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URANIUM EARNINGS – Cameco 4th quarter revenue jumps 45%

SASKATOON - CAMECO's unaudited fourth quarter 2005 financial statement puts the quarter's earnings at $522 million ...


SASKATOON – CAMECO’s unaudited fourth quarter 2005 financial statement puts the quarter’s earnings at $522 million or up 45% from the same period a year earlier ($361 million). For the calendar year 2005 revenues were $1.31 billion, up 25% from 2004 ($1.05 billion). At $81 million, net earnings for the fourth quarter were more than double those of a year earlier ($37 million). But on a year-over-year basis, net earnings fell 22% to $218 million in 2005 from $279 million in 2004.

The company is predicting further gains for 2006. Consolidated revenue will grow by more than 40% over 2005, and gross profit margin will rise to 28% this year from 23% in 2005. In the uranium business, revenue will be about 20% higher due to a stronger realized price and increased sales volumes. The company also anticipates that revenue from the conversion business will be about 20% higher than in 2005 due to an anticipated 15% increase in sales deliveries and an increase in the average realized selling price.

Cameco directors approved a two-for-one stock split for shareholders of record on Feb. 17, 2006. (Visit www.Cameco.com for further information.) The board also boosted the annual cash dividend to $0.32 ($0.16 post-split) from $0.24.

Some of the cash Cameco earned last year was used for the $108-million purchase this week of ZIRCATEC PRECISION INDUSTRIES, which manufactures nuclear fuel bundles for operations of Candu reactors.

Cameco has also subscribed for 2.22 million common shares of UEX CORP. The value of the deal is $53 million, bringing Cameco’s share of UEX to 21.74%.

UEX is a Canadian uranium exploration company formed in 2002 by Cameco and PIONEER METALS of Vancouver.


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