Cameco (CCJ) 7 May 212021 Q1 Earnings call transcript

Welcome to the Cameco Corporation's First Quarter 2021 Conference Call.

As a reminder, all participants are in listen-only mode and the conference is being recorded. After the presentation, there will an opportunity to ask questions. [Operator Instructions] I would now like to turn the conference over to Rachelle Girard, VP, Investor Relations, Treasury and Tax. Please go ahead.

good and operator, you, morning, everyone. Thank Cameco’s to first quarter call. conference Welcome will Today’s market trends we details and on are the our financial call quarterly not of focus strategy, seeing our the on results. on in the

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globe. around the power out certain becoming nuclear of as to take phasing of megatrend electrification hold more is the First, while intensive energy continues demand sources for carbon increasing

deliver long-term us mines, supplies, the And very life shrinking policy long-term less sustainably strategy that uranium years is finally, production for end reserve and lack Second, low curtailments, have our planned value. issues. prices persistently some supply certain secondary led positions of investment, as becoming to of well of to trade

the start energy. the view, for macro Let's with fundamentals

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safe, third have no and about of reliable bring to access who electricity. baseload currently population one First, electricity the limited to clean access to or

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current assessment as will nuclear supporting are that Commission the Center for support A clean As if in to proposed scientific Sustainable we've The nuclear over nuclear noted of the the from another scientific legislation confirm no last Research EU I Europe, months rigorous In transition. lifecycle included nuclear's exclusion there's move step sustainable. few arguments then closer earlier, energy taxonomy. from European Taxonomy. Joint energy Finance full be concluded been see the role further in the passed there a supplement the that to

In XX of into increase of to Russia, neutral Russia’s would operating Nuclear China In of of demand extension Summit carbon France XX many XXX another XX as add And reach by the at to Climate XX Global This to Over XXXX, uranium under carbons annual China this consumption million plans million confirmed mix. to of XXth not the approximately new next Russia's and were share will to Conservatively, be GW EDF's net another United of pounds of Safety needed goals GW power made. hosted XX at equate nuclear of year. Association by of annual targets Leaders increase that target of Authority per It XX aggressive operation XX power carbon to GW country's its States, announced from in discussed XXXX by be and the to of also with a XX-year XXX five-year nuclear pounds the up Nuclear the would million nuclear XX accounted indicated XXXX an a on zero commitments XX% additional reactors by XXXX XXXX. by over part demand the of requirements. construction. to addition, recent their plan GW the This plan achieve Rosatom that Energy least energy for. could plants. in pounds lives years in were about French uranium operating previously granted could reduced translate emissions

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do. we me Let remind is it that what would we you said

First foremost, it starts is for safety we’re workers, on and their the communities. focused and us, families and their this and where health of protecting our

of time We’re day and proactively about in best the workforce how to in for concerns protect seeing our doing about workers areas trends through increasing. pandemic support manage we us pause availability we pandemic. were caused operations the Lake Cigar a that. the In was second the Every make decisions production as and our critical to December, COVID-XX

shutdown our on-site to we Combined had April and in facility the mine restart put able the mine will the the that sustainably. rollout temporary related COVID with and greater be in During to place. certainty the safely the further operate in testing vaccine we protocols province, confidence with

of monitor to have our situation priority. Pandemic safety authorities. with communities regular pandemic, be continue always our our dialogue in the health the or no will health public will will workers and We and

ability to hesitate feel to action we our not safely will compromised. take is We if further operate

our from have three the operational, strategy. disruptions were from apart our financial. our Second, execution not COVID-XX and on marketing are operations, of which to we we executing wavered fronts There the strategy;

implemented discipline our assets cutting This course the MacArthur supply delivery our commitments. the U.S. at well production have operational of planned of operation. production curtailment side our we the below Rabbit On includes Lake, River/Key at Lake and

spot actions Consequently, left the the committed these kept of the been earlier, meet our pounds said deliveries. market material market. lot on purchasing we've to in have and them I a As ground off

the book been return. to We committing the contracts building generate assets discipline, price We tier strategy. costs appropriate. in want portfolio far like our won’t sales it’s our to investment support approach to want an our we a and In while shown contracts manages assets, addition, and value return, in approach and future tier pounds appropriate patient. building that we’ve take where too an we of our X operating ensure low contract to sticking portfolio environment. We We've risk strategically in X under to do not not like a balanced layer portfolio our that a much exhaust

of seeing adding to finalized have negotiation, contracting patience we totals to million pipeline long-term with portfolio, under we pay almost We’re which together sales recent uranium business out under contract off. April our In of continued contracts been successfully million negotiation. pounds and pounds. executed XX large And X long-term a a number which had

that fundamentals. conversations the suppliers broader proven commercial want customers understand They record. supply and production tier future. access continue we to a do as we We're perspective, off-market some a in of historically productive securing track long-term operating mover competitive X from the opposed today And advantage a contracting. economics. from interest biggest fact, long-term been it from advantages. have the first who growing prices to pounds long-lived tier future customers. having capacity gained indicator They In their leading X of see security reflect not today's have our has recognize to They These with recognize best for demand and our access

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have such, risk strategic the our self-manage maintain capacity financial resolve. we to and As

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has paying dispute before taxes. been our the this While of been not courts, fair share accused we’ve of

in dollars world. matter infrastructure and nuclear it in court invested nearly and not that to that part elements venture millions period of Cameco other housing, be including as we delivers the benefits XXXX Saskatchewan CRA the we've before our but targeted it’s we've to the to technologies which northern northern weapons, in did projects has around grow inappropriate wait and leading profit pay communities, and fair nuclear Canada unequivocally to employer to $XX.X schools, makes great not taxes, education of as to tremendous Cameco gives fair establish share document system $X at million that years jobs participated of Cobalt-XX of recreation safety industry world. for judgments Saskatchewan, indeterminate we an that metric that various over well-paying use others not indigenous and peoples and continue Canadians in credit youth, federal wellness literacy, program XX has in converting in northern is and Cameco and for return this disparities enriched capacity know nuclear courts industrial development. of applications of health our Canada, Now the no and the Megatons procuring Since community recent engaging see of for Saskatchewan providing mental health We improvement for facilities. to uranium services community the the gamma actually contributed that the in since the fuel for into and in in been of Canada are me what by the longer fair the enriched light health, are almost to satisfaction budget leading in reactors. a tons uranium have have including make support medical XXXX. projects dismantling proud demonstrating And cash Megawatts low We're this saw than we're to more billion has in court shifting the highly decision of helped say. in to the there and in of XX,XXX businesses individuals for the around It's confirmed of fair. supplier that infrastructure world's local XXX contributed

