Cameco Announces Second Quarter Financial Results For 1999.SASKATOON Saskatoon (săskət  n`), city (1991 pop. 186,058), S central Sask., Canada, on the South Saskatchewan River. , Saskatchewan--(BUSINESS WIRE)--July 23, 1999--Cameco Corporation(TSE See Tokyo Stock Exchange. TSE 1. See Tokyo Stock Exchange (TSE). 2. See Toronto Stock Exchange (TSE). :CCO (Chief or Corporate Compliance Officer) The executive person in charge of compliance issues, regulatory requirements, internal controls and managing audits within an enterprise or organization. .) (ME:CCO.) (NYSE NYSE See: New York Stock Exchange :CCJ See citizen journalism. ) To Our Shareholders Highlights from Bernard Ber·nard , Claude 1813-1878. French physiologist noted for his study of the digestive and nervous systems. Michel Michel named after Gaston Michel, a French surgeon (1875-1937). Michel clip metal skin sutures in various sizes from 8 to 16 mm long. Each clip is a 2 mm wide band of metal with a downturned sharp prong at each end. , Chair, President and Chief Executive Officer "The sale of assets to Cogema provides Cameco with an additional $250 million to pay down debt and an after tax gain of about $65 million which will be recorded in the third quarter. This transaction gives us greater flexibility in managing our business activities with more than one-third of our debt being eliminated." "Cameco's net earnings in the first half of 1999 were primarily impacted by a higher contribution from the company's nuclear activities and a lower contribution from the company's gold activities." "The McArthur River site is a hub of activity as employees and contractors remain on track to begin commercial production in the fourth quarter of 1999." "During the first half of 1999, strong demand from utilities and producers more than tripled the volume on the uranium uranium (y rā`nēəm), radioactive metallic chemical element; symbol U; at. no. 92; at. wt. 238.0289; m.p. 1,132°C;; b.p. 3,818°C;; sp. gr. 19. spot market
compared to last year. However, eager sellers were putting downward
pressure on the price by offering lower prices as the quarter
closed."
FINANCIAL HIGHLIGHTS
----------------------------------------------------------------------
Six Months Six Months
Ended Ended Percent
June 30/99 June 30/98 Change
----------------------------------------------------------------------
Revenue ($ millions) 328 289 13
Earnings from operations
($ millions) 57 59 -3
Cash provided by operations
($ millions) 69 81 -15
Net earnings attributable to
common shares ($ millions) 24 37 -35
Earnings per share ($) 0.41 0.65 -37
Average uranium spot price for
the period (US$/lb U3O8) 10.57 11.06 -4
Cameco's average realized gold
price for the period (US$/ounce) 347 405 -14
Average LME gold price for the
period (US$/ounce) 280 297 -6
----------------------------------------------------------------------
CONSOLIDATED FINANCIAL RESULTS CASH FLOW For the first half of 1999, Cameco's cash flow from operations Cash flow from operations A firm's net cash inflow resulting directly from its regular operations (disregarding extraordinary items such as the sale of fixed assets or transaction costs associated with issuing securities), calculated as the sum of net income plus noncash expenses after working capital changes (noted as other operating items), declined to $69 million ($1.20 per share) compared to $81 million in the same period last year. This was primarily due to the paydown Paydown A payment made towards an outstanding loan balance. Notes: Every time you make a mortgage payment you are "paying down" your loan. See also: Loan, Mortgage, Principal paydown In a corporate or U.S. of current liabilities Current Liabilities Usually appearing on a company's balance sheet, it represents the amount owed for interest, accounts payable, short-term loans, expenses incurred but unpaid, and other debts due within one year. . Before working capital changes, cash provided by operations was $108 million ($1.88 per share) compared to $103 million last year. Cash used in investing activities of $108 million primarily reflected development expenditures at McArthur River and Cigar Lake. EARNINGS Revenue in the first half of the year increased to $328 million from $289 million in 1998. This was due to higher uranium deliveries partly offset by lower realized uranium and gold prices and lower gold sales volume. Despite the increase in revenue, earnings from operations of $57 million were marginally lower than in the first half of 1998, reflecting lower realized gold prices, higher