EX-99.3

EX-99.3 4 d570853dex993.htm EX-99.3 EX-99.3

Exhibit 99.3

LOGO

Cameco Corporation

2023 condensed consolidated interim financial statements

(unaudited)

August 1, 2023

Cameco Corporation

Consolidated statements of earnings


(Unaudited)		Three months ended						Six months ended
($Cdn thousands, except per share amounts)	Note	Jun 30/23			Jun 30/22			Jun 30/23			Jun 30/22
Revenue from products and services	11	$	481,987		$	557,577		$	1,168,961		$	955,615
Cost of products and services sold			330,162			403,449			773,584			711,060
Depreciation and amortization			41,852			61,197			118,225			101,798

Cost of sales	19		372,014			464,646			891,809			812,858

Gross profit			109,973			92,931			277,152			142,757
Administration			57,048			23,847			121,059			81,627
Exploration			3,878			2,304			10,157			4,922
Research and development			5,107			3,365			9,339			6,166
Other operating expense (income)	9		8,389			(20,668	)		6,342			(40,641	)
Loss (gain) on disposal of assets			276			132			276			(212	)

Earnings from operations			35,275			83,951			129,979			90,895
Finance costs	12		(22,744	)		(20,368	)		(46,342	)		(39,099	)
Gain (loss) on derivatives	18		28,729			(28,223	)		30,999			(18,288	)
Finance income			31,098			4,478			58,639			6,429
Share of earnings from equity-accounted investee	7		7,726			26,505			64,262			69,528
Other income (expense)	13		(43,033	)		44,172			(45,618	)		39,915

Earnings before income taxes			37,051			110,515			191,919			149,380
Income tax expense	14		23,358			26,578			59,262			25,159

Net earnings			13,693			83,937			132,657			124,221

Net earnings (loss) attributable to:
Equity holders		$	13,693		$	83,979		$	132,662		$	124,329
Non-controlling interest			—			(42	)		(5	)		(108	)

Net earnings		$	13,693		$	83,937		$	132,657		$	124,221

Earnings per common share attributable to equity holders:
Basic	15	$	0.03		$	0.21		$	0.31		$	0.31

Diluted	15	$	0.03		$	0.21		$	0.31		$	0.31

See accompanying notes to condensed consolidated interim financial statements.

Cameco Corporation

Consolidated statements of comprehensive earnings


(Unaudited)	Three months ended						Six months ended
($Cdn thousands)	Jun 30/23			Jun 30/22			Jun 30/23			Jun 30/22
Net earnings	$	13,693		$	83,937		$	132,657		$	124,221
Other comprehensive loss, net of taxes
Items that will not be reclassified to net earnings:
Items that are or may be reclassified to net earnings:
Exchange differences on translation of foreign operations		(1,270	)		(31,556	)		(3,901	)		(34,223	)

Other comprehensive loss, net of taxes		(1,270	)		(31,556	)		(3,901	)		(34,223	)

Total comprehensive income	$	12,423		$	52,381			128,756			89,998

Other comprehensive income (loss) attributable to:
Equity holders	$	(1,270	)	$	(31,558	)	$	(3,901	)	$	(34,225	)
Non-controlling interest		—			2			—			2

Other comprehensive loss	$	(1,270	)	$	(31,556	)	$	(3,901	)	$	(34,223	)

Total comprehensive income (loss) attributable to:
Equity holders	$	12,423		$	52,421		$	128,761		$	90,104
Non-controlling interest		—			(40	)		(5	)		(106	)

Total comprehensive income	$	12,423		$	52,381		$	128,756		$	89,998

See accompanying notes to condensed consolidated interim financial statements.

Cameco Corporation

Consolidated statements of financial position


(Unaudited)			As at
($Cdn thousands)	Note		Jun 30/23		Dec 31/22
Assets
Current assets
Cash and cash equivalents			$	2,453,960	$	1,143,674
Short-term investments				19,444		1,138,174
Accounts receivable				275,628		183,944
Current tax assets				3,759		1,056
Inventories		5		633,397		664,698
Supplies and prepaid expenses				184,328		157,910
Current portion of long-term receivables, investments and other		6		23,098		32,180

Total current assets				3,593,614		3,321,636

Property, plant and equipment				3,370,921		3,473,490
Intangible assets				45,112		47,117
Long-term receivables, investments and other		6		545,997		595,507
Investment in equity-accounted investee		7		162,752		210,972
Deferred tax assets				944,375		984,071

Total non-current assets				5,069,157		5,311,157

Total assets			$	8,662,771	$	8,632,793

Liabilities and shareholders’ equity
Current liabilities
Accounts payable and accrued liabilities				265,062		374,714
Current tax liabilities				14,190		6,498
Current portion of long-term debt				499,614		—
Current portion of other liabilities		8		165,470		131,324
Current portion of provisions		9		43,044		48,305

Total current liabilities				987,380		560,841

Long-term debt				497,774		997,000
Other liabilities		8		199,965		216,162
Provisions		9		1,003,427		1,022,725

Total non-current liabilities				1,701,166		2,235,887

Shareholders’ equity
Share capital		10		2,897,540		2,880,336
Contributed surplus				216,884		224,687
Retained earnings				2,829,044		2,696,379
Other components of equity				30,751		34,652

Total shareholders’ equity attributable to equity holders				5,974,219		5,836,054
Non-controlling interest				6		11

Total shareholders’ equity				5,974,225		5,836,065

Total liabilities and shareholders’ equity			$	8,662,771	$	8,632,793

Commitments and contingencies [notes 9, 14, 21]

See accompanying notes to condensed consolidated interim financial statements.

