Cameco Restarting Production at Ontario Operations, Cigar Lake Status Unchanged
TSX: CCO w e b s i t e : cameco.com
NYSE: CCJ currency: Cdn (unless noted)
2121 – 11th Street West, Saskatoon, Saskatchewan, S7M 1J3 Canada
Tel: 306-956-6200 Fax: 306-956-6201
Cameco Restarting Production at Ontario Operations, Cigar Lake Status Unchanged
Saskatoon, Saskatchewan, Canada, May 11, 2020 . . . . . . . . . . . . .
Cameco (TSX: CCO; NYSE: CCJ) announced today that it is resuming production at its Port
Hope Conversion Facility’s UF6 plant and its Blind River Refinery in Ontario. Both operations
are planned to restart the week of May 18, 2020 and achieve regular production levels the week
of May 25, 2020.
On April 8, 2020, Cameco announced that these facilities would be placed in a temporary safe
shutdown state for approximately four weeks and, where possible, maintenance work scheduled
for the summer would be advanced. Screening protocols and other measures put in place to align
with government and public health directives around COVID-19 were contributing to workforce
uncertainty at the UF6 plant, which is a complex operation designed to run as a continuous
process without interruption. The decision was therefore made to suspend production at the
plant, as well as at the Blind River Refinery, since the majority of the UO3 produced there is used
in the production of UF6 at Port Hope.
The workforce situation has now stabilized, providing Cameco with increased certainty around
the availability of necessary personnel to operate the UF6 plant. With the appropriate conditions
currently in place to resume normal operations, we have decided to return both the plant and the
refinery to production.
“The provinces and communities where we operate are certainly not out of the woods when it
comes to this global pandemic, and we must remain vigilant in how we manage our activities
during these challenging times,” said Cameco president and CEO Tim Gitzel. “However, we are
confident that we can maintain the required roster of qualified operators to run the UF6 plant
going forward, enabling us to carefully bring the plant and the UO3 refinery back into
production.”
During the temporary shutdown of these two sites, the remainder of Cameco’s Ontario
operations, including UO2 production at the Port Hope Conversion Facility and fuel bundle
production at Cameco Fuel Manufacturing, continued to operate safely.
Given the evolving nature of the COVID-19 situation and the number of moving pieces, on April
13, 2020 Cameco withdrew its 2020 outlook for its fuel services division, including production.
We do not expect to resume providing outlook information until we have a sufficient basis to do
so.
While the two Ontario facilities return to production, there is no change in the status of
Cameco’s Cigar Lake uranium mine. The operation remains in a safe state of care and
maintenance for an indeterminate duration, as pandemic conditions continue to challenge a
number of northern Saskatchewan communities.
- 2 -
Cameco continues to closely monitor the situation around all of its facilities and follow the
guidance of government and public health authorities. Significant safety measures to limit the
risk posed by COVID-19 remain in place across our operations, and we will move quickly to
adjust our plans should circumstances warrant to ensure the well-being of our workers, their
families and communities.
Profile
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 power in safe, reliable, carbon-free nuclear reactors. Our shares trade on the
Toronto and New York stock exchanges. Our head office is in Saskatoon, Saskatchewan.
Caution Regarding Forward-Looking Information and Statements
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 plans to restart
production at our Port Hope Conversion Facility’s UF6 plant and Blind River Refinery in Ontario
the week of May 18, 2020 and to achieve regular production levels the week of May 25, 2020;
our views on the stability of the workforce situation, the availability of necessary personnel to
operate the UF6 plant, and our ability to maintain the required roster of qualified operators to run
the UF6 plant going forward and to carefully bring the plant and the UO3 refinery back into
production; and our expectation to resume providing outlook information when we have a
sufficient basis to do so.
Material risks that could lead to different results include: that we may be unable to successfully
manage the current uncertain environment resulting from COVID-19 and its related operational,
safety, regulatory, marketing or financial risks successfully, including the risk of significant
disruption to our Ontario fuel services operations, workforce, required supplies or services, and
our plans to resume production at our Blind River Refinery and Port Hope UF6 plant and to
achieve regular production levels; that we may face significant delays in resuming production at
our Blind River Refinery or Port Hope UF6 plant; we may be unable to return to or maintain
regular production levels at our Blind River Refinery or Port Hope UF6 plant; we may face an
outbreak of COVID-19 at our Port Hope Conversion Facility or Blind River Refinery; an
operating risk or hazard occurs disrupting our plans; we may be unable to comply with
applicable regulatory requirements; that our views on the stability of the workforce situation,
availability of necessary personnel, including the required roster of qualified operators, to
operate the UF6 plant, or our ability to carefully bring the UF6 plant and the UO3 refinery back
into production, prove to be inaccurate; changes in government regulations or policies; the risk
our plans may change, be unsuccessful or have unanticipated consequences; the risk our
estimates and forecasts prove to be incorrect; and the risk that we will be unable to resume
providing outlook information for an extended period.
- 3 -
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 from COVID-19 and its related operational, safety, regulatory,
marketing and financial risks successfully; that our plans to resume production, and to achieve
regular production levels, at our Port Hope UF6 plant and our Blind River Refinery within
expected time frames succeed; the absence of an outbreak of COVID-19 at our Port Hope
Conversion Facility and Blind River Refinery; no operating risk or hazard occurs disrupting our
plans; assumptions regarding the stability of the workforce situation, availability of necessary
personnel, including the required roster of qualified operators, to operate the UF6 plant, and our
ability to carefully bring the plant and the UO3 refinery back into production; assumptions
regarding the operating conditions and other factors upon which we have based our plans and
forecasts; the absence of any adverse government regulations, policies or decisions; and our
ability to resume providing outlook information in the future.
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. We
will not necessarily update this information unless we are required to by securities laws.
- End -
Investor inquiries
Rachelle Girard
306-956-6403
Media inquiries – outside Northumberland County and the Blind River region, Ontario
Jeff Hryhoriw
306-385-5221
Media inquiries – within Northumberland County and the Blind River region, Ontario
Sara Forsey
289-771-1007