPL
include foreign currency contracts.
Derecognition of financial assets
Cameco derecognizes a financial asset when the contractual rights to the cash flows from the asset expire, or it transfers the
rights to receive the contractual cash flows in a transaction in which substantially all of the risks and rewards of ownership of
the financial asset are transferred or in which it neither transfers or retains substantially all of the risks and rewards of
ownership and it does not retain control of the financial asset.
If the Company enters into a transaction whereby it transfers assets recognized in its statement of financial position, but
retains either all or substantially all of the risks and rewards of the transferred assets, the transferred assets would not be
derecognized.
ii. Financial liabilities
On initial recognition, financial liabilities are classified as measured at amortized cost or FVTPL. A financial liability is classified
as FVTPL if it is classified as held-for-trading, is a derivative or is designated as such on initial recognition. Financial liabilities
at FVTPL are measured at fair value and net gains and losses, including any interest expense, are recognized in profit or loss.
Other financial liabilities are subsequently measured at amortized cost using the effective interest method. Interest expense
and foreign exchange gains and losses are recognized in profit or loss as is any gain or loss on derecognition. The Company’s
financial liabilities measured at amortized cost include accounts payable and accrued liabilities, lease obligations and long-
term debt. The Company’s financial liabilities measured at FVTPL include foreign currency contracts and interest rate
contracts.
A financial liability is derecognized when its contractual obligations are discharged or cancelled, or expire. The Company also
derecognizes a financial liability when its terms are modified and the cash flows of the modified liability are substantially
different, in which case a new financial liability based on the modified terms is recognized at fair value. On derecognition of a
financial liability, the difference between the carrying amount extinguished and the consideration paid (including any non-cash
assets transferred or liabilities assumed) is recognized in profit or loss.
130 CAMECO CORPORATION
iii. Derivative financial instruments
The Company holds derivative financial instruments to reduce exposure to fluctuations in foreign currency exchange rates and
interest rates. Embedded derivatives are separated from the host contract and accounted for separately if the host contract is
not a financial asset and certain criteria are met.
Derivative financial instruments are initially measured at fair value in the consolidated statements of financial position, with any
directly attributable transaction costs recognized in profit or loss as incurred. Subsequent to initial recognition, derivatives are
measured at fair value, and changes in fair value are recognized in profit or loss.
The purpose of hedging transactions is to modify the Company’s exposure to one or more risks by creating an offset between
changes in the fair value of, or the cash flows attributable to, the hedged item and the hedging item. When hedge accounting
is appropriate, the hedging relationship is designated as a fair value hedge, a cash flow hedge, or a foreign currency risk
hedge related to a net investment in a foreign operation. While Cameco does not have any instruments that have been
designated as hedge transactions at December 31, 2023 and 2022, its equity-investee Westinghouse does. These cash flow
hedges are recognized in other comprehensive income.
S. Income tax
Income tax expense is comprised of current and deferred taxes. Current tax and deferred tax are recognized in earnings
except to the extent that it relates to a business combination, or items recognized directly in equity or in other comprehensive
income.
Current tax is the expected tax payable or receivable on the taxable income or loss for the year, using tax rates enacted or
substantively enacted at the reporting date, and any adjustments to tax payable in respect of previous years. Current tax
assets and liabilities are measured at the amount expected to be paid or recovered from the taxation authorities.
Deferred tax is recognized in respect of temporary differences between the carrying amounts of assets and liabilities for
financial reporting purposes and the amounts used for taxation purposes. In addition, deferred tax is not recognized for taxable
temporary differences arising on the initial recognition of goodwill. Deferred tax is measured at the tax rates that are expected
to be applied to temporary differences when they reverse, based on the laws that have been enacted or substantively enacted
by the reporting date. Deferred tax assets and liabilities are offset if there is a legally enforceable right to offset current tax
liabilities and assets, and they relate to income taxes levied by the same tax authority on the same taxable entity, or on
different tax entities, but they intend to settle current tax liabilities and assets on a net basis or their tax assets and liabilities
will be realized simultaneously.
A deferred tax asset is recognized for unused tax losses, tax credits and deductible temporary differences, to the extent that it
is probable that future taxable income will be available against which they can be utilized. Deferred tax assets are reviewed at
each reporting date and are reduced to the extent that it is no longer probable that the related tax benefit will be realized.
The Company’s exposure to uncertain tax positions is evaluated and a provision is made where it is probable that this
exposure will materialize.
T. Share capital
Common shares are classified as equity. Incremental costs directly attributable to the issue of common shares are recognized
as a reduction of equity, net of any tax effects.
U. Earnings per share
The Company presents basic and diluted earnings per share data for its common shares. Earnings per share is calculated by
dividing the net earnings attributable to equity holders of the Company by the weighted average number of common shares
outstanding.
2023 CONSOLIDATED FINANCIAL STATEMENTS AND NOTES 131
Diluted earnings per share is determined by adjusting the net earnings attributable to equity holders of the Company and the
weighted average number of common shares outstanding, for the effects of all dilutive potential common shares. The
calculation of diluted earnings per share assumes that outstanding options which are dilutive to earnings per share are
exercised and the proceeds are used to repurchase shares of the Company at the average market price of the shares for the
period. The effect is to increase the number of shares used to calculate diluted earnings per share.
V. Segment reporting
An operating segment is a component of the Company that engages in business activities from which it may earn revenues
and incur expenses, including revenues and expenses that relate to transactions with any of the Company’s other segments.
To be classified as a segment, discrete financial information must be available and operating results must be regularly
reviewed by the Company’s executive team. Cameco has three reportable segments, uranium, fuel services and
Westinghouse.
Segment capital expenditure is the total cost incurred during the period to acquire property, plant and equipment, and
intangible assets other than goodwill.
3. Accounting standards
A. Changes in accounting policy
A number of amendments to existing standards became effective January 1, 2023 but they did not have a material effect on
the Company’s financial statements.
i. Income taxes
In May 2023, the International Accounting Standards Board (IASB) issued International Tax Reform – Pillar Two Model Rules,
which amended IAS 12, Income Taxes (IAS 12). The amendments are effective for annual periods beginning on or after
January 1, 2023. The amendments apply to income taxes arising from changes to tax law enacted to implement the Pillar Two
model rules published by the Organisation for Economic Co-operation and Development. Cameco applied the temporary
mandatory exception from deferred tax accounting for the top-up tax related to Pillar Two income taxes. We have not included
additional disclosures arising from this amendment in these consolidated annual financial statements for the year ended
December 31, 2023 because the impact was not material.
ii. Disclosure of accounting policies
In February 2021, the IASB issued an amendment to IAS 1, Disclosure of Accounting Policies (IAS 1). The amendment was
effective for annual reporting periods beginning on or after January 1, 2023 and provided requirements and guidance to help
entities make more effective accounting policy disclosures. We have reviewed our disclosures in note 2 and amended them to
only include accounting policy information that we considered material based on the new guidance.
B. New standards and interpretations not yet adopted
A number of amendments to existing standards are not yet effective for the year ended December 31, 2023 and have not been
applied in preparing these consolidated financial statements. Cameco does not intend to early adopt any of the amendments
and does not expect them to have a material impact on its financial statements.
4. Determination of fair values
A number of the Company’s accounting policies and disclosures require the measurement of fair value, for both financial and
non-financial assets and liabilities.
132 CAMECO CORPORATION
The fair value of an asset or liability is generally estimated as the amount that would be received on sale of an asset, or paid to
transfer a liability in an orderly transaction between market participants at the reporting date. Fair values of assets and
liabilities traded in an active market are determined by reference to last quoted prices, in the principal market for the asset or
liability. In the absence of an active market for an asset or liability, fair values are determined based on market quotes for
assets or liabilities with similar characteristics and risk profiles, or through other valuation techniques. Fair values determined
using valuation techniques require the use of inputs, which are obtained from external, readily observable market data when
available. In some circumstances, inputs that are not based on observable data must be used. In these cases, the estimated
fair values may be adjusted in order to account for valuation uncertainty, or to reflect the assumptions that market participants
would use in pricing the asset or liability.
All fair value measurements are categorized into one of three hierarchy levels, described below, for disclosure purposes. Each
level is based on the transparency of the inputs used to measure the fair values of assets and liabilities:
Level 1 – Values based on unadjusted quoted prices in active markets that are accessible at the reporting date for identical
assets or liabilities.
Level 2 – Values based on quoted prices in markets that are not active or model inputs that are observable either directly or
indirectly for substantially the full term of the asset or liability.
Level 3 – Values based on prices or valuation techniques that require inputs that are both unobservable and significant to the
overall fair value measurement.
When the inputs used to measure fair value fall within more than one level of the hierarchy, the level within which the fair value
measurement is categorized is based on the lowest level input that is significant to the fair value measurement in its entirety.
Transfers between levels of the fair value hierarchy are recognized at the end of the reporting period during which the transfer
occurred. There were no transfers between level 1, level 2, or level 3 during the period. Cameco does not have any recurring
fair value measurements that are categorized as level 3 as of the reporting date.
Further information about the techniques and assumptions used to measure fair values is included in the following notes:
Note 6 - Acquisitions
Note 25 - Share-based compensation plans
Note 27 - Financial instruments and risk management
5. Use of estimates and judgments
The preparation of the consolidated financial statements in conformity with IFRS requires management to make judgments,
estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities,
revenues and expenses. Actual results may differ from these estimates.
Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in
the period in which the estimates are revised and in any future period affected.
Information about critical judgments in applying the accounting policies that have the most significant effect on the amounts
recognized in the consolidated financial statements is discussed below. Further details of the nature of these judgments,
estimates and assumptions may be found in the relevant notes to the consolidated financial statements.
2023 CONSOLIDATED FINANCIAL STATEMENTS AND NOTES 133
A. Recoverability of long-lived and intangible assets and investments
Cameco assesses the carrying values of property, plant and equipment, intangible assets and investments in associates and
joint ventures when there is an indication of possible impairment. If it is determined that carrying values of assets cannot be
recovered, the unrecoverable amounts are charged against current earnings. Recoverability is dependent upon assumptions
and judgments regarding market conditions, costs of production, sustaining capital requirements, mineral reserves and the
impact of geopolitical events. Other assumptions used in the calculation of recoverable amounts are discount rates, future
cash flows and profit margins. A material change in assumptions may significantly impact the potential impairment of these
assets.
B. Cash generating units
In performing impairment assessments of long-lived assets, assets that cannot be assessed individually are grouped together
into the smallest group of assets that generates cash inflows that are largely independent of the cash inflows from other assets
or groups of assets. Management is required to exercise judgment in identifying these CGUs.
C. Provisions for decommissioning and reclamation of assets
Significant decommissioning and reclamation activities are often not undertaken until near the end of the useful lives of the
productive assets. Regulatory requirements and alternatives with respect to these activities are subject to change over time. A
significant change to either the estimated costs, timing of the cash flows or mineral reserves may result in a material change in
the amount charged to earnings.
D. Income taxes
Cameco operates in a number of tax jurisdictions and is, therefore, required to estimate its income taxes in each of these tax
jurisdictions in preparing its consolidated financial statements. In calculating income taxes, consideration is given to factors
such as tax rates in the different jurisdictions, non-deductible expenses, changes in tax law and management’s expectations of
future operating results. Cameco estimates deferred income taxes based on temporary differences between the income and
losses reported in its consolidated financial statements and its taxable income and losses as determined under the applicable
tax laws. The tax effect of these temporary differences is recorded as deferred tax assets or liabilities in the consolidated
financial statements. The calculation of income taxes requires the use of judgment and estimates. The determination of the
recoverability of deferred tax assets is dependent on assumptions and judgments regarding future market conditions and
production rates, which can materially impact estimated future taxable income. If these judgments and estimates prove to be
inaccurate, future earnings may be materially impacted.
E. Mineral reserves
Depreciation on property, plant and equipment is primarily calculated using the unit-of-production method. This method
allocates the cost of an asset to each period based on current period production as a portion of total lifetime production or a
portion of estimated mineral reserves. Estimates of life-of-mine and amounts of mineral reserves are updated annually and are
subject to judgment and significant change over time. If actual mineral reserves prove to be significantly different than the
estimates, there could be a material impact on the amounts of depreciation charged to earnings.