depreciation expenses for Kumtor and increased administration and interest charges. After preferred securities charges, net earnings attributable to common shares during the first six months were $24 million ($0.41 per share) compared to $37 million ($0.65 per share) in 1998. The 1998 results benefited from a lower effective income tax rate as a larger proportion of pre-tax earnings had been generated outside of Canada from our gold operations. Also in 1998, there were no charges for preferred securities as they were not issued until later in the year. FINANCIAL POSITION At June 30, 1999, total debt was $627 million compared to $601 million at December 31, 1998. In July 1999, Cameco announced the closing of the transaction in which Cogema Resources Inc. acquired an interest in selected Saskatchewan uranium assets for $250 million. The net proceeds Net Proceeds The amount received after all costs are deducted from the sale of a piece of property or security. Notes: In the case of an investor selling a security, net proceeds represent the proceeds from the sale minus any trading costs (i.e. commissions). were used to pay down debt and an after tax gain of approximately $65 million will be recognized in the third quarter. Including the effect of this transaction, Cameco's debt-to-capitalization ratio would decline to 15 percent, compared to 24 percent at the end of 1998. Also in July the company issued $100 million of 6.9 percent debentures with a seven-year term. The net proceeds were used to repay commercial paper as it matured, and therefore, the debentures do not represent increased indebtedness INDEBTEDNESS. The state, of being in debt, without regard to the ability or inability of the party to pay the same. See 1 Story, Eq. 343; 2 Hill. Ab. 421. 2. . The company has adopted the new Canadian New Canadian Noun Canad a recent immigrant to Canada guidelines guidelines, n.pl a set of standards, criteria, or specifications to be used or followed in the performance of certain tasks. regarding accounting for income taxes. The effect of this change was to increase property, plant and equipment and deferred income taxes as described in note 6 to the consolidated financial statements Consolidated Financial Statements The combined financial statements of a parent company and its subsidiaries. Notes: Because consolidated financial statements present an aggregated look at the financial position of a parent and its subsidiaries, they enable you to gauge . SEGMENTED FINANCIAL RESULTS NUCLEAR BUSINESS During the first half of 1999, nuclear revenue increased to $278 million from $212 million a year ago. Sales volume rose by more than 40 percent for U3O8 and 8 percent for conversion services due to normal variations in delivery patterns and in the case of U3O8, the addition of the Uranerz delivery commitments. Cameco's average realized price for uranium concentrates declined due to lower U3O8 spot prices which averaged about 4 percent less than in the first half of last year. Cost of products and services sold, including depreciation, depletion depletion n. when a natural resource (particularly oil) is being used up. The annual amount of depletion may, ironically, provide a tax deduction for the company exploiting the resource because if the resource they are exploiting runs out, they will no longer be able and reclamation Reclamation A claim for the right to return or the right to demand the return of a security that has been previously accepted as a result of bad delivery or other irregularities in the delivery and settlement process. were lower on a per unit basis but, in aggregate increased by 27 percent reflecting the increase in uranium and conversion delivery volumes. The unit cost for uranium has been favourably influenced by the Uranerz acquisition which has increased Cameco's share of low-cost production from the Key Lake and Rabbit Lake mines Rabbit Lake mine is the second largest uranium mine in the western world. The closest community is Wollaston Lake, about 40 kilometers by lake or air. This mine was started in 1975 after the orebody was discovered in 1968, and is the longest operating uranium mine in Saskatchewan. . GOLD BUSINESS Gold revenue of $51 million for the first six months of 1999 was down 34 percent from a year earlier due to both lower sales volume and prices. To date in 1999, the average realized gold price was $347 (US) per ounce ounce, in zoology ounce, in zoology: see leopard. ounce, unit of measurement ounce: see English units of measurement. compared to $405 (US) through the first six months of 1998. Approximately half of the decline in sales volume is due to the shutdown shut·down n. A cessation of operations or activity, as at a factory. shutdown Noun the closing of a factory, shop, or other business Verb shut down of Contact Lake mine in mid- mid- pref. Middle: midbrain. 