Saskatchewan-based Cameco (TSE) recently announced two separate developments designed to enhance its position as supplier of 10% of western world uranium.
President Bernard Michel said Cameco has eliminated 86 jobs in its Saskatchewan and Ontario divisions, representing 7% of its total workforce in a move to cut costs and become more competitive.
“The measures are required to take a more focused approach to the way we conduct our business at the head office and to improve the cost competitiveness of our uranium conversion facilities,” said Michel. The cuts leave Cameco with 804 employees in Saskatchewan and 276 in Ontario. In a second development, Cameco has spent $49.75 million to acquire full ownership of AGIP Resources from its Italian parent AGIP.
As AGIP’s assets include a 10% stake in the McArthur River uranium project in Saskatchewan, Cameco’s interest in the project increases to 56.4% from about 45%. The other partners are Uranerz Exploration and Mining with 27% and Interuranium Canada with 9% and Cogema Canada with 7.1%.
Depending on a number of factors, including a joint federal-provincial review panel and uranium market conditions, ore from the high-grade deposit is scheduled to be processed at Cameco’s Key Lake mill located 70 km away. AGIP, which is to be renamed Cameco Resources, has interests in a number of other Saskatchewan joint ventures.
On a fully diluted basis Cameco’s 51 million shares are held 42% by the public, 39% by the Saskatchewan government and 19% by the federal government.
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