Cameco Corporation

Consolidated statements of changes in equity


	Attributable to equity holders
(Unaudited) ($Cdn thousands)	Share capital		Contributed surplus			Retained earnings		Foreign currency translation			Equity investments at FVOCI			Total			Non- controlling interest			Total equity
Balance at January 1, 2023	$	2,880,336	$	224,687		$	2,696,379	$	35,400		$	(748	)	$	5,836,054		$	11		$	5,836,065
Net earnings (loss)		—		—			132,662		—			—			132,662			(5	)		132,657
Other comprehensive loss		—		—			—		(3,901	)		—			(3,901	)		—			(3,901	)

Total comprehensive income (loss) for the period		—		—			132,662		(3,901	)		—			128,761			(5	)		128,756

Share-based compensation		—		1,761			—		—			—			1,761			—			1,761
Stock options exercised		17,204		(3,155	)		—		—			—			14,049			—			14,049
Restricted share units released		—		(6,409	)		—		—			—			(6,409	)		—			(6,409	)
Dividends		—		—			3		—			—			3			—			3

Balance at June 30, 2023	$	2,897,540	$	216,884		$	2,829,044	$	31,499		$	(748	)	$	5,974,219		$	6		$	5,974,225

Balance at January 1, 2022	$	1,903,357	$	230,039		$	2,639,650	$	73,543		$	(748	)	$	4,845,841		$	127		$	4,845,968
Net earnings (loss)		—		—			124,329		—			—			124,329			(108	)		124,221
Other comprehensive income (loss)		—		—			—		(34,225	)		—			(34,225	)		2			(34,223	)

Total comprehensive income (loss) for the period		—		—			124,329		(34,225	)		—			90,104			(106	)		89,998

Share-based compensation		—		1,579			—		—			—			1,579			—			1,579
Stock options exercised		11,562		(2,366	)		—		—			—			9,196			—			9,196
Restricted share units released		—		(6,201	)		—		—			—			(6,201	)		—			(6,201	)
Dividends		—		—			3		—			—			3			—			3

Balance at June 30, 2022	$	1,914,919	$	223,051		$	2,763,982	$	39,318		$	(748	)	$	4,940,522		$	21		$	4,940,543

See accompanying notes to condensed consolidated interim financial statements.

Cameco Corporation

Consolidated statements of cash flows


(Unaudited)			Three months ended						Six months ended
($Cdn thousands)	Note		Jun 30/23			Jun 30/22			Jun 30/23			Jun 30/22
Operating activities
Net earnings			$	13,693		$	83,937		$	132,657		$	124,221
Adjustments for:
Depreciation and amortization				41,852			61,197			118,225			101,798
Deferred charges				(6,270	)		20,184			(21,212	)		19,223
Unrealized loss (gain) on derivatives				(34,601	)		32,527			(40,883	)		25,422
Share-based compensation		17		912			769			1,761			1,579
Loss (gain) on disposal of assets				276			132			276			(212	)
Finance costs		12		22,744			20,368			46,342			39,099
Finance income				(31,099	)		(4,478	)		(58,639	)		(6,429	)
Share of earnings in equity-accounted investee				(7,726	)		(26,505	)		(64,262	)		(69,528	)
Other operating expense (income)		9		8,389			(20,668	)		6,342			(40,641	)
Other expense (income)		13		43,032			(44,173	)		45,618			(39,915	)
Income tax expense		14		23,358			26,578			59,262			25,159
Interest received				33,322			4,125			60,766			6,020
Income taxes received (paid)				79,065			(987	)		71,605			(358	)
Dividends from equity-accounted investee				113,642			104,943			113,642			104,943
Other operating items		16		(213,675	)		(156,391	)		(169,430	)		(16,637	)

Net cash provided by operations				86,914			101,558			302,070			273,744

Investing activities
Additions to property, plant and equipment				(39,986	)		(36,022	)		(66,895	)		(66,071	)
Acquisitions [note 4]				—			(101,669	)		—			(101,669	)
Decrease (increase) in short-term investments				809,228			(172,154	)		1,117,180			(276,999	)
Decrease (increase) in long-term receivables, investments and other				1,000			(2,000	)		1,000			(2,000	)
Proceeds from sale of property, plant and equipment				36			(76	)		36			278

Net cash provided by (used in) investing				770,278			(311,921	)		1,051,321			(446,461	)

Financing activities
Interest paid				(19,008	)		(19,130	)		(19,798	)		(19,372	)
Lease principal payments				(319	)		(543	)		(904	)		(1,165	)
Proceeds from issuance of shares, stock option plan				4,437			477			14,049			9,196
Dividends returned				—			—			4			5

Net cash used in financing				(14,890	)		(19,196	)		(6,649	)		(11,336	)

Increase (decrease) in cash and cash equivalents, during the period				842,302			(229,559	)		1,346,742			(184,053	)
Exchange rate changes on foreign currency cash balances				(35,225	)		4,663			(36,456	)		1,014
Cash and cash equivalents, beginning of period				1,646,883			1,289,304			1,143,674			1,247,447

Cash and cash equivalents, end of period			$	2,453,960		$	1,064,408		$	2,453,960		$	1,064,408

Cash and cash equivalents is comprised of:
Cash										893,718			679,945
Cash equivalents										1,560,242			384,463

Cash and cash equivalents									$	2,453,960		$	1,064,408

See accompanying notes to condensed consolidated interim financial statements.

Cameco Corporation

Notes to condensed consolidated interim financial statements

(Unaudited)

(Cdn$ thousands, except per share amounts and as noted)

1.	Cameco Corporation

Cameco Corporation is incorporated under the Canada Business Corporations Act. The address of its registered office is 2121 11th Street West, Saskatoon, Saskatchewan, S7M 1J3. The condensed consolidated interim financial statements as at and for the period ended June 30, 2023 comprise Cameco Corporation and its subsidiaries (collectively, the Company or Cameco) and the Company’s interests in associates and joint arrangements.

Cameco is one of the world’s largest providers of the uranium needed to generate clean, reliable baseload electricity around the globe. The Company has mines in northern Saskatchewan and the United States, as well as a 40% interest in Joint Venture Inkai LLP (JV Inkai), a joint arrangement with Joint Stock Company National Atomic Company Kazatomprom (Kazatomprom), located in Kazakhstan. JV Inkai is accounted for on an equity basis (see note 7).

Cameco has two operating mines, Cigar Lake and McArthur River. Operations at McArthur River/Key Lake, which had been suspended in 2018, resumed in November of 2022. The Rabbit Lake operation was placed in care and maintenance in 2016. Cameco’s operations in the United States, Crow Butte and Smith Ranch-Highland, are also not currently producing as the decision was made in 2016 to curtail production and defer all wellfield development. See note 19 for the financial statement impact.

The Company is also a leading provider of nuclear fuel processing services, supplying much of the world’s reactor fleet with the fuel to generate one of the cleanest sources of electricity available today. It operates the world’s largest commercial refinery in Blind River, Ontario, controls a significant portion of the world UF₆ primary conversion capacity in Port Hope, Ontario and is a leading manufacturer of fuel assemblies and reactor components for CANDU reactors at facilities in Port Hope and Cobourg, Ontario.

2.	Significant accounting policies

A.	Statement of compliance

These condensed consolidated interim financial statements have been prepared in accordance with IAS 34 Interim Financial Reporting. The condensed consolidated interim financial statements do not include all of the information required for full annual financial statements and should be read in conjunction with Cameco’s annual consolidated financial statements as at and for the year ended December 31, 2022.