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exception The should is done it in immediately. great that from to benefited show we greatly the resolved have we distraction is the we be any that law. when way accordance profits Canada have So and take in claim what any generated facts has with unfair this

Turning I'm the this we're all side, fronts. strategic issue performing three happy say to that well to on

and transition once long prices. demand through us steps with values However, much days rate, cost our we run and today to strategic one one sustainable are the to from or one concluded return to good production not in and of costs financial news expect they our strategy, in will business tier rate that vision, to deliver to have have restart confident to reflected term that more value. expect And provide. which costs the our the our ahead higher We're period the are mine we suspended maintenance this the eliminate incurring benefit decisions while to we results. costs economics does favorable the We're allow life this of we leverage and But there tier right and ability provide represent flexibility will we is, production capture tier and to a structure. in very the is care assets taking the incurred better our

gas which carbon to an clean recognizes in greenhouse vision required that enabling play achieve a net have zero to to air Our in role vast emissions energize the a we is economy. world resilient important reductions

example, a it on in in and others pursuing we and they and on not our that and to manner values wherever place guided environment, and leading have stable, supporting do always the on reflects promoting inspiring doing excellence values. skilled, behaving to to They vision, in it eliminate flexible, committed on all racism seek and the a equality do changed. acting a workforce, priority safety our same. by exists have we our we're As Those diverse achieve building on integrity that and to actions with

Our decisions are deliberate.

risk diversified responsible, for a well We're nuclear with commercially And to a power to the uranium supply motivated assets traditional and advantage risk growing, positioned our cost market us will supply best that decisions uranium is believe is portfolio and we in among are of to the production world. to of and believe nontraditional that We tier demand. the market. patience the greater portfolio of where with take face low in unprecedented challenges a both we than resiliency into including strategic demand strategic the provide having in from rewards will is a the deliver strengthening where one come where supplier result

So, thanks questions. today call that answer our any be and we operator would with to happy for joining

Please [Operator first from is from Orest Instructions] The go ahead. you. Scotiabank. Thank question Wowkodaw

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for question. Orest. the Thanks Thank

what going of those would contract, with give we'll based of just on a the and say it just kind an a on contract we're today. you update I think what Grant I'm can, grant pieces of better I to tell expert So, of maybe on the the would an to description you market overview done. bit said ask then what on a we've will be seeing Dr. little S Isaac, market we our end

to for happy Yes, that. do your Thanks question Sure, Orest.

And in what hand in in strategy. at that it and of noted pounds contract one in business add we supply opening Tim the nearing X announced pounds about RFP the reflects under side now term is started saying we been the a million especially are things since XXXX to is, we've comments now XXXX, that that XX think couple announcing market market, yes, not As that we million and his discipline on what of the on I the is, this They coming now, But to the for see relied extensively level supply deal today's more In uncovered while see see capacity. we've been demand as wedge. that the with investment there to they've cycle. it the supply on requirements outlook through improving. same get and utilities demand the falling past uncertain outlook because some needs a it. the not are prices capacity incenting in the secondary are be they terms saying that They of too becoming who

bigger country more utilities, they long how say reactors are the there certainty is, run about the are or company programs, the and to these there So, And bigger common would some utilities for. who are I denominator get going it. more

million So, denominator this in pounds. that be tends to $XX common the

easing, some of saw the reflects in that also that easing the the that of delaying it some think COVID we we're completion of of elimination, an I not been there but the concerns has XXXX negotiations. an

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Cameco, the position pull success for layering when in in I we're it new comes think to reflects this contracts. --

markets licensed reasons incumbency origin is high that permitted for past in Canadian sought reliable and the commercial that the factors sure talked criteria the ESG have, which are all proven after meet are have and proportion we've -- moment. the are For we origin a that facilities of a about we at we that in the a are supplier,

reflect I So, that. all it tends of think to

said of his Just a investment to in sort the portfolio contract build Tim reminder isn't we build quick owners comments, trying portfolio as to an portfolio. our try dissimilar to about that also a

We have a number to of criteria meet. try we

meet look You supply building that asked to to a But what portfolio. to a is central mechanism. price is the contract in about to price the the now the of we is us and believe market price insufficient course central outlook. pricing where generate We discussion needed is price today's improving right us at demand

anxious today's we're now in right price. really lock to not So,

fact would we indicators. prefer price In market related

So, we're get to contracts. and related market those it in us having those off these who more market are willing utilities success who where are exposure, give

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I pounds. in nearly about asked million the you XX window, would say So, that

to be next years. going to be type it'll filled, be decisions that in there's really contracting that term is couple this will filled, in to planning their is gap X market which this outside longer term of all the XXXX it beyond some next It's won't that X it those a folks over the it years, interesting. are us, by in XXXX-XXXX believing reminder of Some well of is near supply of and filled the be

the you're supply now going to you're have a involved future. in up doesn't that end if it with So, home in not

contract obviously group we certainly And think and to we're to discovered of the matters, have just opportunity volume there's dispute commitment within The matters to with like our uranium So, as to us are deferrals volume flex that because that form more value. then terms Tepco. they our we build services give customer contracts we not that underpin and Product their activity. with supplier, for sign. remember in all matters portfolio I fuel into a us. we customers same Not

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Thanks Grant.

is Lawson line Winder Lawson The of is Please Securities. go from ahead. America open. next question Winder your from Bank

muted, was thank and are Good update well. for I guys morning hope the today. I you shit, I Oh apologize. you all

April Cigar So, in is the late at and high decision restart in level factor Lake? early producer of to to buying all your March

Good morning, Lawson.