1998. At Kumtor, production to date is on budget and cash costs remain below $175 (US) per ounce. OUTLOOK Compared to 1998, total forecast revenue for 1999 is expected to show a modest increase. Product costs in 1999 and over the following two years are expected to be variable as the company manages the transition from depleted de·plete tr.v. de·plet·ed, de·plet·ing, de·pletes To decrease the fullness of; use up or empty out. [Latin d orebodies to the startup of new, high-grade High-grade Credit quality of AAA or AA. high-grade Of, relating to, or being a bond with little risk of default on the part of the issuer. High-grade is usually reserved for bonds rated AAA or AA by the rating services. operations in northern Saskatchewan. For the remainder of the year, a $1.00 (US) change in the U3O8 spot price from current levels would change revenue by about $9 million (Cdn) and net earnings by about $3 million (Cdn). The gold hedge position at the end of June 1999 was 501,000 ounces at an average price of $305 (US). Kumtor gold production for the year is expected to exceed 600,000 ounces (Cameco's share is one-third). Kumtor's life of mine plan is presently under review along with the value at which Cameco carries the Kumtor investment in its financial statements. Cameco's quarterly earnings fluctuate significantly with the timing of uranium deliveries, and therefore, annual results may not be reliably extrapolated from the quarterly results. URANIUM SPOT MARKET Uranium spot prices averaged $10.41 (US) per pound U3O8 on June 30, 1999, a decrease of 4 percent from $10.80 (US) at the end of the first quarter. Although spot demand from utilities and producers was stronger than last year, eager sellers were concluding sales by offering lower prices as the quarter came to a close. During the quarter, total spot market volume was approximately 5 million pounds U3O8 bringing the year-to-date Year-to-date (YTD) The period beginning at the start of the calendar year up to the current date. total to more than 13 million pounds, a significant improvement over the 4 million pounds sold in the first half of 1998. The spot market price for uranium conversion services also declined during the quarter by 12 percent, closing at $3.40 (US) compared to $3.85 (US) at the beginning of the quarter. Prices weakened weak·en tr. & intr.v. weak·ened, weak·en·ing, weak·ens To make or become weak or weaker. weak  en·er n. as
non-primary suppliers were aggressive in selling conversion for
near-term delivery.URANIUM LONG-TERM Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. MARKET The long-term market continued to be relatively quiet in the second quarter with the long-term uranium price indicator declining marginally to $11.65 (US) per pound U3O8 from $11.75 (US) at the end of the previous quarter. Demand in the long-term market is expected to increase over the remainder of the year as utilities move to cover future needs and volume for the year is expected to exceed the 1998 estimated level of 50 million pounds U3O8. MARKET DEVELOPMENT On May 14, 1999, ConverDyn, a US convertor, announced that it was reducing its annual production by 25 percent or about 3,200 tonnes U as UF6. This reduction represents about 7 percent of western world UF6 production capacity. OPERATION AND DEVELOPMENT UPDATES Key Lake mill operations were shut down at the end of June to retrofit ret·ro·fit v. ret·ro·fit·ted or ret·ro·fit, ret·ro·fit·ting, ret·ro·fits v.tr. 1. To provide (a jet, automobile, computer, or factory, for example) with parts, devices, or equipment not in the plant for processing of McArthur River ore The River Ore is a wide tidal estuary river in Suffolk, England. It is a river with a split personality, having only one bank -- the Southern and Western bank are of the Ore giving Orford its name, whilst on the Northern and Eastern bank, the river is known as the River Alde giving . The mill is expected to be back in operation in the fourth quarter of 1999. Construction of the ore receiving station continued during the second quarter. Also, at Key Lake, contract negotiations continued during the quarter with the United Steel Workers of America. At McArthur River, freeze hole drilling has been completed around