Cameco and Energoatom Agree on Commercial Terms to Supply Ukraine’s Full Natural UF6 Needs through 2035
- 1 -
Cameco and Energoatom Agree on Commercial Terms to
Supply Ukraine’s Full Natural UF6 Needs through 2035
Saskatoon, Canada/Kyiv, Ukraine – February 8, 2023
SE NNEGC Energoatom (Energoatom), Ukraine’s state-owned nuclear energy utility, and Cameco
Corporation (Cameco) (TSX: CCO; NYSE: CCJ), one of the largest global producers of uranium fuel based
in Canada, have reached agreement on commercial terms for a major supply contract for Cameco to
provide sufficient volumes of natural uranium hexafluoride, or UF6 (consisting of uranium and
conversion services), to meet Ukraine’s full nuclear fuel needs through 2035. Key commercial terms,
such as pricing mechanism, volume and tenor, have been agreed to, but the contract is subject to
finalization, which is anticipated in the first quarter of 2023.
“Energoatom will keep working on achieving the energy independence of Ukraine. The development of
cooperation between companies in the production and supply of nuclear materials and nuclear fuel is
one of the most important conditions for the further safe functioning of our domestic nuclear power
generation,” said Petro Kotin, President of Energoatom.
“We are proud to play an essential role in helping Ukraine gain supply security for significant
components of their nuclear fuel in these extraordinarily challenging times for the country,” said
Cameco President and CEO Tim Gitzel. “This has the potential to be the single largest supply contract in
Cameco’s history, and it is only achievable through the strong relationship that has developed between
our two companies. Commercial arrangements between Cameco and Energoatom began modestly in
2018 and have grown today into a significant strategic partnership.”
The 12-year agreement will run from 2024 through 2035, with all deliveries in the form of UF6. The
contract will contain a required degree of flexibility, given present circumstances in Ukraine. The
agreement will see Cameco supply 100% of Energoatom’s UF6 requirements (consisting of uranium and
conversion services) for the nine nuclear reactors at its Rivne, Khmelnytskyy and South Ukraine nuclear
power plants for the duration of the contract. These plants have combined requirements over the
contract term of approximately 15.3 million KgU as UF6 (the equivalent of about 40.1 million pounds of
uranium concentrate, or U3O8).
- 2 -
The contract will also contain an option for Cameco to supply up to 100% of the fuel requirements for
the six reactors at the Zaporizhzhya nuclear power plant, currently under Russian control, should it
return to Energoatom’s operation. If this option was exercised in 2024, the Zaporizhzhya plant would
require roughly 10.4 million KgU as UF6 (the equivalent of around 27.2 million pounds of U3O8) over the
contract period.
The contract amounts are subject to the customary volume flexibility provisions commonly contained in
supply agreements. Financial terms of the contract are confidential and will not be released.
- End -
Cameco investor inquiries: Energoatom media inquiries:
Rachelle Girard Leonid Oliynyk
306-956-6403 +38 044 523 40 26
[email protected] [email protected]
Cameco media inquiries:
Veronica Baker
306-385-5541
About Cameco
Cameco is one of the largest global providers of the uranium fuel needed to energize a clean-air world.
Our competitive position is based on our controlling ownership of the world’s largest high-grade
reserves and low-cost operations. Utilities around the world rely on our nuclear fuel products to
generate safe, reliable, carbon-free nuclear power. Our shares trade on the Toronto and New York stock
exchanges. Our head office is in Saskatoon, Saskatchewan, Canada.
About Energoatom
State Enterprise «National Nuclear Energy Generating Company «Energoatom» is the largest power
producer in Ukraine. The company operates four nuclear power plants – Zaporizhzhya, Rivne, South
Ukraine, and Khmelnytskyy, with a total of 15 units (13 VVER-1000 units and 2 VVER-440 units) with a
total installed capacity of 13,835 MW. The company also includes Tashlyk HPSPP (453 MW),
Olexandrivska HPP (25 MW) and Centralized Spent Fuel Storage Facility located in the Chornobyl Zone.
Caution Regarding Forward-Looking Information and Statements
This news release includes statements and information about expectations for the future, which are
referred to as forward-looking information. This forward-looking information is based on current views,
which can change significantly, and actual results and events may be significantly different from what is
- 3 -
currently expected. Examples of forward-looking information in this news release include the
expectation that Cameco will provide sufficient volumes of UF6 under the supply contract to meet
Ukraine’s full nuclear fuel needs through 2035; the anticipated finalization of the supply contract in the
first quarter of 2023; Energoatom’s intention to keep working on achieving the energy independence of
Ukraine, and its views regarding the importance of the development of cooperation between companies
in the production and supply of nuclear materials and nuclear fuel for the further safe functioning of
Ukraine’s domestic nuclear power generation; Cameco’s view on the role it will play in helping Ukraine
gain supply security for significant components of their nuclear fuel; the potential for this supply
contract to be the single largest supply contract in Cameco’s history; the expected duration and other
terms of the final agreement; the volume of UF6 that Cameco will supply under the contract; and the
volume of UF6 that Cameco would supply to the Zaporizhzhya plant, should Cameco be able to exercise
the option to do so. Material risks that could lead to different results include the risk that the supply
contract will not be finalized within the time or on the terms expected; the risk that Cameco may be
unable to supply sufficient volumes of UF6 under the supply contract to satisfy its terms, for any reason;
the risk that Ukraine may be unable to gain energy independence, or continue safe functioning of
Ukraine’s domestic nuclear power generation, and the risk that the continuation or outcome of the
conflict between the Ukraine and Russia may prevent Cameco from satisfying the terms of this supply
contract, or realizing the expected benefits to Cameco, or have other adverse consequences to
Cameco. Cameco has made material assumptions which may prove incorrect, including: the assumption
that Cameco will reach agreement on the final terms of the supply contract within the time and on the
terms expected; the assumption that Cameco will be able to supply sufficient volume of UF6 to meet the
terms of the supply contract; and Cameco’s assumption that the continuation or outcome of the conflict
between Ukraine and Russia will not prevent Cameco from satisfying its obligations under the supply
contract and realizing its expected benefits. Other material risks and assumptions associated with
Cameco’s business are described in greater detail in Cameco’s current annual information form and its
most recent annual and subsequent quarterly MD&A. Forward-looking information is designed to help
you understand management’s current views of our near-term and longer-term prospects, and it may
not be appropriate for other purposes. Cameco will not necessarily update this information unless
required by securities laws.