Q2 2024 Cameco Corp Earnings Call

Thank you for standing by. This is the conference operator. Welcome to the Cameco Corporation second quarter 2024 results conference call. As a reminder, all participants are in listen only mode when the conference is being recorded.

Operator: through the Chemical Corporation, 2nd quarter, 2024 results conference call. As a reminder, operatives are in listen-only mode, and the conference is being recorded.

Operator: Following the introductory remarks, there will be an opportunity to ask questions. To join the question, Q, you may press star, then one on your telephone keypad. Should you need assistance during the conference call, you may signal an operator by pressing star, then zero.

Following the introductory remarks, there will be an opportunity to ask questions. To join the question queue, you may press star then 1 on your telephone keypad. Should you need assistance during the conference call, you may signal an operator by pressing star then 0.

Operator: Webcast participants are asked to wait until the Q&A session before submitting their questions, as the information they are looking for may be provided during the presentation.

Speaker Change: Webcast participants are asked to wait until the Q&A session before submitting their questions, as the information they are looking for may be provided during the presentation.

Operator: The Q&A session will conclude at 9 a.m. Eastern time.

The Q&A session will conclude at 9 a.m. Eastern Time.

Cory Kos: I would now like to turn the conference over to Cory Kos, Vice President and Investor Relations. Please go ahead.

I would now like to turn the conference over to Corey Kos, Vice President, Investor Relations. Please go ahead.

Cory Kos: Thank you, operator, and good morning, everyone. Welcome to Cameco's 2nd quarter conference call.

Cory Kos: Thank you operator and good morning everyone. Welcome to Cameco's second quarter conference call. I would like to acknowledge that we are speaking from our corporate office, which is on Treaty 6 territory, the traditional territory of the Cree peoples and the homeland of the Métis.

Unknown Executive: I would like to acknowledge that we are speaking from our corporate office, which is on Treaty 6 territory, the traditional territory of the Cree peoples and the homeland of the Métis. I'm going to hand it over to Tim in a moment to briefly reinforce the durable demand story for nuclear energy, and then we will open it up to your questions. As always, our goal is to be open and transparent with our communication.

Cory Kos: I would like to acknowledge that we are speaking from our corporate office, which is on Tree Six territory, the traditional territory of the Cree peoples and the homeland of the Métis. With us today are Tim Gitzel, President and CEO, Grant Isaac, Executive VP and CFO, Heidi Schocky, Senior VP and Deputy CFO, Michelle Gerard, Senior VP and Chief Corporate Officer, Brian Riley, Senior VP and Chief Operating Officer, and Sean Quinn, Senior VP, Chief Legal Officer and Corporate Secretary. I am going to hand it over to Tim in a moment to briefly reinforce the durable demand story for nuclear energy and discuss the execution of our strategy in the current market, which is positioning us to benefit from the tailwinds.

Speaker Change: With us today are Tim Gitzel, President and CEO, Grant Isaac, Executive VP and CFO,

Heidi Shockey: Heidi Shockey, Senior VP and Deputy CFO

Heidi Shockey: Rachelle Girard, Senior VP and Chief Corporate Officer

Heidi Shockey: Brian Reilly, Senior VP and Chief Operating Officer

Heidi Shockey: and Sean Quinn, Senior VP, Chief Legal Officer and Corporate Secretary.

Speaker Change: I'm going to hand it over to Tim in a moment to briefly reinforce the durable demand story for nuclear energy and discuss the execution of our strategy in the current market which is positioning us to benefit from the tailwinds.

Cory Kos: After, we will open it up to your questions. Today's call will be approximately one hour, concluding at 9 a.m. Eastern time. As always, our goal is to be open and transparent with our communications. However, we do want to respect everyone's time and conclude the call on time.

Heidi Shockey: After we will open it up to your questions.

Heidi Shockey: Today's call will be approximately one hour concluding at 9 a.m. Eastern Time.

Heidi Shockey: As always, our goal is to be open and transparent with our communications. However, we do want to respect everyone's time and conclude the call on time.

Unknown Executive: However, we do want to respect everyone's time and conclude the call on time. Therefore, should we not have time to get to your questions during this call, or if you have detailed questions about our quarterly financial results, we will be happy to follow up with you after the call. There are a few ways to contact us with additional questions. During the Q&A session, please limit yourself to two questions and then return to the queue.

Cory Kos: Therefore, should we not have time to get to your questions during this call, or if you have detailed questions about our quarterly financial results, we will be happy to follow up with you after the call. There are a few ways to contact us with additional questions. You can reach out to the contacts provided in our news release. You can submit a question through the contact tab on our website, or you can use the ask-to-question form at the bottom of the webcast screen that we will be happy to follow up after this call. If you join the conference call through our website event page, there are slides available, which will be displayed during the call.

Heidi Shockey: Therefore, should we not have time to get to your questions during this call, or if you have detailed questions about our quarterly financial results, we will be happy to follow up with you after the call.

Heidi Shockey: There are a few ways to contact us with additional questions.

Heidi Shockey: You can reach out to the contacts provided in our news release.

Heidi Shockey: You can submit a question through the contact tab on our website.

Heidi Shockey: Or you can use the Ask a Question form at the bottom of the webcast screen and we will be happy to follow up after this call.

Heidi Shockey: If you join the conference call through our website event page, there are slides available which will be displayed during the call.

Cory Kos: In addition, for your reference, our quarterly investor handout is available for download as a PDF file on our website at camoco.com. Today's conference call is open to all members of the investment community, including the media.

Heidi Shockey: In addition, for your reference, our quarterly investor handout is available for download in a PDF file on our website at Cameco.com

Heidi Shockey: Today's conference call is open to all members of the investment community, including the media.

Cory Kos: During the Q&A session, please limit yourself to two questions and then return to the Q. Please note that this conference call will include forward-looking information, which is based on a number of assumptions, and actual results could differ materially. You should not place undue reliance on forward-looking statements. Actual results may differ materially from these forward-looking statements, and we do not undertake any obligation to update any forward-looking statements we make today, except as required by law.

Heidi Shockey: During the Q&A session, please limit yourself to two questions and then return to the queue.

Heidi Shockey: Please note that this conference call will include forward-looking information, which is based on a number of assumptions and actual results could differ materially.

Heidi Shockey: You should not place undue reliance on forward-looking statements. Actual results may differ materially from these forward-looking statements, and we do not undertake any obligation to update any forward-looking statements we make today, except as required by law.

Cory Kos: Please refer to our most recent Annual Information Form in MD&A for more information about the factors that could cause these different results and the assumptions we have made.

Unknown Executive: Please refer to our most recent annual information form and MD&A for more information about the factors that could cause these different results and the assumptions we have made. I hope everyone is doing well and that you are able to enjoy some time this summer with friends and family. Here in Saskatchewan, we're in a bit of a heat wave, something that has become more and more common in many parts of Canada and around the world. Last year in July, for instance, the planet recorded its hottest day on record.

Heidi Shockey: Please refer to our most recent annual information form and MD&A for more information about the factors that could cause these different results and the assumptions we have made.

Timothy Gitzel: With that, I will turn it over to Tim. Well, thank you, Cory, and good morning, everyone. We appreciate you joining us on our call today. I hope everyone's doing well and that you are able to enjoy some time this summer with friends and family. Here in Saskatchewan, we're in a bit of a heat wave, something that has become more and more common in many parts of Canada and around the world. Last year in July, for instance, the planet recorded its hottest day on record. And last week, we saw a global average temperature that beat that record.

Heidi Shockey: With that, I will turn it over to Tim.

Timothy S. Gitzel: Well, thank you, Corey. And good morning, everyone. We appreciate you joining us on our call today. I hope everyone's doing well and that you are able to enjoy some time this summer with friends and family.

Timothy S. Gitzel: Here in Saskatchewan, we're in a bit of a heat wave, something that has become more and more common in many parts of Canada and around the world.

Timothy S. Gitzel: Last year in July , for instance, the planet recorded its hottest day on record.

Timothy S. Gitzel: And last week we saw a global average temperature that beat that record.

Timothy Gitzel: Then again, last week, the very next day, we saw it again: a record high global temperature two days in a row. As you can imagine, if you are fortunate enough to have it, demand for air conditioning increases during these times significantly, and countries need safe, reliable, affordable, and secure energy sources to support that demand. Sources that provide base load power that won't make the problem of rising temperatures worse by releasing carbon into the atmosphere. Sources like nuclear. To help avoid some of the worst consequences of climate change, carbon-free nuclear power continues to be highlighted as a central part of the solution, driving durable demand, which we believe is unlike anything we've seen before in this industry.