the initial mining area and the freezing system has been put into full operation. Freezing of the first mining area is essential prior to the start of mining. Sinking of shaft shaft (shaft) a long slender part, such as the diaphysis of a long bone. shaft n. 1. An elongated rodlike structure, such as the midsection of a long bone. 2. number two has now been completed. Work on shaft number three, scheduled for completion in 2001, has been started. Construction of all surface facilities is expected to be complete in September after which mine commissioning will begin. The project remains within the feasibility study The analysis of a problem to determine if it can be solved effectively. The operational (will it work?), economical (costs and benefits) and technical (can it be built?) aspects are part of the study. Results of the study determine whether the solution should be implemented. cost estimates and on schedule for startup in the fourth quarter of 1999. Cameco has filed an application for the McArthur River operating licence with the Atomic Energy atomic energy: see nuclear energy. Control Board (AECB AECB Acute exacerbation of chronic bronchitis. See Chronic bronchitis. ). The AECB has given initial consideration to the application and an operating licence should be received early in the fourth quarter. At Cigar Lake, additional testing of the jet boring tools (Metal Working) a cutting tool placed in a cutter head to dress round holes. - Knight. See also: Boring was successfully completed, further confirming the potential of this innovative mining technology. In June, the United States Enrichment Corporation The United States Enrichment Corporation, a subsidiary of USEC Inc. NYSE: USU, is a corporation that contracts with the United States Department of Energy to produce enriched uranium for use in nuclear power plants. The Energy Policy Act of 1992, a U.S. (USEC USEC Microsecond USEC United States Enrichment Corporation USEC United States East Coast USEC Unity Security Force (gaming) USEC Universal Services Echo Canceller USEC Umts Security USEC User Based Security Model ) announced the suspension of the Atomic Vapor Laser Isotope Separation AVLIS Is an acronym which stands for atomic vapor laser isotope separation and is a method by which specially tuned lasers are used to separate isotopes of uranium using selective ionization of hyperfine transitions. In the largest technology transfer in U.S. (AVLIS AVLIS Atomic Vapor Laser Isotope Separation ) enrichment enrichment Food industry The addition of vitamins or minerals to a food–eg, wheat, which may have been lost during processing. See White flour; Cf Whole grains. project. Cameco has partnered with USEC in developing a process to supply metal grade feed to the AVLIS project. USEC will refund TO REFUND. To pay back by the party who has received it, to the party who has paid it, money which ought not to have been paid. 2. On a deficiency of assets, executors and administrators cum testamento annexo, are entitled to have refunded to them legacies Cameco's contribution to the partnership of approximately $3 million (Cdn). The company's marketing sales force will be relocated re·lo·cate v. re·lo·cat·ed, re·lo·cat·ing, re·lo·cates v.tr. To move to or establish in a new place: relocated the business. v.intr. to a new Minneapolis office effective August 1, 1999. YEAR 2000 READINESS Cameco's overall year 2000 readiness program is progressing in accordance Accordance is Bible Study Software for Macintosh developed by OakTree Software, Inc.[] As well as a standalone program, it is the base software packaged by Zondervan in their Bible Study suites for Macintosh. with expectations and the company has met all milestone dates in its project plan. Core business information systems have been fully assessed and remediation activities are essentially complete. A quality assurance (QA) program was established to ensure that critical corporate business systems were subjected to an additional level of integrated testing in a simulated end user production environment. The QA test plan was completed successfully by June 30, 1999. The company has completed its corporate-wide impact assessment of imbedded systems See embedded system. and utilized an external audit process to independently review the results achieved at Cameco's Canadian Canadian (kənā`dēən), river, 906 mi (1,458 km) long, rising in NE New Mexico. and flowing E across N Texas and central Oklahoma into the Arkansas River in E Oklahoma. locations. Replacement and/or remediation of identified at-risk imbedded systems components is substantially complete with only a small number of items remaining to be addressed during the routine maintenance shutdowns in July and August 1999. While business partners generally have responded in a positive manner regarding their year 2000 planning, this information cannot be verified ver·i·fy tr.v. ver·i·fied, ver·i·fy·ing, ver·i·fies 1. To prove the truth of by presentation of evidence or testimony; substantiate. 