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Cameco Reports Document Filings

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Cameco (TSX: CCO; NYSE: CCJ) reported today that it filed its annual report on Form 40-Fwith the US Securities and Exchange Commission. The document includes Cameco’s audited annual financial statements for the year ended December 31, 2018, its management’s discussion and analysis (MD&A), and its Canadian annual information form (AIF).

In addition, Cameco filed with Canadian securities regulatory authorities its AIF. Its audited annual financial statements for the year ended December 31, 2018, and its MD&A were filed with Canadian securities regulatory authorities in February 2019.

Cameco also filed a technical report for the McArthur River operation under Canadian Securities Administrators’ National Instrument 43-101. Production at the operation has been suspended for an indeterminate duration and no production restart decision has been made.

“The McArthur River operation is one of the best uranium mines in the world, and we are pleased with the significant improvement in the economics of the McArthur River operation since the last report in 2012, which clearly highlights how much value this asset will create when it comes back into production. However, we want to be very clear, the market conditions necessary for a restart decision have not been achieved, and therefore the production suspension will continue for an indeterminate duration,” said Tim Gitzel, Cameco’s president and CEO.

Key highlights of the technical report include:

  • Cameco has updated the mineral reserve and mineral resource estimates for McArthur River. As of December 31, 2018, the mineral reserve estimates increased 9.1% compared to December 31, 2017.
  • The McArthur River production schedule has been modified to incorporate the additional mineral reserves and to maintain a production rate of 18.0 million pounds U3O8 per year upon a production restart. Based on the current assumed production schedule, Cameco estimates that McArthur River will have a mine life of 23 years.
  • Cameco’s share of the total estimated life of mine capital costs for the McArthur River and Key Lake operations is $658 million compared to $2.5 billion in the 2012 technical report.
  • Operating costs are estimated to average $14.97 per pound U3O8 over the mine life. This is a significant decrease from the estimate of $19.23 per pound U3O8 in the 2012 technical report.
  • Cameco’s share of cash operating and capital costs to maintain both operations during the production suspension shutdown is expected to range between $6 million and $7 million per month.

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