Timothy S. Gitzel: Then again last week, the very next day, we saw it again. A record high global temperature two days in a row.

Timothy S. Gitzel: As you can imagine, if you are fortunate enough to have it, demand for air conditioning increases during these times.

Timothy S. Gitzel: Significantly.

Timothy S. Gitzel: And countries need safe, reliable, affordable, and secure energy sources to support that demand.

Timothy S. Gitzel: Sources that provide baseload power that won't make the problem of rising temperatures worse by releasing carbon into the atmosphere.

Tim: To help avoid some of the worst consequences of climate change, carbon-free nuclear power continues to be highlighted as a central part of the solution, driving durable demand, which we believe is unlike anything we've seen before in this industry. And that's a key theme of today's call, continued demand durability. However, as we have seen over the past few weeks, capital markets tend to be much more short-sighted.

Timothy S. Gitzel: Sources like nuclear.

Timothy S. Gitzel: To help avoid some of the worst consequences of climate change, carbon-free nuclear power continues to be highlighted as a central part of the solution, driving durable demand, which we believe is unlike anything we've seen before in this industry.

Timothy Gitzel: And that's a key theme of today's call: continued demand durability. The support for nuclear energy continues to emerge across governments of all stripes, energy-intensive industries, and within the general public. And that strong support for nuclear energy is generating durable, full-cycle demand throughout the fuel cycle. By that, I mean opportunities in the near, mid, and long term. However, as we have seen over the past few weeks, capital markets tend to be much more shortsighted. We've seen equities in the uranium and nuclear sector being negatively impacted by risk-off factors affecting adjacent sectors, political developments, driving questions about ongoing support for sanctions and green initiatives, and uncertain economic indicators.

Timothy S. Gitzel: And that's a key theme of today's call, Continued Demand Durability.

Timothy S. Gitzel: The support for nuclear energy continues to emerge across governments of all stripes, energy intensive industries, and within the general public.

Timothy S. Gitzel: And that strong support for nuclear energy is generating durable, full-cycle demand throughout the fuel cycle. By that I mean opportunities in the near, mid, and long term.

Timothy S. Gitzel: However, as we have seen over the past few weeks, capital markets tend to be much more short-sighted.

Unknown Executive: We've seen equities in the uranium and nuclear sector being negatively impacted by risk-off factors affecting adjacent sectors, political developments driving questions about ongoing support for sanctions and green initiatives, and uncertain economic indicators. However, that support and interest are defining long-term demand growth. Amid global geopolitical tensions, countries need to secure reliable energy sources right now. And in a world where the social license to operate has never been more important, self-sanctioning by many countries and companies is already underway to procure nuclear fuel from responsible, reliable, and sustainable suppliers like Cameco.

Timothy S. Gitzel: We've seen equities in the uranium and nuclear sector being negatively impacted by risk-off factors affecting adjacent sectors, political developments driving questions about ongoing support for sanctions and green initiatives, and uncertain economic indicators.

Timothy Gitzel: But despite the new cycle and the downward pressure affecting sectors that nuclear has become somewhat associated with, the industry fundamentals remain robust, firmly positioned in the center, enjoying strong bipartisan political support in the US and in many countries around the world. That support and interest is defining long-term demand growth. In the context of the risk-off uncertainty as of late, it's important to remember that governments thinking about long-term energy policy and certain sectors considering carbon-free nuclear for their future energy needs are only a couple of the factors driving that full cycle demand. The need to replace retiring fossil fuel generation is right in front of us.

Timothy S. Gitzel: But despite the new cycle and the downward pressure affecting sectors that nuclear has become somewhat associated with,

Timothy S. Gitzel: The industry fundamentals remain robust, firmly positioned in the center, enjoying strong bipartisan political support in the U.S. and in many countries around the world.

Timothy S. Gitzel: That support and interest is defining long-term demand growth.

Timothy S. Gitzel: In the context of the risk-off uncertainty as of late, it's important to remember that governments thinking about long-term energy policy and certain sectors considering carbon-free nuclear for their future energy needs are only a couple of the factors driving that full-cycle demand.

Timothy S. Gitzel: The need to replace retiring fossil fuel generation is right in front of us.

Timothy Gitzel: We have existing energy intensive industries that need to integrate reliable carbon-free based load power to reduce emissions today. Amid global geopolitical tensions, countries need to secure reliable energy sources right now. Nuclear energy provides that solution. And in a world where the social license to operate has never been more important, self-sanctioning by many countries and companies is already underway to procure nuclear fuel from responsible, reliable, and sustainable suppliers like Cameco. The demand is clearly full cycle. But as we continue to see durable demand for nuclear energy, fuel supply and the long-term cost of that supply continues to be uncertain.

Timothy S. Gitzel: We have existing energy intensive industries that need to integrate reliable carbon-free base load power to reduce emissions today.

Timothy S. Gitzel: Amid global geopolitical tensions, countries need to secure reliable energy sources right now. Nuclear energy provides that solution.

Cameco: And in a world where the social license to operate has never been more important, self-sanctioning by many countries and companies is already underway to procure nuclear fuel from responsible, reliable, and sustainable suppliers like Cameco.

Unknown Executive: But as we continue to see durable demand for nuclear energy, fuel supply and the long-term cost of that supply continue to be uncertain. Today, we're not seeing investments in significant greenfield projects that will be needed to satisfy growing demand from reactors being saved and restarted, reactor life extensions, and new reactor builds. The Russian uranium import ban imposed by the U.S. government, which takes effect in early August and the uncertainty with respect to the waiver process, have caused many U.S. utilities to step back and reconsider their procurement strategies.

Cameco: The demand is clearly full cycle.

Cameco: But as we continue to see durable demand for nuclear energy, fuel supply and the long-term cost of that supply continues to be uncertain.

Timothy Gitzel: Today, we're not seeing investments in significant greenfield projects that will be needed to satisfy growing demand from reactors being saved and restarted, reactor life extensions, and new reactor builds. There are a few idle production centers restarting, but new supply sources take time. The recent cancellation of permits and the negative developments in Niger, the refusal to renew the lease at Jabaluka in Australia, and the unexpected significant tax increase in Kazakhstan contribute even more to the uncertainty. At the same time, finite secondary supplies from sources like enrichment underfeeding, government inventory, and excess commercial inventory are rapidly diminishing.

Cameco: Today, we're not seeing investments in significant greenfield projects that will be needed to satisfy growing demand from reactors being saved and restarted, reactor life extensions, and new reactor builds.

Cameco: There are a few idle production centers restarting, but new supply sources take time.

Cameco: The recent cancellation of permits and the negative developments in Niger, the refusal to renew the lease at Jabaluka in Australia, and the unexpected significant tax increase in Kazakhstan contribute even more to the uncertainty.

Cameco: At the same time, finite secondary supplies from sources like enrichment underfeeding, government inventory, and excess commercial inventory are rapidly diminishing.

Timothy Gitzel: So, in a tightening market, we're also finding ourselves without the same shock absorbers that we relied on in the past, which leads the industry very susceptible to any significant interruptions in primary supply. That tightness of supply puts Cameco in an inviable position of having what we believe are the world's premier tier one fuel cycle assets alongside our investments across the reactor life cycle. As the market transition continues, we are doing exactly what we said we would do with those assets and investments, with every decision we make being guided by our marketing, operational, and financially focused strategy.

Cameco: So in a tightening market, we're also finding ourselves without the same shock absorbers that we relied on in the past.

Cameco: Which leaves the industry very susceptible to any significant interruptions in primary supply.

Speaker Change: That tightness of supply puts Cameco in an enviable position of having what we believe are the world's premier Tier 1 fuel cycle assets alongside our investments across the reactor life cycle.

Speaker Change: As the market transition continues, we are doing exactly what we said we would do with those assets and investments, with every decision we make being guided by our marketing, operational, and financially focused strategy.

Timothy Gitzel: We continue to capture fundamental demand across the fuel cycle. And we continue to be selective in committing our uranium inventory, and you have six conversion capacity in order to maintain a contract book that preserves exposure to rising prices while maintaining downside protection. In the second quarter, the spot market was relatively quiet, and long term contracting volume was much lower than last year. The Russian uranium import ban imposed by the US government, which takes effect in early August, and the uncertainty with respect to the waiver process caused many US utilities to step back and reconsider their procurement strategies.

