Cameco reports mixed results

Uranium and gold producer Cameco (cco-t) experienced higher revenues but lower earnings during the first quarter.

The Saskatoon-based firm generated $114 million in revenue during the period, compared with $107 million in the first three months of 1996. Cameco attributes the increase to a rise in the volume of uranium and gold sales, as well as improved uranium prices.

Cameco earned $14 million (or 27 cents per share) during the quarter, compared with $22 million (42 cents per share) a year ago. The drop was principally the result of an $11.9-million deferred tax payment.

Debt increased to $397 million at the end of the quarter, compared with $200 million at the end of 1996. The rise was attributed to the acquisition of Denver-based uranium producer Power Resources and to development of the Kumtor gold mine in Kyrgyzstan.

At Kumtor, where mill commissioning is under way, some 35,000 oz. gold were produced and sold by late March. Cameco expects Kumtor production to reach 350,000 oz. gold in 1997. Current efforts are focused on raising mill recovery rates and throughput to design levels. Project costs will remain at the US$450-million level.

In other news, a federal-provincial review panel has recommended that Cameco proceed with its uranium project near McArthur River, Sask. The company expects to receive the go-ahead for development shortly.