About Cameco
Cameco Corporation operates as a producer of the uranium worldwide. The company provides secure and reliable nuclear fuel supplies to a global customer base to generate safe, reliable, and affordable carbon-free energy. Nuclear energy plants around the world use the company’s uranium products to generate one of the cleanest sources of electricity. The company’s operations span the nuclear fuel cycle from exploration to fuel services, which include uranium production, refining, UO2 and UF6 conversion services and CANDU fuel manufacturing for heavy water reactors. To meet its customers’ growing demand for nuclear fuel supplies and services that are reliable and secure, the company has also made investments, that if successful, it expects will allow the company to participate in the entire nuclear fuel value chain, adding capabilities in enrichment; fuel fabrication for light water reactors; reactor maintenance and other services; the design, engineering, and support for the development of new reactors; and nuclear sustainability services. Business Segments Uranium The company’s uranium production capacity is among the world’s largest. The company has controlling ownership of the world’s largest high-grade mineral reserves. This segment’s primary product is uranium concentrates (U3O8). The company’s tier-one operations include McArthur River and Key Lake, Saskatchewan; Cigar Lake, Saskatchewan; and Inkai, Kazakhstan. The company’s tier-two operations include Rabbit Lake, Saskatchewan; Smith Ranch-Highland, Wyoming; and Crow Butte, Nebraska. The company’s advanced projects include Millennium, Saskatchewan; Yeelirrie, Australia; and Kintyre, Australia. The company’s exploration focuses on North America and has approximately 0.78 million hectares of land. Fuel Services This is an integrated uranium fuel supplier, offering refining, conversion, and fuel manufacturing services. This segment’s products include uranium trioxide (UO3); uranium hexafluoride (UF6) for light-water reactors (the company has about 21% of world primary conversion capacity); uranium dioxide (UO2) for CANDU heavy-water reactors; and fuel bundles, reactor components and monitoring equipment used by CANDU heavy-water reactors. The company’s operations include Blind River refinery, Ontario (refines uranium concentrates to UO3); Port Hope conversion facility, Ontario (converts UO3 to UF6 or UO2); and Cameco Fuel Manufacturing Inc. (CFM), Ontario (manufactures fuel bundles and reactor components for CANDU heavy-water reactors). Other Nuclear Fuel Cycle Investments Enrichment The company has a 49% interest in Global Laser Enrichment LLC (GLE), which is testing third-generation enrichment technology that, if successful, will use lasers to commercially enrich uranium. GLE is the exclusive licensee of the proprietary SILEX laser enrichment technology, that is in the development phase. Westinghouse Electric Company (Westinghouse) In October 2022, the company announced the planned acquisition of a 49% interest in Westinghouse, a global provider of mission critical and specialized technologies, products, and services for light-water reactors across most phases of the nuclear power sector. The planned acquisition is through a strategic partnership with Brookfield Renewable. The acquisition is expected to close in the second half of 2023 and is subject to customary closing conditions and certain regulatory approvals. The company’s operations and investments span the nuclear fuel cycle, from exploration to fuel manufacturing. Agreement on Key Supply Terms with Energoatom In February 2023, the company had reached agreement on commercial terms for a major supply contract with SE NNEGC Energoatom (Energoatom), Ukraine’s state-owned utility and that the agreement was subject to contract finalization. The agreement was finalized and signed in March 2023. The 12-year agreement will run from 2024 through 2035. The agreement will see Cameco supply 100% of Energoatom’s UF6 requirements (consisting of uranium and conversion services) for the nine nuclear reactors at the Rivne, Khmelytskyy and South Ukraine nuclear power plants. These plants have combined requirements over the contract term of approximately 15.3 million KgU as UF6 (the equivalent of around 40.1 million pounds of uranium concentrate, or U3O8). The contract will also contain an option for Cameco to supply up to 100% of the fuel requirements for the six reactors at the Zaporizhzhya nuclear power plant, under Russian control, should it return to Energoatom’s operation. If this option was exercised in 2024, the Zaporizhzhya power plant would require roughly 10.4 million KgU as UF6 the equivalent of around 27.2 million pounds of uranium concentrate, or U3O8) over the contract period. The company has one main subsidiary: Cameco Europe Ltd., a Swiss company that the company has 100% ownership of through subsidiaries. Strategy The company is a pure-play investment in the growing demand for nuclear energy. The company is focused on providing nuclear fuel products and services across the fuel cycle to support the generation of clean, reliable, secure and affordable energy; and the company is focused on taking advantage of the long-term growth the company sees coming in its industry. The company’s strategy is set within the context of a transitioning