Cameco (CCJ) 31 Jul 242024 Q2 Earnings call transcript

This is the conference operator. Welcome to the Cameco Corporation Second Quarter 2024 Results Conference Call. [Operator Instructions] and the conference is being recorded. [Operator Instructions] I would now like to turn the conference over to Cory Kos, Vice President, Investor Relations.

Thank you, operator, and good morning, everyone. Welcome to Cameco's second quarter conference call. I would like to acknowledge that we are speaking from our corporate office, which is on Treaty 6 territory, the traditional territory of the Cree peoples and the homeland of the Metis. With us today are Tim Gitzel, President and CEO; Grant Isaac, Executive VP and CFO; Heidi Shockey, Senior VP and Deputy CFO; Rachelle Girard, Senior VP and Chief Corporate Officer; Brian Reilly, Senior VP and Chief Operating Officer; and Sean Quinn, Senior VP, Chief Legal Officer and Corporate Secretary. I'm going to hand it over to Tim in a moment to briefly reinforce the durable demand story for nuclear energy and discuss the execution of our strategy in the current market, which is positioning us to benefit from the tailwinds. it your open will we up questions. to After, X at X:XX call will concluding approximately be Today's a.m. hour, Time. Eastern

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

call. conclude you you Therefore, we with to However, are call ways your time financial There questions do want results, call respect will after questions to time we follow to or about this if quarterly to to get happy on detailed few up we should us and time. the during not have with have be a everyone's contact the questions. our additional

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our handout all members website investment reference, call to at open your our for including the is community, quarterly cameco.com. Today's on for addition, is download of a file investor In conference PDF in media. available the

session, Q&A then to conference yourself and assumptions queue. Please differ to please X could materially. return is this forward-looking questions call a note and that information include of number limit the will which the on During based actual results

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

enjoy some Cory, you joining summer everyone's time hope on to thank and are and call doing family. that well morning, you everyone. appreciate with us friends good We today. able Well, you, and our I this

and that year, a in of instance, in more Saskatchewan, in Last Here hottest more and that we're Canada its record. a something last in day, we saw we days parts record the bit a common recorded beat and world. the on it record temperature around last that very July, temperature week, in Then for high heat row. average X has global planet the day saw a again become wave, again, a global week of next many

and increases are temperatures can the imagine, times these worse the enough baseload demand, won't to significantly safe, that to provide atmosphere. reliable, by fortunate of problem affordable secure support and during for have As countries sources if that power make air that carbon you you need sources conditioning it, releasing into demand rising energy

across carbon-free governments opportunities the emerge all And And durable and fuel key is the some part continued we full-cycle mid- solution, of worst which this theme be public. the call; within of that, for generating general energy throughout I support to cycle. the long-term. nuclear strong energy energy-intensive for durability. The By stripes, support nuclear continues and mean near-, demand demand, industries that in in we've power of help industry. before is continues unlike Sources like of to climate nuclear the believe today's as anything driving demand, seen highlighted that's to nuclear avoid change, consequences of a a central durable

initiatives risk-off adjacent the and But factors indicators. political capital past tend shortsighted. We've markets affecting as economic more be and have impacted and driving for questions by being uncertain nuclear over much the equities in seen few about However, sectors, support sector new despite negatively in the weeks, to in affecting associated we sanctions developments the the ongoing seen the the robust, interest uranium support bipartisan political uncertainty. with, somewhat that industry in support defining That around context firmly become enjoying risk-off pressure growth. In and long-term fundamentals downward remain demand and sectors is the the the U.S. has of many positioned countries and strong cycle world. nuclear green center,

remember policy nuclear to for is important and fossil of couple demand. in thinking governments it's considering late, replace generation energy only long-term to carbon-free of factors us. sectors energy driving that certain about their are need needs of The that fuel the full-cycle right As a front future retiring

tensions, baseload finite the seeing restarted, extensions production saved to a life reactor we're few reactors restarting, but take centers investments excess to new projects the time. been countries and existing at same underway increase the to and Niger, negative new have to permits need unexpected of more are countries industries Amid greenfield global diminishing. to important, operate many suppliers where Australia, lease supply demand responsible, to inventory the carbon-free and We by supplies the reactor energy is Jabiluka today. underfeeding, reliable continue we sources for like self-sanctioning Cameco. durable that being Kazakhstan secure and and cancelation tax nuclear from commercial not social now. as in will a needed fuel full-cycle. But integrate fuel contribute cost And demand reliable continues in be significant to from energy that idle even provides and inventory The the sustainable emissions see The already nuclear in companies refusal sources like energy, supply clearly procure recent long-term Nuclear reliable growing be to never supply Today, in rapidly demand are sources government has secondary satisfy more power world of right enrichment is builds. There and that time, uncertainty. At license need that the to energy-intensive to from solution. developments significant the renew in reduce geopolitical and uncertain.

