Cameco Cuts 2025 Uranium Production Forecast by 22% Due to Mine Transition Delay

Cameco, a leading Canadian uranium producer, has announced a delay in the transition of its McArthur River mine to a new mining area, which is expected to impact its annual production. The company, which operates the mine in Saskatchewan, has revised its production forecast for the year, citing the delay in development as a significant factor.

The projected uranium concentrate production for the McArthur River/Key Lake project has been lowered to between 14 million and 15 million pounds, down from the previously estimated 18 million pounds. This reduction is due to the delay in the transition to the new mining area. However, the strong performance of the Cigar Lake mine in Saskatchewan may partially offset the production shortfall, potentially compensating for up to 1 million pounds of the uranium concentrate deficit from the McArthur River/Key Lake project.

Cameco acknowledged that it cannot entirely mitigate the impacts of the development delay and the slower-than-expected ground freeze in the first half of 2025. Despite this, the company emphasized its strategic approach of integrating marketing, operational, and financial decisions to capture full-cycle value. This approach enables Cameco to effectively manage the expected production shortfall and fulfill its delivery commitments to customers.

The McArthur River mine is jointly owned by Cameco, which holds a 69.8% stake, and Orano, which holds a 30.25% stake. The Key Lake mill is owned by Cameco with an 83.33% stake and Orano with a 16.67% stake. The Cigar Lake project is owned by Cameco with a 54.55% stake, Orano with a 40.45% stake, and Tokyo Electric Power Resources with a 5% stake.

Additionally, Cameco and Orano have announced a 15-year agreement with Rise Air, a regional airline in Saskatchewan, valued at approximately $500 million. This agreement will provide labor transportation services for the companies' operations, ensuring the continuity of their mining activities despite the challenges posed by the development delay.