The CEO of Cameco Corp, based in Saskatchewan, emphasized that the U.S. government is not directly involved in its primary uranium mining operations as part of a significant nuclear reactor agreement announced recently. This deal entails the U.S. government facilitating financing, permits, and approvals for over $80 billion US worth of new nuclear reactors in the United States.
The new reactors will utilize technology owned by Westinghouse, a company jointly owned by Cameco and Brookfield Asset Management. During a conference call with analysts to discuss third-quarter results, CEO Tim Gitzel clarified that the U.S. government’s involvement is solely focused on the Westinghouse business and does not extend to Cameco’s core operations.
According to Chief Operating Officer Grant Isaac, the U.S. government is playing a role in promoting the development of power necessary for achieving domestic energy security. Various options are being considered, including the government financing plants owned by other entities, leading its own projects, or collaborating with utilities to operate plants.
Westinghouse’s AP1000 pressurized water reactor, considered one of the most advanced commercially available nuclear power plants, is expected to be constructed under this agreement. The companies envision these units providing over one gigawatt of electricity to central power grids. There is also discussion about potentially spinning off Westinghouse into an independent entity with the U.S. as a major shareholder.
Cameco recently announced a dividend increase to 24 cents per share and reported a net loss of $158,000 for the quarter ending September 30, compared to a profit of $7.4 million in the previous year. Revenue from products and services decreased to $614.6 million from $720.6 million in the same quarter of the previous year. Adjusted earnings per diluted share for the latest quarter were seven cents, up from six cents in the prior year’s comparable period.