Proactive Investors - Shares in Cameco Corporation (TSX:TSX:CCO) dipped over 5% on Thursday after the world’s largest listed uranium company dealt an earnings miss in its final results.
Adjusted per-share earnings came in at US$0.21 for the year, up on 2022’s US$0.09, but below analysts’ expectations for US$0.22, as per the London Stock Exchange Group (LON:LSEG).
Production of 17.6 million pounds in the firm’s uranium segment was also lower than previously anticipated, Cameco said in Thursday’s earnings.
Alongside this, Kazakhstan-based production is set to remain 20% below agreed levels in the months ahead, the company said, given local sulphuric acid shortages.
Chief executive Tim Gitzel remained optimistic on global uranium prices though, adding the firm believed “the demand outlook is stronger and more durable than ever”.
This is due to “heightened geopolitical uncertainty, global production shortfalls, and transportation challenges in 2023,” he explained.
Annual net earnings climbed over 300% to US$361 million, partially as a result of higher sales volumes and better average prices over the year.
“The benefits of nuclear power have come clearly into focus, with 28 countries around the world declaring support for the tripling of capacity to help achieve global net-zero greenhouse gas emissions by 2050,” Gitzel continued.
Revenue climbed by 61% to US$844 million during the final quarter, with the figure jumping 39% to US$2.59 billion over the year.
“We continue to believe that Cameco remains an excellent opportunity to invest in the recovery of the nuclear fuel cycle,” Gitzel added.
“We have 35 years of experience in this market and have built a strong reputation as a proven and reliable supplier.”
Shares dipped 5.43% to US$45.44.