EX-99.3

EX-99.3 4 d799418dex993.htm EX-99.3 EX-99.3

Exhibit 99.3

LOGO

Cameco Corporation

2024 condensed consolidated interim financial statements

(unaudited)

April 29, 2024

Cameco Corporation

Consolidated statements of earnings


(Unaudited)	Note		Three months ended
($Cdn thousands, except per share amounts)			Mar 31/24			Mar 31/23
Revenue from products and services		12	$	633,545		$	686,975
Cost of products and services sold				403,558			443,422
Depreciation and amortization				43,167			76,373

Cost of sales				446,725			519,795

Gross profit				186,820			167,180
Administration				59,808			64,011
Exploration				7,360			6,279
Research and development				9,320			4,232
Other operating income		10		(16,780	)		(2,047	)
Loss on disposal of assets				370			—

Earnings from operations				126,742			94,705
Finance costs		13		(38,145	)		(23,597	)
Gain (loss) on derivatives		19		(41,278	)		2,270
Finance income				6,323			27,540
Share of earnings (loss) from equity-accounted investees		7		(46,346	)		56,536
Other income (expense)		14		16,603			(2,586	)

Earnings before income taxes				23,899			154,868
Income tax expense		15		30,960			35,904

Net earnings (loss)			$	(7,061	)	$	118,964

Net earnings (loss) attributable to:
Equity holders				(7,056	)		118,969
Non-controlling interest				(5	)		(5	)

Net earnings (loss)			$	(7,061	)	$	118,964

Earnings (loss) per common share attributable to equity holders:
Basic		16	$	(0.02	)	$	0.27

Diluted		16	$	(0.02	)	$	0.27

See accompanying notes to condensed consolidated interim financial statements.

Cameco Corporation

Consolidated statements of comprehensive earnings


(Unaudited)	Note	Three months ended
($Cdn thousands)		Mar 31/24			Mar 31/23
Net earnings (loss)		$	(7,061	)	$	118,964
Other comprehensive income (loss), net of taxes:
Items that will not be reclassified to net earnings:
Remeasurements of defined benefit liability - equity-accounted investee¹			(31	)		—
Items that are or may be reclassified to net earnings:
Exchange differences on translation of foreign operations			38,199			(2,631	)
Gains on derivatives designated as cash flow hedges -equity-accounted investee²			3,949			—
Exchange differences on translation of foreign operations - equity-accounted investee			(12,152	)		—

Other comprehensive income (loss), net of taxes			29,965			(2,631	)

Total comprehensive income		$	22,904		$	116,333

Other comprehensive income (loss) attributable to
Equity holders		$	29,965		$	(2,631	)
Non-controlling interest			—			—

Other comprehensive income (loss)		$	29,965		$	(2,631	)

Total comprehensive income attributable to
Equity holders		$	22,909		$	116,338
Non-controlling interest			(5	)		(5	)

Total comprehensive income		$	22,904		$	116,333

¹	Net of tax (Q1 2024 - $10)

²	Net of tax (Q1 2024 - $(2,213))

See accompanying notes to condensed consolidated interim financial statements.

Cameco Corporation

Consolidated statements of financial position


(Unaudited)	Note		As at
($Cdn thousands)			Mar 31/24		Dec 31/23
Assets
Current assets
Cash and cash equivalents			$	323,217	$	566,809
Accounts receivable				206,768		422,333
Current tax assets				1,049		974
Inventories		5		761,102		692,261
Supplies and prepaid expenses				154,038		149,352
Current portion of long-term receivables, investments and other		6		24,421		10,161

Total current assets				1,470,595		1,841,890

Property, plant and equipment				3,320,426		3,368,772
Intangible assets				42,657		43,577
Long-term receivables, investments and other		6		600,303		613,773
Investment in equity-accounted investees		7		3,194,120		3,173,185
Deferred tax assets				874,933		892,860

Total non-current assets				8,032,439		8,092,167

Total assets			$	9,503,034	$	9,934,057

Liabilities and shareholders’ equity
Current liabilities
Accounts payable and accrued liabilities				376,713		577,550
Current tax liabilities				25,200		24,076
Current portion of long-term debt		8		499,910		499,821
Current portion of other liabilities		9		72,055		48,544
Current portion of provisions		10		59,059		39,113

Total current liabilities				1,032,937		1,189,104

Long-term debt		8		1,032,172		1,284,353
Other liabilities		9		343,258		343,420
Provisions		10		982,768		1,022,871

Total non-current liabilities				2,358,198		2,650,644

Shareholders’ equity
Share capital		11		2,914,770		2,914,165
Contributed surplus				209,729		215,679
Retained earnings				2,972,656		2,979,743
Other components of equity				14,714		(15,282	)

Total shareholders’ equity attributable to equity holders				6,111,869		6,094,305
Non-controlling interest				30		4

Total shareholders’ equity				6,111,899		6,094,309

Total liabilities and shareholders’ equity			$	9,503,034	$	9,934,057

Commitments and contingencies [notes 10, 15]

See accompanying notes to condensed consolidated interim financial statements.

Cameco Corporation

Consolidated statements of changes in equity


	Attributable to equity holders
(Unaudited) ($Cdn thousands)	Share capital		Contributed surplus			Retained earnings			Foreign currency translation			Cash flow hedges		Equity investments at FVOCI			Total			Non- controlling interest			Total equity
Balance at January 1, 2024	$	2,914,165	$	215,679		$	2,979,743		$	(18,040	)	$	3,506	$	(748	)	$	6,094,305		$	4		$	6,094,309
Net loss		—		—			(7,056	)		—			—		—			(7,056	)		(5	)		(7,061	)
Other comprehensive income (loss)		—		—			(31	)		26,047			3,949		—			29,965			—			29,965

Total comprehensive income (loss) for the period		—		—			(7,087	)		26,047			3,949		—			22,909			(5	)		22,904

Share-based compensation		—		1,288			—			—			—		—			1,288			—			1,288
Stock options exercised		605		(114	)		—			—			—		—			491			—			491
Restricted share units released		—		(7,124	)		—			—			—		—			(7,124	)		—			(7,124	)
Transactions with owners - contributed equity		—		—			—			—			—		—			—			31			31

