- Uranium fuel provider Cameco (CCO) is continued to struggle in the third quarter of 2020 despite the restart of its Cigar Lake mine in September
- For the three months ending September 30, the company posted a net loss of C$61 million compared with a loss of $13 million in the same period last year
- This comes despite a 25 per cent increase in revenue, from $303 million in 2019 to $379 million this year
- The company said the poor performance was due to prevailing fallout from actions taken earlier in the year to tackle the COVID-19 pandemic
- Cameco (CCO) is currently down 6.18 per cent to $12.00 per share
Uranium fuel provider Cameco (CCO) is continued to struggle in the third quarter of 2020 despite the restart of its Cigar Lake mine.
For the three months ending September 30, the Saskatoon-based company reported a net loss of C$61 million, representing a substantial increase compared to a net loss of $13 million seen in the same period last year.
This comes despite a 25 per cent climb in total revenue, from $303 million in 2019 to $379 million this year.
Cameco attributed the decline in performance to normal variations in contract deliveries, as well as ongoing purchase activity and care and maintenance costs to the value of roughly $18 million associated with the suspension of the company’s Cigar Lake mine.
While Cigar Lake resumed operations in September, it took around two weeks for the mine to achieve initial production, ultimately netting Cameco total production for the quarter of roughly 200,000 pounds.
The company also noted that the continued operation of Cigar Lake is dependent on the ability to maintain safe and stable operating protocols in the face of the ongoing COVID-19 outbreak.
Commenting on the results, Tim Gitzel, President and CEO of Cameco, said the decision to implement virus mitigation measures came with near-term costs.
“We have strengthened our balance sheet, and our committed sales portfolio provides us with certainty and predictability.
“Therefore, we remain resolved in our strategy to build long-term value and will continue to do what we said we would do,” he added.
Cameco also declared an annual dividend of eight cents per common share, payable to shareholders on December 15, 2020.
Cameco (CCO) is currently down 6.18 per cent to $12.00 per share at 11:51am EST.