134 CAMECO CORPORATION
6. Acquisitions
A. Westinghouse Electric Company (Westinghouse)
On November 7, 2023, Cameco acquired a 49% interest in Westinghouse, one of the world’s largest nuclear services
businesses, in partnership with Brookfield Asset Management alongside its publicly listed affiliate Brookfield Renewable
Partners (Brookfield) and its institutional partners. Brookfield, with its institutional partners, owns the other 51%. The
acquisition represents an investment in additional nuclear fuel cycle assets that the Company expects will augment the core of
its business.
To finance its 49% share of the purchase price, $2,140,305,000 (US), Cameco used a combination of cash, debt and equity.
The Company used $1,540,305,000 (US) of cash and $600,000,000 (US) in term loans (see note 14). In 2022, Cameco had
issued 34,057,250 common shares pursuant to a public offering to help fund the acquisition (see note 17). At December 31,
2023, $50,000,000 (US) remained in escrow, to be paid upon finalization of the closing statement.
The purchase price was allocated to the underlying assets and liabilities assumed based on their fair values at the date of
acquisition. The values assigned to Cameco’s share of the net assets acquired were as follows:
Net assets acquired (USD)
Cash and cash equivalents
Other current assets
Property, plant and equipment
Intangible assets
Goodwill
Non-current assets
Current liabilities
Non-current liabilities
Total
Cash
Term loans [note 14]
Total
$
254,800
938,413
787,278
2,852,780
568,631
346,891
(1,164,621)
(2,443,867)
$
2,140,305
1,540,305
600,000
$
2,140,305
Fair values were determined using a number of different valuation methodologies depending on the characteristics of the
assets being valued. Methods included discounted cash flows, relief from royalty and multi-period excess earnings, quoted
market prices and the direct cost method.
Intangible assets include customer relationships and contracts, developed technology, the Westinghouse trade name and
product development costs. Goodwill reflects the value assigned to the expected future earnings capabilities of the
organization. This is the earnings potential that we anticipate will be realized through new business arrangements.
The valuation of the assets and liabilities assumed was not finalized as of the date of these financial statements. The
accounting for the acquisition will be revised when the valuation is complete. Following the completion of the valuation, if new
information obtained within one year of the acquisition date about facts and circumstances that existed at the date of
acquisition, identifies adjustments to the above amounts, or any additional provisions that existed at the date of acquisition,
further revisions will be made.
2023 CONSOLIDATED FINANCIAL STATEMENTS AND NOTES 135
B. Additional interest in Cigar Lake Joint Venture (CLJV)
On May 19, 2022, Cameco and Orano Canada Inc. (Orano) completed the acquisition of Idemitsu Canada Resources Ltd.’s
(Idemitsu) 7.875% participating interest in the CLJV by acquiring their pro rata shares through an asset purchase. Cameco’s
ownership stake in the Cigar Lake uranium mine in northern Saskatchewan is now 54.547% (previously 50.025%). The
primary reason for the business combination was to increase our ownership interest.
Cash consideration of $101,681,000 was paid for the additional 4.522% interest. While Cameco received the economic benefit
of owning the additional interest as of January 1, 2022, the additional interest has been proportionately consolidated with the
results of Cameco commencing on May 19, 2022.
CLJV allocates uranium production to each joint operation participant and the joint operation participant derives revenue
directly from the sale of such product. Mining and milling expenses incurred by joint operations are included in the cost of
inventory. As such, there is no revenue or profit or loss of the acquiree included in the consolidated statements of earnings. If
the acquisition had occurred at the beginning of the year, Cameco’s share of production would have included an additional
296,000 pounds. The impact to the financial statements would not have been material.
Acquisition costs of $1,495,000 have been included in administration expense in the consolidated statements of earnings for
the year ended December 31, 2022.
Included in the identifiable assets and liabilities acquired at the date of acquisition are inputs, production processes and
outputs. Therefore, Cameco has determined that together the acquired set is a business. In accordance with the acquisition
method of accounting, the purchase price was allocated to the underlying assets and liabilities assumed based on their fair
values at the date of acquisition. Fair values were determined based on discounted cash flows and quoted market prices. The
values assigned to the net assets acquired were as follows:
Property, plant and equipment
Deferred tax asset
Inventory
Working capital
Reclamation provision
Sales contracts
Net assts acquired
Cash paid
Bargain purchase gain [note 21](a)
$
97,930
28,196
9,909
(24)
(2,528)
(9,000)
$
124,483
101,681
$
22,802
(a) The bargain purchase gain resulted from applying the measurement requirements under IFRS 3, Business Combinations.
This standard requires the measurement of tax attributes that were acquired as part of the transaction be in accordance with
IAS 12, Income Taxes, rather than at fair value. The measured amount of these attributes exceeded the amount paid for them
and the resulting gain is included in other income (expense) in the consolidated statement of earnings.
136 CAMECO CORPORATION
7. Accounts receivable
Trade receivables
GST/VAT receivables
Other receivables
Total
2023
2022
$
413,792 $
6,772
1,769
167,688
5,856
10,400
$
422,333 $
183,944
The Company’s exposure to credit and currency risks as well as credit losses related to trade and other receivables, excluding
goods and services tax (GST)/value added tax (VAT) receivables, is disclosed in note 27.
8. Inventories
Uranium
Concentrate
Broken ore
Fuel services
Other
Total
2023
2022
$
511,654 $
71,463
583,117
537,426
46,703
584,129
108,711
80,144
433
425
$
692,261 $
664,698
Cameco expensed $1,833,000,000 of inventory as cost of sales during 2023 (2022 - $1,359,000,000).
2023 CONSOLIDATED FINANCIAL STATEMENTS AND NOTES 137
9. Property, plant and equipment
At December 31, 2023
Land
and
buildings
Plant
and
equipment
Furniture
and
fixtures
Under
construction
Exploration
and
evaluation
Total
Cost
Beginning of year
Additions
Transfers
Change in reclamation provision [note 16]
Disposals
Effect of movements in exchange rates
$ 5,197,138
$ 2,812,309
$
84,080
$
9,062
40,011
(5,343)
(13,604)
(13,940)
29,498
63,819
-
(3,744)
(4,277)
3,461
3,334
-
(69)
(87)
234,590
111,518
(106,835)
-
(1,989)
(4)
$ 1,088,234
92
-
-
-
(19,884)
$ 9,416,351
153,631
329
(5,343)
(19,406)
(38,192)
End of year
5,213,324
2,897,605
90,719
237,280
1,068,442
9,507,370
Accumulated depreciation and impairment
Beginning of year
Depreciation charge
Transfers
Change in reclamation provision [note 16](a)
Disposals
Effect of movements in exchange rates
3,300,869
146,574
-
(7,509)
(13,604)
(13,340)
2,067,999
98,694
11
-
(3,456)
(4,227)
79,576
4,267
(11)
-
(69)
(87)
36,798
-
-
-
-
-
467,071
-
-
-
-
(10,159)
5,952,313
249,535
-
(7,509)
(17,129)
(27,813)
End of year
3,412,990
2,159,021
83,676
36,798
456,912
6,149,397
Right-of-use assets
Beginning of year
Additions
Disposals
Depreciation charge
Transfers
End of year
5,959
3,398
-
(1,003)
(28)
8,326
1,565
126
(214)
(399)
(677)
1,928
844
-
(1,076)
376
401
2,072
-
-
-
-
-
-
-
-
-
-
-
-
9,452
4,368
(214)
(2,478)
(329)
10,799
Net book value at December 31, 2023
$ 1,808,660
$
738,985
$
9,115
$
200,482
$
611,530
$ 3,368,772
138 CAMECO CORPORATION
At December 31, 2022
Cost
Beginning of year
Acquisitions [note 6]
Additions
Transfers
Change in reclamation provision
Disposals
Effect of movements in exchange rates
Land
and
buildings
Plant
and
equipment
Furniture
and
fixtures
Under
construction
Exploration
and
evaluation
Total
$ 5,152,209
$ 2,732,561
$
84,366
$
167,200
$ 1,073,239
67,998
4,385
25,023
(93,451)
(4,885)
45,859
27,646
8,927
39,091
-
(8,423)
12,507
70
209
(167)
-
(650)
252
2,216
129,734
(63,518)
-
(1,046)
4
$ 9,209,575
97,930
143,448
429
(93,451)
(15,004)
73,424
-
193
-
-
-
14,802
End of year
5,197,138
2,812,309
84,080
234,590
1,088,234
9,416,351
Accumulated depreciation and impairment
Beginning of year
Depreciation charge
Change in reclamation provision(a)
Disposals
Effect of movements in exchange rates
3,101,740
137,543
22,944
(4,851)
43,493
1,962,228
101,923
-
(8,201)
12,049
78,119
1,857
-
(649)
249
36,798
-
-
-
-
458,247
-
-
-
8,824
5,637,132
241,323
22,944
(13,701)
64,615
End of year
3,300,869
2,067,999
79,576
36,798
467,071
5,952,313
Right-of-use assets
Beginning of year
Additions
Disposals
Depreciation charge
Transfers
End of year
931
5,917
-
(870)
(19)
1,584
1,330
(11)
(560)
(778)
1,641
606
-
(687)
368
5,959
1,565
1,928
-
-
-
-
-
-
-
-
-
-
-
-
4,156
7,853
(11)
(2,117)
(429)
9,452
Net book value at December 31, 2022
$ 1,902,228
$
745,875
$
6,432
$
197,792
$
621,163
$ 3,473,490
Cameco has contractual capital commitments of approximately $60,525,000 at December 31, 2023. Certain of the contractual
commitments may contain cancellation clauses, however the Company discloses the commitments based on management’s
intent to fulfill the contract. The majority of this amount is expected to be incurred in 2024.
(a) Asset retirement obligation assets are adjusted when the Company updates its reclamation provisions due to new cash
flow estimates or changes in discount and inflation rates. When the assets of an operation have been written off due to an
impairment, as is the case with our Rabbit Lake operation and some of our operations in the United States, the adjustment is
recorded directly to the statement of earnings as other operating expense or income.
2023 CONSOLIDATED FINANCIAL STATEMENTS AND NOTES 139
10. Intangible assets
A. Reconciliation of carrying amount
At December 31, 2023
Cost
Beginning of year
End of year
Accumulated amortization and impairment
Beginning of year
Amortization charge
End of year
Net book value at December 31, 2023
At December 31, 2022
Cost
Beginning of year
Effect of movements in exchange rates
End of year
Accumulated amortization and impairment
Beginning of year
Amortization charge
Effect of movements in exchange rates
End of year
Intellectual
property
$
118,819
118,819
71,758
3,484
75,242
$
43,577
Contracts
Intellectual
property
Total
$
110,618 $
8,027
118,819 $
-
229,437
8,027
118,645
118,819
237,464
109,886
739
7,964
68,304
3,454
-
178,190
4,193
7,964
118,589
71,758
190,347
Net book value at December 31, 2022
$
56 $
47,061 $
47,117
B. Amortization
The intangible asset values relate to intellectual property acquired with Cameco Fuel Manufacturing Inc. (CFM) and purchase
and sales contracts acquired with NUKEM. The CFM intellectual property is being amortized on a unit-of-production basis over
its remaining life. Amortization is allocated to the cost of inventory and is recognized in cost of products and services sold as
inventory was sold. The purchase and sales contracts were amortized to earnings over the terms of the underlying contracts.
Amortization of the purchase contracts was allocated to the cost of inventory and included in cost of products and services
sold as inventory was sold. Sales contracts were amortized to revenue.
140 CAMECO CORPORATION
11. Long-term receivables, investments and other
Deferred charges
Derivatives [note 27]
Investment tax credits
Amounts receivable related to tax dispute [note 22](a)
Product loan(b)
Other
Less current portion
Net
2023
2022
$
-
28,467
95,940
209,125
288,294
2,108
623,934
(10,161)
$
29,585
2,807
95,812
295,221
200,998
3,264
627,687
(32,180)
$
613,773
$
595,507
(a) Cameco was required to remit or otherwise secure 50% of the cash taxes and transfer pricing penalties, plus related
interest and instalment penalties assessed, in relation to its dispute with Canada Revenue Agency (CRA). In light of our view
of the likely outcome of the case, Cameco expects to recover the amounts remitted to CRA, including cash taxes, interest and
penalties paid. $86,097,000 was received during the year (see note 22).
