EX-99.3

EX-99.3 4 d814682dex993.htm EX-99.3 EX-99.3

Exhibit 99.3

LOGO

Cameco Corporation

2024 condensed consolidated interim financial statements

(unaudited)

November 6, 2024

Cameco Corporation

Consolidated statements of earnings


(Unaudited)	Note	Three months ended						Nine months ended
($Cdn thousands, except per share amounts)		Sep 30/24			Sep 30/23			Sep 30/24			Sep 30/23
Revenue from products and services	12	$	720,596		$	575,079		$	1,952,599		$	1,744,041
Cost of products and services sold			478,624			367,302			1,243,462			1,140,886
Depreciation and amortization			71,130			55,987			176,155			174,212

Cost of sales	20		549,754			423,289			1,419,617			1,315,098

Gross profit			170,842			151,790			532,982			428,943
Administration			50,915			65,510			176,428			186,569
Exploration			5,329			4,106			15,392			14,262
Research and development			8,927			7,850			26,126			17,189
Other operating expense (income)	10		4,687			(61,304	)		(15,100	)		(54,962	)
Loss on disposal of assets			644			92			1,056			368

Earnings from operations			100,340			135,536			329,080			265,517
Finance costs	13		(35,121	)		(22,960	)		(116,648	)		(69,302	)
Gain (loss) on derivatives	19		21,433			(47,092	)		(38,607	)		(16,093	)
Finance income			3,954			33,986			18,163			92,625
Share of earnings (loss) from equity-accounted investees	7		(30,642	)		35,466			(75,951	)		99,728
Other income (expense)	14		(14,506	)		53,694			7,352			8,073

Earnings before income taxes			45,458			188,630			123,389			380,548
Income tax expense	15		38,032			40,563			87,016			99,825

Net earnings			7,426			148,067			36,373			280,723

Net earnings (loss) attributable to:
Equity holders		$	7,427		$	148,080		$	36,380		$	280,741
Non-controlling interest			(1	)		(13	)		(7	)		(18	)

Net earnings		$	7,426		$	148,067		$	36,373		$	280,723

Earnings per common share attributable to equity holders:
Basic	16	$	0.02		$	0.34		$	0.08		$	0.65

Diluted	16	$	0.02		$	0.34		$	0.08		$	0.65

See accompanying notes to condensed consolidated interim financial statements.

Cameco Corporation

Consolidated statements of comprehensive earnings


(Unaudited)	Three months ended						Nine months ended
($Cdn thousands)	Sep 30/24			Sep 30/23			Sep 30/24			Sep 30/23
Net earnings	$	7,426		$	148,067		$	36,373		$	280,723
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		(15,498	)		(21,279	)		47,064			(25,180	)
Losses on derivatives designated as cash flow hedges - equity-accounted investee²		(56,979	)		—			(41,598	)		—
Exchange differences on translation of foreign operations - equity-accounted investee		78,474			—			61,209			—

Other comprehensive income (loss), net of taxes		5,997			(21,279	)		66,644			(25,180	)

Total comprehensive income	$	13,423		$	126,788			103,017			255,543

Other comprehensive income (loss) attributable to:
Equity holders	$	5,997		$	(21,279	)	$	66,644		$	(25,180	)
Non-controlling interest		—			—			—			—

Other comprehensive income (loss)	$	5,997		$	(21,279	)	$	66,644		$	(25,180	)

Total comprehensive income (loss) attributable to:
Equity holders	$	13,424		$	126,801		$	103,024		$	255,561
Non-controlling interest		(1	)		(13	)		(7	)		(18	)

Total comprehensive income	$	13,423		$	126,788		$	103,017		$	255,543

¹	Net of tax (Q3 2024 - $0; 2024 - $10)

²	Net of tax (Q3 2024 - $18,173; 2024 - $13,155)

See accompanying notes to condensed consolidated interim financial statements.

