Azincourt Power Publicizes Build up in Non-Brokered Financing

“The geopolitical occasions that impacted 2022 sped up safety of provide considerations and matched with the continuing focal point at the local weather disaster, created what we consider are transformative tailwinds for the nuclear energy trade from each a requirement and provide point of view. In early-January, unrest in Kazakhstan raised considerations concerning the safety of the greater than 40% of world uranium provide that originates from Kazakhstan. Alternatively, it was once the Russian invasion of Ukraine in late-February that was once essentially the most transformative match for our trade. We consider it has set in movement a geopolitical realignment in power markets this is highlighting the the most important position for nuclear energy now not simply in offering clear power, but in addition in offering protected and reasonably priced power. And, with the worldwide nuclear trade reliant on Russian provides for about 14% of uranium concentrates, 27% of conversion and 39% of enrichment, it’s highlighting the safety of provide possibility related to the rising number one provide hole and shrinking secondary provides, and lengthening the focal point on beginning of provide.

“We proceed to consider that Cameco stays one of the best ways to spend money on the restoration of the uranium marketplace. With nuclear power obviously again in sturdy expansion mode, Cameco could also be again in sturdy expansion mode. Expansion that can be sought in the similar means as we means all sides of our industry; strategic, planned, disciplined, and with a focal point on producing full-cycle worth.

“Now we have had good fortune taking pictures the bettering marketplace basics with a file choice of contracts signed. Our contracting focal point has been on acquiring market-related pricing mechanisms, whilst additionally offering good enough drawback coverage. We proceed to be strategically affected person in our discussions to maximise worth in our contract portfolio and to deal with publicity to better costs with unencumbered long term productive capability.

“With the enhancements out there, the brand new long-term contracts we have now installed position and our pipeline of contracting discussions, we’re shifting to the following segment of our provide self-discipline. Our plan will now be for McArthur River/Key Lake to provide 18 million kilos according to 12 months (100% foundation) beginning in 2024 and we will be able to proceed to function Cigar Lake at its approved capability of 18 million kilos according to 12 months (100% foundation) in 2024. At Inkai, manufacturing will proceed to observe the 20% relief deliberate via Kazatomprom (KAP) till the tip of 2023. With annual approved capability of 25 million kilos at McArthur River/Key Lake, we proceed to be able to make bigger manufacturing from our present belongings. If we took good thing about the entire tier-one growth alternatives to be had to us, our annual proportion of tier-one provide might be about 32 million kilos. Alternatively, any determination to make bigger manufacturing can be depending on additional enhancements within the uranium marketplace and our skill to protected the right long-term contract properties for our unencumbered, in-ground stock, demonstrating that we proceed to responsibly set up our provide based on our consumers’ wishes.

“Because of our planned movements and conservative monetary control we have now been and proceed to be resilient. The power of our stability sheet allowed us to profit from two alternatives in 2022 that we consider will upload important long-term worth for Cameco. We received a better proportion within the Cigar Lake mine, expanding our possession to 54.5%. We’re happy to extend our proportion within the Cigar Lake operation, which is a confirmed, accredited and entirely approved tier-one mine in a protected and strong jurisdiction that we function with the super participation and enhance of our neighbouring Indigenous spouse communities. And, we entered a strategic partnership with Brookfield Renewable Companions and its institutional companions (Brookfield Renewable) to collectively achieve 100% of Westinghouse Electrical Corporate (Westinghouse), a world supplier of mission-critical and specialised applied sciences, services and products throughout maximum stages of the nuclear energy sector. The purchase is anticipated to near in the second one part of 2023 and is topic to normal ultimate stipulations and sure regulatory approvals. As soon as the transaction closes, Brookfield Renewable, will beneficially personal a 51% passion in Westinghouse and we will be able to beneficially personal 49%. We consider bringing in combination our experience within the nuclear trade with Brookfield Renewable’s experience in clear power positions nuclear energy on the center of the clear power transition and creates an impressive platform for strategic expansion around the nuclear sector.