These condensed consolidated interim financial statements were authorized for issuance by the Company’s board of directors on August 1, 2023.

B.	Basis of presentation

These condensed consolidated interim financial statements are presented in Canadian dollars, which is the Company’s functional currency. All financial information is presented in Canadian dollars, unless otherwise noted. Amounts presented in tabular format have been rounded to the nearest thousand except per share amounts and where otherwise noted.

The condensed consolidated interim financial statements have been prepared on the historical cost basis except for the following material items which are measured on an alternative basis at each reporting date:


Derivative financial instruments		Fair value through profit or loss (FVTPL)
Equity securities		Fair value through other comprehensive income (FVOCI)
Liabilities for cash-settled share-based payment arrangements		Fair value through profit or loss (FVTPL)
Net defined benefit liability		Fair value of plan assets less the present value of the defined benefit obligation

The preparation of the condensed consolidated interim financial statements in conformity with International Financial Reporting Standards (IFRS) requires management to make judgments, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, revenue and expenses. Actual results may vary from these estimates.

In preparing these condensed consolidated interim financial statements, the significant judgments made by management in applying the Company’s accounting policies and key sources of estimation uncertainty were the same as those that applied to the consolidated financial statements as at and for the year ended December 31, 2022.

Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimates are revised and in any future periods affected. The areas involving a higher degree of judgment or complexity, or areas where assumptions and estimates are significant to the consolidated financial statements are disclosed in note 5 of the December 31, 2022, consolidated financial statements.

3.	Accounting standards

A.	Changes in accounting policy

A number of amendments to existing standards became effective January 1, 2023, but they did not have an effect on the Company’s financial statements.

i.	Income taxes

In May 2023, the International Accounting Standards Board issued International Tax Reform – Pillar Two Model Rules, which amended IAS 12, Income Taxes (IAS 12). The amendments are effective for annual periods beginning on or after January 1, 2023. The amendments apply to income taxes arising from changes to tax law enacted to implement the Pillar Two model rules published by the Organisation for Economic Co-operation and Development. Cameco did not apply the exception to recognizing and disclosing information about deferred tax assets and liabilities related to Pillar Two income taxes. The extent of the impact of the amendments have not yet been determined, however we do expect to have additional disclosures.

B.	New standards and interpretations not yet adopted

A number of amendments to existing standards are not yet effective for the period ended June 30, 2023, and have not been applied in preparing these condensed consolidated interim financial statements. Cameco does not intend to early adopt any of the amendments and does not expect them to have a material impact on its financial statements.

4.	Acquisition of additional interest in Cigar Lake Joint Venture (CLJV)

On May 19, 2022, Cameco and Orano Canada Inc. (Orano) completed the acquisition of Idemitsu Canada Resources Ltd.’s (Idemitsu) 7.875% participating interest in the CLJV by acquiring their pro rata shares through an asset purchase. Cameco’s ownership stake in the Cigar Lake uranium mine in northern Saskatchewan is now 54.547% (previously 50.025%). The primary reason for the business combination was to increase our ownership interest.

Cash consideration of $101,681,000 was paid for the additional 4.522% interest. While Cameco received the economic benefit of owning the additional interest as of January 1, 2022, the additional interest was proportionately consolidated with the results of Cameco commencing on May 19, 2022.

CLJV allocates uranium production to each joint operation participant and the joint operation participant derives revenue directly from the sale of such product. Mining and milling expenses incurred by joint operations are included in the cost of inventory. As such, there is no revenue or profit or loss of the acquiree included in the consolidated statements of earnings. If the acquisition had occurred at the beginning of 2022, Cameco’s share of production would have included an additional 296,000 pounds. The impact to the financial statements would not have been material.

Acquisition costs of $1,508,000 were included in administration expense in the consolidated statements of earnings for the six-month period ended June 30, 2022.

Included in the identifiable assets and liabilities acquired at the date of acquisition are inputs, production processes and outputs. Therefore, Cameco has determined that together the acquired set is a business. In accordance with the acquisition method of accounting, the purchase price was allocated to the underlying assets and liabilities assumed based on their fair values at the date of acquisition. Fair values were determined based on discounted cash flows and quoted market prices. The values assigned to the net assets acquired were as follows:


Property, plant and equipment	$	97,930
Deferred tax asset		28,196
Inventory		9,909
Working capital		(24	)
Reclamation provision		(2,528	)
Sales contracts		(9,000	)

Net assets acquired	$	124,483

Cash paid		101,681

Bargain purchase gain [note 13]^(a)	$	22,802

(a)

The bargain purchase gain resulted from applying the measurement requirements under IFRS 3, Business Combinations. This standard requires the measurement of tax attributes that were acquired as part of the transaction be in accordance with IAS 12, Income Taxes, rather than at fair value. The measured amount of these attributes exceeded the amount paid for them and the resulting gain is included in other income (expense) in the consolidated statement of earnings.

5.	Inventories


	Jun 30/23		Dec 31/22
Uranium
Concentrate	$	479,264	$	537,426
Broken ore		40,321		46,703

		519,585		584,129
Fuel services		113,394		80,144
Other		418		425

Total	$	633,397	$	664,698

Cameco expensed $331,109,000 of inventory as cost of sales during the second quarter of 2023 (2022 – $388,165,000). For the six months ended June 30, 2023, Cameco expensed $796,178,000 of inventory as cost of sales (2022 – $670,771,000).

6.	Long-term receivables, investments and other


	Jun 30/23			Dec 31/22
Deferred charges	$	16,677		$	29,585
Derivatives [note 18]		16,949			2,807
Investment tax credits		95,812			95,812
Amounts receivable related to tax dispute [note 14]^(a)		209,125			295,221
Product loan^(b)		228,316			200,998
Other		2,216			3,264

		569,095			627,687
Less current portion		(23,098	)		(32,180	)

Net	$	545,997		$	595,507

(a)

Cameco was required to remit or otherwise secure 50% of the cash taxes and transfer pricing penalties, plus related interest and instalment penalties assessed, in relation to its dispute with Canada Revenue Agency (CRA). In light of our view of the likely outcome of the case, Cameco expects to recover the amounts remitted to CRA, including cash taxes, interest and penalties totalling $209,125,000 already paid as at June 30, 2023 (December 31, 2022 – $295,221,000). $86,097,000 was received during the quarter (see note 14).