Cameco Corporation

Consolidated statements of financial position


(Unaudited)	Note		As at
($Cdn thousands)			Sep 30/24		Dec 31/23
Assets
Current assets
Cash and cash equivalents			$	197,140	$	566,809
Accounts receivable				305,487		422,333
Current tax assets				1,987		974
Inventories		5		854,752		692,261
Supplies and prepaid expenses				154,142		149,352
Current portion of long-term receivables, investments and other		6		4,682		10,161

Total current assets				1,518,190		1,841,890

Property, plant and equipment				3,304,733		3,368,772
Intangible assets				40,747		43,577
Long-term receivables, investments and other		6		602,903		613,773
Investment in equity-accounted investees		7		2,986,279		3,173,185
Deferred tax assets				834,556		892,860

Total non-current assets				7,769,218		8,092,167

Total assets			$	9,287,408	$	9,934,057

Liabilities and shareholders’ equity
Current liabilities
Accounts payable and accrued liabilities				367,369		577,550
Current tax liabilities				17,821		24,076
Current portion of long-term debt		8		—		499,821
Current portion of other liabilities		9		63,056		48,544
Current portion of provisions		10		79,684		39,113

Total current liabilities				527,930		1,189,104

Long-term debt		8		1,263,518		1,284,353
Other liabilities		9		330,477		343,420
Provisions		10		955,703		1,022,871

Total non-current liabilities				2,549,698		2,650,644

Shareholders’ equity
Share capital		11		2,932,855		2,914,165
Contributed surplus				209,412		215,679
Retained earnings				3,016,092		2,979,743
Other components of equity				51,393		(15,282	)

Total shareholders’ equity attributable to equity holders				6,209,752		6,094,305
Non-controlling interest				28		4

Total shareholders’ equity				6,209,780		6,094,309

Total liabilities and shareholders’ equity			$	9,287,408	$	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 earnings (loss)		—		—			36,380			—			—			—			36,380			(7	)		36,373
Other comprehensive income
(loss)		—		—			(31	)		108,273			(41,598	)		—			66,644			—			66,644

Total comprehensive income (loss) for the period		—		—			36,349			108,273			(41,598	)		—			103,024			(7	)		103,017

Share-based compensation		—		4,796			—			—			—			—			4,796			—			4,796
Stock options exercised		18,690		(3,939	)		—			—			—			—			14,751			—			14,751
Restricted share units released		—		(7,124	)		—			—			—			—			(7,124	)		—			(7,124	)
Transactions with owners - contributed equity		—		—			—			—			—			—			—			31			31

Balance at September 30, 2024	$	2,932,855	$	209,412		$	3,016,092		$	90,233		$	(38,092	)	$	(748	)	$	6,209,752		$	28		$	6,209,780

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)		—		—			280,741			—			—			—			280,741			(18	)		280,723
Other comprehensive loss		—		—			—			(25,180	)		—			—			(25,180	)		—			(25,180	)

Total comprehensive income (loss) for the period		—		—			280,741			(25,180	)		—			—			255,561			(18	)		255,543

Share-based compensation		—		2,710			—			—			—			—			2,710			—			2,710
Stock options exercised		28,075		(5,114	)		—			—			—			—			22,961			—			22,961
Restricted share units released		—		(6,409	)		—			—			—			—			(6,409	)		—			(6,409	)
Dividends		—		—			3			—			—			—			3			—			3
Transactions with owners - contributed equity		—		—			—			—			—			—			—			24			24

Balance at September 30, 2023	$	2,908,411	$	215,874		$	2,977,123		$	10,220		$	—		$	(748	)	$	6,110,880		$	17		$	6,110,897

See accompanying notes to condensed consolidated interim financial statements.

Cameco Corporation

Consolidated statements of cash flows


(Unaudited)	Note		Three months ended						Nine months ended
($Cdn thousands)			Sep 30/24			Sep 30/23			Sep 30/24			Sep 30/23
Operating activities
Net earnings			$	7,426		$	148,067		$	36,373		$	280,723
Adjustments for:
Depreciation and amortization				71,130			55,987			176,155			174,212
Deferred charges				(35,077	)		9,220			9,053			(11,992	)
Unrealized loss (gain) on derivatives				(30,949	)		43,007			16,205			2,124
Share-based compensation		18		1,792			949			4,796			2,710
Loss on disposal of assets				644			92			1,056			368
Finance costs		13		35,121			22,960			116,648			69,302
Finance income				(3,954	)		(33,986	)		(18,163	)		(92,625	)
Share of loss (earnings) in equity-accounted investees				30,642			(35,466	)		75,951			(99,728	)
Other operating expense (income)		10		4,687			(61,304	)		(15,100	)		(54,962	)
Other expense (income)		14		14,506			(53,694	)		(7,351	)		(8,073	)
Income tax expense		15		38,032			40,563			87,016			99,825
Interest received				3,954			33,986			18,163			94,752
Income taxes received (paid)				(2,416	)		(1,155	)		(35,919	)		70,450
Dividends from equity-accounted investees				—			—			185,447			113,642
Other operating items		17		(83,196	)		15,561			(274,755	)		(153,871	)