our that industry also a to in in the what X we finding we without So are believe investments shock-absorbers world's the of supply. That past, position significant primary across relied cycle. susceptible ourselves Tier premier reactor tightening on having life alongside in tightness supply leaves cycle the Cameco puts the enviable assets, in interruptions market, same of the very which an any we're fuel

said what would being those every by financially-focused we we and As strategy. and doing market guided make with are operational with we the we our investments, decision marketing, transition exactly do continues, assets

early was preserves to exposure last by import nuclear the lower waiver uncertainty to we in committing maintain with the to long-term effect U.S. back to was market capture ban to rising caused year. quiet second utilities the strategies. contract that be imposed many their which than step certain selective utilities respect across of global, fundamental government, and continue book and takes services The reconsider August And U.S. volume impacted in be And quarter, is Russian We order fuel use the also industry contracting and those capacity spot is and waivers subsequently cycle. uranium that continue have customers. The process. prices uranium in and much fuel from because by procurement U.S.-based while may conversion process demand inventory international our international the imported downside you protection. In maintaining the re-exported X activity to the a cycle contracting the Russia for relatively uranium

goes fuel long-term utilities. So ban U.S. to the beyond procurement the related uncertainty

adjust off-market still activity. When to can they delayed So and with although we cautious increasing the avoided. coverage, contract deferred, expect cannot it as no see in to to level industry's the it's first be of run uptick that comparing the are the requests being to market important requirements and remember substitute but uranium a There's a reactor. fuel for required contracting half, slower be contracting in utilities in the was continued

grow. the While quieter suggest quarter, industry-wide book contracted continued long-term volumes our business a to second of

of River, over risks. keeping increased years a meet to multiple every the that our several commitments years operations our sold level manage potential is XX Key access in carefully marketing the X ago. at already from per million average business to manage of under operations new with from And Lake levers sources Lake team with on very is retain pounds supply sold, track Cigar XX million commitments to those to next Our Production these fact, pound and McArthur and negotiation, year. busy. We pipeline

we to license XX pounds operations per supply make additional commitments, meet XX is pounds If a our evaluate to to expansion. work our required decision As ready requirements Key on of annual contract book, from production million to the capital our build we Lake the year. be expand of continue McArthur and capacity River we to to and million want

On we half the front, first impacted experienced fuel services temporary issues the operational of that XXXX.

now of XX,XXX expect guidance target As of tonnes combined affect our tonnes does both In signed in a of decrease and have will XX,XXX with to availability. The to our current We upon primarily of bundles. year. The that adjustment previous McArthur to production UFX collective we sulfuric new Hope XXXX, result, is Lake, was XX,XXX to volumes agreement production range XX,XXX in target first XXXX, inventory. and UOX fuel June with of services sulfuric using operation XXXX. agreement Inkai agreements UFX the our was services reduced. Fuel in the to Port contingent at the this from our pleased uranium at for is X.X UFX target year, not half includes tonnes, acid are fuel acid. million segments, down quarter is be which at X-year UFX, UFX and place fuel Kazakhstan, pounds XXXX managed expected receipt River And our December last expires the In until unionized to while employees. At the of Key production challenges tentative continued Manufacturing, for the and Cameco target production sufficient and compared of due but Inkai for XX,XXX

year. exact We as on this are Kazatomprom and the coming production the production we well the determine planned as continuing Trans-Caspian that work deliveries purchase of timing route our transportation for portion to of the with to will year

all changes includes future amendments what become take there with government that be seeing concerned appears impact tax sudden which away will the However, and evaluating becoming in taxation beginning move of required time the long-term for is on when transferring Kazakhstan. production, the foreign from complicated expected has XX% recovery That blunt, future curve assets of to it so investors and to the still at the Kazakhstan, conclusions about significant changes more MET, depending has Saskatchewan country's higher production for rate, extraction similar XXXX. To government. We're foreign the The increases MET, and is the investors price, and used happening to it to to that introduced in profile to as be exchange in tax, greatest as on disappointing Kazakhstan The operations. surprising in preliminary the cost would is assumptions formulated, significantly. are in of due primary supply to but effect and production expected code, prices impacts our beginning global we're the have indicate as we're that investment uranium increasingly cost global in equity would in change the XXXX. increase well up profits a costs the value the currently if industry stages investors The mineral to Northern early remains mean decisions.