Balance at March 31, 2024	$	2,914,770	$	209,729		$	2,972,656		$	8,007		$	7,455	$	(748	)	$	6,111,869		$	30		$	6,111,899

Balance at January 1, 2023	$	2,880,336	$	224,687		$	2,696,379		$	35,400		$	—	$	(748	)	$	5,836,054		$	11		$	5,836,065
Net earnings (loss)		—		—			118,969			—			—		—			118,969			(5	)		118,964
Other comprehensive loss		—		—			—			(2,631	)		—		—			(2,631	)		—			(2,631	)

Total comprehensive income (loss) for the period		—		—			118,969			(2,631	)		—		—			116,338			(5	)		116,333

Share-based compensation		—		849			—			—			—		—			849			—			849
Stock options exercised		11,800		(2,188	)		—			—			—		—			9,612			—			9,612
Restricted share units released		—		(6,408	)		—			—			—		—			(6,408	)		—			(6,408	)
Dividends		—		—			3			—			—		—			3			—			3

Balance at March 31, 2023	$	2,892,136	$	216,940		$	2,815,351		$	32,769		$	—	$	(748	)	$	5,956,448		$	6		$	5,956,454

See accompanying notes to condensed consolidated interim financial statements.

Cameco Corporation

Consolidated statements of cash flows


(Unaudited)	Note		Three months ended
($Cdn thousands)			Mar 31/24			Mar 31/23
Operating activities
Net earnings (loss)			$	(7,061	)	$	118,964
Adjustments for:
Depreciation and amortization				43,167			76,373
Deferred charges				(24,282	)		(14,942	)
Unrealized loss (gain) on derivatives				34,644			(6,282	)
Share-based compensation		18		1,288			849
Loss on disposal of assets				370			—
Finance costs		13		38,145			23,597
Finance income				(6,323	)		(27,540	)
Share of loss (earnings) in equity-accounted investees		7		46,346			(56,536	)
Other operating income		10		(16,780	)		(2,047	)
Other expense (income)				(16,603	)		2,586
Income tax expense		15		30,960			35,904
Interest received				6,323			27,444
Income taxes paid				(11,883	)		(7,460	)
Other operating items		17		(55,154	)		44,246

Net cash provided by operations				63,157			215,156

Investing activities
Additions to property, plant and equipment				(40,019	)		(26,909	)
Decrease in short-term investments				—			307,952

Net cash provided by (used in) investing				(40,019	)		281,043

Financing activities
Decrease in debt				(268,300	)		—
Interest paid				(2,523	)		(790	)
Lease principal payments				(412	)		(585	)
Proceeds from issuance of shares, stock option plan				491			9,612
Dividends returned				—			4

Net cash provided by (used in) financing				(270,744	)		8,241

Increase (decrease) in cash and cash equivalents, during the period				(247,606	)		504,440
Exchange rate changes on foreign currency cash balances				4,014			(1,231	)
Cash and cash equivalents, beginning of period				566,809			1,143,674

Cash and cash equivalents, end of period			$	323,217		$	1,646,883

Cash and cash equivalents is comprised of:
Cash				234,391			722,823
Cash equivalents				88,826			924,060

Cash and cash equivalents			$	323,217		$	1,646,883

See accompanying notes to condensed consolidated interim financial statements.

Cameco Corporation

Notes to condensed consolidated interim financial statements

(Unaudited)

(Cdn$ thousands, except per share amounts and as noted)

1. Cameco Corporation

Cameco Corporation is incorporated under the Canada Business Corporations Act. The address of its registered office is 2121 11th Street West, Saskatoon, Saskatchewan, S7M 1J3. The condensed consolidated interim financial statements as at and for the period ended March 31, 2024 comprise Cameco Corporation and its subsidiaries (collectively, the Company or Cameco) and the Company’s interests in associates and joint arrangements.

Cameco is one of the world’s largest providers of the uranium needed to generate clean, reliable baseload electricity around the globe. The Company has operations in northern Saskatchewan and the United States, as well as a 40% interest in Joint Venture Inkai LLP (JV Inkai), a joint arrangement with Joint Stock Company National Atomic Company Kazatomprom (Kazatomprom), located in Kazakhstan. Cameco also has a 49% interest in Westinghouse Electric Company (Westinghouse), a joint venture with Brookfield Renewable Partners and its institutional partners (collectively, Brookfield). Westinghouse is one of the world’s largest nuclear services businesses with corporate headquarters in Pennsylvania and operations around the world. Both JV Inkai and Westinghouse are accounted for on an equity basis (see note 7).

Cameco has two operating mines, Cigar Lake and McArthur River. Operations at McArthur River/Key Lake, which had been suspended in 2018, resumed in November of 2022. The Rabbit Lake operation was placed in care and maintenance in 2016. Cameco’s operations in the United States, Crow Butte and Smith Ranch-Highland, are also not currently producing as the decision was made in 2016 to curtail production and defer all wellfield development. See note 20 for the financial statement impact.

The Company is also a leading provider of nuclear fuel processing services, supplying much of the world’s reactor fleet with the fuel to generate one of the cleanest sources of electricity available today. It operates the world’s largest commercial refinery in Blind River, Ontario, controls a significant portion of the world UF₆ primary conversion capacity in Port Hope, Ontario and is a leading manufacturer of fuel assemblies and reactor components for CANDU reactors at facilities in Port Hope and Cobourg, Ontario.

2. Material accounting policies

A. Statement of compliance

These condensed consolidated interim financial statements have been prepared in accordance with IAS 34 Interim Financial Reporting. The condensed consolidated interim financial statements do not include all of the information required for full annual financial statements and should be read in conjunction with Cameco’s annual consolidated financial statements as at and for the year ended December 31, 2023.

These condensed consolidated interim financial statements were authorized for issuance by the Company’s board of directors on April 29, 2024.

B. Basis of presentation

These condensed consolidated interim financial statements are presented in Canadian dollars, which is the Company’s functional currency. All financial information is presented in Canadian dollars, unless otherwise noted. Amounts presented in tabular format have been rounded to the nearest thousand except per share amounts and where otherwise noted.