roster have set assets. we his with people we COVID because the Lake this on run see to no, -- have Lake problem having is were December that. year, see had close and And we as kind could planned that, sit that huge of GM, COVID we whether they we what every clear have Saskatchewan run and what back and field on the Lloyd operators. coming a wave a we was out we didn't instance be the about Cigar of was to put always short And like to the contact looking something for Rowson team very then at a looked been it Cigar could the world us In were well. to no day So, at Cigar, we'd and sweeping and but was

that interesting. at And That so, all. didn't factor into it was no certainly

bit Lake decisions. on the Cigar the the million about I just pounds XX.X or more, market quarter, related maybe the added to first think and off XX was wasn't we our pounds saw that market little take but [indiscernible] in million pressure

that. follow Great, on the up And contracting. then my question thanks for just first the be on would

lot a you there, your detail You Grant, that. us thank answer gave for of in

up XX% related Now of wasn't escalated? if X market overall target and average XX% your portfolio entirely pounds with base clear line it on those million though

great a largely. they Yes, question. It's would

building remember key the is a responsible that pricing level idea about capable is absorbing homes, of think framework production well And material that term alignment overall that staying later just and for dump understand contract if market see building the the they they're we that when the forward. to it to on the hasn't because that we're hear, and as goals date, to of it decisions. those have So, framework change market want you into we'll homes that not is creating they're the the just consistent going their out, market that with it does, not a those production. a maybe with the going homes term want to the some and changed, the so building for somebody we of the we'll sit and at the really reflect that's but spot producers for But to primary production contract their production to not of X, put a different that exactly spot is uncommitted fuel what going homes, XX, into nearly balance going to that you now they're are bunch what put buyers it are

very much. you Thank

Thanks Lawson.

question is go Ralph Capital. Please ahead. next Eight from Profiti from The

of Good sort questions. topical been has since it's of morning. for while Tim my a mind Thanks been taking a or sort and of Grant, top Japan issue.

continues know lag or on market? looking at part continue that expectations, stand to a recently reactors. that And there they new inventories? Is Japan which You the contracts honor? on are does passing three significant bringing of restarts critical guess material had to, the of I pace but Where news to we've phase now legacy they're on

bringing well Well, after I way about right I longer think the the ever of back is talking reviewing know yes, they a you back all and on. Japan accident then it we story. them mean, don't, really them units taken about XXXX, in than thought becoming remember I don't good talked it's would. I

Earth to can coming reduction are at commitments we it's aggressive, Biden. the I back. tell XX They're But I carbon very last President XX are showed you that they the week making with and later Here would up years or say. Summit years slowly plus

clear so, I that the they're think politicians are to without nuclear. And there and never going get

seeing back. we're So, it come

a they to think are their lot and need they holding are come on Japanese material market of fuel because it, and going into to they're We those haven't XX we the restarting now years whole over seen going forward.

speak as story. of but it's pretty them most they improving So, an you could we XX I least long Do see have we long at a haven't to know to in contracts? It's so years, them are been new they been term Well whole have lot signed know and have time, Japan time. if so for of don’t time I a Cameco, have seen anything ones, from but gone away add? the Grant, positive. you we market

just but a the and that's quarter-to-quarter, up you're the and regulatory died and as Japan's that away year-to-year kind India that else. then and approval really in And Well, new away once material for I kind right in died that on it -- of would everywhere work Japanese fleet and major narrative theme got the awhile, of they everybody But market through. making focused say Ralph, authority root decisions. took was that that it market side and yes, lifted need to the the some created sort to China that of impression moved and started just

positions and the of as power cheap but next that inventory of Japan risk over of model Nobody economy to coming to be increasingly economic cycle because because of commitment to kind power work. baseload we to either industrial driven buying the anymore of economy. to there front growth at a in that's be restarts, clean material power of because fuel is and is cheap side. fundamental seems to the see pathway the Japan baseload that a talked export expects So an an it the baseload the renewed on amounts Japanese absolutely a the the market that huge about, buyers don't you've from make that needs It line

in important tale is we the nuclear a remember one so down of the kind of a worlds. at take kind really of level look If back toolbox way. Japan, it's And in two

that couple and and been consuming first fact Chugoku that to water been have There an inventory their expectation have from seen with approved. are they a terms Kyushu, others and in running is of sitting today consuming on been producing measures then required primarily group the that that reactors. in of have the There reactors why for Kansai you and restarted an the one a prepare the Japan. they're couple investments also That reactors, yet. are been output, some new online. buying have to new has got inventory those and approved coming what made utilities now of generation And to boiling relative they've group. You've power It's material run regulatory we've reactors have the they hasn't excess but in

to would available imagine you a market today be in have it of buyer be we it get and and the material spot As it from same message. customers, asked, market a the market only market will higher a the a sell there buy back largest it and to those we in Why in material are will market price can priced consistent we've low running. to when their priced priced higher reactors higher is

at tell we that source indication that look been most but I it of we So has as see can you mobile no mobile. utility probably the inventory,

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Yes described. that Ralph, learning an I scenario actually is from exactly balance would say that important the you

probably well, XX% not XX% moved I more long much chance chance a that be fact, that actually far slightly far, rational certain, now low, say good a worth signed the demand not million contracting be to see right price We XX% down seems improving, pounds today. our and ours a psychology would So, be a folks XX%-XX% different the remember a wouldn’t business a XX is is we’ve ones more more kind lot PXX be would very new why we less buy. buyers, all it be future. outlook not supply on fuel moves a everywhere ask or view about today, space, if But on, to PXX portfolio to fact, price. at some than low of, for since demand others, way. price of saying needed to instead out of there be would low low now. be in to to low related split, came they look the with into if match must don’t a the a the capacity that’s everywhere, us about of I people market it’s market the be uranium Fukushima But hey, a and some is you investments why of the to say, going uranium price new the who and psychology. intending XXX% instead, the sentiment because would and with. because is on uranium outlook that at nearly time market if It’s for especially will But a worry need and because they would it got a must it We a price price are going buying up see a have of to There of XX% is

more XXXX recent We psychology a want saw some us, significant us in XX go there. transitions we market knowing in that point a rapidly. in We can conversion, price and that data uranium. XXXX, quite it them in ours go changed, hasn’t saw is still it in is uranium, saw you it through fairly that that reminds for through it the that So, in psychology last months if

we So period the point that if come is of feel you a But be want in see will level some fill of they’ll utilities of below it’s contracting, in replacement there and to where sure low moments to the the then transition market a want you then those important an again recognizing out protected that for price. replacement they’ll will some price that. us make off rapid step have up their period that kind of at level value exuberant exposure for lock complacent, requirements the will to and contracting by, of to consolidate, and it followed you above

to a look that. go that enjoyed value to since incent value we’ve At it as want protection price about Fukushima. So, giving be exposed some then that We line think to to in production. at up zip in to that we right got when us lock we future this lock it’s now, want and point, we

that $XX you the XX%-XX% from gets price a actually think the XXXX we to $XXX realized a So were in as say, I where time average the was spike balance pound. is pound, our learning uranium at a price

right And say has when that’s out we better the that price for want market come of the range, so XX%-XX% lock think learning to us. value exposed, to in then a play we’re got in but we’ve be until we

likelihood very want So, to I dynamics the that. in reduces trade it describing Ralph, that and market the learn painful. and of it think were outcome actually and hey, you reflects the we of better that the side on the We’ve was from been

thanks Grant. Understood, Tim, Thanks well said.

