Opportunities arising from ‘geopolitical developments’

Cameco’s McArthur River uranium mine in northern Saskatchewan. Courtesy Cameco.

Canada-based uranium miner Cameco has raised its consolidated revenue outlook for 2023 as demand for nuclear power grows in the transition away from fossil fuels, even as the company reported a 14% drop in revenue in its second quarter.

The company said on 2 August it expects to sell higher volumes of uranium this year and also reported higher long-term contracting numbers.

Cameco said that as of 30 June, its long-term commitments require an average annual delivery of 28 million pounds of uranium over the next five years as opposed to the 26 million pounds reported at the end of March.

The company said it hopes to deliver between 31 million and 33 million pounds of uranium this year, an increase from previous expectations of 29 to 31 million.

Overall, Cameco increased its revenue outlook for the year to CAD2.4bn-CAD2.5bn from CAD2.2bn-CAD2.4bn.

“The significant momentum seen in the nuclear energy industry and the heightened supply risk caused by geopolitical developments are translating into increased opportunities for Cameco,” Tim Gitzel, the company’s chief executive, said in a statement.