Cameco (CCJ) 30 Apr 242024 Q1 Earnings call transcript

Thank you for standing by. This is the conference operator. Welcome to the Cameco Corporation First Quarter 2024 Results Conference Call. [Operator Instructions] The conference is being recorded.

I would now like to turn the conference over to Rachelle Girard, Vice President, Investor Relations. ahead. go Please

treaty Good to Legal Cameco discuss conference operator. we continues our Welcome Cameco's the that is to execution speaking of traditional build Secretary; UK for Thank a.m. People Free I morning, would and it be quarter in the structure on which office, call. our of that Corporate behind territory, to Officer going like first to the Deputy and from hour, territory the how X:XX positioned you, Eastern from nuclear us Senior I'm homeland corporate everyone. Heidi X to are are Isaac, Executive Grant and today us Kieran, strategy and back X Shockey, With Officer; moment Senior will D.C.; VP concluding Gitzel, to hand and approximately President Tier in Time. it Global the transition Sean the briefly we Reilly, cost of Ltd. CEO, of call VP, to at and will Washington, CFO; CFO; joining Chief Operating Tim [indiscernible]. continued over Chief Tim the VP momentum Senior has and acknowledge questions. After, call Managing Today's Director to open energy from Brian today Dominic and a benefit Quinn, X our tailwinds. your up just VP

to is goal our and with communications. always, open As transparent our be

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we forward-looking any may do place You from should update these make results and statements any our forward-looking we materially assumptions about refer information required law. the as the Actual these today, MD&A form different not have and cause statements, not most results we made. except Please by undue and for statements. differ reliance undertake factors annual on obligation to forward-looking information to could that more recent

will With it I to over Tim. turn that,

thank Well, morning, everyone. appreciate good call. to time the today's We join you taking you, Rachelle, and

Miner. to to As be actions industry how And at Metals remotely In nuclear posted by talk results that also be to the here support where the importantly, some discuss the the meeting attending going power of the Rachelle we're and I'm fundamentals. the of from Northern future current the to generation we'll generate expansion translate D.C., entire public mentioned, to meaningful planet. benefit tangible DC and Energy key about policymakers Transition will government with significant Washington, into I'll the this joining we Summit of come, days call with afternoon,

We've secure As said decades it's years an carbon-free, over Cameco and worth are to to times for ready we global several and for repeating. nuclear come. and respond it industry, the as the need to energy reliable

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together today get themes tie few Let me before a key we to questions. your

us consumers power path nuclear face that within And being add establishing Net carbon-free long-term leverage to to as and in demand and and a key track First, far and power on Westinghouse uncertain investments the in to ensuring and broad by XXXX is experience results in is that Zero. Global energy Laser to Cameco, And therefore nuclear Net energy our and downside strong industrial of with and is source while that recognized protection. Zero governments, significant delivering for value positive so basis, value to remain provides security. key context suppliers strategy On with our supply, Enrichment protection. industry our key that unmatched along the the that

later, only to have and highlighting and now thinking back Cameco. would last significantly. even say year, this momentum in we nuclear that improved space in and qualify months XX the So positive and I the interest improved. months growing has time were outlook further interest can absolutely that of XX I say it And

it's be we source you From of on large a if consistently for and and And We not on the those need of, both community to is nuclear industries requirements. perspective, lot based and baseload just need international follow is cycle the clean clean consuming Zero reliable. energy are from located that a it. of path, nuclear value of always life in calling only new targets, can sustainability carbon-free power meets bit it. dispatchable tripling across that transition. translating are increase energy is and the ongoing the of that horizon, We tell it going believe needed it into X emphasis is if scientific is to and number the all reactor need for improved impact we I the essential fuel today. the a significant power the don't don't on If to that available it's builds need And very where Net means we a energy global cycle. a where and of the of its significant power energy. meet First, world nuclear

supplies focus has inventories and based of on risky unstable those improved today's suppliers and for boxes. supplies must multiple their Western are partners again, Nations checks and for ensure world, that allows nuclear on outlook energy long-term fuel and jurisdictions, nuclear energy actors. energy. on the And Fuel fuel in nature itself reliant the unreliable Next, excessively are jurisdictions and services sourced and infrastructure from not critical the storage. safe secure the

that a months not should runway So only you giving and but reactor, reactor provide carbon-free and utilities a adapt refueling, can change. of reloads governments energy behind for circumstances to can years without keep reliable

both current is And finally, centers in clean around the keeping in of of considerable security rapid the mind, energy the and evolution the energy positive data the that technology. AI, context debate needs are and with outlook energy coming more

and new are about worrying footprint top search Companies technology requirements, the that to driving the AI clear in XX way provide gone use doing out using And times. forward read And same of potential winner. mind. recently is generative keeping without future we the again, carbon nuclear days runway while a reliability of I rolling are in requires results Google impacts. so the XX/X increase power environmental tenfold technology

the signing for ensure sector some nuclear experts now electrons reliable facilities path and to development, to and AI strategic and to energy. nuclear have now both voicing even carbon into critical secure X putting the tech energy critical can Clean future. seeing word nuclear With We're for on and take chemical the and path don't and support action taking digital on agreements industrial access my users for You their are it. and the power revolution the generative reindustrialization.