Speaker Change: We continue to capture fundamental demand across the fuel cycle.

Speaker Change: And we continue to be selective in committing our uranium inventory and UF6 conversion capacity in order to maintain a contract book that preserves exposure to rising prices, while maintaining downside protection.

Speaker Change: In the second quarter, the spot market was relatively quiet and long-term contracting volume was much lower than last year.

Speaker Change: The Russian uranium import ban imposed by the U.S. government, which takes effect in early August , and the uncertainty with respect to the waiver process, caused many U.S. utilities to step back and reconsider their procurement strategies.

Timothy Gitzel: And because the nuclear industry is global, certain US-based fuel cycle services use uranium that may be imported from Russia and subsequently re-exported for international customers. The contracting activity of those international utilities is also impacted by the waivers process, so the long-term fuel procurement uncertainty related to the ban goes beyond US utilities. So although utilities are being cautious as they adjust and contracting was slower in the first half, we still expect to see increasing requests in the market with a continued uptick in off-market activity. When comparing the industry's fuel requirements to the level of contract covers, it's important to remember that contracting can be delayed and deferred, but it cannot be avoided.

Unknown Executive: Because the nuclear industry is global, certain U.S.-based fuel cycle services use uranium that may be imported from Russia and subsequently re-exported for international customers. So, although utilities are being cautious as they adjust, and contracting was slower in the first half, we still expect to see increasing requests in the market, with a continued uptick in off-market activity. When comparing the industry's fuel requirements to the level of contract coverage, it's important to remember that contracting can be delayed and deferred, but it cannot be avoided. There is no substitute for the uranium required to run a reactor.

Speaker Change: And because the nuclear industry is global, certain U.S.-based fuel cycle services use uranium that may be imported from Russia and subsequently re-exported for international customers.

Speaker Change: The contracting activity of those international utilities is also impacted by the waivers process, so the long-term fuel procurement uncertainty related to the ban goes beyond U.S. utilities.

Speaker Change: So, although utilities are being cautious as they adjust, and contracting was slower in the first half, we still expect to see increasing requests in the market, with a continued uptick in off-market activity.

Speaker Change: When comparing the industry's fuel requirements to the level of contract coverage, it's important to remember that contracting can be delayed and deferred, but it cannot be avoided.

Timothy Gitzel: There's no substitute for the uranium required to run a reactor. While the industry-wide contracted volumes suggest that quieter second quarter, our long-term book of business continued to grow. Our average level of commitments over the next five years increased from 28 million to 29 million pounds per year. And with a pipeline of potential new business under negotiation, that is keeping the marketing team very busy. We carefully manage our supply sources to meet those commitments and retain access to multiple levers to manage risks. Production at our MacArthur River, Key Lake and Cigar Lake operations is on track.

Speaker Change: There's no substitute for the uranium required to run a reactor.

Unknown Executive: While the industry-wide contracted volumes suggest a quieter second quarter, our long-term book of business continued to grow. Our average level of commitments over the next five years increased from 28 million to 29 million pounds per year. And with a pipeline of potential new business under negotiation, that is keeping the marketing team very busy. We carefully manage our supply sources to meet those commitments and retain access to multiple levers to manage risk.

Speaker Change: While the industry-wide contracted volumes suggest a quieter second quarter, our long-term book of business continued to grow.

Speaker Change: Our average level of commitments over the next five years increased from 28 million to 29 million pounds per year.

Speaker Change: And with a pipeline of potential new business under negotiation, that is keeping the marketing team very busy.

Speaker Change: We carefully manage our supply sources to meet those commitments and retain access to multiple levers to manage risks.

Unknown Executive: Production at our MacArthur River, Key Lake, and Cigar Lake operations is on track, with every pound from these operations already sold, in fact, sold several years ago. As we build our contract book, we continue to evaluate the work and capital requirements to expand our MacArthur River and Key Lake operations from 18 million pounds of annual production to the license capacity of 25 million pounds per year. On the fuel services front, we experienced temporary operational issues that impacted the first half of 2024. As a result, our previous UF6 production target of 12,000 tons from Port Hope was reduced.

Speaker Change: Production at our MacArthur River, Key Lake, and Cigar Lake operations is on track, with every pound from these operations already sold, in fact, sold several years ago.

Timothy Gitzel: With every pound from these operations already sold; in fact, sold several years ago. As we build our contract book, we continue to evaluate the work and capital requirements to expand our MacArthur River and Key Lake operations from 18 million pounds of annual production to the license capacity of 25 million pounds per year. If additional supply is required to meet our commitments, we want to be ready to make a decision on expansion. On the fuel services front, we experienced temporary operational issues that impacted the first half of 2024. As a result, our previous UF6 production target of 12,000 tons from Port Hope was reduced.

Speaker Change: As we build our contract book, we continue to evaluate the work and capital requirements to expand our MacArthur River and Key Lake operations from 18 million pounds of annual production to the license capacity of 25 million pounds per year.

Speaker Change: If additional supply is required to meet our commitments, we want to be ready to make a decision on expansion.

Speaker Change: On the fuel services front, we experienced temporary operational issues that impacted the first half of 2024.

Speaker Change: As a result, our previous UF6 production target of 12,000 tons from Port Hope was reduced.

Unknown Executive: We now expect 11,000 to 11,500 tons of UF6 this year. At MacArthur River and Key Lake, the agreement is in place until December 2025. While at Cameco Fuel Manufacturing, the agreement expires in June of 2027. We are continuing to work with KazAtomPrompt to determine the exact portion of that production we will purchase this year, as well as the timing of deliveries on the Trans-Caspian transportation route and our planned production for the coming year.

Timothy Gitzel: We now expect 11,000 to 11,500 tons of UF6 this year. The adjustment to our UF6 target does not affect our combined fuel services guidance range of 13.5 to 14.5 thousand tons, which includes UF6, UO2, and fuel bundles. And the decrease in expected UF6 production will be managed using our inventory. In both our uranium and fuel services segments, we are pleased to have signed new three-year collective agreements with unionized employees. That MacArthur River and Key Lake, the agreement is in place until December 2025, while at chemical fuel manufacturing, the agreement expires in June of 2027. In Kazakhstan, production was down at the Inkyi operation for the quarter and for the first half of 2024, compared to last year, due primarily to continued challenges with sulfuric acid availability.

Speaker Change: We now expect 11,000 to 11,500 tons of UF6 this year.

Speaker Change: The adjustment to our UF6 target does not affect our combined fuel services guidance range of 13,500 to 14,500 tons, which includes UF6, UO2, and fuel bundles.

Speaker Change: And the decrease in expected UF6 production will be managed using our inventory.

Speaker Change: In both our uranium and fuel services segments, we are pleased to have signed new three-year collective agreements with unionized employees.

Speaker Change: At MacArthur River and Key Lake, the agreement is in place until December 2025, while at Cameco Fuel Manufacturing, the agreement expires in June of 2027.

Speaker Change: In Kazakhstan, production was down at the Inkai operation for the quarter and for the first half of 2024 compared to last year, due primarily to continued challenges with sulfuric acid availability.

Timothy Gitzel: The current production target at Inkyi is 8.3 million pounds for 2024, but that target is tentative and contingent upon receipt of sufficient volumes of sulfuric acid. We are continuing to work with Kazatim Prompt to determine the exact portion of that production we will purchase this year, as well as the timing of deliveries on the trans-Caspian transportation route and our plan production for the coming year. However, all of that has become more complicated due to the sudden taxation changes that will take effect beginning in 2025. To be blunt, we're becoming increasingly concerned with what we're seeing in Kazakhstan.

Speaker Change: The current production target at Inkeye is 8.3 million pounds for 2024, but that target is tentative.

Speaker Change: and contingent upon receipt of sufficient volumes of sulfuric acid.

Speaker Change: We are continuing to work with KazAtomPrompt to determine the exact portion of that production we will purchase this year, as well as the timing of deliveries on the Trans-Caspian transportation route, and our planned production for the coming year.

Unknown Executive: However, all of that has become more complicated due to the sudden taxation changes that will take effect beginning in 2025. The increase in cost is happening at a time when the industry is still in the early stages of recovery, and it impacts about 40% of global primary production, so the global supply cost curve is expected to move up significantly. That would mean higher long-term prices are required for future investment decisions. So those are the key developments so far in 2024 affecting our decisions under the marketing and operational areas of our strategy. It also meant that we refinanced $500 million of senior unsecured debentures that matured in June.