to with more with as partner. the So our with come that analysis continue and we discussions

those and so the under strategy. far our decisions the of So developments in areas our are XXXX affecting key marketing operational

at the our capital resources financial been XXXX remaining great our in a We've guided sheet, we for maintaining with rating. are Looking diligent to shape, investment-grade track carry plans our and outlook. aspects, in strategic strong the balance by on liquidity

improving the we UFX flow and our toward higher generation. under portfolio, Tier contract progress structure prices cash see to expect cost strong long-term X With production, conversion our

flexibility, move It reserves. in when shelf we meant plan June. To the provide million cash another refinancing of we remaining maintaining prioritization loan through outstanding year, a prospectus continued the that of current remained one matured repaying of on to the of financing unsecured managing focused senior the we we the plans. term also and place financial million we our the During executing and $XXX while October. that in liquidity our our we debt repayments That XXX our to of the $XXX included file have the for in debentures principal base quarter, reduction prudently on refinanced remaining ensure and took USD on Westinghouse new million tools as expires

year. at this our expectation to adjusted EBITDA anticipate X% our including with at We're emerging be we aligned year XX% see to at next opportunities growth still X $XXX outlook, to as and $XXX over is our growth performance of the investment, annual million between the more Westinghouse from Westinghouse expected Looking this compound acquisition, years. date and we of valued than million continuing to EBITDA adjusted rate and a time for

Officer. community Senior our retirement we we with and to XX-year Chief forward I pleasure ethics It as like team. Cameco as June, her the highlight years. the knows nuclear contributions making Relations. like Before of Chief and expertise, of has for her has now the a career supply opportunities Vice best our to would the very internal changes for President responsibilities. I'm been and to welcome executive the former her her management, her resources, announced knowledge, to With with adding very, well and leverage Rachelle during to At with her end Vice Senior and conclude, role sound appointed strong list to role Alice chain of President Kos been functions few Wong work her a Corporate the executive wisdom, maintain and in investment industry. XX for to these as and years to human Corporate qualities, Officer. senior President Cory of Alice the I'd her contribution moved team. I and corporate retirement. Rachelle in Cameco Alice very position to been for oversight exciting look very into executive the thank has past has previous Girard wish Vice XX will Investor outstanding Relations her and current Investor judgment leadership in leadership company pleased and a Rachelle I times audit Rachelle Rachelle

all So your would you today your and be I we happy thank take of to with questions. that, interest for

Alexander Capital [Operator Instructions] Pearce with question Our is first BMO from Markets.

guidance guidance, unchanged very overall. a produced McArthur you've XX% kept quarter. this And annual from your strong looks than was it like essentially but you performance of It more River

So mean that in Do guidance? a than beat million that that River year the done more McArthur we full the chance can past. pounds XX Is know has there for you you could this think forward level? million new higher QX annum for on XX as the move without you expansion having to level a going of per quarter better the kind pound this towards spend even

we the obviously, Nice Last question. hear were mill. of your still the McArthur we ramp-up year, of that, where like the for robotics to we really to. This and voice. Key things thanks really, both quite wanted of delighted and the last we're phase now to Alex, made the course, years, benefits Well, changes now. paying some of with get the over year, Well, didn't really we're digitization, performance of the a seeing couple dividends in Lake

So yes, we're track. on

I we'll don't is get out know like continue on forward. and it midyear of track. too production We'll are performing can targets. We'll even those But our the on well now see fact, front of things like. -- going facilities the would In right our what both we're right see. at ahead We look We how just update far you performing exceptionally to now well. market to in And numbers say game. But go.

you I asset what the a the Can consistency same follow work question, up ask bottleneck probably just essentially the needs bit for through on more just year? of that of is more part to confident the currently be little

XX, Alex? than higher production increase to the mean you Do

to that achieved Yes. this rate through kind Exactly run you've of quarter? keep the

the don't -- real any I think bottlenecks are think at there moment. I have we cleared

we're think we've time. schedule. to as what facilities see do. the and can can seen of where something down And past ahead I now, a years I say, right can pushing happen of in we're we But go for period we

So, case. It's so good. the been been very far, that's not

basis, on in see increase and looking are to Lake. we McArthur Key longer our in sustainable we term can, whether a So the production

planet. XX both on go facilities. of to have pounds those for should the We the market at best And licensing those are pounds, to those approvals million call pounds the

be let's clear about So that.

years' now calls that it. ready for and mine, we're always for debottleneck our so to have And any will team contracts give when evaluating new course, take Grant's we it notice, of market the just are several the signs, that And right the we what so derisk and mill would marketing team, notice. us

to so the And do if to us would do time debottlenecking us it. they time did some derisking, the give give need or that we then

Alex. -- now, right on. it as to pounds those far like at and in looking -- pocket are is I concerned, our it's bring Cameco the we're clearly, best So as It's it's say,

established in an It's got Saskatchewan. Tier their X facility from support, support. all, talk want pounds tax and stable You government We established to regime. it public here with workforce all

proud to So have facilities. really we're those

The next Sachs. Goldman from with question is Mehta Neil

comments a build to your It's that for ongoing wanted focus acid the investors, Kazakhstan. sulfuric on shortage the on along I MET commentary been referenced. given with you

your So be And thoughts margins? thinking business you term we how both on volumes of just in that operating should expand in terms that in and about Inkai the about near latest can region?