Thanks, Ralph.

go from The is next from Wong ahead. Markets. Please Capital RBC Andrew question

thanks my just taking and ask morning Lake. to good Cigar questions. Hi, about for I want

of having or be you’re to Cigar’s development is production the decade? ensure considering your to some Phase like the I how with of need into does that longer-term customers? production X later to discussion other options would factor accelerated Cameco this And maintain contract decision when to So guess

Yes, piece. the thanks interesting an Andrew. Cigar for is question

that I ten-year because but at that run field. As X. investment, incentive it’s we’re and that X be need we that will we Phase making rates, available, eight-year a Well there. there’s if exact the investment that one out you normal new end decade earlier said won’t brown Phase looking mentioned dilemma run that long that projects by take on of price to that of we ore continue to it the at is there in in no

green and You you on project but before Board years today, ten can Directors, they'd up field, running, into walked to your tell you’re of a imagine I out eight new and you probably going we’re well a run we the ours, you of it’s can start if to boardroom. field green said, for

the amounts no capital to just there incentive start project. is a large pricing of put to in there new so, And

there at the X, forward. Cameco, that for it we’re mean to and projections, it incentive Phase and on is doing move looking on I So, but today math we’re doing doing studies no

of our say and a Millennium there at and numbers new and same [indiscernible] an other some see the of building have. after years we easy So as projects some than unproven not Yeelirrie and same MacArthur’s to the the it’s ones of tell some start you you’ll some XX out not Cigar’s pretty coming and I game They’re here I’d the but can projects the new and with interesting Kintyre production the project. level and studies, feasibility the more

concern. a So that’s

think about not that’s to procured years, needs anyone ahead pounds the We the about years to and billion to giving we going nine think about next market’s all be think and that ten I time. on that, in that where that a yet signal the new X.X move the projects. from come what,

in realization to a dilemma it’s urgency some and a think we’re be face market So going there’s of the I the got of to near the at this future. in time

higher? maybe making that’s of consider activity, just some to juniors strategy purchases Thank the of to the just prices ask push on strategic Okay, guess, about what have excess employed being you. that and purchase similar recently, kind recent Cameco I’ll purchasing to view I your material help would what’s done

Rabbit production, U.S., we Lake, very that we so having to portfolio COVID. most nice know, due our been our Well, still a Andrew the has purchasing in contract in the shut we’ve mean thanks. doing in is that to I fill. portfolio, been have have fill contracts you have of to McArthur We Cigar

that chip do to not want purchasing Grant, and you our in? But has been speculation. So, on in regard

Yes, that is absolutely right.

to purchase. So we continue

whether buying the make to willing uranium and about if holding they’ve buyer buy comment, instead you, it, to back up, committed in this or the restricting of got we watching but we space because big cheeky anyway, rather we’re sales community thank price portfolio. a a the don’t trader them chase of owe because because a very sort actually been I market and the think have some pounds the spec whole, -- In mean meet you We’re ways most inelastic Andrew on than by the in our portfolio, absolutely so to we’ve buy the having you’re market and we to an our step sales us in at, know, committed important this, like up changer, But been meet us right. clean help and to you to but strategy. is for others really sellers, punitive able not fact prices comment are under make large about reasons sort and it's seem to with not onto and and won’t and an theirs advanced I buy wise material the I’ve the their it. company exploration by it. heard of a investors for agree to to or reasons hold

couldn’t spot I market, the canister or the think the the the the saying. material because in And companies is out available can the that the these were it simply showed market, been And that’s find by it available think is reason is, I purchases of exploration the many what true proved, buying material in the because on spot today, very that today. thin. we’ve curve advanced they

is problem in ground, our but market a been from have hand production saying be primary don’t a months out, six-month the they because dumped the it, quite uncommitted that’s along uncommitted one for Andrew, on isn’t it it that’s into for So home because months leaving they producers should great it Buying the the because positive creates we’ve homes been. in and who haven’t basically out, won’t primary be market nine production XX out. curve

there’s opportunity a a in were much defining hand, formation true the is and formation what's spot though on to would price dedicated what out market, a spot if a bit true really different XX.X regret I pounds price available for price missed different folks be other in be is million stay holding opportunity There we'd right wonder much today. if now. of the the On missed that if

I bit the with exploration too companies the think spot distinguish So, in and missed UPC. for taking there's a folks the I hand I Because between important recently probably on a the positive hand me buying. at our want development other take of over on management and of advanced really just one market funds step second. opportunity. Andrew, a to a -- the bear with a

form physical space upside I experienced just an it think comes metal management of there, tremendous to and in manager really in professional bring bringing the truly the in potential there's into this. active

what involved Cameco they're a liaison, credible knows, that used and us, that to work group, to so credibility market think for think I doing. they've some folks brings we market very instant

traders will be not to this intermediaries talking you balance spot that where we bit bid to with present there base But a think the access ability actually of bring get away would create and could without a buy. the it price there one about, in piece too, five in because that active a making that offering a from if management an potential investors. little price to of down would the bid. could into there's We think transaction and this I the real I offers. broad spot market offer us because formation fund, And terms I situation amount this was the a quickly a of where the some against managed from bids very market really person see amount a equal of there, transparency of persistent get fund, but passive see isn't actively very a fund upside

value and the what it, they spot with closely. there's share really buy are every redemptions. focus well that’s turn at redemptions, and they that's on how different. that upside and before, on there on here some maximize happy no out. acquire not because far generated I it concerned, And to way if to to Obviously market there's to -- as and so as to if at and very very really And was deal it just, those downside think if So, it be little we're I'm the sit views it we'll going watch tremendous to have have and it would be credible a we

of that demand surprise of a we've things the market of actually market the So, it's think and been pleasant just how saying frontend been thin the spot proving has to combined we is. the other with some about the some