2. , and therefore, should be viewed with some caution. At Kumtor, the company views the Y2K See Y2K problem and Y2K compliant. Y2K - Year 2000 uncertainty to be greater because of the low profile of this issue in the local environment. The development and implementation of a year 2000 business continuity planning Business Continuity Planning (BCP) is an interdisciplinary peer mentoring methodology used to create and validate a practiced logistical plan for how an organization will recover and restore partially or completely interrupted critical function(s) within a predetermined process began in April 1999. This process utilizes a standard methodology which is being deployed at operating locations through on-site visits of a corporate contingency contingency n. an event that might not occur. planning facilitator. The cost estimate for the entire program remains unchanged at under $1 million. The effects of the year 2000 issue may be experienced before, on, or after January 1, 2000, and, if not addressed, the impact on operations and financial reporting may have a material adverse effect on Cameco's business and financial condition. It is not possible to be certain that all aspects of the year 2000 issues affecting the company (including the operations of the Kumtor gold mine Kumtor Gold Mine is an open-pit gold mining site in Issyk Kul Province of Kyrgyzstan located about 350 km (220 mi) southeast of the capital Bishkek and 80 km (50 mi) south of Lake Issyk-Kul near the border with China. ) will be fully resolved, including those related to the efforts of customers, suppliers or third parties. FORWARD LOOKING STATEMENTS Certain statements in this report to shareholders constitute forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. as defined in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. Such forward looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of Cameco or of the uranium or gold business to be materially different from future results, performance or achievements expressed or implied by those forward-looking statements. These factors are discussed in greater detail in Cameco's most recent Annual Information Form and Management's Discussion and Analysis Management's discussion and analysis (MD&A) A report from management to shareholders that accompanies the firm's financial statements in the annual report. It explains the period's financial results and enables management to discuss topics that may not be apparent in the financial on file with the Canadian provincial securities regulatory authorities Noun 1. regulatory authority - a governmental agency that regulates businesses in the public interest regulatory agency administrative body, administrative unit - a unit with administrative responsibilities and the United States Securities and Exchange Commission. PROFILE Cameco is the world's largest publicly traded uranium producer. The company has underground uranium mines Uranium mining is presently carried out in more than 25 countries around the world. An estimated 100 or more uranium mines in different stages of development are reported. Major uranium mines are located in Canada, Australia and Kazakhstan that contribute more than half of world's uranium in Saskatchewan, Canada, in situ In place. When something is "in situ," it is in its original location. leach leach v. leached, leach·ing, leach·es v.tr. 1. To remove soluble or other constituents from by the action of a percolating liquid. 2. uranium facilities in Wyoming and Nebraska in the United States, uranium refining refining, any of various processes for separating impurities from crude or semifinished materials. It includes the finer processes of metallurgy, the fractional distillation of petroleum into its commercial products, and the purifying of cane, beet, and maple sugar and conversion facilities in Ontario, Canada and a gold mine in Kyrgyzstan, Central Asia. The company's uranium products are used to generate electricity in nuclear energy plants around the world, providing one of the cleanest sources of energy available today.
