Extract
Cameco Reports Solid Second Quarter Earnings.
SASKATOON, Saskatchewan -- Cameco Corporation (NYSE:CCJ) (TSX:CCO) today reported its financial results for the three months ended June 30, 2004.
HIGHLIGHTS - Second quarter net earnings before tax adjustments up significantly - Centerra Gold Inc. began trading on the Toronto Stock Exchange - Higher uranium and gold prices contribute to bottom line - Bruce Power results reflect two restarted units --------------------------------------------------------------------- Three Three Six Six Financial Months Months Months Months YTD Highlights Ended Ended Ended Ended Change June June June June % 30/04 30/03 30/04 30/03 --------------------------------------------------------------------- Revenue ($ millions) 242 220 375 323 16 --------------------------------------------------------------------- Earnings from operations ($ millions) 40 10 49 15 227 --------------------------------------------------------------------- Cash provided by operations ($ millions) (19) 33 30 84 (64) --------------------------------------------------------------------- Net earnings ($ millions) 65 104 105 141 (26) --------------------------------------------------------------------- Earnings per share ($) basic 1.15 1.87 1.84 2.53 (27) --------------------------------------------------------------------- NET EARNINGS BEFORE TAX ADJUSTMENTS ($ MILLIONS) 65 18 105 55 91 --------------------------------------------------------------------- Average uranium spot price for the period ($US/lb U3O8) 17.99 10.89 17.27 10.51 64 --------------------------------------------------------------------- Average realized electricity price ($ per MWh) 46 45 47 52 (10) --------------------------------------------------------------------- Average Ontario electricity spot price ($ per MWh) 47 48 51 61 (16) --------------------------------------------------------------------- Average realized gold price for the period (US$/ounce) 360 315 360 317 14 --------------------------------------------------------------------- Average spot market gold price for the period (US$/ounce) 393 347 401 350 14 --------------------------------------------------------------------- Note: All dollar amounts are expressed in Canadian dollars unless otherwise stated. CONSOLIDATED FINANCIAL RESULTS Consolidated Earnings Second Quarter For the three months ended June 30, 2004, net earnings decreased to $65 million ($1.15 per share) from $104 million ($1.87 per share) in 2003. The results for 2003 included a non-recurring, non-cash income tax adjustment of $86 million ($1.54 per share) attributable to favourable changes in resource sector taxation by the Canadian government. Excluding this tax adjustment, net earnings increased for the three months ended June 30, 2004 by $47 million ($0.80 per share) compared to the same period in 2003. This increase was attributable to improved results in the uranium and gold businesses as well as stronger performance at Bruce Power. The improvement in the uranium business was due to a higher realized price, which was related to a significant increase in the spot market price for uranium. Earnings from the gold business benefited from higher production as a result of the commissioning of the Boroo gold mine, while results at Bruce Power benefited from the restart of two A reactors. For more details on the uranium, conversion services, electricity and gold businesses, see "Business Segment Results" below in this report. In the second quarter of 2004, Cameco's earnings include a net gain of $4 million as a result of the reorganization of its gold assets. In the second quarter of 2004, total costs for administration, exploration, interest and other were about $22 million, $4 million higher than 2003. Administration costs increased by $5 million due to higher costs in gold subsidiaries and increased stock compensation expenses. Exploration expenditures rose by $2 million due to increased gold exploration activity in Central Asia and the United States. Interest and other costs decreased by about $3 million due to reduced foreign exchange losses. Excluding the tax adjustment, the effective tax rate decreased to 20% from 31% in 2003 due to a higher proportion of earnings from gold, which were earned in more favourable tax jurisdictions during 2004. Earnings from operations were $40 million in the second quarter of 2004 compared to $10 million in 2003. The aggregate gross profit margin increased to 26% from 13% in 2003. Year to Date For the first six months of 2004, net earnings were $105 million ($1.84 per share) compared to $141 million ($2.53 per share) in 2003. Excluding the tax adjustment recorded in 2003, net earnings for the first six months of 2004 increased by $50 million ($0.82 per share) compared to 2003. This increase was attributable to improved results in the uranium and gold businesses as well as stronger performance at Bruce Power. The improvement in the uranium business was due to a higher realized pric...See the full content of this document
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