Thanks Okay. comments. your for

Andrew. Thanks

TD from Greg Please from is question go next The Barnes Securities. ahead.

how my Let much that all I has, it you suggests truly is excess in, question just still that's me coming there but demand this I meet which didn’t to think spot there. there fundamental check, price supply Grant, comes surprised I the buying in? And out and with think willing sits when answered was do everybody question, supply out more excess that

stayed went if have buying to impact. to today, available so proof you restricted have had Yes. desire Great that question Greg and the the go again, would greater would real opportunity just the just seen and to missed think a But a in to lock pressure these And think been, I over financings, off along out truly what's market, there and the the at of ground they I didn't forward was much the window to the as material were forward. of companies advantage were take took these buy they looking they? some advantage bought spot curve. that they willing forward as They soon take just

of the within and the In fact term anything I think in buying the next XX market. one actually of buy was them didn't beginning months

good it, identifying producers been home news, it's is on now spot had been and would and the have producing I focused homes and how have of homes though, really so thin as which kind it, is the is pressure took And for as are created it was. truly being off, who the said, well problem don't did the that those What this Greg, do market it it frontend, a we've are material built. they for proven

just with the purchases. months into with coming of pricing of going term see of near supported churn weight uranium for of kind nine XX the think pushing the market spot material price, same not we're So, the those months, because months, now of the than traders down same they've forward the the ahead market it instead to six of offering price

opposed if it as the market. you floor So, the stronger to kind frontend a really of pushing will of created spot

just want your bit. Okay, little to investigate purchases a

You've you million does million million pounds, the to XX to that raised get range pounds guidance XX include from Inkai? X

Yes.

excess buy And you require. inventory NUKEM going from into guess know I it's they shifting are internally to you and what material some

is there from market? the So, Cameco actual net how much buying in

don't there. Yes. that And we disclosure have -- out that's

we're a world partial Lake. in outlook and in of world, partial outlook we're because a again Cigar once So,

first wasn't So, we're up second Cigar Cigar quarter, kind for the Lake and month we quarter know first it of was you for us. sense Lake was year short, of have through gives the a sense down ramped because what the the but a of producing of that

have run question we forward Lake's rate. Going marks about Cigar

So, while planned the date creates is account That have about to now impacts going clarified production of actually and restart, activities. the we're run our uncertainty uncertainty that how rate our isn't. much purchasing to

Lake from also it's So, our down. but partial away outlook just Greg, making those stayed a determinations, NUKEM Cigar not but is has story,

moment we and to said scenario. -- those guidance I the strategic will in and for will we outlook think reasons, Andrew, where is pounds the from market need think partial have away we are Timing of asset and as I buy, we So, care because over, this maintenance did shied more as market again. we the something probably inelastic as in we buyer biggest long at will control but be, the and the but we once buyer that have have I spot just

you up, from transfer A how their excess quick will inventory? then, much NUKEM from follow

Greg. It's million just a couple pounds,

inter so contracts, So, still a just there company is the terms of concern some of that. management it's legacy in growing

Thank you. Okay.

you. Thank

The go Ben [ph] question from private ahead. shareholder. Please is a next Hatchet

it mainly spot, question somewhat was My with was answered.

their quicker do establish to knowledge guys to think relationship that's pounds you trust With your a problem, that your buy and your trust? before the because influence with going you new they

think it our will at changes all. what don't do. watch I guess I we behavior to see they

[ph] there [ph] that a have think for to think I out thing time front a of them. the those to inelastic them on the I have buying, yet set don’t contracts our pretty are of meet to were just closes and fill branches they bit buy we up, while whole in it

what behavior. but will know it you So, I happens, watch think we'll what and they're doing don't influence our

the to is Yes. sure a meet priority hold the making sales to It's our committed buying we're actually to committed we're we have portfolio. important one deliver number that to not portfolio, uranium, but sales because remember into buying product

what need. decision. our We we the we We material. know purchasing forms that buy need so And we that product know timing to drives know need. the That's origins we the

where of then buying price being strategy in is is move price meet incentive to one Because that's and committed sales will down criteria, So, be us, think can us when if we portfolio. we we our the we think and because to it starts criteria, of more very we doesn't away. front we picked to remember our cost opportunistic a purchasing the meet those if really what, our those aggressive away move that low be as is when but to starts keep the matter can't well as guess buy up in buyer because can possible,

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our to before buy market and yet, it's So, so designed we're price go as price strategy else starts can to that opposed we we but happened up everything formation to that does. actually is need tolerate a that someone also the say designed panicking celebrating hasn't so as

lots I think So, we'll guess, demand unfolds. would watch be of upside just do with then We it on could how that. this and changer our game inelastic be a a leverage

to Biden be do are is And going don’t know or going be guys or going there anything, there, also, you are I producers uranium I in just involved know any the going Okay. of know be it to if to reserve if or the is guys Canadian and Americans? that -- administration with you you

Well you on if Biden you're going administration. before it. talking with they're started uranium, know purchases, of strategic purchase was looks about the that even It like carry to the

has Secretary I buy think committed to that. Granholm

when the we that our ago Of up we we several kind course options. We've a largest that different we got the also running largest market were few until were producer but -- were years assets out. U.S. the fell have production, Canadian have of

build in come to will on can million right our yet we So, as we I in tell clean Energy $XX and or offer to We're pounds million we're that Department we're reserve, strategic as -- they can. see and whether we'll be clear you $XXX of talking that providing assistance the much Washington you spend to there can I to absolutely. those but going tell haven't they're

you, thank Okay, much. very

Ben. Thank you,

Please from next James. The ahead. MacArthur question from go Brian Raymond is

morning. good Hi,

pounds and curve I those discussion, a and of worry on purchases back. to believe and by years, talk being them to you market, that the say follow strategy to it is the junior potential they back the up buy it few are redemptions, goes next is, forward they out Just you in your the about up we price to flip company maybe little bit look that might coming do bought about some

done sort thinking we've is, delayed is that pounds go that of those process? all there So, through some about, in we of you're what future, talking

that about talked morning. just we you, this don’t why Grant, Yes.