INVESTOR INFORMATION
COMMON SHARES
CCO
The Toronto Stock Exchange
The Montreal Exchange
CCJ
New York Stock Exchange
PREFERRED SECURITIES
CCJPR
New York Stock Exchange
INVESTOR INQUIRIES
Cameco Corporation
2121 - 11th Street West
Saskatoon, Saskatchewan
S7M 1J3
Phone: (306) 956-6400
Fax: (306) 956-6318
Web: www.cameco.com
TRANSFER AGENT
CIBC Mellon Trust Company
1080 - 2002 Victoria Avenue
Regina, Saskatchewan
S4P 0R7
Phone: (306) 751-7550
Fax: (306) 751-7552
CAMECO CORPORATION
CONSOLIDATED BALANCE SHEETS
(Unaudited)
(In Thousands)
As at
-------------------------------------
June 30/99 December 31/98 June 30/98
--------------------------------------------------------------
ASSETS
Current assets
Cash $20,191 $36,466 $127,882
Accounts receivable 100,263 124,247 68,610
Inventories 364,755 344,451 326,208
Supplies and prepaid
expenses 54,181 51,467 41,940
--------------------------------------------------------------
539,390 556,631 564,640
Property, plant and
equipment 2,333,615 1,989,011 1,360,870
Long-term receivables,
investments and other 188,134 210,160 188,456
Inventories 163,207 182,805 178,317
--------------------------------------------------------------
2,684,956 2,381,976 1,727,643
--------------------------------------------------------------
TOTAL ASSETS $3,224,346 $2,938,607 $2,292,283
--------------------------------------------------------------
--------------------------------------------------------------
LIABILITIES AND
SHAREHOLDERS' EQUITY
Current liabilities
Short-term debt - $32,651 -
Accounts payable and
accrued liabilities 79,777 116,335 61,592
Dividends payable 7,213 7,207 7,201
Current portion of
long-term debt 27,579 28,631 26,420
Current portion of other
liabilities 5,095 14,406 18,665
--------------------------------------------------------------
119,664 199,230 113,878
Long-term debt 599,688 540,116 268,448
Provision for reclamation 108,006 105,995 92,757
Other liabilities 10,274 19,052 14,471
Deferred income taxes 482,810 170,940 78,189
--------------------------------------------------------------
1,200,778 836,103 453,865
Shareholders' equity
Preferred securities 179,762 186,985 -
Share capital 689,038 687,658 686,930
Contributed surplus 496,745 496,745 496,745
Retained earnings 518,661 509,326 517,384
Cumulative translation
account 19,698 22,560 23,481
--------------------------------------------------------------
1,903,904 1,903,274 1,724,540
--------------------------------------------------------------
TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY $3,224,346 $2,938,607 $2,292,283
--------------------------------------------------------------
--------------------------------------------------------------
See accompanying notes to consolidated financial statements
CAMECO CORPORATION
CONSOLIDATED STATEMENTS OF EARNINGS
(Unaudited)
(In Thousands)
Three Months Ended Six Months Ended
June 30/99 June 30/98 June 30/99 June 30/98
--------------------------------------------------------------
REVENUE FROM
Products and
services $181,428 $156,997 $328,415 $288,873
--------------------------------------------------------------
EXPENSES
Products and services
sold 97,335 81,803 177,412 151,058
Depreciation,
depletion and
reclamation 30,443 28,252 60,309 53,936
Administration 10,932 7,628 17,839 14,426
Exploration 4,463 6,541 10,227 12,535
Research and
development 638 608 1,133 1,174
Interest, net 3,083 (1,267) 4,463 (3,441)
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146,894 123,565 271,383 229,688
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EARNINGS FROM
OPERATIONS 34,534 33,432 57,032 59,185
Income tax expense
- current 3,723 1,006 3,803 927
- deferred 13,694 13,061 24,990 21,089
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NET EARNINGS 17,117 19,365 28,239 37,169
Preferred securities
charges 2,215 - 4,482 -
--------------------------------------------------------------
