During the first six months of 1999, earnings decreased to $57 million on consolidated revenue of $328 million, compared with $59 million on revenue of $289 million in the first half of 1998.
Earnings per share for the period were 41 cents, down from 65 cents in the previous year.
Uranium operations generated the bulk of revenue over the six months, totalling $278 million, up from $212 million in the corresponding period of 1998.
Trading volumes in the spot uranium market jumped to 13 million lbs. (5,900 tonnes) for the year’s first half, up from 4 million lbs. (1,800 tonnes) sold in the first half of 1998. Sales volume of U3O8 climbed by more than 40% and conversion services, by 8%. As a result, total production and service costs increased by 27%.
During the quarter, the spot-market price for uranium averaged US$10.41 per lbs., down from US$10.80, and US$3.40 for uranium conversion services, a drop of 12% from the beginning of the quarter.
Gold operations added $51 million in revenue in the first half, down 34% from a year ago. The drop is attributed to the shutdown of the Contact Lake mine in Saskatchewan.
The quarter’s average realized gold price was US$347 per oz., compared with US$405 a year earlier.
At the end of June 1999, Cameco had 501,000 oz. gold hedged at US$305 per oz.
Work continued at Key Lake and Cigar Lake. At McArthur Lake, the company awaits an operating license from the Atomic Energy Control Board.
The company recently closed a $250-million transaction aimed at selling interests in some of its Saskatchewan uranium assets, and issued $100 million of 6.9% debentures with 7-year terms.
On June 30, Cameco’s total debt was $627 million, compared with $601 million at the end of 1998.
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