Yes, Brian.

would a year. worry distinction even a seen what exploration worry the a would make rooted it last with. we've and advanced it to between certainly let be and the So, in be companies start me funds And

commercially. I it's on an I like and view know, it comment bit said, does of conviction. point interesting strategy me You the But little a of think I it concern won't from

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be uranium usual or price hold from do take bit would for that? quarter price have to may situation? from it simply disappointing at to the support is to going have the their some so what that mark-to-market back they conviction that And into in of on might It going any investors holding one to probably the a the through loss they the they Are off came derivatively asset the if and quarter to uranium their are sheet to Well, companies situations traders, they an if a with end a if did played if said, these on end balance where seen may going comes made game we that. of see all take was purchases. our then a accounted we hey shell just loss. off, or monetize return XX% uranium. games market we have And We're we've are

end to it's off to be it's never where mindful So, probably believe to going have to forward. going you to good that I'd works probably going making about that linked believe market that. that be conviction. there's user I'd they how have dispose should to be going back. commercial you're projects like to funding and it an understand I to if that to I our material, come believe of decisions of like their disposing

a it going disposing trader, in just to they're you're churn to face. If it your

respect make sold sold, I could separate you happen what did got we their from loaned it the or be what and material again not They good funds, not holding material -- get churn to last have happen the With is who out And coming we to and I going to the meeting the I being So, down. know, discounting but or redemption by to traders believe to were from just premium by that. year. we've back of see to examples saw I margins market, then again say, either a funds loaned being Traders price. would criteria. mindful

material happen hands in know you you the to going traders. if of put the So, what's

best not signal a forward. and wise it my would as ability said I those think would of our be value the going they So, of Brian, just aware to who those the you but wise how not what raise probably it's to I to it they sustain to be caution, is support strategies, it do, it and expectation best do

United is reopening reopening with there States, update question, of market, in fair we're to it just enough. conversion the in constrictions, any market? more I seen back the getting tightened capacity I of expected have the Yes, had with a -- My mean, balanced the little all you second or changes conversion up maybe there? just but any

Grant, think in the lot a change don't seen, market. of I we've

little it's Brian early to I that waiting think people see. a are maybe,

said a back which from in think which 'XX, XXXX while the sometime I of is they'd now. they end come on at is

market. we far the So change haven't in seen much

it We so to be I at and will started, have work. a might early market getting think to are views just keep little how closely are watching they're Brian, presenting on updated. all conferences trying the bit they But that the and any

[ph] looking the I guess, how forward and No, the market yet? that's in

ways into and put capital goes. it up yet, significant plant and I the to they away of to to Brian, have we'll watch That's think get so how a amount speed, that see

Thank much appreciate you it. for color. I very the all

Brian. you, Thank Yes.

go from from ahead. is question Gordon GLJ next Research. The Johnson Please

you're catch some the increased that? taking cases from demand spot remains I maybe asked, guys your for for in this And this still limited Thanks I about, lastly, and actually have answered of there. the I COVID thus is thus it. back but And if this Lake, the due there market or viewpoints under the Can to a et market you suggestive is guys. up excess to you up and you up Hi didn't the catch talk supply seeing first of cetera that because that that's uranium need And inventory that thought Cigar ramping a I is but question ramp I this, then can back and guess you ramping didn't you the address I is supplied. back the not? positive, are know Inkai and also the was guess this guys answer. have questions.

geography timing and signed, a in? Thank guys pricing, you which can what contract, about the that's lot. the the you that, talk around you going On

take then Grant on me and Cigar And will market I pass Gordan. question. to thanks Yes, part the let it the

for double when going us. You it's to us, know, Cigar for hit

time we access have in production the million portfolio. we a costs down Those care that $XX well same So, significant maintenance $X that's costs category, don't to million us a to have our are low source that at need cost contract we the month to into down. to of and put and for have

it to keep So, that for is down. expensive us

And employees qualified so, wasn't little not to earlier, super It that the to it be a market issue. basis a concern that and was COVID we you spread before down. said around, plan our circuits that bit and run and take know us It communities a really our our some the day-to-day precaution related operators I really for lack of and as didn't kept it caused of, on down. it COVID

protocols protect in so, and running and it the when back to was in workers, we the why up place it all have now to bring back And safe were we producing. April we up able procedures and that's it's and felt

story. to good you do Grant, want take a that's Cameco, the that? rest for so, And of

interesting strategy. way me it reason buy but back. made Gordon turned We've market supply describe Yes. really, be reasons sales our we just because because it run we to The the And discipline a you that material, it that's to back Cigar is down of to we sort deep. I to that not to our of map won't Cigar the talked Lake let Lake production for bring positive to as about, we want the we'll think some have is able going on. be and below our able committed determination well all buy an

a it. think I It's deep So, Cigar market an to back, it's isn't because Lake it. interesting buy spin on the to return everything coming in us you've got our for that enough and strategy strategy positive in idea built our the

So, agree before, think that you to way perspective, but about would it with thought way about I haven't probably a it. it's that good from

see we most going ended needs inventory be uranium spoken still that for longer the terms underfeed three we two In an into Yes, enrichment enricher longer ago their when or the of being term contracts. story. inventories, but the no enricher about excess kind of for. of is is This market saw uranium years underfeed

market. being the underfeed seeing So, enricher we're into not dumped

clearly excess some term inventory We they been role inventory consuming contracts, inventory. haven't mark, their utilities, aren't a seeing replacing come is playing to is, off them. they've Where the been but

demand, add utility campaign. their little supply. chewing strategic buy Well but that's a their can from like So where's to But down consume own That buying little just a mobilizing inventory they inventory, from? is chosen not doesn't that we coming start of to coming before bit defers material. it position. that It's bit their inventory, that's their more

the last us, of this the is inventory. primary production. It issue the not for in uncommitted market is So, really

sources Cominak and great, spot notion That's the but two were coming being market to You of left mine to the should've spot surplus then weren’t, coming uncommitted but production, been in this those for the the to being know they produced Ranger the and because down. ground Tim had primary that down, mentioned, no go pounds market place contributed they disposal. of were mine