Speaker Change: However, all of that has become more complicated due to the sudden taxation changes that will take effect beginning in 2025.

Speaker Change: To be blunt...

Speaker Change: We're becoming increasingly concerned with what we're seeing in Kazakhstan.

Timothy Gitzel: The government there has introduced amendments to the country's tax code, which includes significant increases to the MET, the mineral extraction tax, beginning in 2025. The surprising and disappointing change appears to have the greatest impact on foreign assets investors, as well as foreign equity investors in Kazakhstan, transferring expected value and profits away from investors and to the government. We're evaluating the changes to the met, but if it remains as currently formulated, depending on the assumptions used for uranium price, future production profile, and exchange rate, preliminary conclusions indicate that production costs in Kazakhstan would be similar to our northern Saskatchewan operations.

Speaker Change: The government there has introduced amendments to the country's tax code, which includes significant increases to the MET, the Mineral Extraction Tax, beginning in 2025.

Speaker Change: The surprising and disappointing change appears to have the greatest impact on foreign assets investors.

Speaker Change: as well as foreign equity investors in Kazakhstan, transferring expected value and profits away from investors and to the government.

Speaker Change: We're evaluating the changes to the Met, but if it remains as currently formulated, depending on the assumptions used for uranium price, future production profile, and exchange rate,

Speaker Change: Preliminary conclusions indicate that production costs in Kazakhstan would be similar to our northern Saskatchewan operations.

Timothy Gitzel: The increase in cost is happening at a time when the industry is still in the early stages of recovery, and that impacts about 40% of global primary production, so the global supply cost curve is expected to move up significantly. That would mean higher long-term prices are required for future investment decisions. So, more to come as we continue with that analysis and with the discussions with our partner.

Speaker Change: The increase in cost is happening at a time when the industry is still in the early stages of recovery, and it impacts about 40% of global primary production, so the global supply cost curve is expected to move up significantly.

Speaker Change: That would mean higher long-term prices are required for future investment decisions.

Speaker Change: So more to come as we continue with that analysis and with the discussions with our partner.

Timothy Gitzel: So those are the key developments so far in 2024 affecting our decisions under the marketing and operational areas of our strategy. Looking at the financial aspects, we are in great shape, remaining on track for our 2024 outlook. We've been diligent in maintaining liquidity and the capital resources to carry out our strategic plans with a strong balance sheet, guided by our investment grade rating. With the improving prices under our long-term contract portfolio, progress toward our tier one cost structure, and higher UF6 conversion production, we expect to see strong cash flow generation. During the quarter, we remained focused on debt reduction and prudently executing our refinancing plans.

Speaker Change: So those are the key developments so far in 2024 affecting our decisions under the marketing and operational areas of our strategy.

Speaker Change: Looking at the financial aspects, we are in great shape, remaining on track for our 2024 outlook.

Speaker Change: We've been diligent in maintaining liquidity in the capital resources to carry our strategic plans with a strong balance sheet guided by our investment grade rating.

Speaker Change: With the improving prices under our long-term contract portfolio, progress toward our Tier 1 cost structure, and higher UF6 conversion production, we expect to see strong cash flow generation.

Speaker Change: During the quarter, we remained focused on debt reduction and prudently executing our refinancing plans.

Timothy Gitzel: That included repaying another $100 million US of the remaining principal outstanding on the term loan we took on for the financing of Westinghouse and maintaining our prioritization of repayments of the remaining $300 million while managing our liquidity and cash reserves. It also meant that we refinanced the $500 million of senior unsecured debentures that matured in June. To ensure we have the financial tools in place to provide continued flexibility, as we move through the year, we plan to file a new base shelf prospectus when our current one expires in October. Looking at our Westinghouse investment, performance to date this year is as expected and aligned with our outlook, including our expectation for adjusted EBITDA from Westinghouse to be between $445 million and $510 million.

Speaker Change: That included repaying another $100 million U.S. of the remaining principal outstanding on the term loan we took on for the financing of Westinghouse.

Speaker Change: and maintaining our prioritization of repayments of the remaining $300 million while managing our liquidity and cash reserves.

Speaker Change: It also meant that we refinanced the $500 million of senior unsecured debentures that matured in June .

Speaker Change: To ensure we have the financial tools in place to provide continued flexibility, as we move through the year, we plan to file a new base shelf prospectus when our current one expires in October .

Unknown Executive: Looking at our Westinghouse investment, performance to date this year is as expected and aligned with our outlook, including our expectation for adjusted EBITDA from Westinghouse to be between $445 million and $510 million this year. We're continuing to see more opportunities emerging than we valued at the time of acquisition, and we still anticipate adjusted EBITDA growth at a compound annual growth rate of six to ten percent over the next five years. Corey Kos has moved into her previous role, and Rachelle will maintain executive oversight of investor relations while adding our Human Resources, Supply Chain Management, Internal Audit, and Corporate Ethics functions to her list of responsibilities. I'm pleased to welcome Rachelle to the senior executive team. In the interest of time, we ask you to limit your questions to one with one supplementary question. To withdraw your questions, please press star then two.

Speaker Change: Looking at our Westinghouse investment, performance to date this year is as expected and aligned with our outlook, including our expectation for adjusted EBITDA from Westinghouse to be between $445 million and $510 million this year.

Timothy Gitzel: We're continuing to see more opportunities emerging than we valued at the time of acquisition, and we still anticipate adjusted EBITDA growth at a compound annual growth rate of 6% to 10% over the next five years.

Speaker Change: We're continuing to see more opportunities emerging than we valued at the time of acquisition, and we still anticipate adjusted EBITDA growth at a compound annual growth rate of 6-10% over the next five years.

Timothy Gitzel: Before we conclude, I would like to highlight a few changes to our executive team. At the end of June, Alice Wong announced her retirement as Senior Vice President and Chief Corporate Officer. It has been a pleasure to work with Alice during her 37-year career with Kamiko and her current role for the past 11 years. I'd like to thank Alice for her expertise, wisdom, leadership, and outstanding contributions. And I wish her the very, very best in retirement. Rachelle Girard has been appointed Senior Vice President and Chief Corporate Officer. Rachelle has been with Kamiko for 18 years, and the investment community knows her very well as the now former Vice President of Investor Relations.

Speaker Change: Before we conclude, I would like to highlight a few changes to our executive team.

Speaker Change: At the end of June , Alice Wong announced her retirement as Senior Vice President and Chief Corporate Officer.

Speaker Change: It has been a pleasure to work with Alice during her 37 year career with Cameco and in her current role for the past 11 years.

Speaker Change: I'd like to thank Alice for her expertise, wisdom, leadership, and outstanding contributions, and I wish her the very, very best in retirement.

Speaker Change: Rachelle Girard has been appointed Senior Vice President and Chief Corporate Officer.

Speaker Change: Rachelle has been with Cameco for 18 years and the investment community knows her very well as the now former Vice President of Investor Relations.

Timothy Gitzel: Cory Kos has moved into her previous role, and Rachelle will maintain executive oversight of investor relations and adding our human resources, supply chain management, internal audit, and corporate ethics functions to her list of responsibilities. I'm pleased to welcome Rachelle to the Senior Executive Team. With her knowledge, sound judgment, and leadership qualities, I look forward to Rachelle making a strong contribution as we position the company to leverage opportunities in these very exciting times for the nuclear industry.

Speaker Change: Corey Kos has moved into her previous role and Rachelle will maintain executive oversight of investor relations.

Speaker Change: and adding our Human Resources, Supply Chain Management, Internal Audit and Corporate Ethics functions to her list of responsibilities.

Speaker Change: I'm pleased to welcome Rachelle to the senior executive team.

Speaker Change: With her knowledge, sound judgment, and leadership qualities, I look forward to Rachelle making a strong contribution as we position the company to leverage opportunities in these very exciting times for the nuclear industry.

Timothy Gitzel: So, with that, I thank all of you for your interest today, and we would be happy to take your questions.

Speaker Change: So with that, I thank all of you for your interest today and we would be happy to take your questions.

Unknown Executive: Thank you.

Operator: We will now begin the question and answer session. In the interest of time, we ask you to limit your questions to one, with one supplemental. If you have additional questions, you are welcome to rejoin the queue. To join the question, you may press star, then one on your telephone keypad. You will hear a tone acknowledging your request. If you're using a speaker phone, please pick up your handsets before pressing any keys. To withdraw your questions, please press star, then two.

Speaker Change: Thank you. We will now begin the question and answer session.