(b) Cameco loaned 5,400,000 pounds of uranium concentrate to its joint venture partner, Orano Canada Inc., (Orano). Orano
was obligated to repay the Company in kind with uranium concentrate no later than December 31, 2023. During 2022, the
repayment terms were extended to December 31, 2028. As at December 31, 2023, 3,000,000 pounds have been returned as
repayment on this loan.
Cameco also agreed to lend to Orano up to 1,148,200 kgU of conversion supply and up to an additional 1,200,000 pounds of
uranium concentrate over the period 2022 to 2024. Repayment to Cameco is to be made in kind with U3O8 quantities drawn
being repaid by December 31, 2027 and quantities of UF6 drawn by December 31, 2035.
As at December 31, 2023, 3,600,000 pounds of U3O8 (December 31, 2022 - 3,571,001 pounds) and 1,148,200 kgU of UF6
conversion supply (December 31, 2022 - 700,000 kgU) were drawn on the loans and are recorded at Cameco’s weighted
average cost of inventory.
12. Equity-accounted investees
Interest in Westinghouse
Interest in JV Inkai
Interest in Global Laser Enrichment LLC (GLE)
A. Joint ventures
i. Westinghouse
2023
2022
$ 2,899,379
$
273,806
-
-
210,972
-
$ 3,173,185
$
210,972
Westinghouse is a nuclear reactor technology original equipment manufacturer and a global provider of products and services
to commercial utilities and government agencies. Effective November 7, 2023, Cameco holds a 49% interest and Brookfield
holds 51%. Cameco has joint control with Brookfield over the strategic operating, investing and financing activities of
Westinghouse. The Company determined that the joint arrangement should be classified as a joint venture after concluding
that neither the legal form of the separate entity, the terms of the contractual arrangement, or other facts and circumstances
would give the Company rights to the assets and obligations for the liabilities relating to the arrangement. As a result, Cameco
accounts for Westinghouse on an equity basis.
2023 CONSOLIDATED FINANCIAL STATEMENTS AND NOTES 141
Westinghouse provides outage and maintenance services, engineering support, instrumentation and controls equipment, plant
modification, and components and parts to nuclear reactors. Westinghouse has three fabrication facilities that design and
manufacture nuclear fuel supplies for light water reactors. In addition, Westinghouse designs, develops and procures
equipment for the build of new nuclear reactor plants.
The following table summarizes the total comprehensive loss of Westinghouse (100%) for the period commencing November
7, 2023:
Revenue from products and services
Cost of products and services sold
Depreciation and amortization
Marketing, administrative and general expenses
Finance income
Finance costs
Other expense
Income tax recovery
Net loss
Other comprehensive income
Total comprehensive loss
$
2023
1,063,417
(408,745)
(124,012)
(498,775)
3,846
(59,414)
(39,641)
13,555
(49,769)
13,933
$
(35,836)
The following table summarizes the financial information of Westinghouse (100%) for the year ending December 31 and
reconciles it to the carrying amount of Cameco’s interest:
Cash and cash equivalents
Other current assets
Intangible assets
Goodwill
Non-current assets
Current liabilities
Non-current liabilities
Net assets
Net assets attributable to non-controlling interest
Net assets attributable to shareholders
Cameco's share of net assets attributable to shareholders (49%)
Acquisition costs(a)
Impact of foreign exchange
Carrying amount of interest in Westinghouse
2023
$
265,146
2,364,602
7,655,386
1,534,947
3,102,566
(2,464,058)
(6,684,673)
$
5,773,916
(24,036)
$
5,749,880
2,817,441
83,916
(1,978)
$
2,899,379
(a) Cameco incurred $84 million of acquisition costs that were included in the cost of the investment.
ii. Global Laser Enrichment LLC (GLE)
GLE is the exclusive licensee of the proprietary Separation of Isotopes by Laser Excitation (SILEX) laser enrichment
technology, a third-generation uranium enrichment technology. Cameco owns a 49% interest in GLE with an option to attain a
majority interest of up to 75% ownership. Cameco has joint control with SILEX over the strategic operating, investing and
financing activities and as a result, accounts for GLE on an equity basis. In 2014, an impairment charge was recognized for its
full carrying value of $183,615,000. Following the impairment, under the equity method of accounting, Cameco discontinued
recognizing its share of losses in GLE. Cameco’s contributions to GLE are recorded in earnings as research and development.
142 CAMECO CORPORATION
B. Associate
i. JV Inkai
JV Inkai is the operator of the Inkai uranium deposit located in Kazakhstan. Cameco holds a 40% interest and Kazatomprom
holds a 60% interest in JV Inkai. Cameco does not have joint control over the joint venture and as a result, Cameco accounts
for JV Inkai on an equity basis.
JV Inkai is a uranium mining and milling operation that utilizes in-situ recovery (ISR) technology to extract uranium. The
participants in JV Inkai purchase uranium from Inkai and, in turn, derive revenue directly from the sale of such product to third-
party customers.
The following table summarizes the total comprehensive earnings of JV Inkai (100%):
Revenue from products and services
Cost of products and services sold
Depreciation and amortization
Finance income
Finance costs
Other expense
Income tax expense
Net earnings
Total comprehensive income
$
2023
708,679
(99,160)
(35,187)
1,343
(1,069)
(34,738)
(106,419)
433,449
$
2022
476,354
(66,119)
(24,749)
1,341
(2,635)
(30,770)
(74,763)
278,659
$
433,449
$
278,659
The following table summarizes the financial information of JV Inkai (100%) and reconciles it to the carrying amount of
Cameco’s interest:
Cash and cash equivalents
Other current assets
Non-current assets
Current liabilities
Non-current liabilities
Net assets
Cameco's share of net assets (40%)
Consolidating adjustments(a)
Fair value increment(b)
Dividends declared but not received
Dividends in excess of ownership percentage(c)
Impact of foreign exchange
Carrying amount of interest in JV Inkai
$
2023
24,074
551,917
332,655
(40,985)
(30,211)
837,450
334,980
(74,223)
81,090
5,952
(74,843)
850
$
2022
14,950
373,868
334,954
(34,606)
(37,644)
651,522
260,609
(82,275)
83,675
-
(48,641)
(2,396)
$
273,806
$
210,972
(a) Cameco records certain consolidating adjustments to eliminate unrealized profit and amortize historical differences in
accounting policies. This amount is amortized to earnings over units of production.
(b) Upon restructuring, Cameco assigned fair values to the assets and liabilities of JV Inkai. This increment is amortized to
earnings over units of production.
(c) Cameco’s share of dividends follows its production purchase entitlements which is currently higher than its ownership
interest.
2023 CONSOLIDATED FINANCIAL STATEMENTS AND NOTES 143
13. Accounts payable and accrued liabilities
Trade payables
Non-trade payables
Payables due to related parties [note 25]
Total
2023
2022
$
388,902
108,856
79,792
$
249,962
65,182
59,570
$
577,550
$
374,714
The Company’s exposure to currency and liquidity risk related to trade and other payables is disclosed in note 27.
14. Long-term debt
Unsecured debentures
Series F - 5.09% debentures due November 14, 2042
Series G - 4.19% debentures due June 24, 2024
Series H - 2.95% debentures due October 21, 2027
Term loans
Less current portion
Total
2023
2022
$
99,374
499,821
398,582
786,397
1,784,174
(499,821)
$
99,355
499,407
398,238
-
997,000
-
$ 1,284,353
$
997,000
Cameco has a $1,000,000,000 unsecured revolving credit facility that is available until October 1, 2027. Upon mutual
agreement, the facility can be extended for an additional year on the anniversary date. In addition to direct borrowings under
the facility, up to $100,000,000 can be used for the issuance of letters of credit and, to the extent necessary, it may be used to
provide liquidity support for the Company’s commercial paper program. The agreement also provides the ability to increase the
revolving credit facility above $1,000,000,000 by increments no less than $50,000,000, to a total of $1,250,000,000. The
facility ranks equally with all of Cameco’s other senior debt. As of December 31, 2023 and 2022, there were no amounts
outstanding under this facility.
Cameco has $1,771,663,000 (2022 - $1,756,754,000) in letter of credit facilities. Outstanding and committed letters of credit at
December 31, 2023 amounted to $1,383,689,000 (2022 - $1,593,379,000), the majority of which relate to future
decommissioning and reclamation liabilities (note 16).
On November 7, 2023, the Company utilized a term loan for $600,000,000 (US) with a syndicate of lenders. The proceeds of
the term loan were used to finance the 49% acquisition of Westinghouse. The term loan consists of two $300,000,000 (US)
tranches. The first tranche has a floating interest rate of SOFR plus 1.80% and matures on November 7, 2025. The second
tranche has a floating interest rate of SOFR plus 2.05% and matures on November 7, 2026.
Cameco is bound by a covenant in its revolving credit facility and term loan. The covenant requires a funded debt to tangible
net worth ratio equal to or less than 1:1. Non-compliance with this covenant could result in accelerated payment and
termination of the revolving credit facility and term loan. At December 31, 2023, Cameco was in compliance with the covenant
and does not expect its operating and investing activities in 2024 to be constrained by it.
The table below represents currently scheduled maturities of long-term debt:
2024
2025
2026
2027
2028
Thereafter
Total
$ 499,821
393,420
392,977
398,582
-
99,374 $
1,784,174
144 CAMECO CORPORATION
15. Other liabilities
Deferred sales [note 18]
Derivatives [note 27]
Accrued pension and post-retirement benefit liability [note 26]
Lease obligation
Product loan(a)
Sales contracts [note 6]
Other
Less: current portion
Net
2023
2022
$
45,372
22,344
77,002
10,816
166,052
6,314
64,064
391,964
(48,544)
$
66,845
58,342
66,180
9,287
78,094
9,000
59,738
347,486
(131,324)
$
343,420
$
216,162
Expenses related to short-term leases and leases of low-value assets were insignificant during 2023.
(a) The Company has standby product loan facilities with various counterparties. The arrangements allow it to borrow up to
1,978,000 kgU of UF6 conversion services and 3,506,000 pounds of U3O8 by September 30, 2026 with repayment in kind up to
December 31, 2026. Under the facilities, standby fees of up to 1% are payable based on the market value of the facilities and
interest is payable on the market value of any amounts drawn at rates ranging from 0.5% to 2.0%. At December 31, 2023, we
have 1,777,000 kgU of UF6 conversion services (December 31, 2022 - 1,529,000 kgU) drawn on the loans with repayment in
the following years:
kgU of UF6
2024
-
2025
2026
Total
528,000
1,249,000
1,777,000
We also have 2,756,000 pounds of U3O8 (December 31, 2022 - 1,393,000 pounds) drawn with repayment in the following
years:
lbs of U3O8
-
630,000
2,126,000
2,756,000
The loans are recorded at Cameco’s weighted average cost of inventory.
2024
2025
2026
Total
2023 CONSOLIDATED FINANCIAL STATEMENTS AND NOTES 145
16. Provisions
Beginning of year
Changes in estimates and discount rates [note 9]
Capitalized in property, plant and equipment
Recognized in earnings [note 9]
Provisions used during the period
Unwinding of discount [note 20]
Effect of movements in exchange rates
End of period
Current
Non-current
A. Reclamation provision
Reclamation Waste disposal
Total
$ 1,061,096
$
9,934
$ 1,071,030
2,166
(7,509)
(37,194)
39,096
(6,488)
-
2,148
(1,788)
523
-
2,166
(5,361)
(38,982)
39,619
(6,488)
$ 1,051,167
$
35,356
1,015,811
$ 1,051,167
$
$
$
10,817
$ 1,061,984
3,757
7,060
$
39,113
1,022,871
10,817
$ 1,061,984
Cameco's estimates of future decommissioning obligations are based on reclamation standards that satisfy regulatory
requirements. Elements of uncertainty in estimating these amounts include potential changes in regulatory requirements,
decommissioning and reclamation alternatives and amounts to be recovered from other parties.
Cameco estimates total undiscounted future decommissioning and reclamation costs for its existing operating assets to be
$1,356,018,000 (2022 - $1,356,092,000). The expected timing of these outflows is based on life-of-mine plans with the
majority of expenditures expected to occur after 2027. These estimates are reviewed by Cameco technical personnel as
required by regulatory agencies or more frequently as circumstances warrant. In connection with future decommissioning and
reclamation costs, Cameco has provided financial assurances of $1,060,769,000 (2022 - $1,035,348,000) in the form of letters
of credit to satisfy current regulatory requirements.
