Cameco lowers McArthur River's 2025 production forecast

Executive Summary

• Cameco revises its 2025 production forecast for the McArthur River/Key Lake operation to 14‑15 million lbs U₃O₈ (down from 18 million lbs), reflecting development delays and slower ground‑freezing.
• Strong performance at Cigar Lake is expected to offset up to 1 million lbs of the shortfall, maintaining Cigar Lake production at 18 million lbs U₃O₈ for 2025.
• The company emphasizes its diversified asset base, spot‑market buying flexibility, and strong balance sheet as mitigants to the anticipated production disruption.

Key Details

• McArthur River/Key Lake 2025 forecast: 14–15 million lbs U₃O₈ (100% basis); Cameco’s share 9.8–10.5 million lbs, down from prior 18 million lbs (12.6 million lbs share).
• Cigar Lake 2025 production: Expected 18 million lbs U₃O₈ (100% basis); Cameco’s share 9.8 million lbs. Potential to offset up to 1 million lbs of the McArthur River shortfall.
• Key risks identified:
• Development delays in transitioning McArthur River to new mining areas.
• Slower‑than‑expected ground freezing during first half of 2025.
• Availability of skilled labour and commissioning timing for customized equipment.
• Mitigation strategies:
• Utilization of spot‑market purchases when advantageous.
• Leveraging inventory, borrowing product, and pulling forward long‑term contracts to meet delivery commitments.
• Maintaining exposure to higher uranium prices through market‑related contracts and ongoing contract negotiations.
• Ownership structure:
• McArthur River – 69.805 % Cameco, 30.195 % Orano.
• Key Lake mill – 83.333 % Cameco, 16.667 % Orano.
• Cigar Lake – 54.547 % Cameco, 40.453 % Orano Canada Inc., 5 % Tepco Resources Inc.
• Qualified persons approving technical information: Greg Murdock (GM, McArthur River), Daley McIntyre (GM, Key Lake), Kirk Lamont (GM, Cigar Lake).

Notable Quotes

• “Our balanced and disciplined strategy, combined with diversified production assets and multiple supply sources, positions us to effectively mitigate disruptions and continue delivering long‑term value.” – Mr. Cory Kos, Cameco Corp.