Well, decades, me over the a positive clear Kazatomprom years, had longstanding Kazakhstan let from the with fact. we've Neil. many, and relationship Thanks, outset that and be in many

So on where for that's else, extraction what what increasingly concerned of foundation. chance significant, the tax I'd the neighborhood great been yet going some partners everybody tough that's to that about that over just got change no really we makes other on concern, sure matter, a mineral seeing call, there, it we're no now. I sprung -- mean last say Kazakhstan's adds us talk I about said while. I So I us to gives consultation it's a that things views haven't seeing and that's and say, of in -- kind our their as it as to go? had us would mean, and we notice, know. a to bit mean, see we've are. I the to that we're

to that dealing get there's trying acid so grip And with a been issues on. we've been the and sulfuric

discussing production where weeks Trans-Caspian going. to. That's Kazatomprom and The We're with the levels, we from from Quinn to still move allocations, more in Sean hear probably the his transportation, had we've Kazakh. You'll new that team of couple route that's a started. on when

complicated becoming more bit like. just we So than a it's

some And so that's us causing concern.

a a seeing you Westinghouse? Westinghouse. XH of the to bit solid quarter and around XXXX is QX. the just in? -- about for opportunities deal. relative very you folded after you that how is follow-up about how softer case do announced which business the base setup referenced And A being little talk just then think And additional You Can the when

talk do better But day happier deal. the looking would just really we're rep we Grant, Board and so saying going Westinghouse our it looking closed deal, open So want you I -- there. that? made I'll to the to who's turn than It's the on opportunities Grant, even the even that But deal positive. over There're on it's the who's many or forward. with to

Yes, Neil, to looking for? outlook for what a Thanks, just And happy like characterize change reminder enjoying kind is forward, going you you the Westinghouse that that we be Obviously, Westinghouse components. One, should nuclear question. to. core, we recurring stable, of having referenced very also Western for to seeing your and are tailwinds no we positives the think business, XXXX. the fuel fuel our and cycle for nuclear the of And where call that sure. highly X main and plant of the kind as across for the systems we're operating want to might

away PWR more markets, additional the for VVER capability. It's builds their expansion BWR with It's create their being reactors traditional Westinghouse into fuel extensions the market as new life as that manufacturing is of that's new product going Central So the opportunities well customer Europe and among Eastern market new saved, through offerings. reactors opportunity. The base. for expansion exciting Westinghouse from an just the

in to very Sapporo core business important its would fuels, the LEU the complex the burnout companies ambition, plus just of of also which the group higher is looking to cycle. the nuclear don't but Springfields forget Western the also like fuels fuel include course, U.K.'s Of X participation secure a plant And not additional in achieve creating industrial the all U.K., accident-tolerant opportunity.

planet. power core is significant of on watch course, going gigawatt-scale Energy most the enjoying in very on increasingly, Energy in of about and, power demand in course, Systems. that build. And offering that the have is conversations of power clean, excited it scale We're restarted lots for. new reliable, needs that's needs Systems realizes reactor earnest the world that so And It that the the new jurisdictions gigawatt is tailwinds is So to a about APXXXX power. dispatchable. best-performing that's

outlook reactor be fuel is So watching in when it's very, exciting both their closely continue very a participation and to cycle Westinghouse, the for we very and strong. very

is The from next Eight Ralph with Capital. Profiti question

to with of impact comes it time wondering at to capital a future be Tim, will joint Kazakhstan there acting or form of sort that's more government, dictating when venture alone the of take sort partners? an with concerns allocations lobby the may addressing open it dialogue how and decisions? Cameco if industry least its Or the going just at

Kazakhs know there as our over I know to big some Ralph, Obviously, players with friends there're the don't answer Orano Yes. Japanese venture and have we the a that. joint well.

our London mineral with tax the on mean Kazakhs level our I'm government no the I meeting the what's talk interest run to piece And Nuclear and be companies level. We'll the first in of at And -- at and the that doing enough, to. extraction at meeting certain So positions the about World up September especially everybody be them Association Kazatomprom shows know them we same. forward. other well doubt this big going put into that both week and will we'll

discussion -- I there'll Grant to to... wants you it Grant, lots So think hang be there. on, of about want

to want by events just are broader in we're to we just I the in and want here jump industry lose seeing on, there I sight Ralph. everybody that shouldn't Yes, Kazakhstan that course. -- that implications remind of

moves outset, supply, in the uranium suggests you higher curve As then to more like of elsewhere. to from tax incent complications new see gone means Tim global and cost particular, seen of supply need we've which just for up, has supply referenced the challenges, this all sustainable, that see in we pricing new that some chain extraction the around kind the mineral the when with the

a do industry want implication Asia That days actually always tie out easy, has of Central portfolio an That of The that's then our That's I approach very production. is the pounds cheap is accident. been not had coming Cameco deliberate always it Strategically, had. So context. have there strategy. a diversified to of constructive. portfolio we've we broader are And effectively a over. to

impacts costs it's uncertainty up yes, of XX% or more committed our Cameco, uranium. up of expect to would going little global to bit XX% Kazakhstan a roughly about going So sales. in what But in we supply of Kazakhstan the and meet

the is significant impact investors. transfer actually Cameco. And maintenance X the than market on is Tier frankly, it back for more sovereign the the in So remain safe assets effectively, care is Tier and value our our to assets quite always and X that to our benefit of