The reclamation provision relates to the following segments:
Uranium
Fuel services
Total
B. Waste disposal
2023
2022
$
874,773
176,394
$
870,877
190,219
$ 1,051,167
$ 1,061,096
The fuel services segment consists of the Blind River refinery, Port Hope conversion facility and Cameco Fuel Manufacturing
Inc.. The refining, conversion and manufacturing processes generate certain uranium contaminated waste. These include
contaminated combustible material (paper, rags, gloves, etc.) and contaminated non-combustible material (metal parts, soil
from excavations, building and roofing materials, spent uranium concentrate drums, etc.). These materials can in some
instances be recycled or reprocessed. A provision for waste disposal costs in respect of these materials is recognized when
they are generated.
Cameco estimates total undiscounted future costs related to existing waste disposal to be $9,681,000 (2022 - $8,919,000).
The majority of these expenditures are expected to occur within the next three years.
146 CAMECO CORPORATION
17. Share capital
Authorized share capital:
- Unlimited number of first preferred shares
- Unlimited number of second preferred shares
- Unlimited number of voting common shares, no stated par value, not convertible or redeemable, and
- One Class B share
A. Common Shares
Number issued (number of shares)
Beginning of year
Issued:
Stock option plan [note 25]
Equity issuance(a)
End of year
2023
2022
432,518,470
398,059,265
1,657,282
-
401,955
34,057,250
434,175,752
432,518,470
(a) On October 17, 2022, Cameco issued 34,057,250 common shares pursuant to a public offering for a total consideration of
$996,867,000. The proceeds of the issue after deducting expenses were $964,878,000. Excluding the deferred tax recoveries,
the net cash proceeds amounted to $953,285,000.
All issued shares are fully paid. Holders of the common shares are entitled to exercise one vote per share at meetings of
shareholders, are entitled to receive dividends if, as and when declared by our Board of Directors and are entitled to
participate in any distribution of remaining assets following a liquidation.
The shares of Cameco are widely held and no shareholder, resident in Canada, is allowed to own more than 25% of the
Company’s outstanding common shares, either individually or together with associates. A non-resident of Canada is not
allowed to own more than 15%. In addition, no more than 25% of total shareholder votes cast may be cast by non-resident
shareholders.
B. Class B share
One Class B share issued during 1988 and assigned $1 of share capital entitles the shareholder to vote separately as a class
in respect of any proposal to locate the head office of Cameco to a place not in the province of Saskatchewan.
C. Dividends
Dividends on Cameco Corporation common shares are declared in Canadian dollars. For the year ended December 31, 2023,
the dividend declared per share was $0.12 (December 31, 2022 - $0.12).
18. Revenue
Cameco’s sales contracts with customers contain both fixed and market-related pricing. Fixed-price contracts are typically
based on a term-price indicator at the time the contract is accepted and escalated over the term of the contract. Market-related
contracts are based on either the spot price or long-term price, and the price is quoted at the time of delivery rather than at the
time the contract is accepted. These contracts often include a floor and/or ceiling prices, which are usually escalated over the
term of the contract. Escalation is generally based on a consumer price index. The Company’s contracts contain either one of
these pricing mechanisms or a combination of the two. There is no variable consideration in the contracts and therefore no
revenue is considered constrained at the time of delivery. Cameco expenses the incremental costs of obtaining a contract as
incurred as the amortization period is less than a year.
2023 CONSOLIDATED FINANCIAL STATEMENTS AND NOTES 147
The following table summarizes Cameco’s sales disaggregated by geographical region and contract type and includes a
reconciliation to the Company’s reportable segments (note 29):
For the year ended December 31, 2023
Customer geographical region
Americas
Europe
Asia
Contract type
Fixed-price
Market-related
For the year ended December 31, 2022
Customer geographical region
Americas
Europe
Asia
Contract type
Fixed-price
Market-related
Deferred sales
Uranium
Fuel services
Other
Total
$ 1,043,475
592,068
516,699
$
307,885
88,759
28,913
$
$ 2,152,242
$
425,557
$
$
821,958
1,330,284
$
414,289
11,268
$ 2,152,242
$
425,557
$
$
9,959
-
-
9,959
9,959
-
9,959
$ 1,361,319
680,827
545,612
$ 2,587,758
$ 1,246,206
1,341,552
$ 2,587,758
Uranium
Fuel services
Other
Total
$
806,915
284,602
388,629
$
289,028
52,112
23,923
$
20,025
2,769
-
$ 1,115,968
339,483
412,552
$ 1,480,146
$
365,063
$
22,794
$ 1,868,003
$
478,552
1,001,594
$
355,479
9,584
$ 1,480,146
$
365,063
$
$
22,794
-
$
856,825
1,011,178
22,794
$ 1,868,003
The following table provides information about contract liabilities (note 15) from contracts with customers:
Beginning of year
Additions
Recognized in revenue
Effect of movements in exchange rates
End of year
2023
2022
$
$
66,845
25,935
(47,403)
(5)
23,316
45,978
(2,463)
14
$
45,372
$
66,845
Deferred sales primarily relates to advance consideration received from customers for future uranium and conversion
deliveries as well as revenue related to the storage of uranium and converted uranium held at Cameco facilities. The revenue
related to storage is recognized over time while the revenue related to future uranium and conversion deliveries is expected to
be recognized between 2024 and 2030.
148 CAMECO CORPORATION
Cameco recognized a decrease of revenue of $648,000 (2022 - decrease of revenue of $194,000) during 2023 from
performance obligations satisfied (or partially satisfied) in previous periods. This is due to the difference between actual pricing
indices and the estimates at the time of invoicing.
Future sales commitments
Cameco’s sales portfolio consists of short and long-term sales commitments. The contracts can be executed well in advance
of a delivery and include both fixed and market-related pricing. The following table summarizes the expected future revenue,
by segment, related to only fixed-price contracts with remaining future deliveries as follows:
2024
2025
2026
2027
2028
Thereafter
Total
Uranium
Fuel services
Total
$ 676,996 $ 756,597 $ 406,045 $ 367,194 $ 349,872 $ 565,998 $ 3,122,702
356,792
3,302,473
1,474,806
397,922
383,045
356,742
333,166
$ 1,033,738 $ 1,154,519 $ 789,090 $ 723,986 $ 683,038 $ 2,040,804 $ 6,425,175
The sales contracts are denominated largely in US dollars and converted from US to Canadian dollars at a rate of $1.30.
The amounts in the table represent the consideration the Company will be entitled to receive when it satisfies the remaining
performance obligations in the contracts. The amounts include assumptions about volumes for contracts that have volume
flexibility. Cameco’s total revenue that will be earned will also include revenue from contracts with market-related pricing. The
Company has elected to exclude these amounts from the table as the transaction price will not be known until the time of
delivery. Contracts with an original duration of one year or less have been included in the table.
19. Employee benefit expense
The following employee benefit expenses are included in cost of products and services sold, administration, exploration,
research and development and property, plant and equipment:
Wages and salaries
Statutory and company benefits
Expenses related to defined benefit plans [note 26]
Expenses related to defined contribution plans [note 26]
Equity-settled share-based compensation [note 25]
Cash-settled share-based compensation [note 25]
Total
20. Finance costs
Interest on long-term debt
Unwinding of discount on provisions [note 16]
Other charges
Total
No borrowing costs were determined to be eligible for capitalization during the year.
2023
2022
$
340,910
63,657
5,572
18,644
8,152
59,225
$
278,980
52,247
5,656
15,189
6,859
24,369
$
496,160
$
383,300
2023
2022
$
52,426
39,619
23,824
$
40,059
28,979
16,690
$
115,869
$
85,728
2023 CONSOLIDATED FINANCIAL STATEMENTS AND NOTES 149
21. Other income (expense)
Foreign exchange gains
Bargain purchase gain [note 6]
Other
Total
2023
2022
15,692
-
546
74,132
22,802
-
$
16,238
$
96,934
22. Income taxes
A. Significant components of deferred tax assets and liabilities
Assets
Property, plant and equipment
Provision for reclamation
Inventories
Foreign exploration and development
Income tax losses (gains)
Defined benefit plan actuarial losses
Long-term investments and other
Deferred tax assets
Liabilities
Property, plant and equipment
Inventories
Deferred tax liabilities
Recognized in earnings
2023
2022
As at December 31
2023
2022
$
$
67,736
(4,157)
3,292
(51)
(141,907)
-
(17,704)
(92,791)
$
84,668
(3,817)
1,689
(1,816)
(66,227)
-
(2,355)
12,142
$
515,872
199,659
11,540
2,589
93,776
4,279
65,145
892,860
-
-
-
-
-
-
-
-
-
448,136
203,816
8,248
2,641
235,683
2,698
82,849
984,071
-
-
-
Net deferred tax asset (liability)
$
(92,791)
$
12,142
$
892,860
$
984,071
Deferred tax allocated as
Deferred tax assets
Deferred tax liabilities
Net deferred tax asset
2023
$
892,860
$
-
2022
984,071
-
$
892,860
$
984,071
Cameco has recorded a deferred tax asset of $892,860,000 (2022 - $984,071,000). The realization of this deferred tax asset is
dependent upon the generation of future taxable income in certain jurisdictions during the periods in which the Company’s
deferred tax assets are available. The Company considers whether it is probable that all or a portion of the deferred tax assets
will not be realized. In making this assessment, management considers all available evidence, including recent financial
operations, projected future taxable income and tax planning strategies. Based on projections of future taxable income over
the periods in which the deferred tax assets are available, realization of these deferred tax assets is probable and
consequently the deferred tax assets have been recorded.
150 CAMECO CORPORATION
B. Movement in net deferred tax assets and liabilities
Deferred tax asset at beginning of year
Recovery (expense) for the year in net earnings
Recovery for the year in equity
Recovery for the year in purchase price equation
Recovery (expense) for the year in other comprehensive income
Effect of movements in exchange rates
End of year
C. Significant components of unrecognized deferred tax assets
Income tax losses
Property, plant and equipment
Provision for reclamation
Long-term investments and other
Total
D. Tax rate reconciliation
2023
2022
$
984,071
(92,791)
-
-
1,581
(1)
$
937,579
12,142
11,593
28,196
(5,440)
1
$
892,860
$
984,071
2023
2022
$
357,148
2,299
68,038
127,420
$
337,749
2,297
78,336
18,628
$
554,905
$
437,010
The provision for income taxes differs from the amount computed by applying the combined expected federal and provincial
income tax rate to earnings before income taxes. The reasons for these differences are as follows:
Earnings before income taxes and non-controlling interest
Combined federal and provincial tax rate
$
Computed income tax expense
Increase (decrease) in taxes resulting from:
Difference between Canadian rates and rates
applicable to subsidiaries in other countries
Change in unrecognized deferred tax assets
Income in equity-accounted investees
Change in uncertain tax positions
Bargain purchase gain
Other taxes
Foreign exchange permanent differences
Other permanent differences
Income tax expense (recovery)
2023
487,153
26.9%
131,044
2,990
16,759
(41,519)
(9,331)
-
11,709
12,044
2,641
$
2022
84,795
26.9%
22,810
8,986
1,234
(25,264)
(6,282)
(6,129)
-
(2,487)
2,663
$
126,337
$
(4,469)
2023 CONSOLIDATED FINANCIAL STATEMENTS AND NOTES 151
E. Earnings and income taxes by jurisdiction
Earnings (loss) before income taxes
Canada
Foreign
Current income taxes
Canada
Foreign
Deferred income taxes (recovery)
Canada
Foreign
Income tax expense (recovery)
F. Reassessments
Canada
2023
2022
$
562,139
(74,986)
$
99,944
(15,149)
$
487,153
$
84,795
$
$
$
$
$
26,230
7,316
33,546
104,885
(12,094)
92,791
126,337
$
$
$
$
$
2,260
5,413
7,673
(10,178)
(1,964)
(12,142)
(4,469)
On February 18, 2021, the Supreme Court of Canada (Supreme Court) dismissed Canada Revenue Agency’s (CRA)
application for leave to appeal the June 26, 2020 decision of the Federal Court of Appeal (Court of Appeal). The dismissal
means that the dispute for the 2003, 2005 and 2006 tax years is fully and finally resolved in the Company’s favour.