“With the renewed reputation of the position nuclear energy will have to play, we’re constructive about Cameco’s position in supporting the transition to a net-zero carbon financial system. Via our leading edge decarbonization movements throughout potency, electrification, waste to price, carbon financial system, and gasoline switching issues – we predict to succeed in a 30% absolute relief from our overall Scope 1 and a pair of emissions degree via 2030 from our 2015 baseline as our first primary milestone at the adventure to succeed in our ambition of being web 0. We consider our greatest contribution to the transition to a net-zero carbon financial system comes from the nuclear fuels that we stock to enhance the era of nuclear energy – 100% carbon-free electrical energy.

“Now we have tier-one belongings which are approved, accredited, long-lived, and confirmed dependable, and that experience growth capability. Those tier-one belongings are subsidized up via idle tier-two belongings and what we expect is the most productive exploration portfolio that leverages present infrastructure. We additionally supply our consumers with get admission to to conversion, in addition to gasoline fabrication and reactor elements for heavy water CANDU reactors. With the pending joint acquisition of Westinghouse, we’re eager about having the ability to prolong the bottom of our achieve within the nuclear gasoline cycle with belongings that, like ours, are strategic, confirmed, approved, accredited, and positioned in geopolitically vital jurisdictions. Belongings that we predict will be capable of take part within the rising call for profile for nuclear power from their present footprint. And, we’re exploring alternatives within the nuclear gasoline cycle and in leading edge, non-traditional industrial makes use of of nuclear energy in Canada and all over the world.

“We consider we have now the best technique to succeed in our imaginative and prescient of ‘energizing a clean-air global’ and we will be able to accomplish that in a way that displays our values. Embedded in all our selections is a dedication to addressing the environmental, social and governance dangers and alternatives that we consider will make our industry sustainable over the long run.”

Abstract of This autumn and 2022 effects and traits:

• Document contracting secures long-term revenues and money flows: In our uranium phase, in 2022, we added 80 million kilos to our portfolio of long-term uranium contracts, with a file choice of contracts signed. Of the 80 million kilos, about 58 million kilos had been finalized underneath contracts and the rest 22 million kilos had been authorized with key industrial phrases, comparable to pricing mechanism, quantity and tenor having been agreed to, however nonetheless waiting for contract finalization. We even have a massive and rising pipeline of uranium industry underneath dialogue. As well as, with sturdy call for within the UF ₆ conversion marketplace, we had been a hit in including long-term contracts that we predict will underpin that operation for future years. We finalized contracts for just about 12 million kgU of UF ₆ conversion in 2022 and feature every other virtually 5 million kgU which have been authorized and are waiting for contract finalization.
• Contract acceptance with Energoatom: As introduced on February 8, we have now reached settlement on industrial phrases for a significant provide contract to supply enough volumes of herbal uranium hexafluoride (UF ₆ ) (consisting of uranium and conversion services and products) to SE NNEGC Energoatom (Energoatom) to satisfy Ukraine’s complete nuclear gasoline wishes via 2035. Key industrial phrases, comparable to pricing mechanism, quantity and tenor, had been agreed to, however the contract is topic to finalization, which is expected within the first quarter of 2023. The settlement will include a required stage of flexibleness, given provide cases in Ukraine. The volumes aren’t incorporated in our overall 2022 reduced in size volumes, and constitute doable overall necessities of 25.7 million kgU as UF ₆ (the identical of 67.3 million kilos of uranium) that had been authorized in 2023. This brings our overall contracting from the beginning of 2022 to over 147 million kilos of uranium (58 million kilos finalized and 89 million kilos authorized and waiting for contract finalization) and virtually 43 million kgU in conversion services and products (12 million kgU finalized and virtually 31 million kgU authorized and waiting for contract finalization).
• 2023 steerage equipped, returning to tier-one run fee: Our outlook for 2023 is starting to mirror the transition of our price construction again to a tier-one run fee, as we plan our manufacturing to meet the rising long-term commitments underneath our contract portfolio. With the enhancements out there, the brand new long-term contracts we have now installed position, and a pipeline of contracting discussions, our plan will now be for McArthur River/Key Lake to provide 18 million kilos (100% foundation) beginning in 2024 and to proceed to function Cigar Lake at its approved capability of 18 million kilos according to 12 months (100% foundation) in 2024. At Inkai, manufacturing will proceed to observe the 20% relief deliberate via KAP till the tip of 2023. With annual approved capability of 25 million kilos (100% foundation) at McArthur River/Key Lake, we proceed to be able to make bigger manufacturing from our present belongings, then again some further funding can be required. Any determination to make bigger manufacturing can be depending on additional enhancements within the uranium marketplace and our skill to protected the right long-term contract properties for our unencumbered, in-ground stock, demonstrating that we proceed to responsibly set up our provide based on our consumers’ wishes. Along with our plans to make bigger uranium manufacturing, at our Port Hope conversion facility we’re operating on expanding UF ₆ manufacturing to twelve,000 tonnes via 2024 to meet our e-book of long-term industry for conversion services and products and buyer call for at a time when conversion costs are at ancient highs. Because of those plans, we predict to look persisted growth in our monetary efficiency. See Outlook for 2023 in our 2022 annual MD&A for more info.
• Larger possession at Cigar Lake: In Might 2022, we introduced the purchase of a better proportion within the Cigar Lake mine for $107 million, expanding our possession to 54.5% (from 50%). Cigar Lake is a confirmed, accredited and entirely approved tier-one mine in a protected and strong jurisdiction that we function with the super participation and enhance of our neighbouring Indigenous spouse communities.
• Proposed acquisition of Westinghouse: In October 2022, we introduced we had entered right into a strategic partnership with Brookfield Renewable to collectively achieve 100% of Westinghouse, a world supplier of mission-critical and specialised applied sciences, services and products throughout maximum stages of the nuclear energy sector. At the same time as with the execution of the purchase settlement, we secured commitments that supply for a $1 billion (US) bridge mortgage facility and $600 million (US) in time period loans. Following the announcement, we undertook a $650 million (US) purchased deal providing of commonplace stocks, with an underwriter possibility to buy further stocks. The providing closed on October 17, 2022, offering us with gross proceeds of roughly $747.6 million (US) together with the underwriters’ workout in stuffed with the choice to buy further stocks. The purchase is anticipated to near in the second one part of 2023 and is topic to normal ultimate stipulations and sure regulatory approvals. As soon as the transaction closes, Brookfield Renewable will beneficially personal a 51% passion in Westinghouse and we will be able to beneficially personal 49%. We consider bringing in combination our experience within the nuclear trade with Brookfield Renewable’s experience in clear power positions nuclear energy on the center of the clear power transition and creates an impressive platform for strategic expansion around the nuclear sector. See Proposed acquisition of Westinghouse in our 2022 annual MD&A and our October 18, 2022 subject matter alternate file (to be had on www.sedar.com and www.sec.gov ) for more info.
• Fourth quarter web lack of $15 million; adjusted web income of $36 million: Fourth quarter effects are pushed via commonplace quarterly diversifications in contract deliveries and the continuing execution of our technique. Adjusted web income is a non-IFRS measure, see underneath.
• Annual web income of $89 million; adjusted web income of $135 million: Annual effects are starting to mirror the transition of our price construction again to a tier-one run fee as pondered via the continuing execution of our technique. Our effects additionally mirror the development in moderate discovered costs as uranium costs and conversion costs proceed to extend catalyzed via geopolitical uncertainty and safety of provide considerations. In our uranium phase we delivered over 25 million kilos. Manufacturing for 2022 was once 10.4 million kilos in our uranium phase as Cigar Lake met its annual manufacturing goal of 18 million kilos (100% foundation) and McArthur River/Key Lake restarted operations generating 1.1 million kilos (100% foundation). In our gasoline services and products phase, we produced 13.0 million kgU, which incorporated an annual UF ₆ manufacturing file. As well as, we generated $305 million in money from operations, with upper gross sales volumes in our uranium phase and better moderate discovered costs in each our uranium and gasoline services and products segments in comparison to 2021. Adjusted web income is a non-IFRS measure, see underneath.
• Sturdy stability sheet: As of December 31, 2022, we had $2.3 billion in money and money equivalents and momentary investments and $997 million in long-term debt. Web proceeds from the introduced proportion issuance had been gained in October 2022 and america greenback money and money equivalents and momentary investments are incorporated on our stability sheet. The general financing for the Westinghouse acquisition isn’t required till shut of the purchase and can be decided in keeping with marketplace stipulations and the anticipated run fee of our industry at the moment. We think an enduring financing mixture of capital resources, together with money, debt and fairness, designed to keep our stability sheet and scores power, whilst keeping up wholesome liquidity. As well as, we have now a $1 billion undrawn credit score facility.
• Gained dividends from JV Inkai: In 2022, we gained dividend bills from JV Inkai totaling $93 million (US). JV Inkai distributes extra money, web of operating capital necessities, to the companions as dividends. See Uranium – Tier-one operations – Inkai in our 2022 annual MD&A.