So Kazakhstan, reinforces view we durable constructive. spend I it's to deliberately fundamental face these of of events. we bit lose to is Cameco's may supply strategy it resilient kind a of but uncertain strategic yet in that more want and talking demand the don't time about sight the very It's actually that think

that. how pause question trajectory XXXX? perhaps on guidance Great. of to whether XXXX on pause? sort surprise causing or I say, follow-up or of rate I of the a the perhaps contracting If sort a replacement H.R. not in Grant, appreciate and Kazakhstan is like due And ask can a much you, a XXXX as to, come that it's something

we've would towards some contracting time. been I replacement remind that working for rate

pricing very global and indicates continued just you strong that is going earlier through we uranium. has little price is gone Do and really term we're significantly used constructive small If about the in very term still supplies thin the the just It's to in fact cost volume of on. volatility spot lose that very that that. add contracts discovery seeing constructive very the is. that year-to-date. for on market we're the market. see comments yet just not momentum of in very how the performing shines long-term a in to volumes. That's There market how it count strongly on a That very the and curve you light past And market, price more, price interesting look my tight sight about cost why up always

there replacement in in and it that delay returning you rate, market causing the So about maybe when to some giving uncertainty is is think some are I factors pause. the think

Russian that for with at That entered we to and except that period into a says contracts ban, waiver with seen when waiver say they XXXX take able respect good reliable they Russian legislation now who should considered to out under delivery utilities of the Department allows Russians to at Energy were a course, now to look suppliers If you the we've of the granted situation continue U.S. waivers period of see faith appeal is legislation. few the time be material. And a and for to and material between already.

of going the a a bit demand to have going arrives remember gap is very the are understand, the no a to that you in pressure become the pause, be to future then Russian mean take to of market. diminish near-term but will, is if flows try of or into to easy? there's waivers takes a to And important there, doesn't and that So the a to will see the of just the that are these off-market if term when U.S., these little longer of That but allowed that teeth XXXX pressure bit it's very still always are easy, bigger beyond. We out it lot waivers the day of going activity of then the material market, Russian in waivers going material more market. out the the bit near

order think in but delay, production. higher to prices So that the it are if incent shift about you won't it to may required a prevent it,

replacement and our This see to remain we bit have remain is approach replacement be very below a in it of at at very, we rate. with disciplined. why market constructive we've the type scenario prices factors demand we these expect rate if a these forward-focused before. more goes there's been of see will beyond, the is a because this certainty, And very why contracting that a constructive we because never So setup cleared once do time course, occurring. And

I the for opportunity than much for the say to upside be much, would appears downside. So opportunity greater

Rachelle and answers. and to That Yes. helpful was on you. Got Alice Cory new And their congratulations retirement, her appointments. very on

of you. Ralph. kind Very Thanks,

is from Wong Markets. next Capital The with RBC question Andrew

being see of to respect imagine a years, X it's some for great the lot XXXX. With place added happens volumes activity I taking the beyond contracting, next to but

So about talk and some the contracted XXXXs into into can you XXXXs? just the of volumes the late

Grant?

we existing haven't that an conditions recovery. about comes lead exactly we've to That platform market. seen RFPs previous term are we talked have the rush see common come But type in go Yes. bilaterally, constructive to demand on that my continues I just where primary Western big leverage the incumbent's and beneficiary market, brownfield this are who come volumes market. those the kind very production to to the up quite still utilities production, of price license-permitted of themselves that opportunities. And Remember, sovereign a demand with underlying where of now lot suppliers. In off that that that Andrew, to off-market that term the for space, through market to of Cameco not easy the mentioned it's comes trend a meaning that of with that of the strong, demand safe track. directly demand, to low is on is answer these before,

up. with able reporting go for $XX-plus Cameco continues seeing markers example, Term the those be as forward. outperform continues -- tends look of at move We're you floors, escalated to to course, position from ceilings. And $XXX we it if So escalated build. even TradeTech, to our to price

fussy we cost being and is position. look reasons Demand months. for what's the for that has few the puts that about increasingly Niger us not with risk at just is market. happy the settle evolves but on strong past market somewhat really are we a up as this in in I extremely elsewhere, terms are we an supply about. position durable. Supply going That and would supply just in our So spoke conditions gone uncertain, Kazakhstan, curve, that And in

Okay. IT KHNP Great. Westinghouse just Westinghouse for about KHNP? and a And And Is to in the talk in there a maybe can bit like regard Republic? anything with dispute to Czech one there Westinghouse is builds to you between path switching here. the the participate