In September 2018, the Tax Court of Canada (Tax Court) ruled that the marketing and trading structure involving foreign
subsidiaries, as well as the related transfer pricing methodology used for certain intercompany uranium sales and purchasing
agreements, were in full compliance with Canadian law for the tax years in question. Management believes the principles in
the decision apply to all subsequent tax years, and that the ultimate resolution of those years will not be material to Cameco’s
financial position, results of operations or liquidity in the year(s) of resolution. Due to a revised CRA reassessment position for
certain years, CRA has released approximately $86,000,000 of cash held on account (see note 11).
As CRA continues to pursue reassessments for tax years subsequent to 2006, Cameco is utilizing its appeal rights under
Canadian federal and provincial tax rules.
152 CAMECO CORPORATION
G. Income tax losses
At December 31, 2023, income tax losses carried forward of $1,760,518,000 (2022 - $2,171,825,000) are available to reduce
taxable income. These losses expire as follows:
Date of expiry
Canada
US
Other
Total
2026
2027
2028
2029
2030
2031
2032
2033
2034
2035
2036
2037
2038
2039
2040
2041
2042
2043
No expiry
$
$
-
-
-
47
-
-
272
-
-
-
-
27
-
953
3,110
77
50
71
-
-
-
-
-
-
21,268
22,905
35,206
16,340
7,448
45,551
34,120
-
-
-
-
-
-
446,639
$
14,382
239
62
12,273
42,357
-
-
-
4,557
7,283
5,737
3,005
322
141
372
-
-
-
1,035,704
$
14,382
239
62
12,320
42,357
21,268
23,177
35,206
20,897
14,731
51,288
37,152
322
1,094
3,482
77
50
71
1,482,343
$
4,607
$
629,477
$ 1,126,434
$ 1,760,518
Included in the table above is $1,447,529,000 (2022 - $1,329,261,000) of temporary differences related to loss carry forwards
where no future benefit has been recognized.
2023 CONSOLIDATED FINANCIAL STATEMENTS AND NOTES 153
23. Per share amounts
Per share amounts have been calculated based on the weighted average number of common shares outstanding during the
period. The weighted average number of paid shares outstanding in 2023 was 433,382,879 (2022 - 405,494,353).
Basic earnings per share computation
Net earnings attributable to equity holders
Weighted average common shares outstanding
Basic earnings per common share
Diluted earnings per share computation
Net earnings attributable to equity holders
Weighted average common shares outstanding
Dilutive effect of stock options
Weighted average common shares outstanding, assuming dilution
Diluted earnings per common share
2023
2022
$
360,847
$
89,382
433,383
405,494
$
0.83
$
0.22
$
360,847
$
89,382
433,383
1,972
435,355
405,494
1,641
407,135
$
0.83
$
0.22
In both 2023 and 2022, there were no options excluded from the diluted weighted average number of common shares
because their inclusion would have been anti-dilutive.
24. Supplemental cash flow information
Other operating items included in the statements of cash flows are as follows:
Changes in non-cash working capital:
Accounts receivable
Inventories
Supplies and prepaid expenses
Accounts payable and accrued liabilities
Reclamation payments
Other
Total
2023
2022
$
(242,416)
38,394
8,410
169,044
(38,982)
(346)
$
99,601
(162,858)
(63,500)
16,401
(28,492)
19,417
$
(65,896)
$
(119,431)
154 CAMECO CORPORATION
The changes arising from financing activities were as follows:
Balance at January 1, 2023
Changes from financing cash flows:
Dividends paid
Interest paid
Lease principal payments
Shares issued, stock option plan
Term loan issuance
Long-term
debt
Interest
payable
Lease
obligation
Dividends
payable
Share
capital
Total
$
997,000
$
4,011
$
9,287
$
-
$ 2,880,336
$ 3,890,634
-
-
-
-
816,582
-
(40,439)
-
-
-
-
(359)
(2,430)
-
-
(52,079)
-
-
-
-
-
-
-
27,537
-
(52,079)
(40,798)
(2,430)
27,537
816,582
Total cash changes
816,582
(40,439)
(2,789)
(52,079)
27,537
748,812
Non-cash changes:
Amortization of issue costs
Dividends declared
Interest expense
Right-of-use asset additions
Other
Shares issued, stock option plan
Foreign exchange
1,377
-
-
-
-
-
(30,785)
-
-
50,690
-
142
-
(317)
-
-
359
4,368
(411)
-
2
Total non-cash changes
(29,408)
50,515
4,318
-
52,079
-
-
-
-
-
52,079
-
-
-
-
-
6,292
-
6,292
1,377
52,079
51,049
4,368
(269)
6,292
(31,100)
83,796
Balance at December 31, 2023
$ 1,784,174
$
14,087
$
10,816
$
-
$ 2,914,165
$ 4,723,242
25. Share-based compensation plans
The Company has the following plans:
A. Stock option plan
The Company has established a stock option plan under which options to purchase common shares may be granted to
employees of Cameco. Options granted under the stock option plan have an exercise price of not less than the closing price
quoted on the Toronto Stock Exchange (TSX) for the common shares of Cameco on the trading day prior to the date on which
the option is granted. The options carry vesting periods of one to three years, and expire eight years from the date granted.
The aggregate number of common shares that may be issued pursuant to the Cameco stock option plan shall not exceed
43,017,198 of which 32,196,059 shares have been issued.
2023 CONSOLIDATED FINANCIAL STATEMENTS AND NOTES 155
Stock option transactions for the respective years were as follows:
(Number of options)
Beginning of year
Options granted
Options expired
Options exercised [note 17]
End of year
Exercisable
Weighted average share prices were as follows:
Beginning of year
Options granted
Options expired
Options exercised
End of year
Exercisable
2023
2022
3,053,571
-
-
(1,657,282)
1,396,289
3,458,001
-
(2,475)
(401,955)
3,053,571
1,396,289
3,053,571
2023
2022
$15.75
-
-
16.62
$14.73
$14.73
$16.72
-
26.81
23.96
$15.75
$15.75
The weighted average share price at the dates of exercise during 2023 was $45.19 per share (2022 - $30.88).
Total options outstanding and exercisable at December 31, 2023 were as follows:
Option price per share
$11.32 - 14.70
$14.71 - 16.38
Number
658,804
737,485
1,396,289
Options outstanding
Options exercisable
Weighted
average
remaining
life
Weighted
average
exercisable
price
1.3
3.0
$14.08
$15.32
Weighted
average
exercisable
price
$14.08
$15.32
Number
658,804
737,485
1,396,289
The foregoing options have expiry dates ranging from February 29, 2024 to February 28, 2027.
156 CAMECO CORPORATION
B. Executive performance share unit (PSU)
The Company has established a PSU plan whereby it provides each plan participant an annual grant of PSUs in an amount
determined by the board. Each PSU represents one phantom common share that entitles the participant to a payment of one
Cameco common share purchased on the open market, or cash with an equivalent market value, at the participant’s discretion
provided they have met their ownership requirements, at the end of each three-year period if certain performance and vesting
criteria have been met. The final value of the PSUs will be based on the value of Cameco common shares at the end of the
three-year period and the number of PSUs that ultimately vest. During the vesting period, dividend equivalents accrue to the
participants in the form of additional share units as of each normal cash dividend payment date of Cameco’s common shares.
Vesting of PSUs at the end of the three-year period is based on Cameco’s ability to meet its annual operating targets and
whether the participating executive remains employed by Cameco at the end of the three-year vesting period. If the participant
elects a cash payout, the redemption amount will be based on the volume-weighted average trading price of Cameco’s
common shares on March 1 or, if March 1 is not a trading day, on the first trading day following March 1. As of December 31,
2023, the total number of PSUs held by the participants, after adjusting for forfeitures on retirement, was 830,279 (2022 -
1,255,255).
C. Restricted share unit (RSU)
The Company has established an RSU plan whereby it provides each plan participant an annual grant of RSUs in an amount
determined by the board. Each RSU represents one phantom common share that entitles the participant to a payment of one
Cameco common share purchased on the open market, or cash with an equivalent market value, at the board’s discretion.
The RSUs carry vesting periods of one to three years, and the final value of the units will be based on the value of Cameco
common shares at the end of the vesting periods. In addition, certain eligible participants have a single vesting date on the
third anniversary of the date of the grant. These same participants, if they have met or are not subject to share ownership
requirements, may elect to have their award paid as a lump sum cash amount. During the vesting period, dividend equivalents
accrue to the participants in the form of additional share units as of each normal cash dividend payment date of Cameco’s
common shares. As of December 31, 2023, the total number of RSUs held by the participants was 814,683 (2022 -
1,131,493).
D. Phantom stock option
The Company has established a phantom stock option plan for eligible non-North American employees. Employees receive
the equivalent value of shares in cash when exercised. Options granted under the phantom stock option plan have an award
value equal to the closing price quoted on the TSX for the common shares of Cameco on the trading day prior to the date on
which the option is granted. The options vest over three years and expire eight years from the date granted. As of
December 31, 2023, the number of options held by participating employees was 45,551 (2022 - 94,135) with exercise prices
ranging from $11.61 to $15.27 per share (2022 - $11.32 to $19.30) and a weighted average exercise price of $12.29 (2022 -
$12.55).
E. Phantom restricted share unit (PRSU)
The Company has established a PRSU plan whereby it provides non-North American employees an annual grant of PRSUs in
an amount determined by the board. Each PRSU represents one phantom common share that entitles the participant to a
payment of cash with an equivalent market value. The PRSUs carry vesting periods of one to three years, and the final value
of the units will be based on the value of Cameco common shares at the end of the vesting periods. In addition, certain eligible
participants have a single vesting date on the third anniversary of the date of the grant. During the vesting period, dividend
equivalents accrue to the participants in the form of additional share units as of each normal cash dividend payment date of
Cameco’s common shares. As of December 31, 2023, the total number of PRSUs held by the participants was 28,000 (2022 -
21,148).
2023 CONSOLIDATED FINANCIAL STATEMENTS AND NOTES 157
F. Employee share ownership plan
Cameco also has an employee share ownership plan, whereby both employee and Company contributions are used to
purchase shares on the open market for employees. The Company’s contributions are expensed during the year of
contribution. Under the plan, employees have the opportunity to participate in the program to a maximum of 6% of eligible
earnings each year with Cameco matching the first 3% of employee-paid shares by 50%. Cameco contributes $1,000 of
shares annually to each employee that is enrolled in the plan. Shares purchased with Company contributions and with
dividends paid on such shares become unrestricted 12 months from the date on which such shares were purchased. At
December 31, 2023, there were 2,838 participants in the plan (2022 - 2,603). The total number of shares purchased in 2023
with Company contributions was 100,379 (2022 - 116,530). In 2023, the Company’s contributions totaled $4,460,000 (2022 -
$3,541,000).
G. Deferred share unit (DSU)
Cameco offers a DSU plan to non-employee directors. A DSU is a notional unit that reflects the market value of a single
common share of Cameco. 60% of each director’s annual retainer is paid in DSUs. In addition, on an annual basis, directors
can elect to receive 25%, 50%, 75% or 100% of the remaining 40% of their annual retainer and any additional fees in the form
of DSUs. If a director meets their ownership requirements, the director may elect to take 25%, 50%, 75% or 100% of their
annual retainer and any fees in cash, with the balance, if any, to be paid in DSUs. Each DSU fully vests upon award. Dividend
equivalents accrue to the participants in the form of additional share units as of each normal cash dividend payment date of
Cameco’s common shares. The DSUs will be redeemed for cash upon a director leaving the board. The redemption amount
will be based upon the weighted average of the closing prices of the common shares of Cameco on the TSX for the last 20
trading days prior to the redemption date multiplied by the number of DSUs held by the director. As of December 31, 2023, the
total number of DSUs held by participating directors was 564,401 (2022 - 547,304).
Equity-settled plans
Cameco records compensation expense under its equity-settled plans with an offsetting credit to contributed surplus, to reflect
the estimated fair value of units granted to employees. During the year, the Company recognized the following expenses
under these plans:
Employee share ownership plan
Restricted share unit plan
Stock option plan
Total
$
2023
4,460
3,692
-
$
$
8,152
$
2022
3,541
3,273
45
6,859
Fair value measurement of equity-settled plans
The fair value of RSUs granted was determined based on their intrinsic value on the date of grant. Expected volatility was
estimated by considering historic average share price volatility.