The condensed consolidated interim financial statements have been prepared on the historical cost basis except for the following material items which are measured on an alternative basis at each reporting date:


Derivative financial instruments		Fair value through profit or loss (FVTPL)
Equity securities		Fair value through other comprehensive income (FVOCI)
Liabilities for cash-settled share-based payment arrangements		Fair value through profit or loss (FVTPL)
Net defined benefit liability		Fair value of plan assets less the present value of the defined benefit obligation

The preparation of the condensed consolidated interim financial statements in conformity with International Financial Reporting Standards (IFRS) requires management to make judgments, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, revenue and expenses. Actual results may vary from these estimates.

In preparing these condensed consolidated interim financial statements, the significant judgments made by management in applying the Company’s accounting policies and key sources of estimation uncertainty were the same as those that applied to the consolidated financial statements as at and for the year ended December 31, 2023.

Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimates are revised and in any future periods affected. The areas involving a higher degree of judgment or complexity, or areas where assumptions and estimates are significant to the consolidated financial statements are disclosed in note 5 of the December 31, 2023, consolidated financial statements.

3. Accounting standards

A. Changes in accounting policy

A number of amendments to existing standards became effective January 1, 2024, but they did not have an effect on the Company’s financial statements.

B. New standards and interpretations not yet adopted

There is one new standard that is not yet effective for the period ended March 31, 2024, and has not been applied in preparing these condensed consolidated interim financial statements. Cameco does not intend to early adopt this standard and does not expect it to have a material impact on its financial statements.

i. Financial statement presentation

In April 2024, the International Accounting Standards Board (IASB) issued IFRS 18, Presentation and Disclosure of Financial Statements (IFRS 18). IFRS 18 is effective for periods beginning on or after January 1, 2027, with early adoption permitted. IFRS 18 is expected to improve the quality of financial reporting by requiring defined subtotals in the statement of profit or loss, requiring disclosure about management-defined performance measures, and adding new principles for aggregation and disaggregation of information. Cameco has not yet determined the impact of this standard on its disclosures.

4. Acquisition of Westinghouse Electric Company (Westinghouse)

On November 7, 2023, Cameco acquired a 49% interest in Westinghouse, one of the world’s largest nuclear services businesses, in partnership with Brookfield Asset Management alongside its publicly listed affiliate Brookfield Renewable Partners (Brookfield) and its institutional partners. Brookfield, with its institutional partners, owns the other 51%. The acquisition represents an investment in additional nuclear fuel cycle assets that the Company expects will augment the core of its business.

To finance its 49% share of the purchase price, $2,140,305,000 (US), Cameco used a combination of cash, debt and equity. The Company used $1,540,305,000 (US) of cash and $600,000,000 (US) in term loans (see note 8). In 2022, Cameco had issued 34,057,250 common shares pursuant to a public offering to help fund the acquisition. At March 31, 2024, $50,000,000 (US) remained in escrow.

Cameco’s share of the acquisition date fair value of the underlying assets and liabilities was as follows:


Net assets acquired (USD)
Cash and cash equivalents	$	255,924
Other current assets		955,140
Property, plant and equipment		795,613
Intangible assets		2,839,550
Goodwill		556,028
Non-current assets		346,928
Current liabilities		(1,163,456	)
Non-current liabilities		(2,445,422	)

Total	$	2,140,305

Cash paid		1,540,305
Term loans		600,000

Total	$	2,140,305

Fair values were determined using a number of different valuation methodologies depending on the characteristics of the assets being valued. Methods included discounted cash flows, relief from royalty and multi-period excess earnings, quoted market prices and the direct cost method.

Intangible assets include customer relationships and contracts, developed technology, the Westinghouse trade name and product development costs. Goodwill reflects the value assigned to the expected future earnings capabilities of the organization. This is the earnings potential that we anticipate will be realized through new business arrangements.

The valuation of the assets and liabilities assumed has not been finalized as of the date of these financial statements. The accounting for the acquisition will be revised when the valuation is complete. Since December 31, 2023, when the acquisition was first reported, amounts have been reclassified between the net assets acquired to reflect changes in the valuation to date. Following the completion of the valuation, if new information obtained within one year of the acquisition date about facts and circumstances that existed at the date of acquisition, identifies adjustments to the above amounts, or any additional provisions that existed at the date of acquisition, further revisions will be made.

5. Inventories


	Mar 31/24		Dec 31/23
Uranium
Concentrate	$	550,414	$	511,654
Broken ore		57,112		71,463

		607,526		583,117
Fuel services		153,136		108,711
Other		440		433

Total	$	761,102	$	692,261

Cameco expensed $404,298,000 of inventory as cost of sales during the first quarter of 2024 (2023 - $465,069,000).

6. Long-term receivables, investments and other


	Mar 31/24			Dec 31/23
Deferred charges	$	21,989		$	—
Derivatives [note 19]		7,277			28,467
Investment tax credits		95,940			95,940
Amounts receivable related to tax dispute [note 15]^(a)		209,125			209,125
Product loan^(b)		288,294			288,294
Other		2,099			2,108

		624,724			623,934
Less current portion		(24,421	)		(10,161	)

Net	$	600,303		$	613,773

(a)

Cameco was required to remit or otherwise secure 50% of the cash taxes and transfer pricing penalties, plus related interest and instalment penalties assessed, in relation to its dispute with Canada Revenue Agency (CRA). In light of our view of the likely outcome of the case, Cameco expects to recover the amounts remitted to CRA, including cash taxes, interest and penalties paid.

(b)

Cameco loaned 5,400,000 pounds of uranium concentrate to its joint venture partner, Orano Canada Inc., (Orano). Orano is obligated to repay the Company in kind with uranium concentrate no later than December 31, 2028. As at March 31, 2024, 3,000,000 pounds have been returned as repayment on this loan (December 31, 2023 - 3,000,000 pounds).

Cameco also loaned Orano 1,148,200 kgU of conversion supply and an additional 1,200,000 pounds of uranium concentrate during 2022 and 2023. Repayment to Cameco is to be made in kind with U₃O₈ quantities drawn being repaid by December 31, 2027 and quantities of UF₆ conversion supply drawn by December 31, 2035.