market environment, where increasing populations, a growing focus on electrification and decarbonization, and concerns about energy security and affordability are expected to durably strengthen the long-term fundamentals for the company’s industry. The company’s strategy is to capture full-cycle value by: remaining disciplined in the company’s contracting activity, building a balanced portfolio in accordance with the company’s contracting framework; profitably producing from the company’s tier-one assets and aligning the company’s production decisions in all segments of the company’s business with the company’s contract portfolio and customer needs; being financially disciplined to allow the company to execute on the company’s strategy, take advantage of strategic opportunities and to self-manage risk; and exploring other emerging and non-traditional opportunities within the fuel cycle, which align with the company’s commitment to responsibly and sustainably manage the company’s business, contribute to the mitigation of global climate change, and help to provide energy security and affordability. Contract Portfolio Status The company has commitments to sell approximately 180 million pounds of U3O8 with 34 customers worldwide in the company’s Uranium segment, and over 55 million kilograms as UF6 conversion with 31 customers worldwide in the company’s Fuel Services segment. Conversion Services The company has about 21% of world UF6 primary conversion capacity and supply UO2 for Canadian-made CANDU reactors. Uranium – Tier-one Operations McArthur River mine / Key Lake Mill McArthur River is the world’s largest, high-grade uranium mine, and Key Lake is the world’s largest uranium mill. The company is the operator of both the mine and mill. McArthur River is considered a material uranium property for the company. The company owns 69.805% interest in McArthur River mine and 83.33% interest in Key Lake mill. McArthur River is owned by a joint venture (MRJV) between two companies: Cameco – 69.805% (operator) and Orano Canada Inc. (Orano) – 30.195%. Key Lake is owned by a joint venture between the same two companies: Cameco – 83.333% (operator) and Orano – 16.667%. The McArthur River mine site is located near Toby Lake, approximately 620 kilometres north of Saskatoon. The mine site is in close proximity to other uranium production operations: the Key Lake mill is 80 kilometres southwest by road and the Cigar Lake mine is 46 kilometres northeast by air. Saskatoon, a major population centre south of the McArthur River property, has highway and air links to the rest of North America. The MRJV acquired the right to use and occupy the lands necessary to mine the deposit under a surface lease agreement with the province of Saskatchewan. The lease covers 1,425 hectares and expires in May 2043. The company is required to report annually on the status of the environment, land development and progress on northern employment and business development. The company has the right to mine the deposit under ML 5516, granted to the company by the province of Saskatchewan. The lease covers 1,380 hectares and expires in March 2024. The company has the right to renew the lease for further 10-year terms. A mineral claim gives the company the right to explore for minerals and to apply for a mineral lease. There are 28 mineral claims, totalling 87,747 hectares, adjoining the mineral lease and surrounding the deposit. The mineral claims are in good standing until 2024, or later. The company needs three key permits to operate the McArthur River mine: Uranium Mine Operating Licence – renewed in 2013 and expires on October 31, 2023 (from the CNSC); Approval to Operate Pollutant Control Facilities – renewed in 2017 and expires on June 30, 2023 (from the Saskatchewan Ministry of Environment (SMOE)); and Water Rights Licence and Approval to Operate Works – amended in 2011 and valid for an undefined term (from the Saskatchewan Watershed Authority) McArthur River operates throughout the year despite cold winter conditions. During the winter, the company heat the fresh air necessary to ventilate the underground workings using propane-fired burners. Key Lake mill The Key Lake mill is located in northern Saskatchewan, 570 kilometres north of Saskatoon. The site is 9 kilometres long and 5 kilometres wide and is connected to McArthur River by an 80-kilometre all-weather road. There is a 1.6-kilometre unpaved air strip and an air terminal on the east edge of the site. The company need two key permits to operate the Key Lake mill: Uranium Mill Operating Licence – renewed in 2013 and expires on October 31, 2023 (from the CNSC); and Approval to Operate Pollutant Control Facilities – renewed in 2021 and expires on November 30, 2029 (from the SMOE). The Key Lake mill comprises the following eight plants: ore slurry receiving plant; grinding/blending plant; reverse osmosis plant; leaching/counter current decantation plant; solvent extraction plant; yellowcake precipitation/dewatering/calcining/packing/ammonium sulphate plant; bulk neutralization/lime handling/tailings treatment and pumping; powerhouse/utilities/acid plant/oxygen plant complex. Uranium – Tier-one Operations Cigar Lake Cigar Lake is the world’s highest grade uranium mine. The company is a 54.547% owner and the mine operator. Cigar Lake uranium