Net cash provided by operations				52,342			184,787			375,575			486,857

Investing activities
Additions to property, plant and equipment				(60,333	)		(43,142	)		(147,232	)		(110,037	)
Decrease in short-term investments				—			19,507			—			1,136,687
Decrease in long-term receivables, investments and other				—			—			7,003			1,000
Proceeds from sale of property, plant and equipment				82			—			130			36

Net cash provided by (used in) investing				(60,251	)		(23,635	)		(140,099	)		1,027,686

Financing activities
Increase (decrease) in debt				(303	)		—			497,022			—
Decrease in debt				(136,600	)		—			(1,041,590	)		—
Interest paid				(11,677	)		(1,465	)		(62,560	)		(21,263	)
Lease principal payments				(772	)		(721	)		(1,562	)		(1,625	)
Proceeds from issuance of shares, stock option plan				45			8,912			14,751			22,961
Dividends returned				—			—			—			4

Net cash provided by (used in) financing				(149,307	)		6,726			(593,939	)		77

Increase (decrease) in cash and cash equivalents, during the period				(157,216	)		167,878			(358,463	)		1,514,620
Exchange rate changes on foreign currency cash balances				(7,261	)		45,877			(11,206	)		9,421
Cash and cash equivalents, beginning of period				361,617			2,453,960			566,809			1,143,674

Cash and cash equivalents, end of period			$	197,140		$	2,667,715		$	197,140		$	2,667,715

Cash and cash equivalents is comprised of:
Cash										197,140			969,052
Cash equivalents										—			1,698,663

Cash and cash equivalents									$	197,140		$	2,667,715

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 periods ended September 30, 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 November 6, 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

A number of new standards and amendments to existing standards are not yet effective for the period ended September 30, 2024 and have not been applied in preparing these condensed consolidated interim financial statements. Cameco does not intend to early adopt any of the standards and amendments and does not expect them to have a material impact on its financial statements. The one new standard that is expected to have an impact on disclosures is described below.

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.

During the second quarter, the purchase price was finalized with amounts released from escrow, resulting in Cameco’s share of the purchase price being reduced by $4,434,000 (US) with a corresponding decrease to goodwill. To finance its 49% share of the purchase price, $2,135,871,000 (US), Cameco used a combination of cash, debt and equity. The Company used $1,535,871,000 (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.

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		950,600
Property, plant and equipment		797,527
Intangible assets		2,839,550
Goodwill		580,248
Non-current assets		346,974
Current liabilities		(1,184,315	)
Non-current liabilities		(2,450,637	)

Total	$	2,135,871

Cash paid		1,535,871
Term loans		600,000

Total	$	2,135,871

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.

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 and adjustments made to goodwill to reflect the finalization of the purchase price. While substantially complete, 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 in the fourth quarter when the measurement period ends, and the valuation is complete. Remaining to be finalized is the income tax impact on the fair value of the underlying assets and liabilities.

5.	Inventories


	Sep 30/24		Dec 31/23
Uranium
Concentrate	$	659,895	$	511,654
Broken ore		33,572		71,463

		693,467		583,117
Fuel services		160,846		108,711
Other		439		433

Total	$	854,752	$	692,261

Cameco expensed $434,260,000 of inventory as cost of sales during the third quarter of 2024 (2023 - $374,819,000). For the nine months ended September 30, 2024, Cameco expensed $1,212,671,000 of inventory as cost of sales (2023 - $1,170,997,000).

6.	Long-term receivables, investments and other


	Sep 30/24			Dec 31/23
Derivatives [note 19]		12,877			28,467
Investment tax credits		96,199			95,940
Amounts receivable related to tax dispute [note 15]^(a)		209,125			209,125
Product loan^(b)		288,294			288,294

Other		1,090			2,108
		607,585			623,934
Less current portion		(4,682	)		(10,161	)

Net	$	602,903		$	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 September 30, 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 September 30, 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


	Sep 30/24		Dec 31/23
Interest in Westinghouse	$	2,747,758	$	2,899,379
Interest in JV Inkai		238,521		273,806
Interest in Global Laser Enrichment (GLE)		—		—

	$	2,986,279	$	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%):

Three months ended

Nine months ended

Sep 30/24

Sep 30/23

Sep 30/24

Sep 30/23

Revenue from products and services

1,482,604

—

4,187,002

—

Cost of products and services sold

(475,185

)