As at March 31, 2024, 3,600,000 pounds of U₃O₈ (December 31, 2023 - 3,600,000 pounds) and 1,148,200 kgU of UF₆ conversion supply (December 31, 2023 - 1,148,200 kgU) were drawn on the loans and are recorded at Cameco’s weighted average cost of inventory.

7. Equity-accounted investees


	Mar 31/24		Dec 31/23
Interest in Westinghouse	$	2,831,752	$	2,899,379
Interest in JV Inkai		362,368		273,806
Interest in Global Laser Enrichment (GLE)		—		—

	$	3,194,120	$	3,173,185

A. Joint ventures

i. Westinghouse

Westinghouse is a nuclear reactor technology original equipment manufacturer and a global provider of products and services to commercial utilities and government agencies. Effective November 7, 2023, Cameco holds a 49% interest and Brookfield holds 51%. Cameco has joint control with Brookfield over the strategic operating, investing and financing activities of Westinghouse. The Company determined that the joint arrangement should be classified as a joint venture after concluding that neither the legal form of the separate entity, the terms of the contractual arrangement, or other facts and circumstances would give the Company rights to the assets and obligations for the liabilities relating to the arrangement. As a result, Cameco accounts for Westinghouse on an equity basis.

Westinghouse provides outage and maintenance services, engineering support, instrumentation and controls equipment, plant modification, and components and parts to nuclear reactors. Westinghouse has three fabrication facilities that design and manufacture nuclear fuel supplies for light water reactors. In addition, Westinghouse designs, develops and procures equipment for the build of new nuclear reactor plants.

The following table summarizes the total comprehensive loss of Westinghouse (100%):


	Mar 31/24			Mar 31/23
Revenue from products and services	$	1,337,804		$	—
Cost of products and services sold		(601,723	)		—
Depreciation and amortization		(172,849	)		—
Marketing, administrative and general expenses		(684,061	)		—
Finance income		3,939			—
Finance costs		(130,852	)		—
Other expense		(80,582	)		—
Income tax recovery		76,332			—

Net loss		(251,992	)		—
Other comprehensive loss		(16,804	)		—

Total comprehensive income	$	(268,796	)	$	—

Cameco did not acquire its interest in Westinghouse until November 7, 2023.

The following table summarizes the financial information of Westinghouse (100%) and reconciles it to the carrying amount of Cameco’s interest:


	Mar 31/24			Dec 31/23
Cash and cash equivalents	$	275,712		$	265,146
Other current assets		2,388,847			2,364,602
Intangible assets		7,679,998			7,655,386
Goodwill		1,537,830			1,534,947
Non-current assets		2,854,602			3,102,566
Current liabilities		(2,301,620	)		(2,464,058	)
Non-current liabilities		(6,803,625	)		(6,684,673	)

Net assets		5,631,744			5,773,916
Net assets attributable to non-controlling interest		(23,583	)		(24,036	)

Net assets attributable to shareholders		5,608,161			5,749,880
Cameco’s share of net assets attributable to shareholders (49%)		2,747,999			2,817,441
Acquisition costs^(a)		83,896			83,916
Impact of foreign exchange		(143	)		(1,978	)

Carrying amount of interest in Westinghouse	$	2,831,752		$	2,899,379

(a)	Cameco incurred $84 million of acquisition costs that were included in the cost of the investment.

ii. Global Laser Enrichment LLC (GLE)

GLE is the exclusive licensee of the proprietary Separation of Isotopes by Laser Excitation (SILEX) laser enrichment technology, a third-generation uranium enrichment technology. Cameco owns a 49% interest in GLE with an option to attain a majority interest of up to 75% ownership. Cameco has joint control with SILEX over the strategic operating, investing and financing activities and as a result, accounts for GLE on an equity basis. In 2014, an impairment charge was recognized for its full carrying value of $183,615,000. Following the impairment, under the equity method of accounting, Cameco discontinued recognizing its share of losses in GLE. Cameco’s contributions to GLE are recorded in earnings as research and development.

B. Associate

i. JV Inkai

JV Inkai is the operator of the Inkai uranium deposit located in Kazakhstan. Cameco holds a 40% interest in JV Inkai and Kazatomprom holds a 60% interest. Cameco does not have control over the joint venture so it accounts for the investment on an equity basis.

JV Inkai is a uranium mining and milling operation that utilizes in-situ recovery (ISR) technology to extract uranium. The participants in JV Inkai purchase uranium from Inkai and, in turn, derive revenue directly from the sale of such product to third-party customers.

The following tables summarize the total comprehensive earnings of JV Inkai (100%):


	Mar 31/24			Mar 31/23
Revenue from products and services	$	313,864		$	74,303
Cost of products and services sold		(38,424	)		(13,481	)
Depreciation and amortization		(20,400	)		(4,521	)
Finance income		562			130
Finance costs		(272	)		(259	)
Other expense		(15,312	)		(9,730	)
Income tax expense		(49,457	)		(9,843	)

Net earnings from continuing operations		190,561			36,599
Other comprehensive income		—			—

Total comprehensive income	$	190,561		$	36,599

The following table summarizes the financial information of JV Inkai (100%) and reconciles it to the carrying amount of Cameco’s interest:


	Mar 31/24			Dec 31/23
Cash and cash equivalents	$	190,799		$	24,074
Other current assets		606,087			551,917
Non-current assets		363,972			332,655
Current liabilities		(453,678	)		(40,985	)
Non-current liabilities		(32,344	)		(30,211	)

Net assets		674,836			837,450
Cameco’s share of net assets (40%)		269,934			334,980
Consolidating adjustments^(a)		(72,450	)		(74,223	)
Fair value increment^(b)		80,319			81,090
Dividends declared but not received		195,207			5,952
Dividends in excess of ownership percentage^(c)		(107,179	)		(74,843	)
Impact of foreign exchange		(3,463	)		850

Carrying amount of interest in JV Inkai	$	362,368		$	273,806

(a)	Cameco records certain consolidating adjustments to eliminate unrealized profit, recognize deferred profit and amortize historical differences in accounting policies. The historical differences are amortized to earnings over units of production.

(b)	Upon restructuring, Cameco assigned fair values to the assets and liabilities of JV Inkai. This increment is amortized to earnings over units of production.