NET EARNINGS ATTRIBUTABLE
TO COMMON SHARES $14,902 $19,365 $23,757 $37,169
--------------------------------------------------------------
EARNINGS PER COMMON
SHARE $0.26 $0.34 $0.41 $0.65
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CAMECO CORPORATION
CONSOLIDATED STATEMENTS OF RETAINED EARNINGS
(Unaudited)
(In Thousands)
Three Months Ended Six Months Ended
June 30/99 June 30/98 June 30/99 June 30/98
--------------------------------------------------------------
Retained earnings
at beginning of
period $510,972 $505,220 $509,326 $494,608
Net earnings 17,117 19,365 28,239 37,169
Dividends on common
shares (7,213) (7,201) (14,422) (14,393)
Preferred securities
charges (2,215) - (4,482) -
--------------------------------------------------------------
RETAINED EARNINGS AT
END OF PERIOD $518,661 $517,384 $518,661 $517,384
--------------------------------------------------------------
--------------------------------------------------------------
See accompanying notes to consolidated financial statements
CAMECO CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOW
(Unaudited)
(In Thousands)
Three Months Ended Six Months Ended
June 30/99 June 30/98 June 30/99 June 30/98
--------------------------------------------------------------
OPERATING ACTIVITIES
Net earnings $17,117 $19,365 $28,239 $37,169
Items not requiring
(providing) cash:
Depreciation,
depletion and
reclamation 30,443 28,252 60,309 53,936
Provision for
deferred taxes 13,694 13,110 24,990 21,138
Deferred revenue
recognized (1,235) (5,288) (5,807) (9,193)
Other operating
items (24,842) 4,121 (38,807) (21,768)
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CASH PROVIDED BY
OPERATIONS 35,177 59,560 68,924 81,282
--------------------------------------------------------------
INVESTING ACTIVITIES
Additions to property,
plant and
equipment (56,869) (35,705) (108,017) (64,829)
Change in long-term
receivables,
investments and
other - (3,450) - 4,932
Proceeds on sale of
property, plant and
equipment 409 2,027 409 2,059
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CASH USED IN
INVESTING (56,460) (37,128) (107,608) (57,838)
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FINANCING ACTIVITIES
Increase in debt 46,237 9,662 84,660 150,602
Repayment of debt (44,732) - (44,732) (143,650)
Issue of shares 503 1,027 1,379 2,138
Preferred securities
charges (2,215) - (4,482) -
Dividends (7,209) (7,192) (14,416) (14,374)
--------------------------------------------------------------
CASH PROVIDED BY
(USED IN) FINANCING (7,416) 3,497 22,409 (5,284)
--------------------------------------------------------------
Increase (decrease)
in cash during the
period (28,699) 25,929 (16,275) 18,160
Cash at beginning
of period 48,890 101,953 36,466 109,722
--------------------------------------------------------------
CASH AT END OF
PERIOD $20,191 $127,882 $20,191 $127,882
--------------------------------------------------------------
--------------------------------------------------------------
See accompanying notes to consolidated financial statements
CAMECO CORPORATION
HIGHLIGHTS
(Unaudited)
Three Months Ended Six Months Ended
June 30/99 June 30/98 June 30/99 June 30/98
--------------------------------------------------------------
FINANCIAL (IN MILLIONS)
Revenue $181 $157 $328 $289
Earnings from
operations 35 33 57 59
Net earnings
attributable to
common shares 15 19 24 37
Cash provided by
operations 35 60 69 81
Working capital
(end of period) - - 420 451
Total debt to
capitalization(Percent) - - 25 15
PER COMMON SHARE
Net earnings $0.26 $0.34 $0.41 $0.65
Cash provided by
operations 0.61 1.04 1.20 1.42
Dividend 0.125 0.125 0.250 0.250
Weighted average number
of paid common shares
outstanding
(in thousands) 57,403 57,262 57,387 57,239
AVERAGE URANIUM SPOT
PRICE FOR THE PERIOD
(US$/LB) $10.62 $10.84 $10.57 $11.06
Note: Currency amounts are expressed in Canadian dollars
unless stated otherwise.