(b)

Cameco loaned 5,400,000 pounds of uranium concentrate to its joint venture partner, Orano Canada Inc., (Orano). Orano was obligated to repay the Company in kind with uranium concentrate no later than December 31, 2023. During the first quarter of 2022, the repayment terms were extended to December 31, 2028. As at June 30, 2023, 1,828,999 pounds have been repaid on this loan.

Cameco also agreed to lend to Orano up to 1,148,200 kgU of conversion supply and up to an additional 1,200,000 pounds of uranium concentrate over the period 2022 to 2024. Repayment to Cameco is to be made in kind with U₃O₈ quantities drawn being repaid by December 31, 2027 and quantities of UF₆ drawn by December 31, 2035.

As at June 30, 2023, 4,171,001 pounds of U₃O₈ (December 31, 2022 – 3,571,001 pounds) and 700,000 kgU of UF₆ conversion supply (December 31, 2022 – 700,000 kgU) were drawn on the loans and are recorded at Cameco’s weighted average cost of inventory.

7.	Equity-accounted investee

JV Inkai is the operator of the Inkai uranium deposit located in Kazakhstan. JV Inkai is a uranium mining and milling operation that utilizes in-situ recovery (ISR) technology to extract uranium. The participants in JV Inkai purchase uranium from Inkai and, in turn, derive revenue directly from the sale of such product to third-party customers (see note 20). Cameco holds a 40% interest in JV Inkai and Kazatomprom holds a 60% interest. Cameco does not have control over the joint venture so it accounts for the investment on an equity basis.

The following tables summarize the financial information of JV Inkai (100%):


	Jun 30/23			Dec 31/22
Cash and cash equivalents	$	58,945		$	14,950
Other current assets		184,559			373,868
Non-current assets		340,980			334,954
Current liabilities		(23,065	)		(34,606	)
Non-current liabilities		(36,746	)		(37,644	)

Net assets	$	524,673		$	651,522


	Three months ended						Six months ended
	Jun 30/23			Jun 30/22			Jun 30/23			Jun 30/22
Revenue from products and services	$	127,197		$	55,128		$	201,500		$	149,162
Cost of products and services sold		(22,713	)		(9,066	)		(36,194	)		(23,024	)
Depreciation and amortization		(7,250	)		(2,597	)		(11,771	)		(6,354	)
Finance income		438			443			568			590
Finance costs		(312	)		(1,605	)		(571	)		(2,144	)
Other expense		(4,913	)		(6,919	)		(14,643	)		(4,956	)
Income tax expense		(18,158	)		(7,998	)		(28,001	)		(25,046	)

Net earnings from continuing operations	$	74,289		$	27,386		$	110,888		$	88,228
Other comprehensive income		—			—			—			—

Total comprehensive income	$	74,289		$	27,386		$	110,888		$	88,228

The following table reconciles the summarized financial information to the carrying amount of Cameco’s interest in JV Inkai:


	Jun 30/23			Dec 31/22
Opening net assets	$	651,522		$	571,542
Total comprehensive income^(a)		110,888			278,659
Dividends declared		(238,086	)		(195,865	)
Impact of foreign exchange		349			(2,814	)

Closing net assets		524,673			651,522
Cameco’s share of net assets		209,869			260,609
Consolidating adjustments^(b)		(61,413	)		(82,275	)
Fair value increment^(c)		82,718			83,675
Dividends declared but not received		5,952			—
Dividends in excess of ownership percentage^(d)		(74,843	)		(48,641	)
Impact of foreign exchange		469			(2,396	)

Carrying amount in the statement of financial position at June 30, 2023	$	162,752		$	210,972

(a)	Cameco’s share of earnings from equity-accounted investee as reported on the statement of earnings does not equal its share of JV Inkai’s total comprehensive income. Cameco’s share of earnings also includes consolidating adjustments and amortization of the fair value increment.

(b)	Cameco records certain consolidating adjustments to eliminate unrealized profit, recognize deferred profit and amortize historical differences in accounting policies. The historical differences are amortized to earnings over units of production.

(c)	Upon restructuring, Cameco assigned fair values to the assets and liabilities of JV Inkai. This increment is amortized to earnings over units of production.

(d)	Cameco’s share of dividends follows its production purchase entitlements which is currently higher than its ownership interest.

8.	Other liabilities


	Jun 30/23			Dec 31/22
Deferred sales	$	70,266		$	66,845
Derivatives [note 18]		31,602			58,342
Accrued pension and post-retirement benefit liability		67,858			66,180
Lease obligation [note 18]		9,004			9,287
Product loans^(a)		120,135			78,094
Sales contracts [note 4]		6,314			9,000
Other		60,256			59,738

		365,435			347,486
Less current portion		(165,470	)		(131,324	)

Net	$	199,965		$	216,162

(a)

Cameco has standby product loan facilities with various counterparties. The arrangements allow us to borrow up to 1,988,000 kgU of UF₆ conversion services and 2,817,000 pounds of U₃O₈ by September 30, 2026 with repayment in kind up to December 31, 2026. Under the facilities, standby fees of up to 1% are payable based on the market value of the facilities and interest is payable on the market value of any amounts drawn at rates ranging from 0.5% to 2.0%. At June 30, 2023, we have 1,787,000 kgU of UF₆ conversion services (December 31, 2022 – 1,529,000 kgU) drawn on the loans with repayment due by December 31 of the following years:


	2023		2024		2025		2026		Total
kgU of UF₆		589,000		—		287,000		911,000		1,787,000

We also have 2,067,000 pounds of U₃O₈ (December 31, 2022 – 1,393,000 pounds) drawn with repayment due no later than December 31 of the following years:


	2023		2024		2025		2026		Total
lbs of U₃O₈		1,824,000		—		—		243,000		2,067,000

The loans are recorded at Cameco’s weighted average cost of inventory.

9.	Provisions


	Reclamation			Waste disposal			Total
Beginning of year	$	1,061,096		$	9,934		$	1,071,030
Changes in estimates and discount rates
Capitalized in property, plant, and equipment		(21,867	)		—			(21,867	)
Recognized in earnings		6,342			35			6,377
Provisions used during the period		(18,294	)		(1,233	)		(19,527	)
Unwinding of discount		17,441			167			17,608
Impact of foreign exchange		(7,150	)		—			(7,150	)

End of period	$	1,037,568		$	8,903		$	1,046,471

Current		40,807			2,237			43,044
Non-current		996,761			6,666			1,003,427

	$	1,037,568		$	8,903		$	1,046,471

10.