Consolidated monetary effects

The 2022 annual monetary statements had been audited; then again, the 2021 fourth quarter and 2022 fourth quarter monetary data introduced is unaudited. You’ll discover a reproduction of our 2022 annual MD&A and our 2022 audited monetary statements on our site at cameco.com.

NET EARNINGS

The next desk presentations what contributed to the alternate in web income and changed web income (non-IFRS measure, see underneath) within the 3 months and 12 months ended December 31, 2022, in comparison to the similar length in 2021.

Non-IFRS measures

ADJUSTED NET EARNINGS

Adjusted web income (ANE) is a measure that doesn’t have a standardized that means or a constant foundation of calculation underneath IFRS (non-IFRS monetary measure). We use this measure as a extra significant strategy to examine our monetary efficiency from length to length. Adjusted web income is our web income as a result of fairness holders, adjusted to higher mirror the underlying monetary efficiency for the reporting length. We consider that, along with typical measures ready based on IFRS, positive traders use this data to guage our efficiency. Adjusted web income is without doubt one of the goals that we measure to shape the root for a portion of annual worker and govt reimbursement (see Measuring our effects in our 2022 annual MD&A).

In calculating ANE we modify for derivatives. We don’t use hedge accounting underneath IFRS and, subsequently, we’re required to file positive aspects and losses on all hedging process, each for contracts that shut within the length and those who stay remarkable on the finish of the length. For the contracts that stay remarkable, we will have to deal with them as even though they had been settled on the finish of the reporting length (mark-to-market). Alternatively, we don’t consider the positive aspects and losses that we’re required to file underneath IFRS correctly mirror the intent of our hedging actions, so we make changes in calculating our ANE to higher mirror the have an effect on of our hedging program within the acceptable reporting length. See Foreign currency in our 2022 annual MD&A for more info.

We additionally modify for adjustments to our reclamation provisions that float immediately via income. Each quarter we’re required to replace the reclamation provisions for all operations in keeping with new money float estimates, cut price and inflation charges. This in most cases leads to an adjustment to our asset retirement legal responsibility along with the availability stability. When the belongings of an operation had been written off because of an impairment, as is the case with our Rabbit Lake and US ISR operations, the adjustment is recorded immediately to the remark of income as “different running expense (source of revenue)”. See be aware 16 of our annual monetary statements for more info. This quantity has been excluded from our ANE measure.

Adjusted web income is a non-IFRS monetary measure and must now not be thought to be in isolation or as an alternative to monetary data ready in line with accounting requirements. Different firms would possibly calculate this measure in a different way, so that you won’t be capable of make an immediate comparability to equivalent measures introduced via different firms.

The next desk reconciles adjusted web income with our web income for the 3 months and years ended December 31, 2022 and 2021.

Decided on segmented highlights

Government group replace

Grant Isaac has been appointed govt vice-president and keeps the manager monetary officer (CFO) serve as. Isaac continues to report back to the president and CEO. Previous to this position, Isaac was once senior vice-president and CFO. Heidi Shockey has been appointed senior vice-president and deputy CFO and reviews to Isaac. Previous to this, Shockey was once Cameco’s vice chairman and controller. Each appointments are efficient February 1, 2023.

“I’m happy to acknowledge Grant’s persisted superb contributions to Cameco along with his appointment to govt vice-president. I’m additionally happy to welcome Heidi to the senior govt group, who brings in depth monetary experience to her position as deputy CFO,” stated Gitzel. “They’re a part of an exceptionally sturdy and skilled control group.”