we’ve So, the creating that isn't us, the up. to for into of bit work uncommitted but about it spot news, sit don't the I the this market. and good talked production got just coming through about last homes -- market into some coming primary we that’s inventory new for demand issue, an it to worry tighten that, of inventories

say So, last feature markets couple the over would the of years. that of I dramatically improved

guys problem to hasn’t steady flat. push a inflection, the be expect prices two a around saying Actually, have know on because that price so some given not maybe there’s if get but at if in, you one are which address you of it that an or question you point comment get more the been inventory back spot years a you that type to talk inventory been could I I guys see would issue, I it, could for guess this there lot, is

then lot And expect at on of that, for a there there? those expect dated, the the you Can discuss do contracts anything guys see people that, is you So, guys are which questions. contracts, an point years see going imminent And a China renewals. again lastly, ten you to inflection? address on thanks

spot on great the market, Yes, points.

in below our We we and us there a spot pounds tucked into were the coming observation assets remember through a be, since pound, as about comments, at down, inventory supply especially that the has $XX It’s down market. is was market XX% think supply that coming strategy Tim strategy, was think inventory, those was would I when we McArthur inventory XXX about days. disciplined noted his the dynamics. started $XX.XX the earnest our bridged like started market led fact, challenge, in with our having for our in that it one below I in what, spot and to discipline million our in $XX swing moment market, purchasing

production a way of mobilization new from in needs not So it terms inventory come primary the investment it's in but long where capacity, be days. and incenting those it to has

the not comes back fuel that inventory a that that see move of the production come outlook the demand in step on-market and one begin just but to net off market, of that's start It steady a more with driven primary moment. bit. was inflection RFPs. comes to primary first to producers, enough when acceleration was demand. from market They’ll into signal market, I drumbeat it. the go So, they're to production contracts the be at at to improving then demand RFP now, uncommitted just would little And of after with an completion that going say we able driven of buyers they very course looking an a confidence will aggressive who see build right the The

of not that's differently. but point as part The the anymore. I very We bit zero inflection their outlook group So $XX behaved them you end-user one some longer China it’s yet, there's in interesting. creates just and kind no net carbon no power hanging a why their China. market think improvement no the demand by in identified The to substitute driven inventory instead $XX. seen Tim leg about. the that's up what next an on for spot longer we’re quite very that that XXXX. there and talked below say Obviously nuclear role evolution statistics is of of among would story They the around is, of utility of of of as sort We’ve customers is

of One running assets in back out to meet is that supply example of their going has and for some our assets, customers acquired gone Namibia is needs. and

positions these its and years, equity has of to not probably they're has, I've the the a with only kind the we light that’s got market as it building going We XX when customer yes years actually that been Because procured come see a investments planning probably other first or own saying, so an for taken in own insufficient for assets, new being five. assets, reactor is to fleet to and uncovered will in be more those see different. being are running, to bit fuel the instead other Another of probably own their but but one building its meeting in to proactive of of another back needs they’ve go answer XX plans. of you're run power it more some and some

So is the on there coming there's to fuel up years power to probably to of years with years XX start power cycle XX of to commitment XX production, to so we’re the supply XX match optimistic probably, China a situation. years the to production

again Thanks guys.

Gordon. Thanks,

John Tumazos The ahead. Independent John is Very go Research. from next from Tumazos question Please

without Thank which cash question fell. million much. $XX it have quarter, a one-time from and At for were was it. cash one is there I to There in $XXX up but Tim, million. really then you first fallen glance follow-up balance receivables. six benefits inventories would $XXX the looks The a million credit very first long-term it that have a the good a

You short-term way, way tax investments. it came got recorded the a legal as fees and in CapEx The below from you trend. back in Money stock dispute. was

mean the second, things to cash that generate to then pay at how deep, So real stock in having does than first? to do slim-down flow you And you your that need save production costs cash? or restart else cash take in look owing do or rather all

have the operate, question. the of government CFO quarter and the cash we it’s how some about kind one on we payments and you’re And was side anything in a did CRA the during other for the notes of John off ---Grant thanks just lot and Yes, it the of of ask if kind right, abnormal there so…

would layering strategically a that a Whether that. as on self-manage quarter end still the sales new very at backed is of of million not we’re the in would the the our we could purchase number, interesting risk. from spent patient your that take would being our so billion markets, about puts time But John, had business and which that confidence that committed in I by a of we gave example, point be and today talking on mean takes, very lot we’re Couple was supply along said it mean, for strategy, cash is, conservative embark our well financial it. $XXX discipline owners sitting I we we all a or part CRA on Yes, clarifications, take achieving up actually which of the management discipline, market as subsequent $X in we've main event. as both

there's a me here no resolve for So, don't danger where financial have our slipping zone we about into capacity strategic anymore.

interesting So of be pillar a still to by to transition. in this market on our that which conservative the counter absolutely is and points, we’re strategy self-manage be we position about I just strategy talked you track some the with the and saying would financially of third have of but risk raised risk the

Thank you.

John. Thanks,

from Jessica Weekly. go Nuclear is ahead. Please from question next The Sondgeroth Intelligence

thank to Hi, in and you first what this that let balance balance, XXXX, include million, if in [indiscernible] million I'm per ask pounds you higher noted I taking for it's color but or for term the now for just about Grant, had Tim, quarter intermediary hi if sales wanted us the XX commitment wondering the million year the a the call. think you can million XXXX I material X share? to can of kind April XXXX and anything little and you X XXXX to add adds you to and X of

earlier. sales, slow everyone’s portfolio, extra Yes, know, more their get it COVID said has and to focused those the says so, not included are thanks year Grant those [ph] up, have extra fit million gave times think we by per there Grant of many to so million, free have see what happy are a to? we have XXXX our on things - They not we you I’m those pipeline their little to done if contract want we’re yes the long-term down, were included you to adding related own XX those many, bit pounds, their something now those due and you X pounds the a to million get XX things I is period not I, busy, question particularly portfolio, in fixed makes few that market price I seeing in operations come but price for That they’re been between were to our included, and those are the way Rachelle delivery that where on to color ratio was in think and and sales the that in Jessica. happy in sorry, slow add