—

(1,523,241

)

—

Depreciation and amortization

(190,769

)

—

(544,381

)

—

Marketing, administrative and general expenses

(747,619

)

—

(2,137,360

)

—

Finance income

(38

)

—

5,519

—

Finance costs

(110,125

)

—

(351,790

)

—

Other expense

(78,793

)

—

(201,178

)

—

Income tax recovery

3,435

—

101,598

—

Net loss

(116,490

)

—

(463,831

)

—

Other comprehensive income

43,868

—

39,959

—

Total comprehensive income

(72,622

)

—

(423,872

)

—

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:


	Sep 30/24			Dec 31/23
Cash and cash equivalents	$	222,473		$	265,146
Other current assets		2,795,075			2,364,602
Intangible assets		7,540,848			7,655,386
Goodwill		1,615,385			1,534,947
Non-current assets		2,933,639			3,102,566
Current portion of long-term debt		(493,700	)		(208,959	)
Other current liabilities		(2,291,250	)		(2,255,099	)
Long-term debt		(4,656,298	)		(4,554,227	)
Other non-current liabilities		(2,204,018	)		(2,130,446	)

Net assets		5,462,154			5,773,916
Net assets attributable to non-controlling interest		(25,221	)		(24,036	)

Net assets attributable to shareholders		5,436,933			5,749,880
Cameco’s share of net assets attributable to shareholders (49%)		2,664,097			2,817,441
Acquisition costs^(a)		83,896			83,916
Impact of foreign exchange		(235	)		(1,978	)

Carrying amount of interest in Westinghouse	$	2,747,758		$	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%):


	Three months ended						Nine months ended
	Sep 30/24			Sep 30/23			Sep 30/24			Sep 30/23
Revenue from products and services	$	60,614		$	79,319		$	465,257		$	280,819
Cost of products and services sold		(9,457	)		(12,531	)		(73,405	)		(48,725	)
Depreciation and amortization		(3,672	)		(4,448	)		(29,962	)		(16,219	)
Finance income		716			423			2,363			991
Finance costs		(174	)		(233	)		(533	)		(804	)
Other expense		(9,196	)		(1,853	)		(19,374	)		(16,496	)
Income tax expense		(7,767	)		(11,565	)		(68,877	)		(39,566	)

Net earnings from continuing operations	$	31,064		$	49,112		$	275,469		$	160,000
Other comprehensive income		—			—			—			—

Total comprehensive income	$	31,064		$	49,112		$	275,469		$	160,000

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


	Sep 30/24			Dec 31/23
Cash and cash equivalents	$	35,339		$	24,074
Other current assets		420,434			551,917
Non-current assets		315,039			332,655
Current liabilities		(35,078	)		(40,985	)
Non-current liabilities		(29,001	)		(30,211	)

Net assets		706,733			837,450
Cameco’s share of net assets (40%)		282,693			334,980
Consolidating adjustments^(a)		(31,788	)		(74,223	)
Fair value increment^(b)		79,889			81,090
Dividends declared but not received		9,760			5,952
Dividends in excess of ownership percentage^(c)		(107,179	)		(74,843	)
Impact of foreign exchange		5,146			850

Carrying amount of interest in JV Inkai	$	238,521		$	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


	Sep 30/24		Dec 31/23
Unsecured debentures
Series F - 5.09% debentures due November 14, 2042	$	99,390	$	99,374
Series G - 4.19% debentures due June 24, 2024		—		499,821
Series H - 2.95% debentures due October 21, 2027		398,847		398,582
Series I - 4.94% debentures due May 24, 2031		497,161		—
Term loans		268,120		786,397

		1,263,518		1,784,174
Less current portion		—		(499,821	)

Total	$	1,263,518	$	1,284,353

On May 24, 2024, Cameco issued $500,000,000 of Series I debentures which bear interest at a rate of 4.94% per annum. The net proceeds of the issue after deducting expenses were approximately $497,000,000. The debentures mature on May 24, 2031, and are being amortized at an effective interest rate of 5.03%. In conjunction with the issuance of the Series I debentures, on June 24, 2024, the $500,000,000 principal amount of the Series G debentures was redeemed.

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. On September 9, 2024, Cameco repaid $100,000,000 (US) on the first tranche of the term loan. The second tranche was fully repaid on June 10, 2024.