So together, move grouping the global the X world world secure forward it the now of clear to is production and nuclear. deploy to all energy we is that acknowledging carbon benefits need that and

Because, is which key addressing to help I of those in next power Without of Summit energy. attended as Cameco and result including place Zero. the security, Net generation Brussels in I innovation ministers Nuclear without that's key said, couple was measures Net and regulatory forces there energy The presidents supportive there nuclear, no climate targets. increasingly join countries. global challenges, change and future with enabling without could ago, And technologies expansion generation. to secure to is where is collective XX energy-intensive current financing, and goal cooperation, training, Energy and the nuclear, back a meet no prime Nuclear power a Zero nuclear boost areas, playing of from our technological in took address the detrimental and workforce inaugural nuclear, in. to role months impact. environmental in comes

reactor fuel our Westinghouse in assets position licensed to from to at that from have and and and long-term cycle supply we a we From right Enrichment, end along value life to plant people Laser to We the tailwinds. the never right of and and cycle our better the right Cameco, benefit to strategy, the reactors. with build commitments. brownfield sovereign advanced jurisdictions capacity investments in permitted new in fuel believe the to and with deliver front been Global significantly the We've safe assets grow through meet expect the services the

looks future bright. the So

briefly Turning quarter. to the

momentum our transition with meet and cost the operations segment our market quarter before. and first run marketing production Operationally, to as for plans are never on track guidance. is seeing the production pace our aligning and production where focused quarter back costs at production a were our The results Our our like benefits total energy in performance our annual the to we strategy highlighting of Tier positive in reflect persistent expected, uranium was XXXX X operational, on rate strong financially our nuclear continuing to structure. rates first that in with

our quarter. change of business guidance In fact, the segments we in or any our after first didn't operational financial XXXX metrics

and easier. have risk we confident fuel nuclear been our chain a as that risks. supply always, related have geopolitical However, can significant any focused transportation, will on not Those impact overlook procurement have that strategies transparent disclosure. the each cycle, the it of to especially a day. that, team and which and we be amplifying with be on transportation continued can't is elevated fuel every Cameco as getting And our events evolves, global terms have stakeholders in an risks It's

from the long-term is dynamics market negotiated. an In We irrelevant in-ground secured. UFX term high-quality market, and demand don't capacity. in be the the fuel the committing inventory through at contracts and additional our market. sentiment year successfully services we annual uranium in focus QX, to commitments we X of about the to are per and conversion XX reflects on XXXX on spot XXXX. increasing majority it in have time of layered But continue unencumbered where pounds million our small uranium contract In the Every we Tier selective average

So that cycle market, in those to carry future, creating maintaining into downside significant them peaks turns. to take for allows and when the while today's value protection us years price the come for

of that financial cash balance and reduction tied contracting In our perspective, includes and prudent a strategy strong sheet our risk-managed From the debt to conservative strong flow our refinancing capital priorities. allocation expectation guides focused generation XXXX, plans.

for annual adjusted year EBITDA still from we As years. was Westinghouse our were continue next for of million. a $XXX XX% the where where the to X X% And to QX. as we our between in compound we results at rate Westinghouse great It EBITDA and investment growth the expected, this anticipate as improve be prospects first of to guided is $XXX to expect million a quarter over and and continue growth segment, share

we take So happy your for you questions. I'll stop and interest are your today, there. Thank to

[Operator Sachs. from comes Neil of Goldman Instructions] question first Our Mehta

thoughts. time picture One big for And Yes. had thanks questions. on I the couple the specific Westinghouse. of a and

guide, annual of but quarter. in the look little lot that the was March. EBITDA a reiterated You A softer on adjusted did the

what walk on can of provide color through conviction the any And segment? full business, on And so seasonality year? -- us the that you you you can that just gives

year, your Heidi turn Thanks, to and Shockey, to thanks you think it. EBITDA to the to the with the this price over Listen, of for Yes. talk it kind to in I about for going in now appreciate participation on just Neil, a special I'm Cameco. a quarter of kind We the and there. go regard in that work that was and quarter had allocation purchase

good. the whole I I'd say, we better in just all in It's we the we're when their tell even it, business piece. So bought than elements with really delighted general, you of there thought Westinghouse potential is can

yes, that up so And came quarter. there's accounting pieces the some in

there? and just the I push the EBITDA little us Westinghouse can Heidi, just our bit to to and quarter over it So an of on the overview for a you year guidance of give

Thanks. of Tim. do that it's was really this impacted accounting. few quarter the with there Yes, Westinghouse, which, Sure, first our a purchase to results for accounting the pieces

assets had when inventory fair value the to our we we So acquisition. our and had

on generally, And asset so going the and to assets. higher amortization balances we're see the intangible

the the held they the inventory On the acquisition, all that would on inventory fair been have date side, of valued.

we so see operations. then, sell margin is that of also see will We that. those still cash diminish off course, terms hit course seasonality off, the of And over quarter. come year. that were that but transition off you'll in had their of so QX, their won't low. that they of kind over But And QX, also some there's operations, to inventory flow, time. lot of of A And any we course, results as also the margin in costs terms in acquisition-related -- the here get sold accounting the of will the on be very

So the year, where a end that utilities. see to just they typically you'll the the do work the of outage of higher season really near outage year. for results is the tied lot in season