Share capital

At June 30, 2023, there were 433,308,237 common shares outstanding. Options in respect of 2,263,804 shares are outstanding under the stock option plan and are exercisable up to 2027. For the quarter ended June 30, 2023, there were 276,050 options that were exercised resulting in the issuance of shares (2022 – 33,787). For the six months ended June 30, 2023, there were 789,767 options exercised that resulted in the issuance of shares (2022 – 377,572).

11.

Revenue

Cameco’s uranium and fuel services sales contracts with customers contain both fixed and market-related pricing. Fixed-price contracts are typically based on a term-price indicator at the time the contract is accepted and escalated over the term of the contract. Market-related contracts are based on either the spot price or long-term price, and the price is quoted at the time of delivery rather than at the time the contract is accepted. These contracts often include a floor and/or ceiling prices, which are usually escalated over the term of the contract. Escalation is generally based on a consumer price index. The Company’s contracts contain either one of these pricing mechanisms or a combination of the two. There is no variable consideration in the contracts and therefore no revenue is considered constrained at the time of delivery. Cameco expenses the incremental costs of obtaining a contract as incurred as the amortization period is less than a year.

The following tables summarize Cameco’s sales disaggregated by geographical region and contract type and includes a reconciliation to Cameco’s reportable segments (note 19):

For the three months ended June 30, 2023


	Uranium		Fuel services		Other		Total
Customer geographical region
Americas	$	199,356	$	86,870	$	220	$	286,446
Europe		76,895		26,375		—		103,270
Asia		92,057		214		—		92,271

	$	368,308	$	113,459	$	220	$	481,987

Contract type
Fixed-price	$	106,139	$	111,514	$	220	$	217,873
Market-related		262,169		1,945		—		264,114

	$	368,308	$	113,459	$	220	$	481,987

For the three months ended June 30, 2022


	Uranium		Fuel services		Other		Total
Customer geographical region
Americas	$	257,898	$	84,504	$	8,654	$	351,056
Europe		53,476		9,955		2,769		66,200
Asia		135,852		4,469		—		140,321

	$	447,226	$	98,928	$	11,423	$	557,577

Contract type
Fixed-price	$	158,377	$	97,206	$	11,423	$	267,006
Market-related		288,849		1,722		—		290,571

	$	447,226	$	98,928	$	11,423	$	557,577

For the six months ended June 30, 2023


	Uranium		Fuel services		Other		Total
Customer geographical region
Americas	$	433,401	$	153,040	$	447	$	586,888
Europe		255,037		45,566		—		300,603
Asia		274,218		7,252		—		281,470

	$	962,656	$	205,858	$	447	$	1,168,961

Contract type
Fixed-price	$	307,865	$	203,913	$	447	$	512,225
Market-related		654,791		1,945		—		656,736

	$	962,656	$	205,858	$	447	$	1,168,961

For the six months ended June 30, 2022


	Uranium		Fuel services		Other		Total
Customer geographical region
Americas	$	415,436	$	138,775	$	8,654	$	562,865
Europe		134,358		23,069		2,769		160,196
Asia		219,804		12,750		—		232,554

	$	769,598	$	174,594	$	11,423	$	955,615

Contract type
Fixed-price	$	288,058	$	172,872	$	11,423	$	472,353
Market-related		481,540		1,722		—		483,262

	$	769,598	$	174,594	$	11,423	$	955,615

12.

Finance costs


	Three months ended				Six months ended
	Jun 30/23		Jun 30/22		Jun 30/23		Jun 30/22
Interest on long-term debt	$	10,480	$	9,940	$	20,857	$	19,742
Unwinding of discount on provisions		8,269		6,539		17,608		11,672
Other charges		3,995		3,889		7,877		7,685

Total	$	22,744	$	20,368	$	46,342	$	39,099

13.

Other income (expense)


	Three months ended						Six months ended
	Jun 30/23			Jun 30/22			Jun 30/23			Jun 30/22
Bargain purchase gain [note 4]		—			22,802			—			22,802
Foreign exchange gains (losses)		(43,578	)		21,372			(46,163	)		17,113
Other		545			(2	)		545			—

Total	$	(43,033	)	$	44,172		$	(45,618	)	$	39,915

14.

Income taxes


	Three months ended						Six months ended
	Jun 30/23			Jun 30/22			Jun 30/23			Jun 30/22
Earnings (loss) before income taxes
Canada	$	61,832		$	134,002		$	211,451		$	165,739
Foreign		(24,781	)		(23,487	)		(19,532	)		(16,359	)

	$	37,051		$	110,515		$	191,919		$	149,380

Current income taxes
Canada	$	3,452		$	3,495		$	15,337		$	3,324
Foreign		1,805			3,887			4,228			4,945

	$	5,257		$	7,382		$	19,565		$	8,269
Deferred income taxes (recovery)
Canada	$	18,349		$	21,204		$	39,157		$	18,321
Foreign		(248	)		(2,008	)		540			(1,431	)

	$	18,101		$	19,196		$	39,697		$	16,890

Income tax expense	$	23,358		$	26,578		$	59,262		$	25,159

Cameco has recorded $944,375,000 of deferred tax assets (December 31, 2022 – $984,071,000). The realization of these deferred tax assets is dependent upon the generation of future taxable income in certain jurisdictions during the periods in which the Company’s temporary tax differences are available. The Company considers whether it is probable that all or a portion of the deferred tax assets will not be realized. In making this assessment, management considers all available evidence, including recent financial operations, projected future taxable income and tax planning strategies. Based on projections of future taxable income over the periods in which the deferred tax assets are available, realization of these deferred tax assets is probable and consequently the deferred tax assets have been recorded.

Canada

On February 18, 2021, the Supreme Court of Canada (Supreme Court) dismissed Canada Revenue Agency’s (CRA) application for leave to appeal the June 26, 2020 decision of the Federal Court of Appeal (Court of Appeal). The dismissal means that the dispute for the 2003, 2005 and 2006 tax years is fully and finally resolved in the Company’s favour.

In September 2018, the Tax Court of Canada (Tax Court) ruled that the marketing and trading structure involving foreign subsidiaries, as well as the related transfer pricing methodology used for certain intercompany uranium sales and purchasing agreements, were in full compliance with Canadian law for the tax years in question. Management believes the principles in the decision apply to all subsequent tax years, and that the ultimate resolution of those years will not be material to Cameco’s financial position, results of operations or liquidity in the year(s) of resolution. Due to a revised CRA reassessment position for certain years, CRA has released approximately $86,000,000 of cash held on account (see note 6).