9.	Other liabilities


	Sep 30/24			Dec 31/23
Deferred sales	$	54,430		$	45,372
Derivatives [note 19]		22,959			22,344
Accrued pension and post-retirement benefit liability		77,873			77,002
Lease obligation [note 19]		10,017			10,816
Product loans^(a)		158,824			166,052
Sales contracts		4,304			6,314
Other		65,126			64,064

		393,533			391,964
Less current portion		(63,056	)		(48,544	)

Net	$	330,477		$	343,420

(a)

Cameco has standby product loan facilities with various counterparties. The arrangements allow us to borrow up to 1,768,000 kgU of UF₆ conversion services and 6,429,000 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 September 30, 2024, we have 1,567,000 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

—

318,000

1,249,000

—

1,567,000

We also have 2,506,000 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

1,876,000

—

2,506,000

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		(22,536	)		—			(22,536	)
Recognized in earnings		(15,100	)		330			(14,770	)
Provisions used during the period		(23,799	)		(592	)		(24,391	)
Unwinding of discount		28,235			263			28,498
Impact of foreign exchange		6,602			—			6,602

End of period	$	1,024,569		$	10,818		$	1,035,387

Current		75,436			4,248			79,684
Non-current		949,133			6,570			955,703

	$	1,024,569		$	10,818		$	1,035,387

11.

Share capital

At September 30, 2024, there were 435,184,572 common shares outstanding. Options in respect of 387,469 shares are outstanding under the stock option plan and are exercisable up to 2027. For the quarter ended September 30, 2024, there were 4,000 options that were exercised resulting in the issuance of shares (2023 - 557,200). For the nine months ended September 30, 2024, there were 1,008,820 options exercised that resulted in the issuance of shares (2023 - 1,346,967).

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 September 30, 2024


	Uranium		Fuel services		Total
Customer geographical region
Americas	$	269,636	$	94,045	$	363,681
Europe		149,735		23,480		173,215
Asia		180,772		2,928		183,700

	$	600,143	$	120,453	$	720,596

Contract type
Fixed-price	$	174,224	$	118,346	$	292,570
Market-related		425,919		2,107		428,026

	$	600,143	$	120,453	$	720,596

For the three months ended September 30, 2023


	Uranium		Fuel services		Total
Customer geographical region
Americas	$	155,999	$	51,527	$	207,526
Europe		198,214		26,576		224,790
Asia		135,348		7,415		142,763

	$	489,561	$	85,518	$	575,079

Contract type
Fixed-price	$	180,116	$	76,195	$	256,311
Market-related		309,445		9,323		318,768

	$	489,561	$	85,518	$	575,079

For the nine months ended September 30, 2024


	Uranium		Fuel services		Total
Customer geographical region
Americas	$	926,565	$	245,413	$	1,171,978
Europe		329,232		56,876		386,108
Asia		386,056		8,457		394,513

	$	1,641,853	$	310,746	$	1,952,599

Contract type
Fixed-price	$	531,693	$	297,837	$	829,530
Market-related		1,110,160		12,909		1,123,069

	$	1,641,853	$	310,746	$	1,952,599

For the nine months ended September 30, 2023


	Uranium		Fuel services		Total
Customer geographical region
Americas	$	589,849	$	204,567	$	794,416
Europe		453,250		72,141		525,391
Asia		409,567		14,667		424,234

	$	1,452,666	$	291,375	$	1,744,041

Contract type
Fixed-price	$	488,430	$	280,107	$	768,537
Market-related		964,236		11,268		975,504

	$	1,452,666	$	291,375	$	1,744,041

13.

Finance costs


	Three months ended				Nine months ended
	Sep 30/24		Sep 30/23		Sep 30/24		Sep 30/23
Interest on long-term debt	$	20,472	$	10,397	$	73,714	$	31,254
Unwinding of discount on provisions		9,920		8,862		28,498		26,469
Other charges		4,729		3,701		14,436		11,579

Total	$	35,121	$	22,960	$	116,648	$	69,302

14.

Other income (expense)


	Three months ended					Nine months ended
	Sep 30/24			Sep 30/23		Sep 30/24		Sep 30/23
Foreign exchange gains (losses)		(14,572	)		53,694		7,288		7,528
Other		66			—		64		545

Total	$	(14,506	)	$	53,694	$	7,352	$	8,073

15.