Control’s dialogue and research (MD&A) and fiscal statements

The 2022 annual MD&A and consolidated monetary statements supply an in depth clarification of our running effects for the 3 and 12 months ended December 31, 2022, as in comparison to the similar sessions final 12 months, and our outlook for 2023. This information unlock must be learn at the side of those paperwork, in addition to our most up-to-date annual data shape, all of which might be to be had on our site at cameco.com, on SEDAR at sedar.com, and on EDGAR at sec.gov/edgar.shtml.

Certified individuals

The technical and clinical data mentioned on this file for our subject matter houses McArthur River/Key Lake, Cigar Lake and Inkai was once authorized via the next people who are certified individuals for the needs of NI 43-101:

MCARTHUR RIVER/KEY LAKE

• Greg Murdock, normal supervisor, McArthur River, Cameco
• Daley McIntyre, normal supervisor, Key Lake, Cameco

CIGAR LAKE

• Lloyd Rowson, normal supervisor, Cigar Lake, Cameco

INKAI

• Sergey Ivanov, deputy director normal, technical services and products, Cameco Kazakhstan LLP

Warning about forward-looking data

This information unlock contains statements and details about our expectancies for the long run, which we discuss with as forward-looking data. Ahead-looking data is in keeping with our present perspectives, which is able to alternate considerably, and precise effects and occasions is also considerably other from what we lately be expecting.

Examples of forward-looking data on this information unlock come with: our perspectives referring to provide and insist for nuclear energy and its expansion around the close to, medium and long run; our skill to take pleasure in marketplace basics and alternatives; the sturdiness of expansion in our uranium and conversion services and products contracting; our skill to function our belongings sustainably, and our expectancies in regards to the worth they are going to generate for us; our expectancies in regards to the have an effect on of a go back to a tier-one run fee on our monetary effects; our perspectives in regards to the have an effect on at the nuclear energy trade of geopolitical occasions and ongoing focal point on local weather disaster; our trust that Cameco is one of the best ways to spend money on the restoration within the uranium marketplace; the sturdiness of our expansion, and our skill to pursue expansion and generate full-cycle worth; our contract portfolio technique and talent to deal with publicity to better costs with unencumbered long term productive capability; our provide plans, together with manufacturing ranges at McArthur River/Key Lake, Cigar Lake and Inkai; our skill to make bigger manufacturing from our present belongings, and the manufacturing degree lets succeed in via our tier-one growth alternatives; the standards we will be able to imagine in making selections referring to increasing manufacturing; the expected timing for the finalization of the SE NNEGC Energoatom (Energoatom) provide contract and our expectation that Cameco will supply enough volumes of UF ₆ underneath it to satisfy Ukraine’s complete nuclear gasoline wishes via 2035; our skill to proceed to be resilient; our perspectives in regards to the long term worth of accelerating our proportion within the Cigar Lake mine, and our strategic partnership with Brookfield Renewable to procure 100% of Westinghouse; the anticipated timing of the ultimate of the Westinghouse acquisition; our optimism referring to our position in supporting a transition to a net-zero carbon financial system, and expectancies referring to our skill to succeed in emissions degree discounts inside our anticipated timeframes; our expectation that the Westinghouse acquisition will allow us to increase our achieve within the nuclear gasoline cycle; our exploration of alternative growth alternatives within the nuclear gasoline cycle and in non-traditional industrial makes use of of nuclear energy; our imaginative and prescient of energizing a clean-air global and trust in our technique for doing so in a way that displays our values; our perspectives in regards to the long-term sustainability of our industry; and the anticipated date for announcement of our 2023 first quarter effects.