As CRA continues to pursue reassessments for tax years subsequent to 2006, Cameco is utilizing its appeal rights under Canadian federal and provincial tax rules.

15.

Per share amounts

Per share amounts have been calculated based on the weighted average number of common shares outstanding during the period. The weighted average number of paid shares outstanding in 2023 was 432,974,012 (2022 – 398,308,899).


	Three months ended				Six months ended
	Jun 30/23		Jun 30/22		Jun 30/23		Jun 30/22
Basic earnings per share computation
Net earnings attributable to equity holders	$	13,693	$	83,979	$	132,662	$	124,329
Weighted average common shares outstanding		433,096		398,418		432,974		398,364

Basic earnings per common share	$	0.03	$	0.21	$	0.31	$	0.31

Diluted earnings per share computation
Net earnings attributable to equity holders	$	13,693	$	83,979	$	132,662	$	124,329
Weighted average common shares outstanding		433,096		398,418		432,974		398,364
Dilutive effect of stock options		1,522		1,587		1,745		1,588

Weighted average common shares outstanding, assuming dilution		434,618		400,005		434,719		399,952

Diluted earnings per common share	$	0.03	$	0.21	$	0.31	$	0.31

16.

Statements of cash flows


	Three months ended						Six months ended
	Jun 30/23			Jun 30/22			Jun 30/23			Jun 30/22
Changes in non-cash working capital:
Accounts receivable	$	(106,445	)	$	(4,234	)	$	(71,408	)	$	122,940
Inventories		(129,521	)		(39,245	)		71,170			(8,876	)
Supplies and prepaid expenses		(15,688	)		(17,073	)		(26,601	)		(12,956	)
Accounts payable and accrued liabilities		50,473			(89,251	)		(117,570	)		(99,204	)
Reclamation payments		(10,634	)		(6,976	)		(19,527	)		(13,439	)
Other		(1,860	)		388			(5,494	)		(5,102	)

Other operating items	$	(213,675	)	$	(156,391	)	$	(169,430	)	$	(16,637	)

17.

Share-based compensation plans

A.	Stock option plan

The aggregate number of common shares that may be issued pursuant to the Cameco stock option plan shall not exceed 43,017,198 of which 31,328,544 shares have been issued. As of June 30, 2023, the total number of stock options held by the participants was 2,263,804 (December 31, 2022 – 3,053,571).

B.	Executive performance share unit (PSU)

During the quarter, the Company granted 232,160 PSUs. The weighted average fair value per unit at the date of issue was $37.30. As of June 30, 2023, the total number of PSUs held by the participants was 828,674 (December 31, 2022 – 1,255,255).

C.	Restricted share unit (RSU)

During the quarter, the Company granted 292,553 RSUs. The weighted average fair value per unit at the date of issue was $37.30. As of June 30, 2023, the total number of RSUs held by the participants was 817,696 (December 31, 2022 – 1,131,493).

D.	Deferred share unit (DSU)

As of June 30, 2023, the total number of DSUs held by participating directors was 556,122 (December 31, 2022 – 547,304).

Equity-settled plans

Cameco records compensation expense under its equity-settled plans with an offsetting credit to contributed surplus, to reflect the estimated fair value of units granted to employees. During the period, the Company recognized the following expenses under these plans:


	Three months ended				Six months ended
	Jun 30/23		Jun 30/22		Jun 30/23		Jun 30/22
Restricted share unit plan	$	912	$	769	$	1,761	$	1,534
Stock option plan		—		—		—		45

		912		769		1,761		1,579
Employee share ownership plan^(a)		1,133		939		2,046		1,711

Total	$	2,045	$	1,708	$	3,807	$	3,290

(a)	The total number of shares purchased in 2023 with Company contributions was 55,807 (2022 – 56,196).

Cash-settled plans

During the period, the Company recognized the following expenses (income) under these plans:


	Three months ended					Six months ended
	Jun 30/23		Jun 30/22			Jun 30/23		Jun 30/22
Performance share unit plan	$	3,117	$	(2,898	)	$	11,245	$	5,840
Deferred share unit plan		3,371		(5,076	)		5,946		75
Restricted share unit plan		3,270		(1,648	)		9,403		3,321
Phantom stock option plan		504		(772	)		988		338
Phantom restricted share unit plan		168		(30	)		308		93

	$	10,430	$	(10,424	)	$	27,890	$	9,667

Expenses related to share-based compensation plans are primarily included as part of administration expense in the statement of earnings.

18.

Financial instruments and related risk management

A.	Accounting classifications

The following tables summarize the carrying amounts and accounting classifications of Cameco’s financial instruments at the reporting date:

At June 30, 2023


	FVTPL			Amortized cost		Total
Financial assets
Cash and cash equivalents^(a)	$	—		$	2,453,960	$	2,453,960
Short-term investments		—			19,444		19,444
Accounts receivable		—			275,628		275,628
Derivative assets [note 6]
Foreign currency contracts		16,949			—		16,949

		16,949			2,749,032		2,765,981

Financial liabilities
Accounts payable and accrued liabilities		—			265,062		265,062
Lease obligation [note 8]		—			9,004		9,004
Current portion of long-term debt		—			499,614		499,614
Derivative liabilities [note 8]
Foreign currency contracts		23,567			—		23,567
Interest rate contracts		8,035			—		8,035
Long-term debt		—			497,774		497,774

		31,602			1,271,454		1,303,056

Net		(14,653	)		1,477,578		1,462,925

At December 31, 2022


	FVTPL			Amortized cost		Total
Financial assets
Cash and cash equivalents	$	—		$	1,143,674	$	1,143,674
Short-term investments		—			1,138,174		1,138,174
Accounts receivable		—			183,944		183,944
Derivative assets [note 6]
Foreign currency contracts		2,807			—		2,807

	$	2,807		$	2,465,792	$	2,468,599

Financial liabilities
Accounts payable and accrued liabilities	$	—		$	374,714	$	374,714
Lease obligation [note 8]		—			9,287		9,287
Derivative liabilities [note 8]
Foreign currency contracts		51,058			—		51,058
Interest rate contracts		7,284			—		7,284
Long-term debt		—			997,000		997,000

		58,342			1,381,001		1,439,343

Net	$	(55,535	)	$	1,084,791	$	1,029,256

(a)

Cameco has pledged $244,983,000 of cash as security against certain of its letter of credit facilities. This cash is being used as collateral for an interest rate reduction on the letter of credit facilities. The collateral account has a term of five years effective July 1, 2018. Cameco retains full access to this cash.