And term last kind price you year Tim, we've your XX perspective of the up buyers from grinding nuclear on been do having price at pressure and in still you're long-term big on end just And term see picture website, to the tracking your your XX.XX. question, price upward conversations of on conversations? on just the here with follow-up,

bump I it's to are Neil, along. over marketing sales. who to gotten it bump Yes. you, shop can Well, the in tell more we looks I'm turn it seeing along. in going But Grant after

early has say, see weren't happen. tripling If these back X, the on we see just you talking innings some many, XX.XX times, many go the Grant next of or that's said conferences where would XX-XX and XX you mean, average price And think, -- term near you're power year -- this I we're never over kind anywhere a -- the the of I the game, just overall in years. well, to nuclear going you as

need that and Okay, doubling all we the we've doubled it well, you again. then it and well, say, got now uranium

to so there going And is the the price. on be pressure

I seeing a production. an a coming We seeing not for incentive lot. hit haven't price, a bit price We're whole out. new little think, We're

Grant, So on the think, to let going yes, better be I turn long to it over there come. the me you're pressure is you, a for, to the expert time But market.

about term question, you great price that is term simply availability that focusing this Thanks, The kind because what supply, Tim. utilities for to market of in in Neil, more that pivot And that a increasingly contracting. seeing supply concerned some contracting to market really on remains very is important continual contracting is and security because where where is to are constructive of this order thank the future concern become The build. characteristics. reflected of watch going. in figure out we

out. You've them heard is tenors Number me go talk X about before.

more market years over not occurring be that's for of And the And occurring of of extended, bites to that's start security year. you're time. because see taking That it's seeing added, of up, material reflective the It's well some are for are frames and then ] production. because occurring, going supply [ time you utilities into mid-XXXXs So volumes but the looking looking of of the pivot just multifurcation a of material utilities they're challenges with bigger utilities of of seeing underlying this come because some uranium on. is then, going now. out production each all course, more market, period we're the being to longer

innings contracting replacement in in that's it's at market, up add even continue We yet. the believe if not early of because of it the amount you we're rate the to

replacement find and incumbent be great So Tier producer when of not a it be us opportunity take a very, a to we that capture. price rate because an just very leverage, to with us at place yet, for assets good for an we're pretty place constructive have for and value to that's XX.XX X term of to great brownfield advantage average even

underlying market So we're very, that fundamental. of constructive very feeling

Thanks, Neil.

Capital. Ralph from comes question of Profiti next Our Eight

at Tim bit or on any step target, you could about there acid sulfuric around maybe further, securing and would of risk in Grant, volume of see is talk pounds, Inkai production Can volumes a unpredictable that that And range out million that's progress supply? you context thinking risk helpful. currently potentially shortages this be number? And Any right, only, just logistical little X guidance perhaps sulfuric under challenges. more discussions. X.X gas guidance tentative leaving is at about even a

just we the Sean obviously, Yes. And week, came an -- Ralph, There's produce partners. channels, that their there, having back venture because from there other Quinn were. I and it meetings Tim. and gas, They're tight. Russians and like just It's Russians had with they last because not start they Kazakhs using it's regular is are short, issue. and are obviously the others they -- have supplies it's industries keeping over the sulfuric sanctioned them. will joint I'll were the self-air and from it trouble acid accessing

even So to to their plant. I'm you a sure started. bring to that's not new -- know plan Italians the bring Yes. and build is

I plant new years gets until So a this that for we're built. into pickle couple think

because [indiscernible]. Sean had the I CEO of JV direct know So with conversations of Inkai

you Sean, add have we information best X.X when to want obviously. add add to do to So information, had you our out do to that? on we anything put anything the -- was Sean,

the logistics more they're achievable that other on than just But X.X that, supply that much is challenges both sulfuric Not mentioned. working and hard that in than our comfort achievable. be increasing you that will a other more really million obviously than They're detail some lot the year. not Kazatomprom, with this comfortable conversations the getting acid,

a the as back million fair underwhelming is did Grant talked of volume pivot or that I'd And secured what characteristics pounds supply market, Would actual of tenor, which and these is are and more so in important what contracts changing about, to a year. that so we like XX it And follow-up, than sounds which it. we the rate. last Got replacement perhaps And that's at is be to term volumes of far terms come becoming how at the look like frames. when Okay. comment? something of time in actually year-to-date kind sort

Grant?

Yes.

Tim. Sorry, types see a When by that of of term involved the the in indicating supply might indicator pipeline, we're more what for just security evaluate it characterize might in conversations is Ralph, we're market. and I saying come. we to it in, lot our interest, you presuming a it's leading of

So through say, legislation, think, immediate the point or by utility respect unless, we U.S. to for bit we learn from contracting big some conversion outage slowdown, it But uncertainty maybe the a up close are view, the of causing a bunch is restricting of like instead things. learning are of and and buying phaseout components enrichment turn this expecting perhaps XXXX for have there volumes traditionally delays, And That captive maybe to demand these new multifurcation legislation as planned going very of the of of efforts supply and to the Central way customers well We're Russians. that supply. The as any fabricated would if services. is to as in has Russians is, curve go One buy Russian a in don't -- I is who to a bit course, legislative that's strong of in term. reflective actually a supply how and And and not were X to that be out final customers with risk. retaliate pause this seeing Russian a kind in material receiving market, are the Europe not a a priced the as legislation around a things of XXXX. supply and of been negotiations from services result might uranium thing that where the the of in I well to accustomed And there forget, fabrication bundle to window. bifurcation, Eastern in the fuel the past second market