The inputs used in the measurement of the fair values at grant date of the equity-settled RSU plan were as follows:
Number of options granted
Average strike price
Expected forfeitures
Weighted average grant date fair values
158 CAMECO CORPORATION
Grant date
Mar 1/23
129,623
$37.30
11%
$37.30
Cash-settled plans
Cameco has recognized the following expenses under its cash-settled plans:
Performance share unit plan
Restricted share unit plan
Deferred share unit plan
Phantom stock option plan
Phantom restricted share unit plan
Total
$
2023
2022
$
22,013
19,045
15,447
1,908
812
11,221
9,342
2,811
751
244
$
59,225
$
24,369
At December 31, 2023, a liability of $79,771,000 (2022 - $59,577,000) was included in the consolidated statement of financial
position to recognize accrued but unpaid expenses for cash-settled plans.
Fair value measurement of cash-settled plans
The fair value of the units granted through the PSU plan was determined based on Monte Carlo simulation and projections of
the non-market criteria. The fair value of RSUs and PRSUs granted was determined based on their intrinsic value on the date
of grant. The phantom stock option plan was measured based on the Black-Scholes option-pricing model. Expected volatility is
estimated by considering historic average share price volatility.
The inputs used in the measurement of the fair values of the cash-settled share-based payment plans at the March 1, 2023
grant date were as follows:
Number of units
Expected vesting
Expected life of option
Expected forfeitures
Weighted average measurement date fair values
PSU
RSU
232,160
83%
3 years
9%
$37.30
162,930
-
3 years
8%
$37.30
Phantom
RSU
9,997
-
3 years
8%
$37.30
The inputs used in the measurement of the fair values of the cash-settled share-based payment plans at the reporting date
were as follows:
Phantom
stock options
PSU
RSU
Phantom
RSU
Number of units
Expected vesting
Average strike price
Expected dividend
Expected volatility
Risk-free interest rate
Expected life of option
Expected forfeitures
Weighted average measurement date fair values
45,551
-
$12.29
$0.12
48%
3.5%
3.4 years
7%
$46.08
830,279
70%
-
-
-
-
0.8 years
2%
$57.13
561,210
-
-
-
-
-
1.0 years
8%
$57.13
28,000
-
-
$0.12
-
-
1.0 years
8%
$57.13
In addition to these inputs, other features of the PSU grant were incorporated into the measurement of fair value. The non-
market criteria relating to realized selling prices and operating targets have been incorporated into the valuation at both grant
and reporting date by reviewing prior history and corporate budgets.
2023 CONSOLIDATED FINANCIAL STATEMENTS AND NOTES 159
26. Pension and other post-retirement benefits
Cameco maintains both defined benefit and defined contribution plans providing pension benefits to substantially all of its
employees. All regular and temporary employees participate in a registered defined contribution plan. This plan is registered
under the Pension Benefits Standard Act, 1985. In addition, all Canadian-based executives participate in a non-registered
supplemental executive pension plan which is a defined benefit plan.
Under the supplemental executive pension plan (SEPP), Cameco provides a lump sum benefit equal to the present value of a
lifetime pension benefit based on the executive’s length of service and final average earnings. The plan provides for
unreduced benefits to be paid at the normal retirement age of 65, however unreduced benefits could be paid if the executive
was at least 60 years of age and had 20 years of service at retirement. This program provides for a benefit determined by a
formula based on earnings and service, reduced by the benefits payable under the registered base plan. Security is provided
for the SEPP benefits through a letter of credit held by the plan’s trustee. The face amount of the letter of credit is determined
each year based on the wind-up liabilities of the supplemental plan, less any plan assets currently held with the trustee. A
valuation is required annually to determine the letter of credit amount. Benefits will continue to be paid from plan assets until
the fund is exhausted, at which time Cameco will begin paying benefits from corporate assets.
Cameco also maintains non-pension post-retirement plans (“other benefit plans”) which are defined benefit plans that cover
such benefits as group life insurance and supplemental health and dental coverage to eligible employees and their
dependents. The costs related to these plans are charged to earnings in the period during which the employment services are
rendered. These plans are funded by Cameco as benefit claims are made.
The board of directors of Cameco has final responsibility and accountability for the Cameco retirement programs. The board is
ultimately responsible for managing the programs to comply with applicable legislation, providing oversight over the general
functions and setting certain policies.
Cameco expects to pay $2,174,000 in contributions and letter of credit fees to its defined benefit plans in 2024.
The post-retirement plans expose Cameco to actuarial risks, such as longevity risk, market risk, interest rate risk, liquidity risk
and foreign currency risk. The other benefit plans expose Cameco to risks of higher supplemental health and dental utilization
than expected. However, the other benefit plans have limits on Cameco’s annual benefits payable.
The effective date of the most recent valuation for funding purposes on the registered defined benefit pension plans is
January 1, 2021. The next planned effective date for valuations is January 1, 2024.
160 CAMECO CORPORATION
Cameco has more than one defined benefit plan and has generally provided aggregated disclosures in respect of these plans,
on the basis that these plans are not exposed to materially different risks. Information relating to Cameco’s defined benefit
plans is shown in the following table:
Pension benefit plans
2023
2022
Other benefit plans
2023
2022
Fair value of plan assets, beginning of year
Interest income on plan assets
Return on assets excluding interest income
Benefits paid
Administrative costs paid
Fair value of plan assets, end of year
Defined benefit obligation, beginning of year
Current service cost
Interest cost
Actuarial loss (gain) arising from:
- financial assumptions
- experience adjustment
Benefits paid
Foreign exchange
Defined benefit obligation, end of year
Defined benefit liability [note 15]
$
4,402
$
5,693
$
201
18
(901)
(3)
3,717
51,218
1,567
2,527
4,784
1,559
(1,704)
87
60,038
(56,321)
$
$
$
$
$
$
$
$
157
(555)
(890)
(3)
4,402
69,998
2,302
1,867
(20,913)
1,396
(3,666)
234
51,218
(46,816)
$
$
$
$
$
-
-
-
-
-
-
19,364
689
987
443
18
(820)
-
$
$
20,681
(20,681)
$
$
-
-
-
-
-
-
24,697
915
726
(5,881)
161
(1,254)
-
19,364
(19,364)
The percentages of the total fair value of assets in the pension plans for each asset category at December 31 were as follows:
Asset category(a)
Canadian equity securities
U.S. equity securities
Global equity securities
Canadian fixed income
Other(b)
Total
Pension benefit plans
2023
2022
7%
12%
6%
31%
44%
100%
6%
11%
6%
28%
49%
100%
(a) The defined benefit plan assets contain no material amounts of related party assets at December 31, 2023 and 2022
respectively.
(b) Relates mainly to the value of the refundable tax account held by the Canada Revenue Agency. The refundable total is
approximately equal to half of the sum of the realized investment income plus employer contributions less half of the benefits
paid by the plan.
2023 CONSOLIDATED FINANCIAL STATEMENTS AND NOTES 161
The following represents the components of net pension and other benefit expense included primarily as part of administration.
Current service cost
Net interest cost
Administration cost
Defined benefit expense [note 19]
Defined contribution pension expense [note 19]
Pension benefit plans
Other benefit plans
2023
2022
$
$
$
1,567
2,326
3
3,896
18,644
2,302
1,710
3
4,015
15,189
$
2023
689
987
-
1,676
-
Net pension and other benefit expense
$
22,540
$
19,204
$
1,676
$
The total amount of actuarial losses (gains) recognized in other comprehensive income is:
2022
915
726
-
1,641
-
1,641
Actuarial loss (gains)
Return on plan assets excluding
interest income
Pension benefit plans
Other benefit plans
2023
2022
2023
2022
$
6,343
$
(19,517)
$
461
$
(5,720)
(18)
555
-
-
$
6,325
$
(18,962)
$
461
$
(5,720)
The assumptions used to determine the Company’s defined benefit obligation and net pension and other benefit expense
were as follows at December 31 (expressed as weighted averages):
Discount rate - obligation
Discount rate - expense
Rate of compensation increase
Health care cost trend rate
Dental care cost trend rate
Pension benefit plans
Other benefit plans
2023
3.8%
4.5%
2.9%
-
-
2022
4.5%
2.3%
3.0%
-
-
2023
4.6%
5.1%
-
5.0%
4.5%
2022
5.1%
2.9%
-
5.0%
4.5%
At December 31, 2023, the weighted average duration of the defined benefit obligation for the pension plans was 17.9 years
(2022 - 17.1 years) and for the other benefit plans was 11.4 years (2022 - 11.3 years).
A 1% change at the reporting date to one of the relevant actuarial assumptions, holding other assumptions
constant, would have affected the defined benefit obligation by the following:
Pension benefit plans
Increase
Decrease
Other benefit plans
Increase
Decrease
Discount rate
$
(7,739)
$
9,817
$
(2,143)
$
2,628
A 1% change in any of the other assumptions would not have a significant impact on the defined benefit obligation.
The methods and assumptions used in preparing the sensitivity analyses are the same as the methods and assumptions used
in determining the financial position of Cameco’s plans as at December 31, 2023. The sensitivity analyses are determined by
varying the sensitivity assumption and leaving all other assumptions unchanged. Therefore, the sensitivity analyses do not
recognize any interdependence in the assumptions. The methods and assumptions used in determining the above sensitivity
are consistent with the methods and assumptions used in the previous year.
162 CAMECO CORPORATION
In addition, an increase of one year in the expected lifetime of plan participants in the pension benefit plans would increase the
defined benefit obligation by $1,583,000.
To measure the longevity risk for these plans, the mortality rates were reduced such that the average life expectancy for all
members increased by one year. The reduced mortality rates were subsequently used to re-measure the defined benefit
obligation of the entire plan.
27. Financial instruments and related risk management
Cameco is exposed in varying degrees to a variety of risks from its use of financial instruments. Management and the board of
directors, both separately and together, discuss the principal risks of our businesses. The board sets policies for the
implementation of systems to manage, monitor and mitigate identifiable risks. Cameco’s risk management objective in relation
to these instruments is to protect and minimize volatility in cash flow. The types of risks Cameco is exposed to, the source of
risk exposure and how each is managed is outlined below.
Market risk
Market risk is the risk that changes in market prices, such as commodity prices, foreign currency exchange rates and interest
rates, will affect the Company’s earnings or the fair value of its financial instruments. Cameco engages in various business
activities which expose the Company to market risk. As part of its overall risk management strategy, Cameco uses derivatives
to manage some of its exposures to market risk that result from these activities.
Derivative instruments may include financial and physical forward contracts. Such contracts may be used to establish a fixed
price for a commodity, an interest-bearing obligation or a cash flow denominated in a foreign currency. Market risks are
monitored regularly against defined risk limits and tolerances.
Cameco’s actual exposure to these market risks is constantly changing as the Company’s portfolios of foreign currency and
interest rate contracts change.
The types of market risk exposure and the way in which such exposure is managed are as follows:
A. Commodity price risk
As a significant producer and supplier of uranium and nuclear fuel processing services, Cameco bears significant exposure to
changes in prices for these products. A substantial change in prices will affect the Company’s net earnings and operating cash
flows. Prices for Cameco’s products are volatile and are influenced by numerous factors beyond the Company’s control, such
as supply and demand fundamentals and geopolitical events.
Cameco’s sales contracting strategy focuses on reducing the volatility in future earnings and cash flow, while providing both
protection against decreases in market price and retention of exposure to future market price increases. To mitigate the risks
associated with the fluctuations in the market price for uranium products, Cameco seeks to maintain a portfolio of uranium
product sales contracts with a variety of delivery dates and pricing mechanisms that provide a degree of protection from
pricing volatility.
B. Foreign exchange risk
The relationship between the Canadian and US dollar affects financial results of the uranium business as well as the fuel
services business. Sales of uranium product, conversion and fuel manufacturing services are routinely denominated in US
dollars while production costs are largely denominated in Canadian dollars.
2023 CONSOLIDATED FINANCIAL STATEMENTS AND NOTES 163
Cameco attempts to provide some protection against exchange rate fluctuations by planned hedging activity designed to
smooth volatility. To mitigate risks associated with foreign currency, Cameco enters into forward sales and option contracts to
establish a price for future delivery of the foreign currency. These foreign currency contracts are not designated as hedges and
are recorded at fair value with changes in fair value recognized in earnings. Cameco also has a natural hedge against US
currency fluctuations because a portion of its annual cash outlays, including purchases of uranium and conversion services, is
denominated in US dollars.