B.	Fair value hierarchy

The fair value of an asset or liability is generally estimated as the amount that would be received on sale of an asset, or paid to transfer a liability in an orderly transaction between market participants at the reporting date. Fair values of assets and liabilities traded in an active market are determined by reference to last quoted prices, in the principal market for the asset or liability. In the absence of an active market for an asset or liability, fair values are determined based on market quotes for assets or liabilities with similar characteristics and risk profiles, or through other valuation techniques. Fair values determined using valuation techniques require the use of inputs, which are obtained from external, readily observable market data when available. In some circumstances, inputs that are not based on observable data must be used. In these cases, the estimated fair values may be adjusted in order to account for valuation uncertainty, or to reflect the assumptions that market participants would use in pricing the asset or liability.

All fair value measurements are categorized into one of three hierarchy levels, described below, for disclosure purposes. Each level is based on the transparency of the inputs used to measure the fair values of assets and liabilities:

Level 1 – Values based on unadjusted quoted prices in active markets that are accessible at the reporting date for identical assets or liabilities.

Level 2 – Values based on quoted prices in markets that are not active or model inputs that are observable either directly or indirectly for substantially the full term of the asset or liability.

Level 3 – Values based on prices or valuation techniques that require inputs that are both unobservable and significant to the overall fair value measurement.

When the inputs used to measure fair value fall within more than one level of the hierarchy, the level within which the fair value measurement is categorized is based on the lowest level input that is significant to the fair value measurement in its entirety.

The following tables summarize the carrying amounts and level 2 fair values of Cameco’s financial instruments that are measured at fair value:

As at June 30, 2023


	Carrying value			Fair Value
Derivative assets [note 6]
Foreign currency contracts	$	16,949		$	16,949
Current portion of long-term debt		(499,614	)		(500,000	)
Derivative liabilities [note 8]
Foreign currency contracts		(23,567	)		(23,567	)
Interest rate contracts		(8,035	)		(8,035	)
Long-term debt		(497,774	)		(515,981	)

Net	$	(1,012,041	)	$	(1,030,634	)

As at December 31, 2022


	Carrying value			Fair Value
Derivative assets [note 6]
Foreign currency contracts	$	2,807		$	2,807
Derivative liabilities [note 8]
Foreign currency contracts		(51,058	)		(51,058	)
Interest rate contracts		(7,284	)		(7,284	)
Long-term debt		(997,000	)		(1,014,010	)

Net	$	(1,052,535	)	$	(1,069,545	)

The preceding tables exclude fair value information for financial instruments whose carrying amounts are a reasonable approximation of fair value. The carrying value of Cameco’s cash and cash equivalents, short-term investments, accounts receivable, and accounts payable and accrued liabilities approximates its fair value as a result of the short-term nature of the instruments.

There were no transfers between level 1 and level 2 during the period. Cameco does not have any financial instruments that are classified as level 3 as of the reporting date.

C.	Financial instruments measured at fair value

Cameco measures its derivative financial instruments and long-term debt at fair value. Derivative financial instruments and current and long-term debt are classified as recurring level 2 fair value measurements.

The fair value of Cameco’s long-term debt is determined using quoted market yields as of the reporting date, which ranged from 3.2% to 5.0% (2022 – 3.3% to 4.2%).

Foreign currency derivatives consist of foreign currency forward contracts, options and swaps. The fair value of foreign currency options is measured based on the Black Scholes option-pricing model. The fair value of foreign currency forward contracts and swaps is measured using a market approach, based on the difference between contracted foreign exchange rates and quoted forward exchange rates as of the reporting date.

Interest rate derivatives consist of interest rate swap contracts. The fair value of interest rate swaps is determined by discounting expected future cash flows from the contracts. The future cash flows are determined by measuring the difference between fixed interest payments to be received and floating interest payments to be made to the counterparty based on Canada Dealer Offer Rate forward interest rate curves.

Where applicable, the fair value of the derivatives reflects the credit risk of the instrument and includes adjustments to take into account the credit risk of the Company and counterparty. These adjustments are based on credit ratings and yield curves observed in active markets at the reporting date.

D.	Derivatives

The following table summarizes the fair value of derivatives and classification on the consolidated statements of financial position:


	Jun 30/23			Dec 31/22
Non-hedge derivatives:
Foreign currency contracts	$	(6,618	)	$	(48,251	)
Interest rate contracts		(8,035	)		(7,284	)

Net	$	(14,653	)	$	(55,535	)

Classification:
Current portion of long-term receivables, investments and other [note 6]	$	5,356		$	1,331
Long-term receivables, investments and other [note 6]		11,593			1,476
Current portion of other liabilities [note 8]		(16,325	)		(25,913	)
Other liabilities [note 8]		(15,277	)		(32,429	)

Net	$	(14,653	)	$	(55,535	)

The following table summarizes the different components of the gain (loss) on derivatives included in net earnings (loss):


	Three months ended						Six months ended
	Jun 30/23			Jun 30/22			Jun 30/23			Jun 30/22
Non-hedge derivatives:
Foreign currency contracts	$	31,346		$	(26,219	)	$	32,974		$	(12,855	)
Interest rate contracts		(2,617	)		(2,004	)		(1,975	)		(5,433	)

Net	$	28,729		$	(28,223	)	$	30,999		$	(18,288	)

19.

Segmented information

Cameco has two reportable segments: uranium and fuel services. Cameco’s reportable segments are strategic business units with different products, processes and marketing strategies. The uranium segment involves the exploration for, mining, milling, purchase and sale of uranium concentrate. The fuel services segment involves the refining, conversion and fabrication of uranium concentrate and the purchase and sale of conversion services.

Cost of sales in the uranium segment includes care and maintenance costs for our operations that have had production suspensions as well as operational readiness costs for our operations that are resuming operations. Operational readiness costs include costs to complete critical projects, perform maintenance readiness checks, and recruit and train sufficient mine and mill personnel before beginning operations. Cameco expensed $12,139,000 of care and maintenance costs during the second quarter of 2023 (2022 – $57,605,000 of care and maintenance and operational readiness costs). For the six months ended June 30, 2023, Cameco expensed $25,693,000 (2022 – $111,732,000 of care and maintenance costs).

Accounting policies used in each segment are consistent with the policies outlined in the summary of significant accounting policies. Segment revenues, expenses and results include transactions between segments incurred in the ordinary course of business. These transactions are priced on an arm’s length basis, are eliminated on consolidation and are reflected in the “other” column.