Speaker Change: In the interest of time, we ask you to limit your questions to one with one supplemental. If you have additional questions, you are welcome to rejoin the queue.

Speaker Change: To join the question queue, you may press star then 1 on your telephone keypad. You will hear a tone acknowledging your request. If you're using a speakerphone, please pick up your handset before pressing any keys. To withdraw your question, please press star then 2.

Operator: Webcast participants are welcome to submit questions through the box in the bottom of the webcast frame.

Speaker Change: Webcast participants are welcome to submit questions through the box in the bottom of the webcast frame. The Cameco Investor Relations team will follow up with you by email after the call.

Operator: The chemical investor relations team will follow up with you by email after the call. Once again, anyone on the conference call who wishes to ask a question may press star, then one at this time.

Unknown Executive: Once again, anyone on the conference call who wishes to ask a question may press star then one at this time. Our first question is from Alexander Pearce with BMO Capital Markets. Please go ahead.

Speaker Change: Once again, anyone on the conference call who wishes to ask a question may press star then 1 at this time.

Alexander Pugh: Our first question is from Alexander Pugh with BMO Capital Markets. Please go ahead. Good morning, Kim and Grant, and Nathan on the line.

Speaker Change: Our first question is from Alexander Pearce with BMO Capital Markets. Please go ahead.

Alexander Robert Peel Pearce: Good morning, Tim and Grant and everyone on the line. It was a very strong performance from MacArthur River this quarter. It looks like you produced more than 60% of your annual guidance, but you've kept guidance essentially unchanged overall. For example, we know that MacArthur River has done more than 18 million pounds for the whole year in the past. Is there a chance that you can beat this guidance? Do you think that this? Well, hi Alex.

Timothy Gitzel: It was a very strong performance from the Carp River this quarter. It looks like you produced more than 60% of your annual guidance, but you've kept guidance, essentially unchanged overall. Also, we know that the Carp River has done more than 18 million pounds for the whole year in the past. Is there a chance that you can beat this guidance? Do you think that this better quarter through Q2 could mean a new kind of higher level going forward, even without having to spend on the expansion? As you move towards the 25 million per annum level. Thank you.

Alexander Robert Peel Pearce: Good morning Tim and Grant and everyone on the line. It was a very strong performance from MacArthur River this quarter. It looks like you produced more than 60% of your annual guidance.

Speaker Change: But you've kept guidance essentially unchanged overall. So we know that MacArthur River has done more than £18 million for the whole year in the past. Is there a chance that you can beat this guidance? Do you think that this...

Speaker Change: Better quarter through 2-2 could mean a new kind of higher level going forward even without having to spend on the expansion, you know, as you move towards the £25 billion per annum level. Thank you.

Timothy Gitzel: Well, hi, Alex. Thanks. Thanks for the question. Nice to hear your voice. Well, obviously, we're delighted with the performance of both MacArthur and, of course, the key Lake Mill. Last year, we were still in a ramp up phase and didn't quite get to where we wanted to this year. We're really, really seeing the benefits now of some of the changes we made over the last couple of years. There's the robotics digitization, things like that, really paying dividends now. So, yeah, we're on track. In fact, even ahead that admit year on our production targets, we'll see.

Tim: Thanks for the question. It's nice to hear your voice. Well, obviously, we're delighted with the performance of both MacArthur and, of course, Key Lake Mill. You know, last year, we were still in a ramp-up phase and didn't quite get to where we wanted to. This year, we're really, really seeing the benefits now of some of the changes we made over the last couple of years, the, you know, robotics digitization, things like that, really paying dividends now. So, yeah, we're on track, in fact, even ahead at mid-year on our production targets. We'll see. We don't like to get too far out in front of the game.

Speaker Change: Well, hi, Alex. Thanks for the question. Nice to hear your voice. Well, obviously, we're delighted with the performance of both MacArthur and, of course, the...

Speaker Change: Key Lake Mill. You know, last year we were still in a ramp-up phase and didn't quite get to where we wanted to. This year...

Speaker Change: We're really, really seeing the benefits now of some of the changes we made.

Speaker Change: Over the last couple of years, you know, the robotics, digitization, things like that, really paying dividends now, so yeah, we're on track, in fact.

Speaker Change: Even ahead at mid-year on our production targets, we'll see. We don't like to get too far out in front of the game. We know how things can go, but I would just say right now it is performing, both of those facilities are performing exceptionally well.

Timothy Gitzel: We don't like to get too far out in front of the game. We know how things can go, but I would just say right now it is performing; both of those facilities are performing exceptionally well. And we'll see what our numbers look like. We'll continue to update you in the market going forward, but right now we're well on track.

Tim: We know how things can go, but I would just say right now that it is performing, both of those facilities are performing exceptionally well, and we'll see what our numbers look like. We'll continue to update you and the market going forward, but right now, we're well on track. Can I just follow up on the same question, essentially just ask, what part of the asset is currently the bottleneck that probably needs a little bit more work for you to be more confident of consistency through the year? Pounds from an established facility with an established workforce and government support, and public support. We have got it all.

Speaker Change: And we'll see what our numbers look like. We'll continue to update you and the market going forward, but right now we're well on track.

Timothy Gitzel: Can I just follow up on the same question, essentially just ask what part of the asset is currently the bottleneck that probably needs a little bit more work for you to be more confident of consistency through the year. Do you mean to increase production higher than the 18 Alex? Yeah, exactly to kind of keep the run rate that you've achieved through this quarter.

Speaker Change: Can I just follow up on the same question, essentially just ask what part of the asset is currently the bottleneck that probably needs a little bit more work for you to be more confident of consistency through the year?

Alex: Do you mean to increase production higher than the 18, Alex?

Alex: Yeah, exactly, to kind of keep the run rate that you've achieved through this quarter.

Timothy Gitzel: I think we have cleared. I don't think there are any real bottlenecks at the moment. I think you know we're pushing the facilities to see what we can do, and right now, as I say, we're ahead of schedule. But, you know, we've seen in past years where something can happen and we can go down for a period of time. So, so far. That's not been the case; it's been very good. So we are looking in the longer term to see whether we can, on a sustainable basis, increase our production in MacArthur and Key. Like, you know, we have licensing approvals to go to 25 million pounds at both of those facilities, and you know, should the market call for those pounds, those are the best pounds on the planet. Let's be clear about that.

Speaker Change: You know, I think we have cleared, I don't think there are any real bottlenecks at the moment. I think...

Speaker Change: You know, we're pushing the facilities to see what we can do, and right now, as I say, we're ahead of schedule, but, you know, we've seen in past years where something can happen and we can go down for a period of time, so, so far, that's not been the case, it's been very good, so we are looking

Speaker Change: In the longer term, to see whether we can, on a sustainable basis, increase our production in MacArthur.

Speaker Change: and Key Lake. You know, we have licensing approvals to go to 25 million pounds at both of those facilities. And, you know, should the market call for those pounds, those are the best pounds on the planet. Let's be clear about that.

Timothy Gitzel: And so right now we're just we're just evaluating the mill and the mine what it would take to de-risk and the bottleneck so that we are ready when the market calls for it. We will have notice, of course, any new contracts that grants team our marketing team signs always give us several years notice, and so we will that would give us the time then if we did need to do some de-bottle necking de-risking to give us the time to do it. So clearly we're looking at it right now. Now Alex, it's in our pocket and it's, you know, as far as chemicals concerned, it's a key. Like you say, those are the best pounds to bring on. You want to talk to your one.

Speaker Change: And so right now we're just evaluating the mill and the mine, what it would take to de-risk and de-bottleneck.

Speaker Change: So that we are ready when the market calls for it, and we will have notice, of course, any new contracts that Grant's team, our marketing team signs, always give us several years notice, and so we will, that would give us the time then if we did need to do some de-bottlenecking, de-risking, to give us the time to do it.

Alex: Clearly, we're looking at it right now, Alex. It's in our pocket, and it's, you know, as far as Cameco is concerned, it's a huge, like I say, those are the best pounds to bring on. You want to talk Tier 1?

Timothy Gitzel: Pounds from an established facility with established workforce and government support, public support; we got it all. Their stable tax regime, it's all here in Saskatchewan, so we're really proud to have that facility, those facilities.

Alex: Pounds from an established facility with established workforce and government support, public support, we got it all. Their stable tax regime, it's all here in Saskatchewan, so we're really proud to have that facility, those facilities.