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Cameco's Three Months Ended
CAMECO PRODUCTION Share (Percent) June 30/99 June 30/98
--------------------------------------------------------------
URANIUM PRODUCTION
(IN THOUSANDS LBS U3O8)
Key Lake 100.0 3,757 3,406
Rabbit Lake 100.0 1,850 3,577
Highland 100.0 236 255
Crow Butte 90.0 195 167
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Total 6,038 7,405
--------------------------------------------------------------
URANIUM CONVERSION (tU) 100.0 2,785 2,865
GOLD (TROY OUNCES)
Contact Lake 100.0 - 12,408
Kumtor 33.3 47,996 51,495
--------------------------------------------------------------
Total 47,996 63,903
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Cameco's Six Months Ended
CAMECO PRODUCTION Share(Percent) June 30/99 June 30/98
--------------------------------------------------------------
URANIUM PRODUCTION
(IN THOUSANDS LBS U3O8)
Key Lake 100.0 7,381 6,723
Rabbit Lake 100.0 3,302 6,600
Highland 100.0 541 534
Crow Butte 90.0 375 329
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Total 11,599 14,186
--------------------------------------------------------------
URANIUM CONVERSION (tU) 100.0 6,384 6,325
GOLD (TROY OUNCES)
Contact Lake 100.0 - 26,648
Kumtor 33.3 96,777 105,926
--------------------------------------------------------------
Total 96,777 132,574
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CAMECO CORPORATION
SEGMENTED INFORMATION
(Unaudited)
(In Thousands)
FOR THE SIX MONTHS Non-
ENDED JUNE 30, 1999 Nuclear Gold Segmented Total
--------------------------------------------------------------
Revenue $277,867 $50,548 - $328,415
Products and services
sold 154,502 22,910 - 177,412
Depreciation, depletion
and reclamation 38,903 20,314 1,092 60,309
Administration - - 17,839 17,839
Exploration 5,190 5,037 - 10,227
Research & development 1,133 - - 1,133
Interest, net - - 4,463 4,463
--------------------------------------------------------------
Earnings before income
taxes 78,139 2,287 (23,394) 57,032
Income taxes 28,793 28,793
--------------------------------------------------------------
Net earnings 28,239
Preferred securities
charges 4,482 4,482
--------------------------------------------------------------
Net earnings attributable
to common shares $23,757
--------------------------------------------------------------
--------------------------------------------------------------
FOR THE SIX MONTHS Non-
ENDED JUNE 30, 1998 Nuclear Gold Segmented Total
--------------------------------------------------------------
Revenue $211,672 $77,201 - $288,873
Products and services
sold 118,939 32,119 - 151,058
Depreciation, depletion
and reclamation 32,536 20,370 1,030 53,936
Administration - - 14,426 14,426
Exploration 6,657 5,878 - 12,535
Research & development 1,174 - - 1,174
Interest, net - - (3,441) (3,441)
--------------------------------------------------------------
Earnings before income
taxes 52,366 18,834 (12,015) 59,185
Income taxes 22,016 22,016
--------------------------------------------------------------
Net earnings 37,169
Preferred securities charges - -
--------------------------------------------------------------
Net earnings attributable
to common shares $37,169
--------------------------------------------------------------
--------------------------------------------------------------
Notes to Consolidated Financial Statements: 1. These interim financial statements have been prepared in accordance with Canadian generally accepted accounting principles The standard accounting rules, regulations, and procedures used by companies in maintaining their financial records. Generally accepted accounting principles (GAAP) provide companies and accountants with a consistent set of guidelines that cover both broad accounting . 2. The interim financial statements, which include the use of estimates and judgments, contain all adjustments that management believes are necessary for fair presentation of Cameco's financial position, results of operations and changes in financial position. 3. The interim financial statements should be read in conjunction with, and are based on the same accounting policies as contained in, Cameco's 1998 annual report. 4. At June 30, 1999, there were 57,703,374 common shares outstanding. 5. Cameco's contingent obligation under guarantees of the repayment of Kumtor senior debt exceed the amount included in Cameco's long-term debt Long-Term Debt Loans and financial obligations lasting over one year. Notes: For example debts obligations such as bonds and notes which have maturities greater than one year would be considered long-term debt. at June 30, 1999 by $212 million. 6. In the second quarter of 1999, Cameco changed its policy for accounting for income taxes. Section 3465 of the Handbook
This article is about reference works. For the subnotebook computer, see .
adj. Influencing or applying to a period prior to enactment: a retroactive pay increase. [French rétroactif, from Latin without restatement Restatement A revision in a company's earlier financial statements. Notes: The need for restating financial figures can result from fraud, misrepresentation, or a simple clerical error. of prior period financial statements. The effect of this change was an increase to property, plant and equipment of $292 million with an offsetting increase in deferred income taxes payable. There was no impact on retained earnings Retained Earnings The percentage of net earnings not paid out in dividends, but retained by the company to be reinvested in its core business or to pay debt. It is recorded under shareholders equity on the balance sheet. . 7. Certain comparative figures for the prior period have been reclassified to conform to Verb 1. conform to - satisfy a condition or restriction; "Does this paper meet the requirements for the degree?" fit, meet coordinate - be co-ordinated; "These activities coordinate well" the current period's presentation. |
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