volumes we’re an there’s of think anybody a is we important that in that we've year the be position. there's the the that to question pricing We've of and I asking did the strategic market in in asked five in portfolio isn't We and we one to about, quite market bit the to was want our past. tie not here and learned up don't think that really that aware doubt didn't do that I contract you’re no a when again. was to when to more situation demand layered have Ralph at in of that's a indexed impression you layered The transitioned. us that later that We like participate is, sort We've opening Jessica years fact, earlier of window exposed needs be want that. between and that the such don’t the by transition from. lot Ralph know, that, Yes, want that that

is price It's market five we that's in more the PX a less looking deliveries chance pounds the be years, So going XX XX with at yes, P than weighted where greater at we frontend. that's per on a year down. to backend. That's you or million had of average more much heavily know to up for deliveries, exactly going want sitting

the portfolio in XXXX pipeline classic entering term criteria question to to reflecting are when have that business we new also are pounds we've layer contracts. asked utility mean, You to kind not These These are added of of business whom between all. Not that now traders. contracts. that at we're broader These nearly the about and million we I intermediaries and selling end-users. into XX we are contracts. that's

run you on that issue you what's requires is anything And rate separate a little more just Tim. Cigar that you followup, Lake investments more, Grant, the oh really? great. a Thank followup, a the can question not Okay or but that clarify one uncertainty, thank

marks, the ramp to can kind of so we just We're No, but well we're sending the and just are sure over we just just we level ordinary, up shape this site, being at care now. that's good out of and ultra uranium obviously not like situation and fortunate the into some operation maintenance and started are up I facility The that we that, quite and think down lots so, COVID we've really of just of very and but in nothing seeing getting right very all Saskatch the questions the to production McClean prudent normal Lake gone kept operations. workers When out be back we you take on want cautious you that to and just down we not we're up. isn’t numbers an back facility kept as year know, just managing we ramp what now. the and can't road we been

And the running some give be quarter guidance normally get see up once can to -- we cautious. and so But we're we'll then better going we'll next hopefully able and on forward. -- them once being now running just and right

great, thank Okay you.

Thank you.

Next Wowkodaw. Please Orest go followup from ahead. is question a

chemical exiting good good for run you that's or mean unchanged I had if based I just guidance guidance, with tell million rate uranium to for your inventories, year more than updated inventories. XXXX. guiding? range Hey, closer plan actually more for sales that math me could opportunistic Grant, this you see X and purchases XX whether morning, markedly are thanks purchases a to million exit curious and million that followup. my mental the taking versus your buy would we a guidance, about just targeted inventories pound your think was on to I I question you be lower XX mean

got both there. answer yes reminder I Can Just to a we how Orest? of

last Canada, but out the March, April, places last around see not real starts to to back world. go We you uncertainty, So Kazakhstan. started in like just rolling supply COVID

remember will [indiscernible] actions took You COVID Namibia, Niger. in cases countries that Uzbekistan, like and the

in we think portfolio It market, inactive our sales material. at the we we deliver looked in the or bought to inelastic of because and an that knew As uncertainty. we the we the it as to it up deliver, building But in out thinking as largest to was were hold, the a had we was sales had the we buyer that Cigar saw were COVID wasn’t, inventory into, back risk what largest and we buyer that portfolio some that taking, measures we market of because brought committed [indiscernible] committed as we world available, risk buy and and we what to anymore, needed weren’t began we stabilize it pounds. situation really ahead when buy some Lake needed saw bought and to

of we We otherwise some with out bit XXXX starts we're more. see inventory that higher it active. When a because what would related not do to buying we If brought sales. invest back But So vehicle about it to the need fund our talked say line going we'll that spot be more start on, but a for we, a have the of committed new get ended that we completely traditionally would left are for than enjoyed. more piling more COVID-XX pounds the, so opportunity vehicle quite be seen. I you've and to we not because to we down in if factors, for with

it So deliver what we call our historically sales targets know those inventory targets, but community inventory have navigate sort into We portfolios. of our you been. by

is be always a we're with and not to going in on on absolutely is see happen. material sales, to what market and others and the no it we committed left behavior to depend having So really the of buying not default going that

yes my So in answer both. helpful to a is really way,

to that market door think event. for like, isolated or paves or contracts, in in representing back the view that piling a then of your just like represents coming an as new opens way point to do you more now And nurses think sort we followup, view you pounds, do again X you your of on recontracting others inflexion April the million second are your this kind in the some saw

business full of going yes other. again I other when a to been bit the condition, on real tempted RFPs been comes hasn’t business. it leading Well, it they is is are said know off market for we indicator, both. view blown kind I contracting term see a a thing why greater with of it start market condition off along the it of they we as supply/demand frequency are inflection earlier, is the point as necessary to watching utilities, I'm but a the here a has dynamic, little market The But historically each the position say sufficient watching the we but cycle. because kind in mean

it's word they here need maybe know, then if You to to well don't that buy I sort out to say, But buying, gets window. isn't and starting are the to out classic when are starting neighbor in of big tempting some more my of buy. term be buy

Chinese XXXX, term summer for stepped XXXX. the to big who come XXXX, first the for of into XXXX, and the million gobbling you cycle. basically a were kind about for they start covered market on triggered the for XXXX time called sidelines was up pounds market and the saw think contracted been when and hadn't If Everybody sitting into the to well the XXX that the pound, yet contracting else new XXXX entrant but feeling

do think bucket, it worse. So pretty a maybe getting for is in a drip the we it in bucket that's a drip big is but

Grant. Thanks

Orest. Thanks your question, for

This I for turn like to Gitzel conference the to closing concludes Tim any question-and-answer session. back over remarks. would the

I and thanks very always We the support. who is as seeing excited of the everybody want operator. call great just generation I about And power we're that, the much, we what demand excited nuclear and today. to for have in and with company fundamentals Well, thank your to future we're and appreciate tell you, you to interest And say about our think we're spot. pretty on just uranium supply and is a

sheet, be record. and We to supplier tier of communities balance continue their will a to I we a safety our assets one and priority. everyone their can assure And strong proven make health and families just responsible that workers, track are commercial with operating continue a long the

Thank again to soon. So, you Everybody talk again. healthy with safe and and you. that, stay thanks

This concludes today's conference call.

your you a lines. and have Thank for participating disconnect may day. You pleasant