security effects and maybe supply of customers of learning market but pause, maybe the new this opportunities of is of kind the with stronger causing of of route. legislative or growing bit combined the it's challenges sentiment a stronger in So overhang underlying

comes Research. question next GLJ from Gordon of Our Johnson

questions. just So X

coming First, you potential But doesn't you Because an now impact guys talked Biden XXXX. it Russia. executive here? about actual take seems more about like it's it just talk with respect to this in order, little product the bit from of ban a the effect until can

you impact I I So be it guys muted unless seems will make the Russians correct. react, like said but want like sure the to have real just that

your then could insights a provide you follow-up. If and

chilling to to then Well, just different to already could effect. in. that legislation even a gets here have Gordon, the to part it those be I'll chill But the passed. start a I'm when where more we'll reason of people the in have that and down is talk going see first of through Grant to [indiscernible] at, mean I see It's chip that's going meetings secretaries had where has at. is

so talk And you of can until then. all buy about to you, still we XXXX

lot material utilities and most of market window. the there's until a that whole at not are then looking available now, you're If in looking

view pass So give over it on your to to I'll that. Grant, you

to a close very Yes, ban. legislative seeing

action, level at an at administrative level order the in to codify supply either by intent side. In Russian the a by we order legislative is to legislative XXXX. seen shut for be Secretary might as out Senator, fact, in on executive it there have believe I Absent strong now would wasn't our opportunity, the X if place a Gordon, mentioned, the or even ban sense you

potential talk there. So the first about impacts let's

a utilities sanctioning XXXX. agreement, call it already which in sunsetting because underlying been Russian of suspension we've would have self mentioned of number As was I the times, largely,

in supply. into. Russian So being have the a to lot already past that contracts delivered of forward But that avoid signed were meanwhile, been contracting looking was

the effective? view. a it from of the The the XXXX to certain? that a example. of number the And utilities of supplies is between in two, than to waivers to strength there's is date Is point or U.S. ban ban X and be XXXX, might granted is going to kind effective take number that now So be elements what is when sooner X for

And a really weak get a ban might much to their only then strong the but meaning material. demonstrate of signal in not effect. utilities them ban if on they for for fuel reactors. it's be have that and there safe the Russian a strong waivers, to have really national you security is will that that it for other to jurisdictions an you interest no really But waiver waivers, have strong supply. alternative if Then So importing have will and a sovereign focus strong

flood part don't what has restraint tell absolutely not into and is market Now voluntary mentioned presumes can't priced been want I of shock but it's done. Lake is place you to you about our west we to other like material would create. the have XXX. mentioning Cigar back the event simply been come an is, And supply. to it it's saying, you up ban if now." worth the that the that see by in already the and would would analog of on at come have place, again is the forget this has ban That material "Oh, don't that future look Russians it, of Russians that the export what coin a I the side would terms I'll when that to final kind the And risk and say to and kind waivers of in anticipated that the react and you there's piece, not strong in of go all comes side it the Russian a say

planned, come well and So well sanctioning. the that the market. to It been But piece cell in itself through subject to ban has retaliation. subject XXXX, waivers kind Russian the really a strong thought isn't of

saw. sold can. have was pounds move if looks agree what price Yet this a to There biggest The through reserves. really only forward your I from to guys out of I their me Yes, follow-up, That that's correct quick committed retaliation prices. who caused people Chemical when constituency XX% the a was to seems saying, that lot in. like I'm very there wrong, financials, prices Russian One that's in are I thus, of be go helpful. not I if in. of to increase they're $XX, benefit me, it your and at just going you and not

with at that pounds XXX million prices leaves market, from Is in I'm comment of at And signed what So about being floor that? accurate? you are those hearing future contracts. the contracts for XX on selling XXX. that Can

for question. Yes. Gordon, thanks that

with our said. song seeing accurate You're there because you're you what

our to have total think we resource and I XX% of got base about reserve sold more come. We've lots go. to

that answer So again? you to want Grant, do

hear. that bit occasionally question. just Yes. detail. it through And in a let's something is little we go Gordon, of thanks And for that that

out over very and sell There who should the uranium uranium And with think the time. bit produce into of producer sorry aren't, little notion are is I bears a it But in this clearly folks, for And because space they're spot a that there couple that familiar those explanation. think if folks for it not paying for debate a attention. price dangled back market. I hundred market. saw the We isn't over pounds of the spot that action just March significant thousand it's market spot on in in downward a the

And not moved the of couple It's spot hundred market $X an days. pounds why that? aggressively year because So being pounds the effect million had is into consuming you're of XXX over of talking a a a very about thousand $X, about and couple a a planet fuel fuel bundle in is industry course of at a probably And in years that uranium XXXX. before there that. ago, in in even was is XXXX that and bought The that simple that fact. is a anywhere the uranium that's loading XXXX years needs reactor bundle least on

the So term high-quality there market market. that uranium really the that below that into Cameco That's at in-year material uranium. look you looking a important out instead fundamental here's is their demand is for Utilities fundamental market. future. high-quality And are market, to a producer. the never sells matters fact. the when for And never