Subject material dangers that would result in other effects come with: sudden adjustments in uranium provide, call for, long-term contracting, and costs; adjustments in shopper call for for nuclear energy and uranium because of converting societal perspectives and goals referring to nuclear energy, electrification and decarbonization; the danger that we won’t proceed with our provide self-discipline technique; the danger that we won’t be capable of put into effect adjustments to long term running and manufacturing ranges for Cigar Lake and McArthur River/Key Lake to the deliberate ranges inside the anticipated timeframes, or that the prices excited about doing so, or the prices related to care and upkeep actions, exceed our expectancies; the danger that manufacturing ranges at Inkai might not be at anticipated ranges; the danger that our revenues and money flows won’t make stronger to the level anticipated; dangers in relation to the Energoatom provide contract, together with the danger that it is going to now not be finalized inside the time or at the phrases anticipated, our skill to provide UF ₆ underneath the contract, and that the continuation or end result of the warfare between the Ukraine and Russia would possibly save you Cameco from understanding its anticipated advantages; the danger that we won’t be capable of meet gross sales commitments for any explanation why; the danger that we won’t be capable of proceed to be resilient or proceed to make stronger our monetary efficiency; the dangers to our industry related to doable manufacturing disruptions, together with the ones associated with world provide chain disruptions, world financial uncertainty and political volatility; the danger that we won’t be capable of put into effect our industry goals in a way in step with our environmental, social, governance and different values; the danger that the tactic we’re pursuing would possibly turn out unsuccessful, or that we won’t be capable of execute it effectively; the danger that we might not be a hit in pursuing innovation or imposing complex applied sciences, or understanding the anticipated advantages of the Westinghouse acquisition; and the danger that we is also behind schedule in saying our long term monetary effects.

In presenting the forward-looking data, we have now made subject matter assumptions which would possibly turn out improper about: uranium call for, provide, intake, long-term contracting, expansion within the call for for and world public acceptance of nuclear power, and costs; our manufacturing, purchases, gross sales, deliveries and prices; the marketplace stipulations and different elements upon which we have now based totally our long term plans and forecasts; the good fortune of our plans and methods, together with deliberate running and manufacturing adjustments; assumptions in regards to the Energoatom provide contract, together with that we will be able to achieve settlement on ultimate phrases inside the time and at the phrases anticipated, our skill to provide UF ₆ underneath the contract, and that we will be able to now not be averted from understanding the anticipated advantages of the contract as a result of the continuation or end result of the warfare between Ukraine and Russia; the absence of recent and hostile govt laws, insurance policies or selections; that there may not be any important unanticipated hostile penalties to our industry as a consequence of manufacturing disruptions, together with the ones in relation to provide disruptions, and financial or political uncertainty and volatility; our skill to comprehend the anticipated advantages of the Westinghouse acquisition; and our skill to announce long term monetary effects when anticipated.

Please additionally evaluation the dialogue in our 2022 annual MD&A and most up-to-date annual data shape for different subject matter dangers that would purpose precise effects to range considerably from our present expectancies, and different subject matter assumptions we have now made. Ahead-looking data is designed that will help you perceive control’s present perspectives of our near-term and longer-term potentialities, and it might not be suitable for different functions. We can now not essentially replace this data except we’re required to via securities regulations.

Convention name

We invite you to enroll in our fourth quarter convention name on Thursday, February 9, 2023 at 8:00 a.m. Japanese.

The decision can be open to all traders and the media. To sign up for the decision, please dial (800) 319-4610 (Canada and US) or (604) 638-5340. An operator will put your name via. The slides and a reside webcast of the convention name can be to be had from a hyperlink at cameco.com. See the hyperlink on our house web page at the day of the decision.

A recorded model of the court cases can be to be had:

• on our site, cameco.com, in a while after the decision
• on put up view till middle of the night, Japanese, March 9, 2023, via calling (800) 319-6413 (Canada and US) or (604) 638-9010 (Passcode 9717)

2023 first quarter file unlock date

We plan to announce our 2023 first quarter effects prior to markets open on April 28, 2023.

Profile

Cameco is without doubt one of the greatest world suppliers of the uranium gasoline had to energize a clean-air global. Our aggressive place is in keeping with our controlling possession of the arena’s greatest high-grade reserves and low cost operations. Utilities all over the world depend on our nuclear gasoline merchandise to generate protected, dependable, carbon-free nuclear energy. Our stocks industry at the Toronto and New York inventory exchanges. Our head place of work is in Saskatoon, Saskatchewan.

As used on this information unlock, the phrases we, us, our, the Corporate and Cameco imply Cameco Company and its subsidiaries except another way indicated.

View supply model on businesswire.com: https://www.businesswire.com/information/house/20230208005877/en/

Investor inquiries:
Rachelle Girard
306-956-6403
rachelle_girard@cameco.com

Media inquiries:
Veronica Baker
306-385-5541
veronica_baker@cameco.com