Westinghouse. best-performing and is control a But happy reactor recognizing, strong. a pretty certainly planet. that to technology Westinghouse that on few course, and the instrumentation between that the dispute technology fundamental legal the We're the on Yes. KHNP make It's it, reactor and of is it comments

it's for water best-in-class baseline the reactors. surprise, no So pressurized kind of

developed we the based is what between Korean technology a Brookfield, Over Cameco as sharing that Westinghouse shared certainly Westinghouse's. by a belief partnerships was the and And the at dispute are effectively common. technology critical Westinghouse others, and years, see of now elements upon of are that really there and

of makes course, in is opportunity so to dispute some that maybe a can gigawatt-scale really of point, be come jurisdictions. going together industrial dispute at that Korea foreign sense dispute use through is resolution the Westinghouse and that And to deliver the recognize an Korea normal relatively partnership that might the with, reactors technology That ability there globally. and

themselves find dispute, transfer in Westinghouse engaging how approach Westinghouse's it. the but technology side So of technology out, right believe the may we we'll And they're position and we think countries law works we that that without on the see a U.S. adequately behind in are that the this on stand wrong Korean taking that choosing

got in at out yet it's markets go, like point. Westinghouse ways I this wouldn't Czech to So but rule a

Okay. that Westinghouse? in And just means none that on of included guidance for that, is assuming your I'm business

yes. Oh,

Sorry, Andrew.

to XX% upside a Energy X really And have EBITDA growth the beginning So Westinghouse's that remember, reflecting very XX%, X% System the over on of rate next of builds. new some the years. was CAGR that we only

stages are front-end the the engineering in in where Bulgaria, the assumption early front-end And and there's engineering APXXXXs and are first awarded, APXXXXs about contracts. very So made of Poland, have only design. in the those X been awarded, in of X an of X an X there's first X assumption the that the where design

add only to announcements Systems' Energy So are that upside to profile. going additional

these So very now that right but a are binary exciting obviously Westinghouse big a in opportunity, outlook. very decisions. And conservative view Energy Systems on it's

is Wowkodaw question Scotiabank. next from with The Orest

be that with customers and receiving back are the what here. another books implication up. favorable like I'm about -- average those very it is is contracts. that stepping a what crept just surprised see you terms seems embedded the to you're Because question Grant, Does bit of certainly actually more of from guys the that to contracting utilities? that X-year were philosophy in terms discerning contract

think that that to So right way is about increase? the

think way right to it. the that's Yes, about

able the we I we long-term move to are with that you forward mean, basis. that As a older -- fuel contracts cycle contracts from rolls is that are year magic it on to of nuclear newer. off, away each are the that contract

also that be not Now creates time negotiating market a in may the situation contracts the of at you're that or where today of the market reflective delivery. may

contract now market to then? And entered back a through early year and back and years starting into first might a conditions years delivery. might you X slice signed deliveries, a a then contracts were XXXX the gone the in then roll transition. contracts say, stages this part that through signed were contracts has a few take were terms ago. just of we're those like be the you'll of or our ago many be of see middle the last -- you of and those as really what see And And if So

As we value. roll forward, we just continue to that capture

we to So them in our while they cash the the and them earnings. knocks day long-term spot and arrive we buries spiked those takes flow strategy and sideways get like into spikes say, contracting don't market,

from And yet a only market that window, what the terms very to remember, years and haven't at that all improving finding so What's conditions reflects in definition by that sell. levered outer is constructive. committed those table. we're But we're of analysis those pounds to table seeing we're missing which, that the market is we now in course, contracted

it business. how a is this works in So contracting long-term

you for before that's demand the you. capture You

a and be contract with up-market, in that's not where right disciplined a selective like And very find you now. the in orientation position You're terms a an ourselves to in down-market that conditions we and work. and

Okay.

that that here? you're million sales a target to your volume as years. of for of follow-up. up anticipate game creep Should million we kind pounds average quick XX potentially to towards million next XX I end of Just XX X mean, pounds? the the up committed continuing Is to sort

the pursuing basis, to are rate have we're an not to already even that I that's the demand we're And a of of talked that's we'd come it at demand volume we coming. yet. on the respond in we the call, we quality about as hard would think the capturing Well, say market. sales Instead target earlier of absolute replacement saying

found in consumed demand annual enough we're So an beyond. even basis, alone replace on market what's let a not to that yet has

about meaning it place at terms think sure prefer leverage But we upward right us We and acceptable the which we they probably if wanted now, issue are. more more are making as So would acceptable volumes to be giving in market. bit conditions, a to. is we could disciplined the

why be as strategy. X, there's be that you to those are years So fundamental our we we because new and always high-quality. next always portfolio, be We've covered about is that come year market like we We It's our want to to roll strategy, no think when we into lot of in-year next But there's think we supply about demand. because out a we're X constructive. That's been positioning and spot-exposed then X-year be talked a like commitments because a continues sales to X, not a off into covered producer. that before. year like to not that in-year

want. having the think of we conditions but the just numbers we're the probably we and coming target order So would I to because don't chasing not are responding, and a more volume then that would in terms market hard be think as demand that how for us about say, watch sales would discovering