Cameco term able So the being today, market negotiated leading market, always prices if is market. what's is the in to the capture

miss and leverage, market. We incumbent reputation our best a fixed of escalated in portion, market supplier production, of that terms contracts advantage We the ceilings and take in term the and base pricing the are reliable portion don't discover able all. as to the or in the market-related floors market brownfield our our at

helping of many the in reputation discovery not like doesn't reliable who multiple safe. in of to all bring supply table sovereign that market fact, sources be somebody we prices to do. supply advantages of we're the that's like the producing or or we a doesn't have from who because lead do of somebody relative considered have cases, jurisdiction In might the we

those So to incumbent us value forward. going this capture for opportunity vantages leading create

is. never to where had And is it pounds we true. So million is hit miss the when sell if market we the preserved that We If through $XXX. X Cameco where the not had spot is today exactly market. inverse market

during to when Paladin what my at they spot for in have volumes market the XXX,XXX there. showed it never $XXX Kazatomprom Look exposure you were big dates. days, pounds it. the or And through hit material would And the their would second, word take of we of production, First in happened even market up selling happened back all, spot the because material fresh what up. see strategy don't sitting at with market would that look volume to their

build message, So responsible forward, for before surprise landed uranium no production very have on common call for producers you which your a it. you of looking homes is the

it's because the in-year that off spot you're a for never volumes absorbing uranium. amount at And going strategy not forward. captures that in market is Cameco, You because most there's capable of those market forward any demand you're like of finding high-quality of stay value. top And what that value producer the when the

second of exposure you resources Cameco, is So XXX have pounds. and at none. pipeline our about to we look reserves our million means our And

That to even sell We is this tried exposure constructive haven't to yet. market. best-in-class

Gordon. Thanks,

Markets. Wong Andrew Capital Our of next RBC question comes from

terms. demand today contract those about inflationary built the talk talk about Rates in just to the more escalators? don't just pricing So have in were really affect environment? future higher, period about since how are just hear contracts the is might in And those Can that the go gone much up? back stronger you escalators wanted a are we to [indiscernible] how being maybe

Thanks, Andrew. Grant?

Yes. what The we're contracts is on contract, talking has X And bookends. there's for about situation for in escalators remember, a of term here improved really suppliers dramatically those uranium.

that's have can You contract term a base-escalated.

it average delivery of first $X.XX. then and escalate how you term through start window. deliveries escalate to how negotiation price the is, So it then today's term the does does at price, And

them. The types other on and contracts floors the of have actually market-related escalators into are escalators built ceilings the because

were price you an to to saw I standard has I when get we willing So environment subject a hitting when today what of a subject the improved, And is We lot escalator. window inflation that a even escalator, to material some say who post-Fukushima in of the a material price producers floor an uncommitted the actually mean indicator. ceiling a saw oversupply. discount escalators is for market, lot

of indicator they X.XX CPI offer and indicator. CPI a take would normal the you So

building Now exactly that about. prices escalation, what industrial capturing indicators them than function escalation it's is this of the talked in seeing success And pounds incredible cases, cost or trying the the oversupplied gives why And cost to supply regulatory and just that I this we're of are where And having changed of industrial into supply and some pivot when least producers, has is market market, back now are are is security escalators. it a Cameco and those in of soft, advantages. in at rather a have is incumbent and in ground negotiating leverage. escalators of as any the advantages don't X out market and security market pulling to chooses leave the you them pound ground at

definitely So changed. that environment has

project and Okay. we exploration of And Lake some And hit the the results? that to pretty Can going then for Don What's just there plan might year. switching maybe when talk That's maybe significant you last like those drilling else here. great. project? mineralization more something Looked exploration hear forward? about some

in is often and X Andrew. exploration property of Thanks, don't -- infrastructure. the to existing about which world, close best best the the of our Don we've in Yes, that program, the which we some probably is our property, the got world, talk Yes. including Lake

bit Lake a or yes, about have So to Don that's had Sean, there. do our say want we success words at? just where a of QX you few project and

Sure. And I'll just start by noting it's across the fence line.

summer But partner the we'll assessing of market Orano. moving our I winter a And of program. the analyzing ISO anticipate And share then joint program, after And deposit. have results, venture are some think them be to with the with [indiscernible] sharing results that results summer in into we very might hurricane the having active had we conclusion a drill that. We program. we

Thanks, Andrew.

comes Bank Montreal. from next of question of Pearce Alexander Our

just So near added may contracting to again. few looks It a to contracting million back have book. like turning pounds you midterm

this it's years. now previous million contracts, a In under of year the flagged pounds XX X you provided the you think per for total so quarter, I next number contract.

could So there? for an number I updated wondered if you provide us

We... Alex. Thanks,

Tim. Sorry,

Go ahead, ahead. Yes. Grant. Go

Yes.

important convincing clear. role we seeing were play away moved of pretty We a we the underway, we a at of kind in time was Sorry, recovery for those contracting. we were but where were to updates, giving we that before the term market And from now seeing the it seeing on quarterly with were did it. contracting there are were Alex, period we others folks because of thought contracting, and return pretty data

to which back an what in cycle that in with a just think position, So And obviously, go time on at anybody the convince is individual negotiating we to customers. what's just any contracting to is want basis, kind position we term committed our want not because don't that's do, maximum underway. of market is be to negotiating revealing when have we're we we