(c)	Cameco’s share of dividends follows its production purchase entitlements which is currently higher than its ownership interest.

8. Long-term debt


	Mar 31/24			Dec 31/23
Unsecured debentures
Series F - 5.09% debentures due November 14, 2042	$	99,380		$	99,374
Series G - 4.19% debentures due June 24, 2024		499,910			499,821
Series H - 2.95% debentures due October 21, 2027		398,670			398,582
Term loans		534,122			786,397

		1,532,082			1,784,174
Less current portion		(499,910	)		(499,821	)

Total	$	1,032,172		$	1,284,353

On November 7, 2023, the Company utilized a term loan for $600,000,000 (US) with a syndicate of lenders. The proceeds of the term loan were used to finance the 49% acquisition of Westinghouse. The term loan consisted of two $300,000,000 (US) tranches. The first tranche has a floating interest rate of SOFR plus 1.80% and matures on November 7, 2025. The second tranche has a floating interest rate of SOFR plus 2.05% and matures on November 7, 2026. On February 8, 2024, Cameco repaid $200,000,000 (US) on the tranche which matures in 2026.

9. Other liabilities


	Mar 31/24			Dec 31/23
Deferred sales	$	57,712		$	45,372
Derivatives [note 19]		35,798			22,344
Accrued pension and post-retirement benefit liability		77,857			77,002
Lease obligation [note 19]		10,512			10,816
Product loans^(a)		166,563			166,052
Sales contracts [note 4]		5,644			6,314
Other		61,227			64,064

		415,313			391,964
Less current portion		(72,055	)		(48,544	)

Net	$	343,258		$	343,420

(a)

Cameco has standby product loan facilities with various counterparties. The arrangements allow us to borrow up to 1,978,000 kgU of UF₆ conversion services and 6,679,000 pounds of U₃O₈ by September 30, 2027 with repayment in kind up to December 31, 2027. Under the facilities, standby fees of up to 1.5% are payable based on the market value of the facilities and interest is payable on the market value of any amounts drawn at rates ranging from 0.5% to 3.0%. At March 31, 2024, we have 1,777,000 kgU of UF₆ conversion services (December 31, 2023 - 1,777,000 kgU) drawn on the loans with repayment due by December 31 of the following years:

2024

2025

2026

2027

Total

kgU of UF₆

—

528,000

1,249,000

—

1,777,000

We also have 2,756,000 pounds of U₃O₈ (December 31, 2023 - 2,756,000 pounds) drawn with repayment due no later than December 31 of the following years:

2024

2025

2026

2027

Total

lbs of U₃O₈

—

630,000

2,126,000

—

2,756,000

The loans are recorded at Cameco’s weighted average cost of inventory.

10. Provisions


	Reclamation			Waste disposal			Total
Beginning of year	$	1,051,167		$	10,817		$	1,061,984
Changes in estimates and discount rates
Capitalized in property, plant, and equipment		(11,309	)		—			(11,309	)
Recognized in earnings		(16,780	)		—			(16,780	)
Provisions used during the period		(7,258	)		(550	)		(7,808	)
Unwinding of discount		8,687			86			8,773
Impact of foreign exchange		6,967			—			6,967

End of period	$	1,031,474		$	10,353		$	1,041,827

Current		55,007			4,052			59,059
Non-current		976,467			6,301			982,768

	$	1,031,474		$	10,353		$	1,041,827

11. Share capital

At March 31, 2024, there were 434,205,752 common shares outstanding. Options in respect of 1,366,289 shares are outstanding under the stock option plan and are exercisable up to 2027. For the three months ended March 31, 2024, there were 30,000 options exercised that resulted in the issuance of shares (2023 - 513,717).

12. Revenue

Cameco’s uranium and fuel services sales contracts with customers contain both fixed and market-related pricing. Fixed-price contracts are typically based on a term-price indicator at the time the contract is accepted and escalated over the term of the contract. Market-related contracts are based on either the spot price or long-term price, and the price is quoted at the time of delivery rather than at the time the contract is accepted. These contracts often include a floor and/or ceiling prices, which are usually escalated over the term of the contract. Escalation is generally based on a consumer price index. The Company’s contracts contain either one of these pricing mechanisms or a combination of the two. There is no variable consideration in the contracts and therefore no revenue is considered constrained at the time of delivery. Cameco expenses the incremental costs of obtaining a contract as incurred as the amortization period is less than a year.

The following tables summarize Cameco’s sales disaggregated by geographical region and contract type and includes a reconciliation to Cameco’s reportable segments (note 20):

For the three months ended March 31, 2024


	Uranium		Fuel services		Total
Customer geographical region
Americas	$	421,917	$	61,253	$	483,170
Europe		67,131		10,761		77,892
Asia		72,062		421		72,483

	$	561,110	$	72,435	$	633,545

Contract type
Fixed-price	$	157,927	$	63,614	$	221,541
Market-related		403,183		8,821		412,004

	$	561,110	$	72,435	$	633,545

For the three months ended March 31, 2023


	Uranium		Fuel services		Total
Customer geographical region
Americas	$	234,273	$	66,170	$	300,443
Europe		178,142		19,191		197,333
Asia		182,161		7,038		189,199

	$	594,576	$	92,399	$	686,975

Contract type
Fixed-price	$	201,953	$	92,399	$	294,352
Market-related		392,623		—		392,623

	$	594,576	$	92,399	$	686,975

13. Finance costs


	Three months ended
	Mar 31/24		Mar 31/23
Interest on long-term debt	$	24,372	$	10,377
Unwinding of discount on provisions		8,773		9,339
Other charges		5,000		3,881

Total	$	38,145	$	23,597

14. Other income (expense)


	Three months ended
	Mar 31/24			Mar 31/23
Foreign exchange gains (losses)		16,607			(2,586	)
Other		(4	)		—

Total	$	16,603		$	(2,586	)

15. Income taxes


	Three months ended
	Mar 31/24			Mar 31/23
Earnings (loss) before income taxes
Canada	$	140,574		$	149,619
Foreign		(116,675	)		5,249

	$	23,899		$	154,868

Current income taxes
Canada	$	11,354		$	11,885
Foreign		1,445			2,423

	$	12,799		$	14,308
Deferred income taxes (recovery)
Canada	$	19,456		$	20,808
Foreign		(1,295	)		788

	$	18,161		$	21,596

Income tax expense	$	30,960		$	35,904

Cameco has recorded $874,933,000 of deferred tax assets (December 31, 2023 - $892,860,000). The realization of these deferred tax assets is dependent upon the generation of future taxable income in certain jurisdictions during the periods in which the Company’s temporary tax differences are available. The Company considers whether it is probable that all or a portion of the deferred tax assets will not be realized. In making this assessment, management considers all available evidence, including recent financial operations, projected future taxable income and tax planning strategies. Based on projections of future taxable income over the periods in which the deferred tax assets are available, realization of these deferred tax assets is probable and consequently the deferred tax assets have been recorded.

