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RENO (MINEWEB) - While uncertainty remains in the uranium market in the near tomedium term, Cameco stands firm in its conviction that "we continueto see a very strong and promising growth profile for the nuclearindustry in the long-term." In financials published Tuesday, Cameco noted, "Countries aroundthe world, with very few exceptions, have reconfirmed theircommitment to nuclear energy. China, India, France, Russia, SouthKorea, the United Kingdom, the United States, and almost everyother country with a nuclear program are maintaining nuclear as apart of their energy mix." During a conference call with analysts Tuesday to discussfinancials, Cameco CEO Timothy Gitzel stressed, "Our view is thatthe question isn't if the market will call for more supply; thequestion is when." However, Gitzel admitted the big question mark is Japan. "It onlyhas one reactor running, which is expected to shut down for regularmaintenance this month. A plan for the future has not yet beenannounced." "We believe that Japan's reactors will eventually be brought backon line, not just because the country needs power and reliance onother energy sources is costly, but because we see the Japanesecompanies continuing to invest in uranium mining and exploration,"Gitzel said. "For example, we have the Japanese as partners in ourCigar Lake and Kintyre projects, and they've been very clear thatthey remain committed to those projects. "We see our Japanese partner in the Millennium project consideringan increase to its equity position," he observed. "And morerecently, we've seen some Japanese utilities out in the marketlooking for nuclear fuel." "All of the science seems to point to Japan eventually bringingreactors back online, which could be a major catalyst to helpindustry move out of the near term uncertainty that we arecurrently in," Gitzel told the analysts. Meanwhile, Gitzel reported, "Revenue, gross profit and net earningswere all up significantly in Q1 of 2012 compared to Q1 of lastyear, primarily as a result of higher sales volumes and a higherrealized uranium price." "Production was also strong this quarter, up 2% from this time lastyear," he noted. "Our McArthur operation is largely to thank forthis increase as it was up 21% from Q1 of 2011, while production atInkai and Smith Ranch-Highland was down." Gitzel observed that current wellfields at Inkai are maturing,which is leading to lower grades and therefore, lower production."However, this is expected with in-situ operations, and we‘reworking hard to bring on additional wellfields in order to add newhigher grade wellfields to our production mix." Meanwhile, production at Smith Ranch-Highland in Wyoming has beenaffected by an increase in timelines for regulatory approval of newwellfields, Gitzel said. "However, I'm pleased to report that werecently received approval for the new cave north wellfield, andproduction rate are starting to increase near the end of the firstquarter." Cameco's outlook for 2012 calls for 21.7 million pounds of uraniumproduction and sales ranging from 31 million to 33 million pounds. FINANCIALS Cameco reported a 46% jump in adjusted net earnings for the firstquarter from $85 million and 21-cents per share in adjusted netearnings for first-quarter 2011 to 132 million and 33-cents peryear. First-quarter 2012 net earnings increased 45% from $91 million or23-cents per share in net earnings for first-quarter 2011 to $132million or 33-cents per common share. Consolidated capital expenditures this year are expected to be $620million. SUBSCRIBE to Mineweb.com's free daily newsletter now. I am an expert from mifare-smart-card.com, while we provides the quality product, such as 125khz Cards , HF Inlay, UHF Inlay,and more.
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