Bank is The next Winder question America from with of Securities. Lawson

about I your ask as to extend and conversion just spot congratulations Cory market get I views pricing pricing. conversion Rachelle, on versus Alice. wanted to And the long-term and well

why spot gap and move that spot way So close? we that cause the you seen be a that seen conversion price spot the have might what might to market. Do we've price in haven't the the to -- long-term the UXOX view on

Grant?

very, is market reason in simple that very the existing maintenance. facilities care are tight for and Conversion

have obviously, Hope we X Cameco's Western So Facility. Conversion facilities, Port

You've past. little be it target what seen conversion, a holding bit it's relative initial that. the our at but looks the We've U.S. to tonnes on our in pulled run facility of X,XXX got more guidance was, at back in a to XXXX

tightness actors be sell it long-term really in design keeping French an a doesn't where has You've conversion term tend There's option. who that. uranium not conversion real plant you market. running more if at really in disciplined, kicking to focused capacity a around. producers market. Conversion There's the That's less producers. what's the less original idle Uranium has on got a space the plant suffer that basis. bit market more isn't Springfields. The one on in at there from It just also its any a is need today, conversion and only

in the up expect tail term price and in would hard historic the we to getting vast not because not the to forget it's conversion conversion-producing be all continue spot to incredibly is work So Western majority at let's say just being the production world. the conversion that the centers might you is done. levels. And where of delays of is But by. come of that But that the full

sure until has while spot market. a more very the conversion So for really tail of next But little a for capacity strength not good comes it's on.

to right spot, at continue. is too expected historic a on and going is with sitting where term is close conversion So on but focused now get I wouldn't thinking conversion to basis

a to views also M&A. sense get I on Great. Okay. your wanted of

in I in chances like and that, light just acquirers and as for I the look approaching would in opportunistic Athabasca Cameco to of open foreign your a that, your a from particular. just to front as in with be consolidating Basin? And rigor. the on get that and to potentially always Cameco answer run Basin well so And increased window do to investment acknowledge doesn't there's this but views might be Canada they Does activities Athabasca up obviously, recent at that need view opportunities in will maybe

Well, we when always own appreciate their analysts questions. answer

So Lawson. I appreciate that,

you're right. So

going to know what say. I'm You

already the a our facilities McArthur the say that to full me another up we X-million-pound planet took earlier -- You in anywhere. are That's it heard increase. out pounds on to X-million-pound portfolio, producing go be best There's sitting would there waiting River. speed not the if

got uranium and we're very to miss conversion States goes United market there, very as is that down our and so re-enriching Lake mean, those And to And Wyoming, attractive And depleted at maintenance in those If back assets U.S. greenfield U.S. the if and X pounds. conversion. out sitting and I have Rabbit that bring answer on tails, we mean, want would we Nebraska GLE for utilities well. start government. we've I that be own calls we've have working that we on our don't that is brings got that Grant's market. last then that going care projects the well. That then as that And are run. on on could the get to I the our we hard we first And Tier project look back to

made another that's decisions we're working I for so on project option us. don't any say that but we've And that, as on well.

a so suite after projects we've that we'd own. stable or love of got our a get And to

for looking we're not own our on else's. anybody assets. focused So We're

from Next is question Research. Johnson Gordon with GLJ

a you've news just But out, I an of news China the out at guess that's the construction lot new of some to X,XXX a have seem the back, just respect Advance looking in you advancing announced number stories step stuck. a been asked. positive launched taking positive megawatt with Europe reactor, prices sign a questions and to had yet of of Canada SMR had the nuclear, come had be of Saskatchewan, the Act, Biden you

your I thoughts what your may on just get outlook So to is be and that why wanted near-term?

Yes.

in situation it's bit we've of touched on it few on a price looking like already, U.S. Gordon, summer, doldrums the with at Act the I think the Russian and the a that. and waivers things

today. And I and nuclear. much together, they're countries public -- general going we interest came the and back was different call Grant before we've never that exciting was and the more need the we're the me seeing of nuclear. world. nuclear Vogtle at Ontario, the to part. we've been the and XX okay, triple, power. new ago. We were then. And I last have Let I countries new said, think about in just you so seeing it's governments they I months December X we're around in a And that has since continued said were themes see that whether policymakers countries, utilities reactors, of gigawatts seen we other of to go Canada, from listening for down building couple XXX were conferences nuclear to I when nice, year Granholm COPXX opening through the to what mean, XX that's committed Secretary in it mean, X we're triple of new U.S. just the theme opening at

lot back starts. new them I those to on, -- are bring few ones Palisades, think new So Diablo to a clearly, on mean, old The Iowa, coming a reactors Canyon, the demand Arnold of years ready good but go. I side. news not Duane they're I mean, TMI, back, in new take build, they

lots the boy, I bit are that really would of a so there spent Global Niger, for a chaotic, on And in a a of the A instability. We as Grant that side, at. front on in of having few mentioned lots time players, GoviEx there. say, tough time the mentioned, Orano companies of that and I place uranium some and lot the and fuel supply and

yes, think long-lasting. So that's anything I don't it's

I fundamentals are supply-demand think outstanding. the

be pounds billion there's something X.X or to now between X XXXX. think contracted and I like billion