Unknown Executive: Their stable tax regime, it's all here in Saskatchewan, so we're really proud to have that facility and those facilities. Can you just expand on your latest thoughts about operating in that? Thank you.

Neil Mata: Next question is from Neil Mata with Goldman Sachs. Please go ahead.

Alex: Great. Thanks, Tim.

Alex: Yep.

Speaker Change: The next question is from Neil Mehta with Goldman Sachs. Please go ahead.

Timothy Gitzel: Good morning, Tim Graham team. I want to build on your comments on Kazakhstan and focus for investors given the ongoing sulfuric acid shortage, along with the MET commentary that you reference. So how should we be thinking about that in kind of business in the near term in terms of both volumes and margins and can you just expand on on your latest thoughts about operating in that region. Thanks, Neil. Well, let me be clearer from the outset that we've had a long-standing and positive relationship with the Kazakhstan, and because Adam from over many, many years, decades in fact.

Neil Singhvi Mehta: Good morning, Tim Grant's team. I wanted to build on your comments on Kazakhstan. It's been a focus for investors, given the ongoing sulfuric acid shortage, along with the MEP commentary that you referenced. How should we be thinking about that in-kind business in the near term, in terms of both volumes and margins?

Speaker Change: And can you just expand on your latest thoughts about operating in that region?

Speaker Change: Thanks, Neil. Let me be clear from the outset that we've had a long-standing and positive relationship with Kazakhstan and Kazatomprom over many, many years. Decades, in fact.

Timothy Gitzel: So that's, I mean, that's the foundation I'd say. As I said on the call, we're increasingly concerned about what we're seeing now. I mean, that MET, or that mineral extraction tax change, that kind of got sprung on us for sure, and everybody else. No notice, no consultation, and it's significant. It really makes us gives us great concern, I would say, and and where that's going to go. So we haven't had a chance to talk to our partners about it yet to see what their views are. I mean that just adds to some other things we've been seeing over the last while. Kazakhstan's in a bit of a tough neighborhood there, as we know, and so there's been the sulfuric acid issues that we've been dealing with and trying to get to get a grip on. You'll probably hear more from Adam from in a couple weeks on where that's going, the transportation that can't transcaspion route that we've had to move to. That's new from when we started.

Speaker Change: So that's, I mean, that's the foundation. I'd say, as I said on the call, we're increasingly concerned about what we're seeing now. I mean, that MET, or that Mineral Extraction Tax change that kind of got sprung on us, for sure, and everybody else.

Speaker Change: No notice, no consultation, and it's significant.

Speaker Change: It really gives us great concern, I would say, and where that's going to go. So, we haven't had a chance to talk to our partners about it yet, to see what their views are. I mean, that just adds to some other things we've been seeing over the last while. Kazakhstan's in a bit of a tough neighborhood there, as we know.

Speaker Change: And so there's been the sulfuric acid issues that we've been dealing with and trying to get a grip on. You'll probably hear more from Kazatomprom in a couple weeks.

Speaker Change: On where that's going, the transportation, the Trans-Caspian route that we've had to move to, that's new from when we started.

Timothy Gitzel: We're still discussing production levels, allocations, Sean Quinn and his team with the CASX.

Speaker Change: We're still discussing production levels, allocations, Sean Quinn and his team with the Kazakhs. So it's just becoming a bit more complicated than we like, and so that's causing us some concern.

Timothy Gitzel: So it's just becoming a bit more complicated than we like, and so that's causing us some concern.

Neil Mata: And then, thank you for that. And then the follow up is just around Westinghouse, a very solid quarter after a little bit of a softer Q1. Can you just talk about how that the business has been folded in?

Unknown Executive: And then the follow-up is just around Westinghouse, a very solid quarter after a little bit of a softer Q1. Can you just talk about how the business is being folded in? You referenced seeing additional opportunities. When will you announce the deal, and how do you think about the 2H and 2025 set up? The expansion more into the BWR market away from just the PWR market for Westinghouse is an exciting opportunity. Of course, fuels like LEU Plus, accident-tolerant, higher burn-up fuels, all creating additional opportunities.

Speaker Change: Thank you for that. And then the follow-up is just around Westinghouse, a very solid quarter after a little bit of a softer Q1. Can you just talk about how the business is being folded in? You referenced seeing additional opportunities relative to what your base case is when you announced the deal, and how do you think about the 2H and 2025 setup for Westinghouse?

Grant Isaac: You reference seeing additional opportunities relative to which base case, when you, when you announced the deal and how do you think about the two H and 2025 setup for Westinghouse? So I would just open, and I'll turn over to Grant, who's on, who's our rep on the board there, but saying that we're even happier with the Westinghouse deal. It's looking even better than the day we made the deal or closed the deal. It's really looking positive. There's so many opportunities going forward.

Grant E. Isaac: So I would just open, and I'll turn it over to Grant, who's our rep on the board there, but saying that we're even happier with the Westinghouse deal. It's looking even better than the day we made the deal or closed the deal. It's really looking positive. There's so many opportunities going forward. But Grant, do you want to talk to that? Yeah, happy to. Thanks, Neil, for your question. Obviously, no change to our outlook for Westinghouse for 2024.

Grant Isaac: But Grant, do you want to talk to them?

Grant Isaac: Yeah, happy to. Thanks, Neil, for your question. Obviously, no change to our outlook for Westinghouse for 2024. And you also reference kind of going forward.

Grant Isaac: Where are the positives, and what we should be looking for? And just a reminder that we like to characterize Westinghouse as having kind of two main components. One, you might want to call the core. We think about as the nuclear fuel and the operating plant systems business, very stable, highly recurring, and enjoying the tailwinds that we're seeing across the Western nuclear fuel cycle for sure. So that's the expansion of new market Central and Eastern Europe with their VVER fuel manufacturing capability. It's the reactors being saved. Reactors going through life extensions as well as new builds that create additional opportunities for Westinghouse among their traditional customer base.

Speaker Change: And you also referenced kind of going forward, where are the positives and what we should be looking for. And just a reminder that we like to characterize...

Grant E. Isaac: Westinghouse is having kind of two main components. One...

Grant E. Isaac: You might want to call the core, we think of that as the nuclear fuel and the operating plant systems business.

Grant E. Isaac: Stable, highly recurring.

Grant E. Isaac: and enjoying the tailwinds that we're seeing across the western nuclear fuel cycle for sure.

Grant E. Isaac: So that's the expansion of new markets, Central and Eastern Europe with their...

Grant E. Isaac: VVER fuel manufacturing capability, it's the reactors being saved, reactors going through life extensions as well as new builds.

Grant E. Isaac: That create additional opportunities for Westinghouse among their traditional customer base. It's new product offerings.

Grant Isaac: It's new product offerings. The expansion more into the VWR market away from just the PWR market for Westinghouse is an exciting opportunity. Of course, fuels like LEU plus accident taller and higher burn up fuels, all creating additional opportunity. And don't forget the core of the business would also include the Springfields plant in the UK, which is a very important industrial complex to achieve. Not just the UK's nuclear ambition, but also its participation in the Sepuro 5 Western group of companies looking to secure the fuel cycle. So lots going on in the core to watch for.

Grant E. Isaac: The expansion more into the BWR market away from just the PWR market for Westinghouse is an exciting opportunity.

Grant E. Isaac: Of course, fuels like LEU+, accident tolerant, higher burn up fuels, all creating additional opportunity. And don't forget, the core of the business would also include the Springfields plant in the UK, which is a very important industrial complex.

Unknown Executive: And don't forget, the core of the business would also include the Springfields plant in the UK, which is a very important industrial complex to achieve not just the UK's nuclear ambition but also its participation in the Sapporo 5 Western group of companies looking to secure the fuel cycle. So lots going on in the core to watch for. We're very excited about, and of course, energy systems. Energy systems is enjoying the tailwinds of a world that realizes it needs new power.

Grant E. Isaac: to achieve not just the UK's nuclear ambition

Grant E. Isaac: but also its participation in the Sapporo Five Western group of companies looking to secure the fuel cycle. So lots going on in the Corps to watch for. We're very excited about, and of course, energy systems, energy systems.

Grant Isaac: We're very excited about, and of course, energy systems. Energy systems is enjoying the tailwinds of a world that realizes it needs new power. It needs power that's reliable, power that's clean, power that is dispatchable, and increasingly the demand is so significant that conversations have restarted in earnest in most jurisdictions about gigawatt scale new build, and of course that AP 1000 offering is the best performing gigawatt scale reactor on the planet. So it's a very exciting outlook for Westinghouse when we continue to be watching very closely, and their participation in both the fuel and reactor cycle is very, very strong.

