Management’s discussion and analysis and financial statements
The first quarter MD&A and unaudited condensed consolidated interim financial statements provide a detailed explanation of our operating results for the three months ended March 31, 2020, as compared to the same period last year. This news release should be read in conjunction with these documents, as well as our audited consolidated financial statements and notes for the year ended December 31, 2019, annual MD&A, and our most recent annual information form, all of which are available on our website at cameco.com, on SEDAR at sedar.com, and on EDGAR at sec.gov/edgar.shtml.
Caution about forward-looking information
This news release includes statements and information about our expectations for the future, which we refer to as forward-looking information. Forward-looking information is based on our current views, which can change significantly, and actual results and events may be significantly different from what we currently expect.
Examples of forward-looking information in this news release include: our expectation that we are well positioned in a strengthening uranium market; our expectations regarding our business resiliency and ability to self-manage risk, including our financial capacity to manage the disruptions to our operations caused byCOVID-19 and to fund 2020 capital requirements without drawing on our credit facility; our expectation that we will continue to provide the fuel required to power nuclear reactors to ensure essential services are available during this pandemic; our expectation to resume providing outlook information when we have a sufficient basis to do so; our expected monthly share of Cigar Lake and McClean Lake care and maintenance costs during the suspension; the expected four-week Port Hope UF6 conversion plant shutdown and Blind River refinery production suspension; our views on the Tax Court of Canada’s decision and our expectation we will receive a Federal Court of Appeal decision in 2020; our view on the uranium market response caused by theCOVID-19 pandemic; and expected dates for future announcements of financial results.
Material risks that could lead to different results include: that we may be required to draw on our credit facility to manage disruptions to our business caused byCOVID-19 and to fund 2020 capital requirements; that we may be unable to successfully manage the current uncertain environment resulting fromCOVID-19 and its related operational, safety, marketing or financial risks successfully, including the risk of significant disruption to our operations, workforce, required supplies or services, and ability to transport and deliver uranium; that our business may not be as resilient in recovering from the disruptions caused by theCOVID-19 pandemic as we expect; that our Cigar Lake mine or Blind River refinery suspension or Port Hope UF6 conversion plant shutdown may continue for an extended period; that we may face significant delays in resuming production at our Cigar Lake mine, Blind River refinery or Port Hope UF6 conversion plant once we decide to do so; there may be significant delays in restarting processing at the McClean Lake mill once a decision is made to do so; that our views on the uranium market (including our positioning), providing fuel required to power nuclear reactors during this pandemic, expected monthly share of Cigar Lake and McClean Lake care and maintenance costs during the suspension, or timing of a Federal Court of Appeal decision, prove to be inaccurate; we are unsuccessful in an appeal of the Tax Court of Canada’s decision or a subsequent appeal of that decision; we will be unable to resume providing outlook information for an extended period; unexpected changes in uranium supply, demand, contracting, and prices; a major accident at a nuclear power plant; changes in government regulations or policies; the risk of litigation or arbitration claims or appeals against us that have an adverse outcome; the risk our strategies may change, be unsuccessful or have unanticipated consequences; the risk our estimates and forecasts prove to be incorrect; and the risk that we may be delayed in announcing future financial results.
In presenting this forward-looking information, we have made material assumptions which may prove incorrect, including assumptions regarding our ability to successfully manage the current uncertain environment resulting fromCOVID-19 and its related operational, safety, marketing and financial risks successfully; the ability of our business to recover from the disruptions caused byCOVID-19; our ability to manage disruptions to our business caused byCOVID-19 and to fund our 2020 capital requirements without drawing on our credit facility; our ability to resume providing outlook information in the future; assumptions regarding our ability to resume production at Cigar Lake and Orano’s ability to resume processing at their McClean Lake mill after the period of suspension; assumptions regarding the period of temporary suspension of our Port Hope UF6 conversion plant and our Blind River refinery and our ability to resume production; our expectations about the outcome of our dispute with Canada Revenue Agency, including that the Tax Court of Canada ruling will be upheld on appeal and timing of a Federal Court of Appeal decision; that our monthly share of Cigar Lake and McClean Lake care and maintenance costs during the suspension will be as expected; our assumptions about uranium supply, demand, contracting and prices; the market conditions and other factors upon which we have based our future plans and forecasts; our positioning in the uranium market; the absence of any adverse government regulations, policies or decisions; the successful outcome of any litigation or arbitration claims or appeals against us; and our ability to announce future financial results when expected.
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