I that's and of it pounds like a an That's lot. think million -- is year every average XXX growing. XXX million,

historic at term fundamentals at I or prices. the So we a which is about depression strong. no, mean, the watch, about price. we're concerned very still is the short-term all not in price the price, we're And

excited about the future. we're So

if one, I could. last One

naysayers could step Can some on to kind what of there that and financial Bayers give the address and buyers guys means? of products. in ] prices we you us begin in of that fall, see the sell that if/when Some have out your thoughts [ argued

It's Yes. that we've a the seen market. before phenomenon in

an financial strategy that commercial metal, the time, as It's buyers say support some why hold uranium is marginal orientation look you really never I this to were first would an value. intrinsic out at If as price our a way about go though, energy run-up, 'XX, will or of financial marginal and I we there's that is think quality of to of the and to that think 'XX is precious buyers big were the sellers saying interests. last the almost supply like different that. What interests financial

And so any have seen actually big we we funds the holds haven't and of some seen any in or the funds. big haven't selling out that any those evidence interest leakage of

there Now holds market. private and some material back that it into are the does make

that by The term that. think very the fundamentals new a starting growing uncovered well uncovered could don't see result coming maybe inventory independent in see evidence is to that the very doesn't policies, the buyers as any still strong are change into add demand fundamentals I the market looking evidenced both of as But and to way. to as you requirements. I volumes. that as capture bit build material requirements spot of significant sovereign build utilities beginning would we're of acquire that inventory to utilities a

Now these very are as but well. hit at a tight onetime, they're going to market

bare constructive the of wouldn't the I through So the if it a the you affect we a into the longer bit of look primary way. I dumped might create at the that is shock-absorbers of remember, be substantial all that underperforming softness to gap bet. be quickly on between in supply and very we're wouldn't and And big as move a Because taking production have is market, have. uranium we'll fundamentals. then fundamentals no there It to back we isn't spot demand, it's the enough supply really taking secondary if is pocket market. bet. used demand, This any

And with the James. last MacArthur from is Brian Raymond question

Cory those me in new all also their again retirement the time. Alice and Rachelle congratulating positions. interest are Mine years questions after on on Let by her quick start and X of

mill River, that costs on bunch quarter. good -- Saskatchewan always out when flexibility, my that something starting very it to that Just to compares bottleneck I sort actually price assumptions, you 'XX, there's we the production is northern of the based talking royalties to you get basing unique assume licensed ore I I it of to the body? Or read the the Kazakhstan? curiosity, just now. then mines, get obviously right been statement a a of is grade-related potentially demonstrate Northern there talked about are and whole it in the the or and into royalties was second versus what mine on had that? for goes Because that question Kazakhstan you being costs mine? graduated of including are Are between potential up do -- McArthur similar, Can in saying and at versus the back And

Brian. you, Thank

on so the our maybe cost Brian chip on operational -- turn it then Just comparison. the front, me you let Operating over to Chief Officer; can Reilly, Grant, and in

Brian, at the just McArthur, So Key. operations on

Thanks, Great Sure. Brian. and question. Tim

X say at all about issue for Brian. have in mill, state, Tim This to a And past the past, mill me I we the mine is say, steady -- terms not Let this. of running quarters, alluded the it's production. great just would Brian. We this

automation, made starting now. so to And in pay those dividends we digitization, they're investments robotics,

So we're of results seeing investments, the Brian. those

level at at very high a operating mill the moment. about all is this the So

Grant?

like come. And Brian, Yes. more to

in things sales cost taxes it's gone an As Tim like that rolls of mentioned, But average a we're jurisdiction. and tax of sort evaluating cost on more number look assumptions that proposed you if royalties, it. to the and are its and go a was to a of increase of yet basis the need comment that seems there implementation higher-risk unit and in general advantage that be Kazakhstan comment into

favor. the Cameco's Cigar in and assets a benefit clearly McArthur So is a Rabbit our U.S. to and and

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

us very you who joined Thank everyone much, to Gaylene, and thanks today.

or those want noted we in answer detailed that if happy intro, the Cory directly. questions to any chance a any we questions send and or will in results you absolutely please the today, follow-up As have didn't second be to them quarter get on you address

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

a great and joining So healthy you thank today. again Stay for us you. have all Thank day. safe and

an to conference today's end brings This call.

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