Now to question to what some I emphasize there near-term is. your about demand, adding want

about hear spot the often Alex, us staying market. off You talking,

you about near-term XX contract in And X material X But anybody but from years we'll to term. we'll might that I find going other term occasionally, and for in a be now X interpret adding doing want to term like some say saying starting well, you're a near years. So the really classic -- talking don't commitments to thing the as to utility. utility us negotiation be we'd us, window, out with the

fundamental end to to we can We're deploy we is material. then spot It's demand it. putting a through demand. it trader want deploy the market. user to churn not So And also that when it's

So our deploy makes can of pounds for up it purchases. we We like have when for X sense in creation us. value to it maximum million potential back pocket. our It's market it

material near to So it's a other find us times any good strategy works, say term. but where simply when for it can't you follow in the we there are we

that to sometimes we not because will commitments, churned material commitments that is trader the through never add value but a it's those So market creating. gets for

Fair second then. Okay. enough. question I Maybe can the ask

stand of Just it Obviously, you the in last could the where you're McArthur update investigating expansion. terms what on cost? River

we've pounds. looking Same ad over, quarter, got take Alex, we'll we up of we've it the then can market probably said as for Obviously, And are over and bring call where the investigating at production. as and and will what nauseam, let to last we ahead a we'll move those team kind expand whether expand.

background at to get need the will We So and the can know in that now the mill look take to We're do we there. circuits we kind we're just different mine. to just evaluating the there. doing of work it get in what

we're as the Alex. more year news progressing. goes Yes. have we'll So that on, Thanks, on but

we nearing Please the XX-minute and note, get out IR to questions don't we team. you for reach can any the mark are

next question from Wowkodaw, Scotiabank. comes Orest Our

to production Curious higher, about I -- up be above saw should the River see what Tier continue where At I XX point it the million move well we We bringing XX contracting X-year we base. the the capacity then thinking your million. to book, to your we range? almost X approved. pounds to that would production effectively assume, above from at creep idea there start average And do guess, McCarthy level strategy Is about like relative could your expect expansion that back?

you to that? Grant, do take want

to happy do that. Yes,

to run rate. that So as remind Orest, transitioning are our question Cameco we an it to great folks because us gives X opportunity full Tier still

XXX% substantially. cash but XX million in at on talked year, you're our structure. basis. which and cash at this McArthur, a we're the pounds not -- XXX% on basis, unit already a million really return that Inkai, there of seeing cost plan XX the yet, down And it, is X Tier Our Cigar cost Sean's about costs, pounds were benefit

in yet. it mode we operating production reminder full But not is performance a there. actually So great that are

Lake million the have XXX% around Tim decision, to And the We We're not just Key a Tier talked McArthur on that there's made X. now. XX River, doing as about pounds expansion then basis. right evaluation

back X flex, what's Tier Xs. production, at between we another potentially of So XX% our XX possible Tier up that's brought if our

and market. production. supply. that to security that tied us the capture come wait to see demand demand what of demand, with point demand demand to for gets that we of to then actually level we supply-driven the So don't We there need It's in market, we is we front-run for earlier higher more my call

than had McArthur in it much, than do in the in smaller example. gap typically when had over overcontracted we're the we contracted for was this we care But in have and run have past. -- much as rate we as bigger transition, gap Lake So Key maintenance, a a River, back

So as demand transitioning indicators that it's right us than production. we're for appropriate the at calling through price this, capturing about for

to already that bringing challenges We'll going the the a we and those and folks a a that's alternative. with done risk know all discovers it you the greenfield we us, a a that we meaningful see where those no project greenfield of X productivity say deployed, greenfield is in think already chain, supply is greenfield that doubt for There's that at mine course, mine it chances and labor take greenfield, to production. that take could we've X, of in and terms the destroyed being with with because of there. and can permitting, to Cameco And the shareholder prices to skilled are not the with hasn't for point because and that the capital And permitted market occurred that value already dollars Tier obvious front-running to someone like waiting in very supply is about Tier in signaled, factors, back a who's of the good key say, it seen being same licensed, pricing, Xs. This is bring can form will see. front -- greenfield that. we is of this get without past. deployed mill. the In doing But there greenfield capital offer X new competing we grow market pricing. those we when utilities advance never greenfield or existing, can pretty development, yet, market for we're hands of uranium we may is when Tier for going greenfield the news for Tier back all for you like how Tier simple Xs be way look absolutely a the we're That pricing, we past, being have But very But about demand is the to and not is chain about more long getting needs it's operated the time. by game the licensing, with how The others It's before play. the capacity a that proven.

think to alternative Tier high-risk Xs those being an about as So greenfield.

of question comes America Lawson from Bank of Securities. Our next Winder

to hear million annual chart They in X.X be ask you like from -- all. a for business, that that looks the the that in to Can in driven might some in reasons have in which seasonality you just just nice you your factors difference. drive speak substantial QX generally some X.X, I it and sales? Grant, at of pretty wanted came of the that sales had just indicated guidance a about and just report to the sales, around through that uranium. pounds would provided that

Grant?