Unknown Executive: It needs power that's reliable, power that's clean, power that is dispatchable, and increasingly, the demand is so significant that conversations have restarted in earnest in most jurisdictions about gigawatt-scale new builds, and, of course, the AP1000 offering is the best performing gigawatt-scale reactor on the planet.

Grant E. Isaac: is enjoying the tailwinds of a world that realizes it needs new power. It needs power that's reliable, power that's clean.

Grant E. Isaac: Power that is dispatchable, and increasingly, the demand is so significant that conversations have restarted in earnest in most jurisdictions about gigawatt scale.

Grant E. Isaac: New Build, and of course that AP1000 offering is the best performing gigawatt-scale reactor on the planet.

Unknown Executive: So it's a very exciting outlook for Westinghouse when we continue to be watching very closely, and their participation in both the fuel and reactor cycle is very, very strong. The next question is from Ralph Profiti with Ape Capital. Please go ahead.

Speaker Change: So, it's a very exciting outlook for Westinghouse, one we continue to be watching very closely, and their participation in both the fuel and reactor cycle is very, very strong.

Speaker Change: Thanks, Grant.

Ralph Profiti: Next question is from Ralph Profiti with Eight Capital. Please go ahead. Thanks, operator. Good morning to Chemical and to team.

Speaker Change: Our next question is from Ralph Profiti with Ape Capital. Please go ahead.

Ralph M. Profiti: Thanks, operator. Good morning to Cameco and the team.

Tim: Tim, when it comes time to open a dialogue with the Kazakhstan government, just wondering if that's going to take the form of Cameco acting alone with its joint venture partners, or will there be more of an industry lobby sort of dictating or at least addressing the concerns and how they may affect Tim, Ralph, I don't know the answer to that. Obviously, we know our Orano friends have a big joint venture over there with the Kazakhs, and there are some Japanese players as well.

Timothy Gitzel: Tim, when it comes time to open a dialogue with the Kazakhstan government, just wondering if that's going to take the form of chemical acting alone with its joint venture partners, or will there be more sort of an industry lobby at sort of, you know, dictating or at least, you know, addressing the concerns and how it may impact future capital applications decisions. Yeah, Ralph, I don't know the answer to that. Obviously, we know our friends are, have a big joint venture over there with the Kazakhs, and there's some Japanese players as well. So, I mean, our interest, we know the Kazakhs well enough, both at the government level and at the Kazakhstan problem level. We'll be meeting with them to talk about what's going on and especially this mineral extraction tax piece and put our positions forward.

Ralph M. Profiti: Tim, when it comes time to open a dialogue with the Kazakhstan government, just wondering if that's going to take the form of Cameco acting alone with its joint venture partners

Ralph M. Profiti: Or will there be more sort of an industry lobby at sort of, you know, dictating or at least, you know, addressing the concerns and how it may impact future capital allocations decisions?

Tim: Yeah, Ralph, I don't know the answer to that. Obviously, we know our Orano friends have a big joint venture over there with the Kazakhs, and there's some Japanese players as well, so, I mean, our interest, we know the Kazakhs well enough, both at the government level and at the Kazatomprom level, we'll

Tim: I mean, our interest; we know the Kazakhs well enough, both at the government level and at the KazAtomProm level. We'll be meeting with them to talk about what's going on, and especially this mineral extraction tax piece, and put our positions forward, and I'm certain that the other companies will be doing the same, and no doubt we'll run into them in the first week of September in London at the big World Nuclear Association meeting that everybody shows up to, so there'll be lots of discussion about it there.

Tim: We'll be meeting with them to talk about what's going on, and especially this mineral extraction tax piece.

Timothy Gitzel: And I'm certain that the other companies will be doing the same.

Tim: Put our positions forward and I'm certain that the other companies will be doing the same.

Timothy Gitzel: And no doubt we'll run into them first week of September in London at the big World Nuclear Association meeting that everybody shows up to. So there'll be lots of discussion about it there.

Tim: No doubt we'll run into them first week of September in London at the big World Nuclear Association meeting that everybody shows up to, so there will be lots of discussion about it there.

Grant Isaac: Okay, Grant, do you want to hang on? I think Grant wanted to, I just want to, I want to jump in here and just remind everybody that there are broader industry implications by the events that we're seeing in Kazakhstan that we shouldn't lose sight on. Of course, as Tim referenced that in the outset, when you see the kind of moves like we've seen with the mineral extraction tax and the complications around some of the supply chain challenges, this just all suggests that the global cost curve for uranium has gone out, which then means that we need to see more sustainable, higher pricing to insent new supply, in particular new supply from elsewhere.

Tim: Ralph, I just want to jump in here and just remind everybody that there are broader industry implications. As Tim referenced at the outset, when you see the kind of moves like we've seen with the mineral extraction tax and the complications around some of the supply chain challenges, And then I do want to tie it to the Cameco contact. Great. Thank you.

Speaker Change: Ralph, I want to jump in here and just remind everybody that there are broader industry implications.

Ralph M. Profiti: by the events that we're seeing in Kazakhstan that we shouldn't lose sight on, of course.

Ralph M. Profiti: As Tim referenced in the outset, when you see the kind of moves like we've seen with the mineral extraction tax and the complications around some of the supply chain challenges,

Speaker Change: This just all suggests that the global cost curve for uranium has gone up.

Speaker Change: which then means that we need to see more sustainable, higher pricing to incent new supply. In particular, new supply from elsewhere. So there is a broader industry implication that's actually very constructive.

Grant Isaac: So there is a broader industry implication that's actually very constructive. The days of easy, cheap pounds coming out of Central Asia are effectively over.

Speaker Change: Easy, cheap pounds coming out of Central Asia are effectively over.

Grant Isaac: And then I do want to tie it to the chemical context. Strategically, we have always had a diversified portfolio of production. That has been our strategy. That's not an accident. That is a deliberate portfolio approach we've always had. So yes, cost going up in Kazakhstan and uncertainty going up in Kazakhstan impacts Camico. Roughly to about 10% of what we would expect to meet our committed sales. But it's 40% or a little bit more of the global supply of uranium. So the impact on the market is actually more significant than it is for Camico and effectively the value transfer back to our sovereign safe tier one assets.

Speaker Change: And then I do want to tie it to the Cameco context.

Speaker Change: Strategically, we have always had a diversified portfolio of production. That has been our strategy. That's not an accident. That is a deliberate.

Speaker Change: Portfolio approach we've always had.

Speaker Change: So, yes, costs going up in Kazakhstan and uncertainty going up in Kazakhstan impacts Cameco roughly to about 10% of what we would expect to meet our committed sales.

Speaker Change: But it's 40% or a little bit more of the global supply of uranium. So the impact on the market is actually more significant than it is for Cameco and effectively the value transfer.

Grant Isaac: And quite frankly, our tier two assets that remain in care and maintenance is always to the benefit of our investors. So you know, we may spend a bit of time talking about Kazakhstan, but I don't want to lose sight that it actually reinforces this strategic fundamental view that we think it's very constructive. It's yet more uncertain supply in the face of durable demand. And Camico strategy is deliberately resilient to these kinds of events.

Speaker Change: is always to the benefit of our investors. So, you know, we may spend a bit of time talking about GazXNet, but I don't want to lose sight.

Speaker Change: That it actually reinforces this strategic fundamental view that we think it's very constructive. It's yet more uncertain supply in the face of durable demand.

Speaker Change: and Cameco Strategy is deliberately resilient.

Speaker Change: to these kind of events.

Ralph Profiti: Great. Thank you. I appreciate that.

Grant: I appreciate that. If I can ask a follow-up question on replacement rate contracts, grant on sort of the trajectory of in 2024 and how much of that is a pause due to, say, something like HR 1042 or perhaps, you know, the Kazakhstan 2025 guidance perhaps causing a pause. I would remind you that we've been working towards replacement rate contracting for some time. If you look past the volatility in the spot market, you see a very strongly performing long-term price of uranium.

Grant Isaac: If I can ask a follow-up question on replacement rate contracting, and whether or not it's come sort of as a surprise to you, Grant, on sort of the trajectory of 2024, and how much of that is a pause due to say something like HR 1042, or perhaps the Kazakhstan 2025 guidance, perhaps causing a pause. I would remind that we've been working towards replacement rate contracting for some time. If you look past the volatility in the spot market, you see a very strongly performing long-term price of uranium; it's up significantly year to date. There is very strong momentum for continuing to work.