is milled at Orano’s McClean Lake mill. Cigar Lake is owned by a joint venture of three companies (CLJV): Cameco – 54.547% (operator) Orano – 40.453% TEPCO Resources Inc. – 5.000%. The Cigar Lake mine site is located near Waterbury Lake, approximately 660 kilometres north of Saskatoon. The mine site is near other uranium production operations: McClean Lake mill is 69 kilometres northeast by road and McArthur River mine is 46 kilometres southwest by air from the mine site. The CLJV acquired the right to use and occupy the lands necessary to mine the deposit under a surface lease agreement with the province of Saskatchewan. The lease covers approximately 1,042 hectares and expires in May 2044. The company has the right to mine the deposit under ML 5521, granted to the CLJV by the province of Saskatchewan. The lease covers 308 hectares and expires in December 2031. The CLJV has the right to renew the lease for further 10-year terms. A mineral claim gives the company the right to explore for minerals and to apply for a mineral lease. There are 38 mineral claims totalling 95,293 hectares, adjoining the mineral lease and surrounding the site. The mineral claims are in good standing until 2037 or later. Cigar Lake is a developed property with sufficient surface rights to meet current mining operation needs. The company is mining in the eastern part of the ore body. The Cigar Lake mine site contains all the necessary services and facilities to operate a remote underground mine, including personnel accommodation, access to water, airport, site roads and other necessary buildings and infrastructure. Cigar Lake operates throughout the year despite cold winter conditions. During the winter, the company uses propane-fired burners to heat the fresh air necessary to ventilate the underground workings. Uranium – Tier-one operations Inkai Inkai is a very significant uranium deposit, located in Kazakhstan. The operator is JV Inkai limited liability partnership, which the company jointly own (40%)1 with Kazatomprom (60%). JV Inkai is a Kazakhstan limited liability partnership between two companies: Cameco – 40% and Kazatomprom (KAP) – 60%. Inkai is in the Suzak District of Turkestan Oblast, Kazakhstan near the town of Taikonur, 350 kilometres northwest of the city of Shymkent and 155 kilometres east of the city of Kyzyl-Orda. JV Inkai’s corporate office is in Shymkent. Uranium – Tier-two operations Rabbit Lake Located in Saskatchewan, Canada, the company’s 100% owned Rabbit Lake operation opened in 1975. Due to market conditions, the company suspended production at Rabbit Lake during the second quarter of 2016. The company is focused on exploration near its existing operations where the company has established infrastructure and capacity to expand. Globally, the company has land with exploration and development prospects that are among the best in the world, mainly in Canada, Australia and the U.S. The company’s land holdings total about 0.78 million hectares (1.9 million acres). In northern Saskatchewan alone, the company has direct interests in about 0.68 million hectares (1.7 million acres) of land covering many of the most prospective exploration areas of the Athabasca Basin. Blind River Refinery Blind River is the world’s largest commercial uranium refinery, refining uranium concentrates from mines around the world into UO3. In February 2022, the CNSC granted the company’s Blind River refinery a 10-year operating licence, which will expire in February 2032. Port Hope Conversion Services Port Hope is the only uranium conversion facility in Canada and a supplier of UO2 for Canadian-made CANDU reactors. Fuel Manufacturing CFM’s main business is making fuel bundles for CANDU reactors. CFM presses UO2 powder into pellets that are loaded into tubes, manufactured by CFM, and then assembled into fuel bundles. These bundles are ready to insert into a CANDU reactor core. CFM also produces many different zirconium-based reactor components for CANDU reactors. Manufacturing Services Agreements A substantial portion of CFM’s business is the supply of fuel bundles to the Bruce Power A and B nuclear units in Ontario. The company supplies the UO2 for these fuel bundles. Proposed Acquisition of Westinghouse As announced on October 11, 2022, the company entered into a strategic partnership with Brookfield Renewable to acquire Westinghouse, a global provider of mission-critical and specialized technologies, products and services across most phases of the nuclear power sector. Brookfield Renewable will beneficially own a 51% interest in Westinghouse and Cameco will beneficially own 49%. Westinghouse is organized in three business segments: Operating Plant Services: Long-term contracting for the manufacturing and installation of fuel assemblies and other ancillary equipment across multiple light water reactor technologies. Westinghouse provides recurring services for outages and maintenance, engineering solutions, and replacement components and parts. Energy Systems: Designing, engineering and supporting the development of new nuclear reactors. Environmental Services: Services to government and commercial customers that support nuclear sustainability, environmental stewardship and remediation. History Cameco Corporation was incorporated under the Canada Business Corporations Act in 1987.