Income taxes


	Three months ended						Nine months ended
	Sep 30/24			Sep 30/23			Sep 30/24			Sep 30/23
Earnings (loss) before income taxes
Canada	$	143,294		$	161,802		$	374,090		$	373,253
Foreign		(97,836	)		26,828			(250,701	)		7,295

	$	45,458		$	188,630		$	123,389		$	380,548

Current income taxes
Canada	$	1,668		$	2,899		$	19,420		$	18,236
Foreign		4,669			2,719			9,070			6,947

	$	6,337		$	5,618		$	28,490		$	25,183
Deferred income taxes (recovery)
Canada	$	35,259		$	35,201		$	61,253		$	74,358
Foreign		(3,564	)		(256	)		(2,727	)		284

	$	31,695		$	34,945		$	58,526		$	74,642

Income tax expense	$	38,032		$	40,563		$	87,016		$	99,825

Cameco has recorded $834,556,000 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: Canada, Switzerland, Luxembourg, Germany, Barbados and the United Kingdom. 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 $2,295,000 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.


	Three months ended				Nine months ended
	Sep 30/24		Sep 30/23		Sep 30/24		Sep 30/23
Basic earnings per share computation
Net earnings attributable to equity holders	$	7,427	$	148,080	$	36,380	$	280,741
Weighted average common shares outstanding		435,181		433,587		434,749		433,181

Basic earnings per common share	$	0.02	$	0.34	$	0.08	$	0.65

Diluted earnings per share computation
Net earnings attributable to equity holders	$	7,427	$	148,080	$	36,380	$	280,741
Weighted average common shares outstanding		435,181		433,587		434,749		433,181
Dilutive effect of stock options		293		1,547		1,069		1,860

Weighted average common shares outstanding, assuming dilution		435,474		435,134		435,818		435,041

Diluted earnings per common share	$	0.02	$	0.34	$	0.08	$	0.65

17. Statements of cash flows


	Three months ended						Nine months ended
	Sep 30/24			Sep 30/23			Sep 30/24			Sep 30/23
Changes in non-cash working capital:
Accounts receivable	$	(165,892	)	$	(45,386	)	$	118,574		$	(116,794	)
Inventories		11,069			100,628			(140,260	)		171,798
Supplies and prepaid expenses		(19,567	)		(15,928	)		(4,734	)		(42,529	)
Accounts payable and accrued liabilities		100,895			(15,864	)		(236,779	)		(133,434	)
Reclamation payments		(8,282	)		(10,235	)		(24,391	)		(29,762	)
Other		(1,419	)		2,346			12,835			(3,150	)

Other operating items	$	(83,196	)	$	15,561		$	(274,755	)	$	(153,871	)

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 33,204,879 shares have been issued. As of September 30, 2024, the total number of stock options held by the participants was 387,469 (December 31, 2023 - 1,396,289).

B.	Executive performance share unit (PSU)

During the period, the Company granted 178,600 PSUs. The weighted average fair value per unit at the date of issue was $55.00. As of September 30, 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 period, the Company granted 322,267 RSUs. The weighted average fair value per unit at the date of issue was $55.00. As of September 30, 2024, the total number of RSUs held by the participants was 733,550 (December 31, 2023 -814,683).

D.	Deferred share unit (DSU)

As of September 30, 2024, the total number of DSUs held by participating directors was 404,961 (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				Nine months ended
	Sep 30/24		Sep 30/23		Sep 30/24		Sep 30/23
Employee share ownership plan^(a)	$	1,166	$	1,005	$	3,546	$	3,052
Restricted share unit plan		1,792		949		4,796		2,710

Total	$	2,958	$	1,954	$	8,342	$	5,762

(a)	The total number of shares purchased in 2024 with Company contributions was 57,654 (2023 - 55,807).

Cash-settled plans

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


	Three months ended					Nine months ended
	Sep 30/24			Sep 30/23		Sep 30/24		Sep 30/23
Performance share unit plan	$	1,207		$	6,577	$	8,568	$	17,821
Deferred share unit plan		(1,053	)		6,900		4,669		12,846
Restricted share unit plan		1,780			5,840		8,296		15,243
Phantom stock option plan		(108	)		787		422		1,776
Phantom restricted share unit plan		133			298		542		606

	$	1,959		$	20,402	$	22,497	$	48,292

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 September 30, 2024


	FVTPL			Amortized cost			Total
Financial assets
Cash and cash equivalents^(a)	$	—		$	197,140		$	197,140
Accounts receivable		—			305,487			305,487
Derivative assets [note 6]
Foreign currency contracts		12,877			—			12,877