being notices of Obviously, the utilities terms of are Yes. look Thanks constructed. we months every the directionally volumes. nonbinding that derived X delivery that going That QX in quarters uranium table to for like that table is noticing table as by part the collection usually to you that. of that put we prior gives what out from our February get

received helps or a that can whenever be quarter notices X there you binding sometimes schedule. notices on, slippage And and nonbinding build So those we are another. Later converted to between delivery us delivery you then always and that, back if haven't step year. table committed see to that. obviously, we see look at we've our important see done outlook it's changed sales our And and broader the for

into pretty a QX that that's is went somehow or lost about that that into really QX just to So volumes -- commitments this the as shifting away. evidence from that's QX being sales opposed

the sales. bit we than patterns same that ultimately, little But last fall. when a holding So calendar lower what delivery we're thought those year, we still guidance for constructed

year, and the Is that your competitors Later competitor of the and caps about could indicated I point, that of that if to range if in wanted of yourselves had given still then contracting where And are could, quarter. we're just your as look And ask we follow -- I also, like your up and where $XXX conversations sort caps. kind on X QX this last the are $XX might discussions and at about? guidance what floors talking and to around floors.

Yes. lot, Thanks Grant? a Lawson.

-- The that, have don't I an Lawson. for deliveries, we yes, QX don't updated disclosure

a that continue sorry, So to annual just probably at It look that's number. answer. not satisfactory But changed. hasn't

I to fact constructing contracting. callers to are market the uncommitted a on will they what drive UXC utilities long-term floors and what just market spot not don't look where sell function is really and $XXX. market the that that's the you and don't the they are you're But TradeTech those seeing into of the just exactly So contract And deliver and are around under market, market-related say. price, market-related ultimately, in you if a we're the [indiscernible] the helps ceilings going at to know stretching the kind up area, that hundreds, the volumes, volumes, be trade if committed spot a in take know I press, look at doing the $XXX, are others place deliveries. of out while

price contracting we're incent for contracts yet. like think done but seen prices I that. is it, done cycle, pretty for say, you to But things this incumbent we're ultimately, we talking a they're "Oh, the misleading a find they'll I U.S. XX." producer. say haven't and Lawson. the that about others in market have dollar let's do accurate, And at of in and just It's know early till an technically market delivering floors, they X escalated need this but actually escalation stage telling start prices the you in not a the escalated contracting cycle. $XX the when bit doing They're This early be greenfield terms. time with by today, that saying, the they're that market-related it folks prices might when X still constructive Now haven't

So it's us. to feeling pretty good

Thanks, Lawson.

question Greg Barnes comes next of from TD Our Securities.

commentary additional potential backlog any the And restart of Just a signed? couple any utilities the how Westinghouse. One, already what's going of around questions outside Springfield? on around order secondarily, are around APXXXXs and with commentary of discussions

But that [indiscernible] I saw in walk lots So X around APXXXXs through. going of Greg, just over announce and and to APXXXX, would like last the couple say Ukraine X, nothing lots weeks at that you they're probably just interest of we're looking on there. the

for some those. poured they first think concrete I of the

to -- I moving X nuances. Ukraine, ahead. think, to So that's that's committed And is kind of up

X. you I chosen the subject But They've what's going good all Bulgaria, APXXXX. X think, as it's Greg, to course, of order there, Now on there. know. [indiscernible], and

the in fuel a lot think the America, you in are leadership all tell and just those. fuel Westinghouse a well Europe days conversations can Asia. And using of contracts couple there's there. I Westinghouse component a North as I I course, in to with inside going of as on. ago talked feed for those those. more

that So on, lots on front. going

Grant Dominic, the like word about maybe, say add? you I'd did Dominic, -- could Or who anything? have Anybody Dominic Springfield? And you conversation. or anything a in to come

new on anything builds the Springfields, So and/or Dominic?

Yes, words on of maybe a couple of course, side Springfield. Greg, of

So yes, thanks question. for the

conversion. of at are the Brookfield, And that global not alongside mentioned that support our Springfield, partner, just supporting Westinghouse looking as clearly, who kind obviously, Springfield of we quite U.K., are to for view market. indeed market. a sort asset, of And we for you the fuel options site but the restart the for can how and So we strategic use

actually looking active a have conversion restart We be could project new an could a build facility. of at

is As Grant the alluded, market strong. fuel

think who we are we and sort So are at there customer the demand supporting is at looking of options for absolutely moment. just Westinghouse that.

So yes, thanks question. the for

James. question MacArthur Our comes Brian of Raymond from next

It kind can on of follows to this I Greg. But ask it way.

bought margins seen I curious on servicing. all was it's Westinghouse done? color Any the I'd you expand contracts you've if know. and that's different could deal the on just lot a above. it. what Is Is You number when of fabrication that APXXXX that business it made Is comment a a you outlook? Is outlook? better looks your a, it it helps because Westinghouse better better more? of, uranium the times the within be a of maybe don't on first than and since or

whole build, APXXXX, and on for not diligence say of we're the lot it's value thanks move the on mean ahead. I and to -- I'd work, probably did we a in that we turn Yes, valuing when of Brian, were a now due any because certain Westinghouse, value put question. all then on things I'll didn't Grant the above. minute others. seeing put new we And the on and and

bunch out the lot [indiscernible] in went Eastern Europe [indiscernible] of there's good. that's you'll there the those when So it The is Obviously, the that's we're in fuel that or SMR them of getting wasn't of for up running a remember interest Europe. we Eastern now, are should planned whole XX didn't APXXX, that. say, a Westinghouse, I there. We're supply, picking and for, exist

of we're the all for most think getting I of fuel them.