Cameco has operations in countries where the global minimum top-up tax has been enacted or substantively enacted effective January 1, 2024, including: Switzerland, Luxembourg, Germany and the United Kingdom. The Company expects to be within the scope in Canada, where draft legislation has been released and is anticipated to come into effect in 2024. The exposure is currently only in Switzerland, as all other constituent entities have effective tax rates higher than 15% and the transitional safe harbour rules are expected to be met. As a result of this exposure, additional income tax expense of $345,000 has been recorded relating to the profits earned in Switzerland (2023 - $0).

Canada

On February 18, 2021, the Supreme Court of Canada (Supreme Court) dismissed Canada Revenue Agency’s (CRA) application for leave to appeal the June 26, 2020 decision of the Federal Court of Appeal (Court of Appeal). The dismissal means that the dispute for the 2003, 2005 and 2006 tax years is fully and finally resolved in the Company’s favour.

In September 2018, the Tax Court of Canada (Tax Court) ruled that the marketing and trading structure involving foreign subsidiaries, as well as the related transfer pricing methodology used for certain intercompany uranium sales and purchasing agreements, were in full compliance with Canadian law for the tax years in question. Management believes the principles in the decision apply to all subsequent tax years, and that the ultimate resolution of those years will not be material to Cameco’s financial position, results of operations or liquidity in the year(s) of resolution.

As CRA continues to pursue reassessments for tax years subsequent to 2006, Cameco is utilizing its appeal rights under Canadian federal and provincial tax rules.

16. Per share amounts

Per share amounts have been calculated based on the weighted average number of common shares outstanding during the period. The weighted average number of paid shares outstanding in 2024 was 434,185,471 (2023 - 432,850,340).


	Three months ended
	Mar 31/24			Mar 31/23
Basic earnings (loss) per share computation
Net earnings (loss) attributable to equity holders	$	(7,056	)	$	118,969
Weighted average common shares outstanding		434,185			432,850

Basic earnings (loss) per common share	$	(0.02	)	$	0.27

Diluted earnings (loss) per share computation
Net earnings (loss) attributable to equity holders	$	(7,056	)	$	118,969
Weighted average common shares outstanding		434,185			432,850
Dilutive effect of stock options		—			1,707

Weighted average common shares outstanding, assuming dilution		434,185			434,557

Diluted earnings (loss) per common share	$	(0.02	)	$	0.27

(a)	For the quarter ended March 31, 2023, 1,049 options were excluded from the diluted weighted average number of common shares because their inclusion would have been anti-dilutive.

17. Statements of cash flows


	Three months ended
	Mar 31/24			Mar 31/23
Changes in non-cash working capital:
Accounts receivable	$	252,901		$	35,037
Inventories		(60,768	)		200,691
Supplies and prepaid expenses		(4,526	)		(10,913	)
Accounts payable and accrued liabilities		(228,041	)		(168,043	)
Reclamation payments		(7,808	)		(8,893	)
Other		(6,912	)		(3,633	)

Other operating items	$	(55,154	)	$	44,246

18. Share-based compensation plans

A. Stock option plan

The aggregate number of common shares that may be issued pursuant to the Cameco stock option plan shall not exceed 43,017,198 of which 32,226,059 shares have been issued. As of March 31, 2024, the total number of stock options held by the participants was 1,366,289 (December 31, 2023 - 1,396,289).

B. Executive performance share unit (PSU)

During the quarter, the Company granted 178,600 PSUs. The weighted average fair value per unit at the date of issue was $55.00. As of March 31, 2024, the total number of PSUs held by the participants was 635,312 (December 31, 2023 - 830,279).

C. Restricted share unit (RSU)

During the quarter, the Company granted 322,267 RSUs. The weighted average fair value per unit at the date of issue was $55.00. As of March 31, 2024, the total number of RSUs held by the participants was 746,289 (December 31, 2023 - 814,683).

D. Deferred share unit (DSU)

As of March 31, 2024, the total number of DSUs held by participating directors was 568,071 (December 31, 2023 - 564,401).

Equity-settled plans

Cameco records compensation expense under its equity-settled plans with an offsetting credit to contributed surplus, to reflect the estimated fair value of units granted to employees. During the period, the Company recognized the following expenses under these plans:


	Three months ended
	Mar 31/24		Mar 31/23
Employee share ownership plan^(a)	$	1,080	$	914
Restricted share unit plan		1,288		849

Total	$	2,368	$	1,763

(a)	The total number of shares purchased in 2024 with Company contributions was 18,331 (2023 - 25,527).

Cash-settled plans

During the period, the Company recognized the following expenses (income) under these plans:


	Three months ended
	Mar 31/24		Mar 31/23
Performance share unit plan	$	3,522	$	8,127
Deferred share unit plan		861		2,575
Restricted share unit plan		2,811		6,133
Phantom stock option plan		70		485
Phantom restricted share unit plan		166		140

	$	7,430	$	17,460

Expenses related to share-based compensation plans are primarily included as part of administration expense in the statement of earnings.