		12,877			502,627			515,504
Financial liabilities
Accounts payable and accrued liabilities		—			367,369			367,369
Lease obligation [note 9]		—			10,017			10,017
Derivative liabilities [note 9]
Foreign currency contracts		18,796			—			18,796
Interest rate contracts		4,163			—			4,163
Long-term debt		—			1,263,518			1,263,518

		22,959			1,640,904			1,663,863

Net		(10,082	)		(1,138,277	)		(1,148,359	)

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 $160,544,000 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 September 30, 2024


	Carrying value			Fair Value
Derivative assets [note 6]
Foreign currency contracts	$	12,877		$	12,877
Derivative liabilities [note 9]
Foreign currency contracts		(18,796	)		(18,796	)
Interest rate contracts		(4,163	)		(4,163	)
Long-term debt		(1,263,518	)		(1,338,347	)

Net	$	(1,273,600	)	$	(1,348,429	)

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 2.7% to 3.1% (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:


	Sep 30/24			Dec 31/23
Non-hedge derivatives:
Foreign currency contracts	$	(5,919	)	$	11,942
Interest rate contracts		(4,163	)		(5,819	)

Net	$	(10,082	)	$	6,123

Classification:
Current portion of long-term receivables, investments and other [note 6]	$	3,658		$	9,137
Long-term receivables, investments and other [note 6]		9,219			19,330
Current portion of other liabilities [note 9]		(18,644	)		(14,338	)
Other liabilities [note 9]		(4,315	)		(8,006	)

Net	$	(10,082	)	$	6,123

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


	Three months ended					Nine months ended
	Sep 30/24		Sep 30/23			Sep 30/24			Sep 30/23
Non-hedge derivatives:
Foreign currency contracts	$	19,749	$	(45,329	)	$	(38,793	)	$	(12,355	)
Interest rate contracts		1,684		(1,763	)		186			(3,738	)

Net	$	21,433	$	(47,092	)	$	(38,607	)	$	(16,093	)

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 $13,607,000 of care and maintenance costs during the third quarter of 2024 (2023 - $12,887,000). For the nine months ended September 30, 2024, Cameco expensed $37,840,000 (2023 - $38,580,000).

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

Business segments

For the three months ended September 30, 2024


	Uranium			Fuel services			(i) WEC			(i) Adjustments			Other			Total
Revenue	$	600,143		$	120,453		$	726,476		$	(726,476	)	$	—		$	720,596
Expenses
Cost of products and services sold		386,475			92,149			232,841			(232,841	)		—			478,624
Depreciation and amortization		59,303			10,588			93,477			(93,477	)		1,239			71,130

Cost of sales		445,778			102,737			326,318			(326,318	)		1,239			549,754

Gross profit (loss)		154,365			17,716			400,158			(400,158	)		(1,239	)		170,842
Administration		—			—			366,333			(366,333	)		50,915			50,915
Exploration		5,329			—			—			—			—			5,329
Research and development		—			—			—			—			8,927			8,927
Other operating expense (income)		5,089			(402	)		—			—			—			4,687
Gain (loss) on disposal of assets		(124	)		775			—			—			(7	)		644
Finance costs		—			—			53,961			(53,961	)		35,121			35,121
Gain on derivatives		—			—			—			—			(21,433	)		(21,433	)
Finance income		—			—			19			(19	)		(3,954	)		(3,954	)
Share of loss (earnings) from equity-accounted investees		(26,438	)		—			—			57,080			—			30,642
Other expense (income)		—			—			38,609			(38,609	)		14,506			14,506

Earnings (loss) before income taxes		170,509			17,343			(58,764	)		1,684			(85,314	)		45,458
Income tax expense																	38,032

Net earnings																$	7,426

(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 September 30, 2023


	Uranium			Fuel services			Other			Total
Revenue	$	489,561		$	85,518		$	—		$	575,079
Expenses
Cost of products and services sold		304,551			62,751			—			367,302
Depreciation and amortization		47,065			8,040			882			55,987

Cost of sales		351,616			70,791			882			423,289

Gross profit (loss)		137,945			14,727			(882	)		151,790
Administration		—			—			65,510			65,510
Exploration		4,106			—			—			4,106
Research and development		—			—			7,850			7,850
Other operating income		(48,381	)		(12,923	)		—			(61,304	)
Loss on disposal of assets		41			51			—			92
Finance costs		—			—			22,960			22,960
Loss on derivatives		—			—			47,092			47,092
Finance income		—			—			(33,986	)		(33,986	)
Share of earnings from equity-accounted investee		(35,466	)		—			—			(35,466	)
Other income		—			—			(53,694	)		(53,694	)