Cameco holds a number of financial instruments denominated in foreign currencies that expose the Company to foreign
exchange risk. Cameco measures its exposure to foreign exchange risk on financial instruments as the change in carrying
values that would occur as a result of reasonably possible changes in foreign exchange rates, holding all other variables
constant. As of the reporting date, the Company has determined its pre-tax exposure to foreign currency exchange risk on
financial instruments to be as follows based on a 5% weakening of the Canadian dollar:
Cash and cash equivalents
Accounts receivable
Accounts payable and accrued liabilities
Long-term debt
Net foreign currency derivatives
C. Interest rate risk
Currency
Carrying value
(Cdn)
Gain (loss)
$
USD
USD
USD
USD
USD
$
144,149
371,618
(302,364)
(786,397)
11,942
7,207
18,581
(15,118)
(39,320)
(102,567)
The Company has a strategy of minimizing its exposure to interest rate risk by maintaining target levels of fixed and variable
rate borrowings. The proportions of outstanding debt carrying fixed and variable interest rates are reviewed by senior
management to ensure that these levels are within approved policy limits. At December 31, 2023, the proportion of Cameco’s
outstanding debt that carries fixed interest rates is 51% (2022 - 92%).
Cameco was exposed to interest rate risk during the year through its interest rate swap contracts whereby fixed rate payments
on a notional amount of $75,000,000 of the Series H senior unsecured debentures were swapped for variable rate payments.
Under the terms of the swap, Cameco makes interest payments based on the three-month Canada Dealer Offered Rate plus
an average margin of 1.3% and receives fixed interest payments of 2.95%. At December 31, 2023, the fair value of Cameco’s
interest rate swap net liability was $5,819,000 (2022 - $7,284,000).
Cameco is also exposed to interest rate risk through its term loan which consists of two $300,000,000 (US) tranches. The first
tranche has a floating interest rate of SOFR plus 1.80% and matures on November 7, 2025. The second tranche has a floating
interest rate of SOFR plus 2.05% and matures on November 7, 2026.
Cameco measures its exposure to interest rate risk as the change in cash flows that would occur as a result of reasonably
possible changes in interest rates, holding all other variables constant. As of the reporting date, the Company has determined
the impact on earnings of a 1% increase in interest rate on its variable rate financial instruments to be as follows:
Interest rate contracts
Floating rate term loan
164 CAMECO CORPORATION
Gain (loss)
$
(760)
(7,946)
Counterparty credit risk
Counterparty credit risk is associated with the ability of counterparties to satisfy their contractual obligations to Cameco,
including both payment and performance. The maximum exposure to credit risk, as represented by the carrying amount of the
financial assets, at December 31 was:
Cash and cash equivalents
Short-term investments
Accounts receivable [note 7]
Derivative assets [note 11]
Cash and cash equivalents
2023
2022
$
566,809
-
415,561
28,467
$ 1,143,674
1,138,174
178,088
2,807
Cameco held cash and cash equivalents of $566,809,000 at December 31, 2023 (2022 - $1,143,674,000). Cameco mitigates
its credit risk by ensuring that balances are held with counterparties with high credit ratings. The Company monitors the credit
rating of its counterparties on a monthly basis and has controls in place to ensure prescribed exposure limits with each
counterparty are adhered to.
Impairment on cash and cash equivalents has been measured on a 12-month ECL basis and reflects the short maturities of
the exposures. The Company considers that its cash and cash equivalents have low credit risk based on the external credit
ratings of the counterparties. Cameco has assessed its counterparty credit risk on cash and cash equivalents by applying
historic global default rates to outstanding cash balances based on S&P rating. The conclusion of this assessment is that the
loss allowance is insignificant.
Short-term investments
Cameco held no short-term investments at December 31, 2023 (2022 - $1,138,174,000). The Company mitigates its credit risk
by requiring that the issuer/guarantor of the investment have a minimum short-term credit rating and/or a long-term debt rating
at the time of purchase, according to the investment credit ratings as issued by DBRS or S&P, or the equivalent of the DBRS
or S&P rating at another reputable rating agency.
In addition to the credit-rating requirement, Cameco also mitigates risk by prescribing limits by counterparty and types of
investment products.
Cameco has assessed its counterparty credit risk related to short-term investments by applying historic default rates to
outstanding investment balances based on S&P rating. The conclusion of this assessment is that the loss allowance is
insignificant.
Accounts receivable
Cameco’s sales of uranium product, conversion and fuel manufacturing services expose the Company to the risk of non-
payment. Cameco manages the risk of non-payment by monitoring the credit-worthiness of its customers and seeking pre-
payment or other forms of payment security from customers with an unacceptable level of credit risk.
2023 CONSOLIDATED FINANCIAL STATEMENTS AND NOTES 165
A summary of the Company’s exposure to credit risk for trade receivables is as follows:
Investment grade credit rating
Non-investment grade credit rating
Total gross carrying amount
Loss allowance
Net
Carrying
value
$ 290,204
123,588
$ 413,792
-
$ 413,792
At December 31, 2023, there were no significant concentrations of credit risk and no amounts were held as collateral.
Historically, Cameco has experienced minimal customer defaults and, as a result, considers the credit quality of its accounts
receivable to be high.
Cameco uses customer credit rating data, historic default rates and aged receivable analysis to measure the ECLs of trade
receivables from corporate customers, which comprise a small number of large balances. Since the Company has not
experienced customer defaults in the past, applying historic default rates in calculating ECLs, as well as considering forward-
looking information, resulted in an insignificant allowance for losses.
The following table provides information about Cameco’s aged trade receivables as at December 31, 2023:
Current (not past due)
1-30 days past due
More than 30 days past due
Total
Liquidity risk
Corporate
customers
Other
customers
$
$
393,296
16,531
131
$
409,958
$
2,366
889
579
3,834
Total
395,662
17,420
710
413,792
Financial liquidity represents Cameco’s ability to fund future operating activities and investments. Cameco ensures that there
is sufficient capital in order to meet short-term business requirements, after taking into account cash flows from operations and
the Company’s holdings of cash and cash equivalents. The Company believes that these sources will be sufficient to cover the
likely short-term and long-term cash requirements.
The table below outlines the Company’s available debt facilities at December 31, 2023:
Outstanding and
Total amount
committed
Amount available
Unsecured revolving credit facility [note 14]
Letter of credit facilities [note 14]
$
1,000,000
1,771,663
$
-
1,383,689
$
1,000,000
387,974
166 CAMECO CORPORATION
The tables below present a maturity analysis of Cameco’s financial liabilities, including principal and interest, based on the
expected cash flows from the reporting date to the contractual maturity date:
Carrying
amount
Contractual
cash flows
less than Due in 1-3 Due in 3-5 Due after 5
1 year
years
years
years
Due in
Accounts payable and accrued liabilities $ 577,550 $ 577,550 $ 577,550 $
Long-term debt
Foreign currency contracts
Interest rate contracts
Lease obligation [note 15]
500,000
11,762
2,576
2,300
1,794,580
16,525
5,819
12,937
1,784,174
16,525
5,819
10,816
794,580
4,763
2,437
3,332
400,000
-
806
2,617
- $
- $
-
100,000
-
-
4,688
Total contractual repayments
$ 2,394,884 $ 2,407,411 $ 1,094,188 $ 805,112 $ 403,423 $ 104,688
Due in
less than Due in 1-3 Due in 3-5 Due after 5
Total
1 year
years
years
years
Total interest payments on long-term debt
$ 299,775 $
85,322 $ 121,213 $ 21,980 $ 71,260
Measurement of fair values
A. Accounting classifications and fair values
The following tables summarize the carrying amounts and accounting classifications of Cameco’s financial instruments at the
reporting date:
At December 31, 2023
Financial assets
Cash and cash equivalents
Accounts receivable [note 7]
Derivative assets [note 11]
Foreign currency contracts
Financial liabilities
Accounts payable and accrued liabilities [note 13]
Current portion of long-term debt [note 14]
Lease obligation [note 15]
Derivative liabilities [note 15]
Foreign currency contracts
Interest rate contracts
Long-term debt [note 14]
FVTPL
Amortized
cost
Total
$
$
$
- $
-
566,809 $
422,333
566,809
422,333
28,467
-
28,467
28,467 $
989,142 $ 1,017,609
- $
-
-
577,550 $
499,821
10,816
577,550
499,821
10,816
16,525
5,819
-
-
-
1,284,353
16,525
5,819
1,284,353
22,344
2,372,540
2,394,884
Net
$
6,123 $ (1,383,398) $ (1,377,275)
2023 CONSOLIDATED FINANCIAL STATEMENTS AND NOTES 167
At December 31, 2022
Financial assets
Cash and cash equivalents
Short-term investments
Accounts receivable [note 7]
Derivative assets [note 11]
Foreign currency contracts
Financial liabilities
Accounts payable and accrued liabilities [note 13]
Lease obligation [note 15]
Derivative liabilities [note 15]
Foreign currency contracts
Interest rate contracts
Long-term debt [note 14]
FVTPL
Amortized
cost
Total
$
$
$
- $ 1,143,674 $ 1,143,674
1,138,174
-
183,944
-
1,138,174
183,944
2,807
-
2,807
2,807 $ 2,465,792 $ 2,468,599
- $
-
374,714 $
9,287
374,714
9,287
51,058
7,284
-
-
-
997,000
51,058
7,284
997,000
58,342
1,381,001
1,439,343
Net
$
(55,535) $ 1,084,791 $ 1,029,256
Cameco has pledged $156,274,000 of cash as security against certain of its letter of credit facilities. This cash is being used
as collateral for an interest rate reduction on the letter of credit facilities. The collateral account has a term of five years
effective November 1, 2023. Cameco retains full access to this cash.
Cameco has issued guarantees to certain banks in respect of the credit facilities granted to various subsidiaries. These
facilities consist of daily overdraft limits and credit lines. At December 31, 2023 the Company has issued guarantees of up to
$278,006,000 ($209,927,000 (US)), which is the maximum amount the Company could be exposed to at any point in time.
Cameco has not irrevocably designated a financial asset that would otherwise meet the requirements to be measured at
amortized cost at FVOCI or FVTPL to eliminate or significantly reduce an accounting mismatch that would otherwise arise.
The following tables summarize the carrying amounts and level 2 fair value measurements of Cameco’s financial instruments:
As at December 31, 2023
Derivative assets [note 11]
Foreign currency contracts
Current portion of long-term debt [note 14]
Derivative liabilities [note 15]
Foreign currency contracts
Interest rate contracts
Long-term debt [note 14]
Net
168 CAMECO CORPORATION
Carrying value
Fair value
$
28,467
(499,821)
$
28,467
(500,000)
(16,525)
(5,819)
(1,284,353)
(16,525)
(5,819)
(1,303,681)
$ (1,778,051)
$ (1,797,558)
As at December 31, 2022
Derivative assets [note 11]
Foreign currency contracts
Derivative liabilities [note 15]
Foreign currency contracts
Interest rate contracts
Long-term debt [note 14]
Net
Carrying value
Fair value
$
2,807
$
2,807
(51,058)
(7,284)
(997,000)
(51,058)
(7,284)
(1,014,010)
$ (1,052,535)
$ (1,069,545)
The preceding tables exclude fair value information for financial instruments whose carrying amounts are a reasonable
approximation of fair value. The carrying values of Cameco’s cash and cash equivalents, short-term investments, accounts
receivable, and accounts payable and accrued liabilities approximate their fair values as a result of the short-term nature of the
instruments.
There were no transfers between level 1 and level 2 during the period. Cameco does not have any financial instruments that
are classified as level 3 as of the reporting date.
B. Financial instruments measured at fair value
Cameco measures its derivative financial instruments and long-term debt at fair value. Derivative financial instruments and
long-term debt are classified as a recurring level 2 fair value measurement.
The fair value of Cameco’s long-term debt is determined using quoted market yields as of the reporting date, which ranged
from 3.1% to 4.9% (2022 - 3.3% to 4.2%). The fair value of the floating rate term loan is equal to its carrying value.
Foreign currency derivatives consist of foreign currency forward contracts, options and swaps. The fair value of foreign
currency options is measured based on the Black Scholes option-pricing model. The fair value of foreign currency forward
contracts and swaps is measured using a market approach, based on the difference between contracted foreign exchange
rates and quoted forward exchange rates as of the reporting date.
