Cameco says delays at mine to affect 2025 production forecast

Cameco says delays at mine to affect 2025 production forecast

Saskatoon, Saskatchewan — Cameco Corporation (TSX: CCO; NYSE: CCJ) has provided an operational update regarding its 2025 production plans, revealing significant delays at the McArthur River mine that will affect its production forecast for the year. The company expects development delays and slower-than-anticipated ground freezing to defer the extraction of uranium planned for 2025, impacting its overall production outlook.

The McArthur River mine is expected to produce between 14 million and 15 million pounds of uranium concentrate (U3O8) in 2025, down from the previously forecasted 18 million pounds. This shortfall is primarily due to the challenges faced during the transition to new mining areas, which have led to delays in production. However, Cameco has indicated that strong performance at the Cigar Lake mine may partially offset the shortfall, potentially adding up to 1 million pounds of uranium concentrate.

Cameco's strategy, which includes diversified production assets and access to multiple sources of supply, positions the company to mitigate the impact of these disruptions. The company plans to source additional uranium through various means, including the spot market, inventory, borrowing, and pulling forward long-term purchases. Cameco has maintained exposure to higher prices through its long-term contracts and ongoing negotiations, which it expects to generate long-term value.

Despite the delays, Cameco remains confident in its ability to meet its delivery commitments to customers. The company has also maintained a strong balance sheet to help manage risk. However, the production shortfall may lead to variability in the outlook provided in its second-quarter Management’s Discussion and Analysis (MD&A) for 2025. An update will be provided as the company better understands the implications of the deferred production.

The McArthur River mine is owned 69.805% by Cameco and 30.195% by Orano, while the Key Lake mill is owned 83.333% by Cameco and 16.667% by Orano. The Cigar Lake operation is owned 54.547% by Cameco, 40.453% by Orano Canada Inc. (Orano), and 5% by TEPCO Resources Inc. [1]

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[1] https://www.stocktitan.net/news/CCJ/cameco-provides-production-update-strategically-well-positioned-for-ksbk5swylg88.html