19. Financial instruments and related risk management

A. Accounting classifications

The following tables summarize the carrying amounts and accounting classifications of Cameco’s financial instruments at the reporting date:


At March 31, 2024
	FVTPL			Amortized cost			Total
Financial assets
Cash and cash equivalents^(a)	$	—		$	323,217		$	323,217
Accounts receivable		—			206,768			206,768
Derivative assets [note 6]
Foreign currency contracts		7,277			—			7,277

		7,277			529,985			537,262

Financial liabilities
Accounts payable and accrued liabilities		—			376,713			376,713
Lease obligation [note 9]		—			10,512			10,512
Current portion of long-term debt		—			499,910			499,910
Derivative liabilities [note 9]
Foreign currency contracts		28,576			—			28,576
Interest rate contracts		7,222			—			7,222
Long-term debt		—			1,032,172			1,032,172

		35,798			1,919,307			1,955,105

Net		(28,521	)		(1,389,322	)		(1,417,843	)


At December 31, 2023
	FVTPL		Amortized cost			Total
Financial assets
Cash and cash equivalents	$	—	$	566,809		$	566,809
Accounts receivable		—		422,333			422,333
Derivative assets [note 6]
Foreign currency contracts		28,467		—			28,467

	$	28,467	$	989,142		$	1,017,609

Financial liabilities
Accounts payable and accrued liabilities	$	—	$	577,550		$	577,550
Lease obligation [note 9]		—		10,816			10,816
Current portion of long-term debt		—		499,821			499,821
Derivative liabilities [note 9]
Foreign currency contracts		16,525		—			16,525
Interest rate contracts		5,819		—			5,819
Long-term debt		—		1,284,353			1,284,353

		22,344		2,372,540			2,394,884

Net	$	6,123	$	(1,383,398	)	$	(1,377,275	)

(a)

Cameco has pledged $158,418,000 of cash as security against certain of its letter of credit facilities. This cash is being used as collateral for an interest rate reduction on the letter of credit facilities. The collateral account has a term of five years effective November 1, 2023. Cameco retains full access to this cash.

B.	Fair value hierarchy

The fair value of an asset or liability is generally estimated as the amount that would be received on sale of an asset, or paid to transfer a liability in an orderly transaction between market participants at the reporting date. Fair values of assets and liabilities traded in an active market are determined by reference to last quoted prices, in the principal market for the asset or liability. In the absence of an active market for an asset or liability, fair values are determined based on market quotes for assets or liabilities with similar characteristics and risk profiles, or through other valuation techniques. Fair values determined using valuation techniques require the use of inputs, which are obtained from external, readily observable market data when available. In some circumstances, inputs that are not based on observable data must be used. In these cases, the estimated fair values may be adjusted in order to account for valuation uncertainty, or to reflect the assumptions that market participants would use in pricing the asset or liability.

All fair value measurements are categorized into one of three hierarchy levels, described below, for disclosure purposes. Each level is based on the transparency of the inputs used to measure the fair values of assets and liabilities:

Level 1 – Values based on unadjusted quoted prices in active markets that are accessible at the reporting date for identical assets or liabilities.

Level 2 – Values based on quoted prices in markets that are not active or model inputs that are observable either directly or indirectly for substantially the full term of the asset or liability.

Level 3 – Values based on prices or valuation techniques that require inputs that are both unobservable and significant to the overall fair value measurement.

When the inputs used to measure fair value fall within more than one level of the hierarchy, the level within which the fair value measurement is categorized is based on the lowest level input that is significant to the fair value measurement in its entirety.

The following tables summarize the carrying amounts and level 2 fair values of Cameco’s financial instruments that are measured at fair value:


As at March 31, 2024

	Carrying value			Fair Value
Derivative assets [note 6]
Foreign currency contracts	$	7,277		$	7,277
Current portion of long-term debt		(499,910	)		(500,000	)
Derivative liabilities [note 9]
Foreign currency contracts		(28,576	)		(28,576	)
Interest rate contracts		(7,222	)		(7,222	)
Long-term debt		(1,032,172	)		(1,046,504	)

Net	$	(1,560,603	)	$	(1,575,025	)


As at December 31, 2023

	Carrying value			Fair Value
Derivative assets [note 6]
Foreign currency contracts	$	28,467		$	28,467
Current portion of long-term debt		(499,821	)		(500,000	)
Derivative liabilities [note 9]
Foreign currency contracts		(16,525	)		(16,525	)
Interest rate contracts		(5,819	)		(5,819	)
Long-term debt		(1,284,353	)		(1,303,681	)

Net	$	(1,778,051	)	$	(1,797,558	)

The preceding tables exclude fair value information for financial instruments whose carrying amounts are a reasonable approximation of fair value. The carrying value of Cameco’s cash and cash equivalents, accounts receivable, and accounts payable and accrued liabilities approximates its fair value as a result of the short-term nature of the instruments.

There were no transfers between level 1 and level 2 during the period. Cameco does not have any financial instruments that are classified as level 1 or level 3 as of the reporting date.

C.	Financial instruments measured at fair value

Cameco measures its derivative financial instruments and long-term debt at fair value. Derivative financial instruments and current and long-term debt are classified as recurring level 2 fair value measurements.

The fair value of Cameco’s unsecured debentures is determined using quoted market yields as of the reporting date, which ranged from 3.4% to 4.9% (2023 - 3.1% to 4.9%). The fair value of the floating rate term loan is equal to its carrying value.

Foreign currency derivatives consist of foreign currency forward contracts, options and swaps. The fair value of foreign currency options is measured based on the Black Scholes option-pricing model. The fair value of foreign currency forward contracts and swaps is measured using a market approach, based on the difference between contracted foreign exchange rates and quoted forward exchange rates as of the reporting date.

Interest rate derivatives consist of interest rate swap contracts. The fair value of interest rate swaps is determined by discounting expected future cash flows from the contracts. The future cash flows are determined by measuring the difference between fixed interest payments to be received and floating interest payments to be made to the counterparty based on Canada Dealer Offer Rate forward interest rate curves.

Where applicable, the fair value of the derivatives reflects the credit risk of the instrument and includes adjustments to take into account the credit risk of the Company and counterparty. These adjustments are based on credit ratings and yield curves observed in active markets at the reporting date.