along things just that, the move for Russian Westinghouse. Brian, like into us so and sped for that And that, calculated really has Ukraine we things hadn't obviously,

you Grant, want do you have to So to add that? anything

it course, Brian, I of too. I just Yes, resist. do was... can't

sure. I'm

first team We maybe just them would talk a comment and a to of above, few all how great just about that as like on all, And good and they I things. core. at on highlight Tim's are well about a it's question. the of echo to, Westinghouse It's strategy. we executing their And team is. like think strong very Brian,

So in the customers. of of business, new seeing Europe. Central you're the pickup Eastern core the and

That's customers existing shut thought of seeing going that extending saving that we to deals. license. retire we and When a are adding And wasn't a after life reactor another thought are customers reactors through the business of just really operating going big the reactors their XX were tail it. the those operation existing that years of of life you're who model. that probably the a down end pickup are extension, goes You're were substantial part within about And supply. of wrapped would core. to to business additional has of the the nuclear of opportunity pricing. part being are core reactors And saved, the just of And at because that then, and conversion course, extended the more being wraparound nuclear just part The services around that for reactors need enthusiasm are Springfield. them. all Springfield, fuel a asked typically in historic it's that market would services, that nuclear. fuel the of that of conversion the Springfield just is plant be Greg be line, it's

and the echo build. we're So about just I quite is performing very it. would well, comment on Tim's new happy core But

is build think significant. area potential is I very the New very, the where

plan. decision a at are them investment count projects until before business final wait we way in meaningful we Obviously, the Now stage in

is front-end Western You investment just about there technologies. power is I you the highest And projects. those onshoring seeing being in And item case countries of what is assumption investments all far critical onshoring around the of and But the electricity. That to quality investment even final required to the critical The by conversation that's that industrial how actually that, given very that. path the is XX% pickup the get that's that and nuclear digital a of having effort the for AI path is but is item secure, dispatchable, new is and of reality the mean for initial XX our what's of all engineering of for going succeed. manufacturing, served whole on all of first months time. much said exceeds reliable path generative item decision well for ago. required. think really critical When in technology design support

critical of of is getting nuclear path. attention. So is a nuclear path of part fuel if then is the lot critical item, But the nuclear part the

on get servicing pretty build to participate in for It's We long fuel. we of of combination to tail electricity. the nuclear that it's saying, participate now the that it. exciting then get a So in outlook. that uplift reliable new And

us years. there forgive we were to being have for are, excited a as lot but as lean You of

for So market, opportunity we a for the of pretty seen investment. This before, GLE a likes is our constructive haven't which this is Westinghouse Cameco good Brian. potentially

Sorry, maybe X quick follow-up.

mean, year US West. ago, I Springfield. of capacity maybe when Just talked, it sort the sounded this A on in like you in the excess X in market

look Or Is are something positive market you you're it U.S. the using didn't that that outlook positive. maybe Springfield. now forward on maybe fair? of thinking It to that sounds at for more else? as So you look

Grant?

catch didn't more markets I positive? Brian, looking Sorry, which

there Sorry, more a sounds little more little year have been now of positive. given but cautious a UFX, excess a capacity, was ago, sort you might Springfield

and enrichment, uranium plus it's the full bit to we -- uranium The a we've in uranium addition for if project, see enrichment. demand be supply. more West, in demand. at like X Springfield. Laser is plants match need In new more you see Yes. to for you What of order and and Global need perhaps is for product, -- and investment in more between X so Western a little actually the Enrichment conversion UFX capacity we Western look about, to talked it need already different production, different. is breakdown the running it's to The very X see a for potential greenfield Western investment need the at Then little Western our of balance is producing conversion space Western of supply, the than converted. conversion we really And facilities those actually

port production. up hope So we're ramping that

to come ConverDyn the Springfield got conversion, market. potential France tons out of that we require you've to XX.X U.S. plant seeing And back back X,XXX that the balance XX of the in kind think does plant You're to it, come a XX. running western in or about order of in

very is pricing. the reflected that's uranium. historic UFX there, So in the and front definitely of the the need like tight end market and is But UFX

in production. portfolio knock don't UFX of people's time for start say, plant a You don't because part UFX to you they doors want do a additional got on demand have It's for UFX. and buy to be then you call over the out sales built committed than and your

solid the about strategy it's combining right us, for then So marketing with decisions. that production

Brian. Thanks,

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

who and thanks much, very today. joined Yes. Thanks us to everybody Ariel,

You not in is probably Cameco. market. that and the company in market at pretty us sense only where how for our can it's excitement It's positioned at, our times exciting

queue the So quite get today. we didn't through

us noted, quarter questions happy to on any you if questions didn't the contact address today to So detailed or get the Please to any results we you or we'll contact we're that first follow-up call. related as Rachelle and directly. them have

Embedded to energizing a all that and will the values. X a we and strong believe address we're our believe a a cycles, have so fuel commitment with reactor strategy our the we're manner sustainable of the right is track operating that across term. and sheet, a opportunities long-lived life Tier decisions reflects we the long nuclear business record, do over balance Air in vision in Clean invested achieve we and to commercial assets we a proven our will always, and responsible our make world, risks As supplier

healthy, and thanks much great day. a safe very us you. So joining Thank have Stay again and today. for

end an call. brings to today's conference This

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