Cameco Corp – the world's largest uranium producer – reported a 45 percent increase in quarterly profit on Tuesday, selling more uranium at a higher average price, according to a Tuesday release.
Net income increased to C$132 million ($133.6 million), or 33 Canadian cents a share, from C$91 million ($92.1), or 23 Canadian cents, in the previous year, the company said. Sales increased from C$461 million ($466.4 million) to C$563 million ($569.6 million).
Adjusted earnings of 31 Canadian cents a share beat analyst expectations – the Thomson Reuters mean estimate was for a profit of 28 Canadian cents a share.
"Our uranium business continues to drive our strong financial performance," said Tim Gitzel, Cameco president and CEO. "This quarter, our sales volumes were up 33%, and although spot and long-term uranium prices were lower relative to a year ago, our average realized price increased. We continue to make good progress with mine construction at Cigar Lake and with securing regulatory approvals required to expand production in the US and in Kazakhstan."
In the release, Cameco warned it expects to cancel one of its long-term sales contracts in the second quarter and take a $30 million hit as it continues to negotiate with customers in the aftermath of last year's Fukushima nuclear disaster. The company expects to replace the terminated contract, which covered deliveries of 3.4 million pounds of uranium over the course of 2012 through 2016, with other customers at a higher average price.