D.	Derivatives

The following table summarizes the fair value of derivatives and classification on the consolidated statements of financial position:


	Mar 31/24			Dec 31/23
Non-hedge derivatives:
Foreign currency contracts	$	(21,299	)	$	11,942
Interest rate contracts		(7,222	)		(5,819	)

Net	$	(28,521	)	$	6,123

Classification:
Current portion of long-term receivables, investments and other [note 6]	$	1,408		$	9,137
Long-term receivables, investments and other [note 6]		5,869			19,330
Current portion of other liabilities [note 9]		(23,617	)		(14,338	)
Other liabilities [note 9]		(12,181	)		(8,006	)

Net	$	(28,521	)	$	6,123

The following table summarizes the different components of the gain (loss) on derivatives included in net earnings (loss):


	Three months ended
	Mar 31/24			Mar 31/23
Non-hedge derivatives:
Foreign currency contracts	$	(39,875	)	$	1,628
Interest rate contracts		(1,403	)		642

Net	$	(41,278	)	$	2,270

20. Segmented information

Cameco has three reportable segments: uranium, fuel services and Westinghouse. Cameco’s reportable segments are strategic business units with different products, processes and marketing strategies. The uranium segment involves the exploration for, mining, milling, purchase and sale of uranium concentrate. The fuel services segment involves the refining, conversion and fabrication of uranium concentrate and the purchase and sale of conversion services. The Westinghouse segment reflects our earnings from this equity-accounted investment (see note 7). Westinghouse is a nuclear reactor technology original equipment manufacturer and a global provider of products and services to commercial utilities and government agencies. It provides outage and maintenance services, engineering support, instrumentation and controls equipment, plant modification, and components and parts to nuclear reactors.

Cost of sales in the uranium segment includes care and maintenance costs for our operations that have had production suspensions. Cameco expensed $12,378,000 of care and maintenance costs during the first quarter of 2024 (2023 - $13,554,000).

Accounting policies used in each segment are consistent with the policies outlined in the summary of significant accounting policies.

Business segments

For the three months ended March 31, 2024


	Uranium			Fuel services			(i) WEC			(i) Adjustments			Other			Total
Revenue	$	561,110		$	72,435		$	655,524		$	(655,524	)	$	—		$	633,545
Expenses
Cost of products and services sold		355,860			48,404			294,844			(294,844	)		(706	)		403,558
Depreciation and amortization		36,715			5,319			84,696			(84,696	)		1,133			43,167
Cost of sales		392,575			53,723			379,540			(379,540	)		427			446,725

Gross profit (loss)		168,535			18,712			275,984			(275,984	)		(427	)		186,820

Administration		—			—			335,190			(335,190	)		59,808			59,808
Exploration		7,360			—			—			—			—			7,360
Research and development		—			—			—			—			9,320			9,320
Other operating income		(14,893	)		(1,887	)		—			—			—			(16,780	)
Loss on disposal of assets		225			145			—			—			—			370
Finance costs		—			—			64,117			(64,117	)		38,145			38,145
Gain on derivatives		—			—			—			—			41,278			41,278
Finance income		—			—			(1,930	)		1,930			(6,323	)		(6,323	)
Share of loss (earnings) from equity-accounted investee		(77,130	)		—			—			123,476			—			46,346
Other expense (income)		—			—			39,486			(39,486	)		(16,603	)		(16,603	)

Earnings (loss) before income taxes		252,973			20,454			(160,879	)		37,403			(126,052	)		23,899
Income tax recovery																	30,960

Net loss																$	(7,061	)

(i)

Consistent with the presentation of financial information for internal management purposes, Cameco’s share of Westinghouse’s financial results has been presented as a separate segment. In accordance with IFRS, this investment is accounted for by the equity method of accounting in these consolidated financial statements and the associated revenue and expenses are eliminated in the “Adjustments” column.

For the three months ended March 31, 2023


	Uranium			Fuel services			Other			Total
Revenue	$	594,576		$	92,399		$	—		$	686,975
Expenses
Cost of products and services sold		390,018			54,129			(725	)		443,422
Depreciation and amortization		67,877			7,550			946			76,373

Cost of sales		457,895			61,679			221			519,795

Gross profit (loss)		136,681			30,720			(221	)		167,180
Administration		—			—			64,011			64,011
Exploration		6,279			—			—			6,279
Research and development		—			—			4,232			4,232
Other operating income		(1,756	)		(291	)		—			(2,047	)
Finance costs		—			—			23,597			23,597
Gain on derivatives		—			—			(2,270	)		(2,270	)
Finance income		—			—			(27,540	)		(27,540	)
Share of earnings from equity-accounted investee		(56,536	)		—			—			(56,536	)
Other expense		—			—			2,586			2,586

Earnings (loss) before income taxes		188,694			31,011			(64,837	)		154,868
Income tax expense											35,904

Net earnings										$	118,964

21. Related parties

Transactions with key management personnel

Key management personnel are those persons that the authority and responsibility for planning, directing and controlling the activities of the Company, directly or indirectly. Key management personnel of the Company include executive officers, vice-presidents, other senior managers and members of the board of directors.

Certain key management personnel, or their related parties, hold positions in other entities that result in them having control or significant influence over the financial or operating policies of those entities. As noted below, some of these entities transacted with the Company in the reporting period. The terms and conditions of the transactions were on an arm’s length basis.

Cameco purchases a significant amount of goods and services for its Saskatchewan mining operations from northern Saskatchewan suppliers to support economic development in the region. The president of several of these suppliers became a member of the board of directors of Cameco in September 2023. During the first quarter of 2024, Cameco paid these suppliers $25,988,000 for construction and contracting services. The transactions were conducted in the normal course of business and were accounted for at the exchange amount. Accounts payable includes a balance of $99,000 at the reporting date.

Other related party transactions

Westinghouse

Cameco has entered into various agreements with Westinghouse and its subsidiaries. For the quarter ended March 31, 2024, Cameco has recognized sales revenue of $45,182,000 ($33,349,000 (US)) related to fuel supply agreements and incurred costs of $24,000 ($18,000 (US)) related to fuel storage and handling fees. Contract terms are at market rates and on normal trade terms.

JV Inkai

Cameco purchases uranium concentrate from JV Inkai. For the quarter ended March 31, 2024, Cameco had purchases of $145,784,000 ($108,672,000 (US)) (2023 - $0). Purchases from JV Inkai are at market rates with extended payment terms.