Cameco Corp. Q1 FY2024 earnings call

• Nuclear energy is recognized as a key carbon-free energy source for Net Zero and energy security, with momentum growing in the nuclear space. - Cameco's strategy and assets position it to benefit from tailwinds in nuclear energy. - Q1 operational performance was strong, with production on track with 2024 plans and continued transition to the Tier 1 cost structure. - Contracting strategy focuses on long-term, high-quality term demand, with additional long-term contracts added in Q1 increasing annual commitments to ~28 million pounds per year from 2024 to 2028. - Westinghouse segment continues to show improved prospects, with EBITDA growth expected over the next five years.

Uranium Segment: First quarter production was strong and on track with 2024 plans, with production rates and total production costs reflecting the transition back to the Tier 1 cost structure. Westinghouse Segment: First quarter results were as expected, with the company continuing to expect its share of adjusted EBITDA from Westinghouse this year to be between $445 million and $510 million.

• Uranium production run rate is on pace to meet annual guidance. - Westinghouse adjusted EBITDA for the year is expected to be between $445 million and $510 million. - Expect strong contracting volumes through 2024 driven by security of supply interest.

• Geopolitical events impacting global supply chain and transportation, affecting nuclear fuel procurement. - Sulfuric acid supply challenges for the Inkai project. - Concerns about Russian retaliation to potential U.S. legislation banning Russian uranium supply by 2028.

Q: Neil Mehta of Goldman Sachs asked about Westinghouse's seasonality and EBITDA guidance.

A: Tim Gitzel and Heidi Shockey discussed accounting impacts and seasonality in Westinghouse's operations.

Q: Ralph Profiti of Eight Capital asked about Inkai guidance and sulfuric acid supply.

A: Tim Gitzel and Sean Quinn talked about Inkai's production target and sulfuric acid challenges.

Q: Gordon Johnson of GLJ Research asked about Russian retaliation and contract escalators.

A: Tim Gitzel and Grant Isaac discussed Russian retaliation risks and contract escalators in uranium contracts.

Q: Andrew Wong of RBC Capital Markets asked about Don Lake project exploration and contract terms.

A: Tim Gitzel and Sean Quinn discussed Don Lake project exploration plans, and Grant Isaac talked about contract escalators.

Q: Alexander Pearce of Bank of Montreal asked about contracting updates and McArthur River expansion.

A: Grant Isaac and Tim Gitzel discussed contracting strategy and McArthur River expansion evaluation.

Q: Lawson Winder of Bank of America Securities asked about sales seasonality and contract caps/floors.

A: Grant Isaac discussed sales seasonality and contract caps/floors in uranium contracts.

Q: Greg Barnes of TD Securities asked about Westinghouse's AP1000 orders and Springfield.

A: Tim Gitzel and Dominic Kieran talked about AP1000 orders and Springfield's strategic asset status.

Q: Brian MacArthur of Raymond James asked about Westinghouse's improved performance and Springfield.

A: Tim Gitzel and Grant Isaac discussed Westinghouse's improved outlook and Springfield's potential.