Earnings (loss) before income taxes		217,645			27,599			(56,614	)		188,630
Income tax expense											40,563

Net earnings										$	148,067

For the nine months ended September 30, 2024


	Uranium			Fuel services			(i) WEC			(i) Adjustments			Other			Total
Revenue	$	1,641,853		$	310,746		$	2,051,631			(2,051,631	)	$	—		$	1,952,599
Expenses
Cost of products and services sold		1,026,996			217,172			746,388			(746,388	)		(706	)		1,243,462
Depreciation and amortization		147,538			24,916			266,747			(266,747	)		3,701			176,155

Cost of sales		1,174,534			242,088			1,013,135			(1,013,135	)		2,995			1,419,617

Gross profit (loss)		467,319			68,658			1,038,496			(1,038,496	)		(2,995	)		532,982
Administration		—			—			1,047,306			(1,047,306	)		176,428			176,428
Exploration		15,392			—			—			—			—			15,392
Research and development		—			—			—			—			26,126			26,126
Other operating income		(12,023	)		(3,077	)		—			—			—			(15,100	)
Loss on disposal of assets		146			916			—			—			(6	)		1,056
Finance costs		—			—			172,377			(172,377	)		116,648			116,648
Gain on derivatives		—			—			—			—			38,607			38,607
Finance income		—			—			(2,704	)		2,704			(18,163	)		(18,163	)
Share of loss (earnings) from equity-accounted investees		(151,326	)		—			—			227,277			—			75,951
Other expense (income)		—			—			98,577			(98,577	)		(7,352	)		(7,352	)

Earnings (loss) before income taxes		615,130			70,819			(277,060	)		49,783			(335,283	)		123,389
Income tax expense																	87,016

Net earnings																$	36,373

(i)

For the nine months ended September 30, 2023


	Uranium			Fuel services			Other			Total
Revenue	$	1,452,666		$	291,375		$	—		$	1,744,041
Expenses
Cost of products and services sold		959,060			182,551			(725	)		1,140,886
Depreciation and amortization		147,182			24,357			2,673			174,212

Cost of sales		1,106,242			206,908			1,948			1,315,098

Gross profit (loss)		346,424			84,467			(1,948	)		428,943
Administration		—			—			186,569			186,569
Exploration		14,262			—			—			14,262
Research and development		—			—			17,189			17,189
Other operating income		(41,602	)		(13,360	)		—			(54,962	)
Loss on disposal of assets		5			363			—			368
Finance costs		—			—			69,302			69,302
Loss on derivatives		—			—			16,093			16,093
Finance income		—			—			(92,625	)		(92,625	)
Share of earnings from equity-accounted investee		(99,728	)		—			—			(99,728	)
Other income		(545	)		—			(7,528	)		(8,073	)

Earnings (loss) before income taxes		474,032			97,464			(190,948	)		380,548
Income tax expense											99,825

Net earnings										$	280,723

21.

Related parties

Transactions with key management personnel

Key management personnel are those persons that have 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 quarter ended September 30, 2024, Cameco paid these suppliers $23,077,000 for construction and contracting services. During the month of September 2023, Cameco paid these suppliers $5,172,000. During the nine months ended September 30, 2024, Cameco paid these suppliers $69,485,000 (2023 - $5,172,000). The transactions were conducted in the normal course of business and were accounted for at the exchange amount. Accounts payable includes a balance of $1,722,000 at the reporting date (2023 - $1,358,000).

Other related party transactions


	Transaction value				Transaction value				Balance outstanding
	Three months ended				Nine months ended				as at
	Sep 30/24		Sep 30/23		Sep 30/24		Sep 30/23		Sep 30/24		Sep 30/23
Joint venture^(a)
Sales revenue	$	126	$	—	$	45,308	$	—	$	—	$	—
Fuel storage and handling fees		—		—		25		—		—		—
Associate^(b)
Product purchases		7,208		—		152,992		93,430		—		—
Dividends received		—		—		185,447		113,642		—		—

(a)	Cameco has entered into various agreements with Westinghouse and its subsidiaries and has recognized sales revenue related to fuel supply agreements and incurred costs related to fuel storage and handling fees. Contract terms are at market rates and on normal trade terms.

(b)	Cameco purchases uranium concentrate from JV Inkai. Purchases from JV Inkai are at market rates with extended payment terms. Cash dividends are also received from JV Inkai.