Business segments

For the three months ended June 30, 2023


	Uranium			Fuel services			Other			Total
Revenue	$	368,308		$	113,459		$	220		$	481,987
Expenses
Cost of products and services sold		264,491			65,671			—			330,162
Depreciation and amortization		31,752			8,767			1,333			41,852

Cost of sales		296,243			74,438			1,333			372,014

Gross profit (loss)		72,065			39,021			(1,113	)		109,973
Administration		—			—			57,048			57,048
Exploration		3,878			—			—			3,878
Research and development		—			—			5,107			5,107
Other operating expense (income)		8,535			(146	)		—			8,389
Gain (loss) on disposal of assets		(36	)		312			—			276
Finance costs		—			—			22,744			22,744
Gain on derivatives		—			—			(28,729	)		(28,729	)
Finance income		—			—			(31,098	)		(31,098	)
Share of earnings from equity-accounted investee		(7,726	)		—			—			(7,726	)
Other expense (income)		(545	)		—			43,578			43,033

Earnings (loss) before income taxes		67,959			38,855			(69,763	)		37,051
Income tax expense											23,358

Net earnings										$	13,693

For the three months ended June 30, 2022


	Uranium			Fuel services			Other			Total
Revenue	$	447,226		$	98,928		$	11,423		$	557,577
Expenses
Cost of products and services sold		343,861			50,741			8,847			403,449
Depreciation and amortization		49,576			7,762			3,859			61,197

Cost of sales		393,437			58,503			12,706			464,646

Gross profit (loss)		53,789			40,425			(1,283	)		92,931
Administration		—			—			23,847			23,847
Exploration		2,304			—			—			2,304
Research and development		—			—			3,365			3,365
Other operating income		(18,891	)		(1,777	)		—			(20,668	)
Loss on disposal of assets		19			113			—			132
Finance costs		—			—			20,368			20,368
Loss on derivatives		—			—			28,223			28,223
Finance income		—			—			(4,478	)		(4,478	)
Share of earnings from equity-accounted investee		(26,505	)		—			—			(26,505	)
Other income		(22,802	)		—			(21,370	)		(44,172	)

Earnings (loss) before income taxes		119,664			42,089			(51,238	)		110,515
Income tax expense											26,578

Net earnings										$	83,937

For the six months ended June 30, 2023


	Uranium			Fuel services			Other			Total
Revenue	$	962,656		$	205,858		$	447		$	1,168,961
Expenses
Cost of products and services sold		654,509			119,800			(725	)		773,584
Depreciation and amortization		97,845			16,317			4,063			118,225

Cost of sales		752,354			136,117			3,338			891,809

Gross profit (loss)		210,302			69,741			(2,891	)		277,152
Administration		—			—			121,059			121,059
Exploration		10,157			—			—			10,157
Research and development		—			—			9,339			9,339
Other operating expense (income)		6,779			(437	)		—			6,342
Gain (loss) on disposal of assets		(36	)		312			—			276
Finance costs		—			—			46,342			46,342
Gain on derivatives		—			—			(30,999	)		(30,999	)
Finance income		—			—			(58,639	)		(58,639	)
Share of earnings from equity-accounted investee		(64,262	)		—			—			(64,262	)
Other expense (income)		(545	)		—			46,163			45,618

Earnings (loss) before income taxes		258,209			69,866			(136,156	)		191,919
Income tax expense											59,262

Net earnings										$	132,657

For the six months ended June 30, 2022


	Uranium			Fuel services			Other			Total
Revenue	$	769,598		$	174,594		$	11,423		$	955,615
Expenses
Cost of products and services sold		610,794			92,089			8,177			711,060
Depreciation and amortization		80,781			15,940			5,077			101,798

Cost of sales		691,575			108,029			13,254			812,858

Gross profit (loss)		78,023			66,565			(1,831	)		142,757
Administration		—			—			81,627			81,627
Exploration		4,922			—			—			4,922
Research and development		—			—			6,166			6,166
Other operating income		(37,415	)		(3,226	)		—			(40,641	)
Gain on disposal of assets		(5	)		(207	)		—			(212	)
Finance costs		—			—			39,099			39,099
Loss on derivatives		—			—			18,288			18,288
Finance income		—			—			(6,429	)		(6,429	)
Share of earnings from equity-accounted investee		(69,528	)		—			—			(69,528	)
Other income		(22,802	)		—			(17,113	)		(39,915	)

Earnings (loss) before income taxes		202,851			69,998			(123,469	)		149,380
Income tax expense											25,159

Net earnings										$	124,221

20.

Related parties

Cameco purchases uranium concentrate from JV Inkai. For the quarter ended June 30, 2023, Cameco had purchases of $93,430,000 ($68,394,000 (US)) (2022 – Cameco recorded physical weight adjustments of $948,000 ($749,000 (US)) related to the finalization of prior period deliveries). For the six-month period ended June 30, 2023, purchases were $93,430,000 ($68,394,000 (US)) (2022 – $44,460,000 ($34,965,000 (US))).

For the quarter ended June 30, 2023, Cameco received a cash dividend from JV Inkai of $113,642,000 ($83,059,000 (US)) (2022 – $104,943,000 ($82,933,000 (US))). For the six months ended June 30, 2023, cash dividends received were $113,642,000 ($83,059,000 (US)) (2022 – $104,943,000 ($82,933,000 (US))).

21.

Commitment

On October 11, 2022, Cameco announced that it had entered into a strategic partnership with Brookfield Renewable Partners (Brookfield Renewable) and its institutional partners to acquire Westinghouse Electric Company (Westinghouse), one of the world’s largest nuclear services businesses. Brookfield Renewable, with its institutional partners, will own a 51% interest in Westinghouse and Cameco will own 49%.

Cameco’s share of the purchase price will be funded with a combination of cash, debt and equity. In 2022, the Company secured a bridge loan facility of $280,000,000 (US) as well as $600,000,000 (US) in term loans. The bridge facility, if funded, will mature 364 days after the acquisition closing date and the term loans, which consist of two $300,000,000 (US) tranches, are expected to mature two and three years after the closing of the acquisition. In addition, Cameco issued 34,057,250 common shares pursuant to a public offering.

Transaction costs of $51,700,000 have been included in supplies and prepaid expenses in the consolidated statement of financial position as at June 30, 2023 (December 31, 2022 – $41,227,000). Under the terms of the agreement, if the transaction does not close, Cameco is entitled to recover a portion of these costs.