Interest rate derivatives consist of interest rate swap contracts. The fair value of interest rate swaps is determined by
discounting expected future cash flows from the contracts. The future cash flows are determined by measuring the difference
between fixed interest payments to be received and floating interest payments to be made to the counterparty based on
Canada Dealer Offer Rate forward interest rate curves.
Where applicable, the fair value of the derivatives reflects the credit risk of the instrument and includes adjustments to take
into account the credit risk of the Company and counterparty. These adjustments are based on credit ratings and yield curves
observed in active markets at the reporting date.
2023 CONSOLIDATED FINANCIAL STATEMENTS AND NOTES 169
Derivatives
The following table summarizes the fair value of derivatives and classification on the consolidated statements of financial
position:
Non-hedge derivatives:
Foreign currency contracts
Interest rate contracts
Net
Classification:
Current portion of long-term receivables, investments and other [note 11]
Long-term receivables, investments and other [note 11]
Current portion of other liabilities [note 15]
Other liabilities [note 15]
Net
2023
2022
$
$
$
$
$
$
11,942
(5,819)
6,123
9,137
19,330
(14,338)
(8,006)
(48,251)
(7,284)
(55,535)
1,331
1,476
(25,913)
(32,429)
$
6,123
$
(55,535)
The following table summarizes the different components of the gains (losses) on derivatives included in net earnings:
Non-hedge derivatives:
Foreign currency contracts
Interest rate contracts
Net
28. Capital management
2023
2022
$
$
38,975
(1,184)
$
(66,360)
(6,589)
37,791
$
(72,949)
Cameco’s management considers its capital structure to consist of bank overdrafts, long-term debt, short-term debt (net of
cash and cash equivalents and short-term investments), non-controlling interest and shareholders’ equity.
Cameco’s capital structure reflects its strategy and the environment in which it operates. Delivering returns to long-term
shareholders is a top priority. The Company’s objective is to maximize cash flow while maintaining its investment grade rating
through close capital management of our balance sheet metrics. Capital resources are managed to allow it to support
achievement of its goals while managing financial risks such as weakness in the market, litigation risk and refinancing risk.
The overall objectives for managing capital in 2023 reflect the environment that the Company is operating in, similar to the
prior comparative period.
170 CAMECO CORPORATION
The capital structure at December 31 was as follows:
Current portion of long-term debt [note 14]
Long-term debt [note 14]
Cash and cash equivalents
Short-term investments
Net debt
Non-controlling interest
Shareholders' equity
Total equity
Total capital
$
2023
2022
$
499,821
1,284,353
(566,809)
-
1,217,365
4
6,094,305
6,094,309
-
997,000
(1,143,674)
(1,138,174)
(1,284,848)
11
5,836,054
5,836,065
$
7,311,674
$
4,551,217
Cameco is bound by certain covenants in its general credit facilities. These covenants place restrictions on total debt, including
guarantees and set minimum levels for net worth. As of December 31, 2023, Cameco met these requirements.
29. Segmented information
Cameco has three reportable segments: uranium, fuel services and Westinghouse. Cameco's reportable segments are
strategic business units with different products, processes and marketing strategies. The uranium segment involves the
exploration for, mining, milling, purchase and sale of uranium concentrate. The fuel services segment involves the refining,
conversion and fabrication of uranium concentrate and the purchase and sale of conversion services. The Westinghouse
segment reflects our earnings from this equity-accounted investment (see note 12). Westinghouse is a nuclear reactor
technology original equipment manufacturer and a global provider of products and services to commercial utilities and
government agencies. It provides outage and maintenance services, engineering support, instrumentation and controls
equipment, plant modification, and components and parts to nuclear reactors.
Cost of sales in the uranium segment includes care and maintenance costs for our operations that have had production
suspensions as well as operational readiness costs for our operations that have resumed operations. Operational readiness
costs include costs to complete critical projects, perform maintenance readiness checks, and recruit and train sufficient mine
and mill personnel before beginning operations. Cameco expensed $50,615,000 of care and maintenance costs during the
year (2022 - $218,439,000 of care and maintenance and operational readiness costs).
Accounting policies used in each segment are consistent with the policies outlined in the summary of material accounting
policies.
2023 CONSOLIDATED FINANCIAL STATEMENTS AND NOTES 171
A. Business segments - 2023
For the year ended December 31, 2023
Revenue
Expenses
Uranium
Fuel
services
(i)
WEC
(i)
Adjustments
Other
Total
$
2,152,242 $
425,557 $
521,074 $
(521,074) $
9,959 $
2,587,758
Cost of products and services sold
Depreciation and amortization
1,532,316
175,457
266,062
35,426
200,285
60,766
(200,285)
(60,766)
7,390
9,441
1,805,768
220,324
Cost of sales
1,707,773
301,488
261,051
(261,051)
16,831
2,026,092
Gross profit (loss)
444,469
124,069
260,023
(260,023)
(6,872)
561,666
Administration
Exploration
Research and development
Other operating income
Loss on disposal of assets
Finance costs
Loss (gain) on derivatives
Finance income
Share of earnings from
equity-accounted investees
Other expense (income)
-
17,551
-
(1,875)
1,825
-
-
-
-
-
-
(5,634)
363
-
-
-
244,400
-
-
-
-
26,274
2,838
(1,885)
(244,400)
-
-
-
-
(26,274)
(2,838)
1,885
245,539
-
21,036
-
-
115,869
(37,791)
(111,670)
245,539
17,551
21,036
(7,509)
2,188
115,869
(37,791)
(111,670)
(178,848)
(545)
-
-
-
19,424
24,386
(19,424)
-
(15,693)
(154,462)
(16,238)
Earnings (loss) before income taxes
606,361
129,340
(31,028)
6,642
(224,162)
Income tax expense
Net earnings
487,153
126,337
360,816
Capital expenditures for the year
$
105,384 $
42,546 $
42,405 $
(42,405) $
5,701 $
153,631
(i) Consistent with the presentation of financial information for internal management purposes, Cameco’s share of
Westinghouse’s financial results have been presented as a separate segment. In accordance with IFRS, this investment is
accounted for by the equity method of accounting in these consolidated financial statements and the associated revenues and
expenses are eliminated in the “Adjustments” column.
172 CAMECO CORPORATION
For the year ended December 31, 2022
Revenue
$ 1,480,146
$
365,063
$
22,794
$ 1,868,003
Uranium
Fuel
services
Other
Total
Expenses
Cost of products and services sold
Depreciation and amortization
Cost of sales
Gross profit (loss)
Administration
Exploration
Research and development
Other operating expense (income)
(Gain) loss on disposal of assets
Finance costs
Loss on derivatives
Finance income
Share of earnings from equity-accounted investee
Other income
1,223,558
135,800
1,359,358
215,660
32,618
248,278
18,118
8,958
1,457,336
177,376
27,076
1,634,712
120,788
116,785
(4,282)
233,291
-
10,578
-
25,845
726
-
-
-
(93,988)
(22,802)
-
-
-
(2,901)
(212)
-
-
-
-
-
172,029
-
12,175
-
-
85,728
72,949
(37,499)
-
(74,132)
172,029
10,578
12,175
22,944
514
85,728
72,949
(37,499)
(93,988)
(96,934)
84,795
(4,469)
89,264
Earnings (loss) before income taxes
200,429
119,898
(235,532)
Income tax recovery
Net earnings
Capital expenditures for the year
$
101,547
$
39,736
$
2,198
$
143,481
B. Geographic segments
Revenue is attributed to the geographic location based on the location of the entity providing the services. The Company’s
revenue from external customers is as follows:
Canada
United States
2023
2022
$ 1,877,742
710,016
$
994,534
873,469
$ 2,587,758
$ 1,868,003
The Company’s non-current assets, excluding deferred tax assets and financial instruments, by geographic location
are as follows:
Canada
Australia
United States
Kazakhstan
Germany
2023
2022
$ 2,947,395
389,152
75,769
28
5
$ 3,042,533
397,678
80,352
38
6
$ 3,412,349
$ 3,520,607
2023 CONSOLIDATED FINANCIAL STATEMENTS AND NOTES 173
C. Major customers
Cameco relies on a small number of customers to purchase a significant portion of its uranium concentrates and uranium
conversion services. During 2023, revenues from one customer of Cameco’s uranium and fuel services segments represented
approximately $254,786,000 (2022 - $227,846,000), approximately 10% (2022 - 12%) of Cameco’s total revenues from these
segments. As customers are relatively few in number, accounts receivable from any individual customer may periodically
exceed 10% of accounts receivable depending on delivery schedule.
30. Group entities
The following are the principal subsidiaries, associate and joint venture of the Company:
Subsidiaries:
Cameco Fuel Manufacturing Inc.
Cameco Marketing Inc.
Cameco Inc.
Power Resources, Inc.
Crow Butte Resources, Inc.
Cameco U.S. Holdings, Inc.
Cameco Australia Pty. Ltd.
Cameco Europe Ltd.
Associate:
JV Inkai
Principal place
of business
Ownership interest
2023
2022
Canada
Canada
US
US
US
US
Australia
Switzerland
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
Kazakhstan
40%
40%
Joint Venture:
Watt New Aggregator L.P. (Westinghouse)
US
49%
0%
31. Joint operations
Cameco conducts a portion of its exploration, development, mining and milling activities through joint operations. Operations
are governed by agreements that provide for joint control of the strategic operating, investing and financing activities among
the partners. These agreements were considered in the determination of joint control. Cameco’s significant Canadian uranium
joint operation interests are McArthur River, Key Lake and Cigar Lake. The Canadian uranium joint operations allocate
uranium production to each joint operation participant and the joint operation participant derives revenue directly from the sale
of such product. Mining and milling expenses incurred by joint operations are included in the cost of inventory.
174 CAMECO CORPORATION
Cameco reflects its proportionate interest in these assets and liabilities as follows:
Total assets
McArthur River
Key Lake
Cigar Lake(a)
Total liabilities
McArthur River
Key Lake
Cigar Lake(a)
Principal place
of business
Ownership
2023
2022
Canada
Canada
Canada
69.81%
83.33%
54.55%
$ 1,048,746
504,508
1,158,583
$
998,368
527,841
1,219,036
$ 2,711,837
$ 2,745,245
$
69.81%
83.33%
54.55%
50,199
244,480
48,967
$
37,881
240,487
50,362
$
343,646
$
328,730
(a) Cameco’s ownership stake in the Cigar Lake uranium mine in northern Saskatchewan was previously 50.025%. On May
19, 2022, Cameco and Orano completed the acquisition of Idemitsu’s 7.875% participating interest in the CLJV by acquiring
their pro rata shares through an asset purchase (note 6).
32. Related parties
A. Transactions with key management personnel
Key management personnel are those persons that have the authority and responsibility for planning, directing and controlling
the activities of the Company, directly or indirectly. Key management personnel of the Company include executive officers,
vice-presidents, other senior managers and members of the board of directors.
In addition to their salaries, Cameco also provides non-cash benefits to executive officers and vice-presidents and contributes
to pension plans on their behalf (note 26). Senior management and directors also participate in the Company’s share-based
compensation plans (note 25).
Executive officers are subject to terms of notice ranging from three to six months. Upon resignation at the Company’s request,
they are entitled to termination benefits of up to the lesser of 18 to 24 months or the period remaining until age 65. The
termination benefits include gross salary plus the target short-term incentive bonus for the year in which termination occurs.
Compensation for key management personnel was comprised of:
Short-term employee benefits
Share-based compensation(a)
Post-employment benefits
Termination benefits
Total
2023
2022
$
$
30,733
41,694
6,730
541
23,557
21,149
6,532
-
$
79,698
$
51,238
(a) Excludes deferred share units held by directors (see note 25).
B. Other related party transactions
Cameco purchases uranium concentrates from JV Inkai. For the year ended December 31, 2023, Cameco had purchases of
$392,656,000 ($286,664,000 (US)) (2022 - $206,818,000 ($155,937,000 (US))). Cameco received a cash dividend from JV
Inkai of $113,642,000 ($83,059,000 (US)) (2022 - $117,698,000 ($92,425,000 (US))).
2023 CONSOLIDATED FINANCIAL STATEMENTS AND NOTES 175
33. Subsequent event
On February 5, 2024, Cameco initiated a partial repayment of $200,000,000 (US) on the $600,000,000 (US) term loan used to
finance the 49% acquisition of Westinghouse. The partial repayment will be applied to the $300,000,000 (US) tranche which
matures in November 2026.
176 CAMECO CORPORATION