Speaker Change: Great. Thank you. I appreciate that. If I can ask a follow-up question on replacement rate contracting.

Speaker Change: I would remind that we've been working towards replacement rate contracting for some time. If you look past the volatility in the spot market, you see

Speaker Change: A very strongly performing long-term price of uranium.

Grant: It's up significantly year-to-date, and there is very strong momentum for continued price discovery in term contracts on very small volumes. That's a very, very interesting fact that very little volume has gone through the market, and yet we're still seeing constructive pricing in that term market. Do not lose sight of that.

Speaker Change: It's up significantly year-to-date.

Speaker Change: There is...

Grant Isaac: It's a huge price discovery in term contracts on very small volumes. That's a very interesting fact that very little volume has gone through the market, and yet we're still seeing constructive pricing in that term market. Do not lose sight of that. That indicates just how tight and just how thin the market is, and it really shines the light on why we're very constructive about the price, and add in my earlier comments about that global cost curve is just going to cost more. The supplies that we always used to count on.

Speaker Change: Very strong momentum for continued price discovery in term contracts on very small volumes. That's a very interesting fact that very little volume has gone through the market and yet we're still seeing constructive pricing in that term market. Do not lose sight of that.

Grant: That indicates just how tight and just how thin the market is, and it really shines a light on why we're very constructive about the price and adds to my earlier comments about that global cost curve is just going to cost more than the supplies that we always used to count on. So when you think about the factors that are causing maybe some delay in returning to the replacement rate, there is some uncertainty in the market, and I think it is giving pause.

Speaker Change: Just how tight and just how thin the market is. And it indicates, it really shines a light on why we're very constructive about the price. And add in my earlier comments about that global cost curve is just going to cost more.

Grant Isaac: When you think about the factors that are causing maybe some delay in returning to replacement rate, there is some uncertainty in the market, and I think it is giving pause. If you look at the US situation with respect to the Russian ban, of course we now see legislation. That legislation says Russian material is out, except for a waiver period between now and 2028. That waiver period allows for utilities who entered into contracts with the Russians under good faith that a time when they were considered reliable suppliers to appeal to the Department of Energy and say that they should be able to continue to take delivery as material.

Speaker Change: The supplies that we always used to count on.

Speaker Change: So when you think about the factors that are causing maybe some delay in returning to replacement rate, there is some uncertainty in the market, and I think it is giving pause. If you look at the U.S. situation with respect to the Russian ban, of course, we now see legislation. That legislation says...

Grant: If you look at the U.S. situation with respect to the Russian ban, of course, we now have legislation. That legislation says Russian material is out, except for a waiver period between now and 2028, and that waiver period allows utilities who entered into contracts with the Russians in good faith at a time when they were considered reliable suppliers to appeal to the Department of Energy and say that they should be able to continue to take delivery of material. We've seen a few waivers granted already. So there's a bit of a pause, if you will, to try to understand whether these waivers are going to have teeth or are these waivers going to be very easy.

Speaker Change: Russian material is out.

Speaker Change: And that waiver period allows for utilities who entered into contracts with the Russians, under good faith, at a time when they were considered reliable suppliers, to be able to pay for their utilities.

Grant Isaac: We've seen a few waivers granted already. There's a bit of a pause, if you will, to try to understand: are these waivers going to have teeth, or are these waivers going to be very easy? If the waivers are very easy, then that will take a little bit of pressure out of the near term of the market. That doesn't mean it's going to diminish the future demand between 2028 and beyond. We still see a lot of off-market activity there, but it just takes a bit of near-term pressure out of the market. But always important to remember that the longer that Russian material flows into the US, then the bigger the gap is going to become when the day arrives that no more Russian material is allowed in the market.

Unknown Executive: And if the waivers are very easy, then that will take a little bit of pressure off the near term of the market. But that doesn't mean it's going to diminish future demand in 2028 and beyond. We still see a lot of off-market activity there, but it just takes a bit of near-term pressure off the market. But it is always important to remember that the longer that Russian material flows into the U.S., those are very helpful answers. Thank you and congratulations to Alice on her retirement and to Rachelle and Corey on theirs.

Speaker Change: And if the waivers are very easy...

Speaker Change: then that will take a little bit of pressure out of the near-term of the market. That doesn't mean it's going to diminish the future demand, be it 2028 and beyond. We still see a lot of off-market activity there, but it just takes a bit of near-term pressure out of the market.

Speaker Change: But always important to remember that the longer that Russian material flows into the U.S.

Speaker Change: Then the bigger the gap is going to become when the day arrives that no more Russian material is allowed in the market. So if you think about it, it may delay, but it won't prevent a shift to the higher prices that are required in order to incent production. So this is why we remain disciplined.

Grant Isaac: If you think about it, it may delay, but it won't prevent a shift to the higher prices that are required in order to incent production. This is why we remain disciplined. This is why we remain forward focused with our contracting because we see a very constructive setup occurring.

Speaker Change: This is why we remain forward focused with our contracting, because we see a very constructive

Speaker Change: The type of demand approach replacement rate, and of course, if it goes beyond, that will be a very, very constructive time in the market, because we've never been at these prices at a below replacement rate scenario before, so I would say that the opportunity for upside appears to be much, much greater than the opportunity for downside.

Unknown Executive: I was very helpful answers, thank you, and congratulations to Alice on her retirement, and we're shelling Corey on their new appointments.

Speaker Change: on their new appointments.

Unknown Executive: Very kind of you, thanks, Ro.

Andrew Wong: The next question is from Andrew Wong with RBC Capital Markets.

Andrew D. Wong: The next question is from Andrew Wong with RBC Capital Markets. Please go ahead. Hey, good morning.

Speaker Change: The next question is from Andrew Wong with RBC Capital Markets. Please go ahead.

Andrew Wong: Please go ahead. Hey, good morning.

Unknown Executive: With respect to contracting, it's great to see some volumes being added for the next five years, but I imagine a lot of the activity taking place happens beyond 2028. So can you just talk about some of the contracted volumes into, you know, the late 2020s and into the 2030s, where utilities come directly to suppliers?

Grant Isaac: With respect to contracting, it's great the season volumes being added for the next five years, but I imagine a lot of the activity taking place happens beyond 2028. So you just talked about some of the contracted volumes into the late 2020s and into the 2030s. Yeah, I just mentioned in my previous answer that we still see a very constructive market. Remember, in the terms space, it's quite common for a lot of the demand to come off market, meaning not through RFPs that are easy to track, but bilaterally, where utilities come directly to suppliers. In this type of market where the underlying trend is strong, the term price continues to go up on low volumes, and we haven't seen that big rush of demand.

Andrew D. Wong: Taking place happens beyond 2028. So can you just talk about some of the contracted volumes into, you know, the late 2020s and into the 2030s?

Andrew D. Wong: Yeah, I just mentioned on my previous answer that we still see a very constructive market. Remember, in the term space...

Speaker Change: It's quite common for a lot of the demand to come off market, meaning not through RFPs that are easy to track, but bilaterally.

Unknown Executive: In this type of market, where the underlying trend is strong, the term price continues to go up on low volumes. Yeah, we're certainly happy to make a few comments on it, recognizing, of course, that it is a legal dispute between KHNP and Westinghouse, but that Westinghouse technology, the instrumentation and control, and the fundamental reactor technology, is pretty strong. You know, it's the best performing reactor on the planet, so no surprise, it's kind of the baseline for best-in-class pressurized water reactors.

Speaker Change: where utilities come directly to suppliers. In this type of market, where the underlying trend is strong, that the term price continues to go up on low volumes...

Grant Isaac: These are exactly the conditions that we've talked about before, Andrew, that lead themselves to an incumbent's recovery. That off market demand comes to those who have licensed, permitted existing production with Brownfield leverage opportunities, and now with that sovereign, say, Western platform of production, Camico is the primary beneficiary of that kind of demand that comes to the market. So it continues to build; term price continues to go up. We're seeing if you look at the reporting from Trade Tech, for example, $70 plus escalated floors, $135, escalated ceilings, and of course, Camico with our position tends to be able to even outperform those markers as we move forward.

Speaker Change: And we haven't seen that big rush of demand. These are exactly the conditions that we've talked about before, Andrew, that lead themselves to an incumbent recovery. That off-market demand comes to those who have licensed...

Speaker Change: Permitted Existing Production with Brownfield Leverage Opportunities And now with that sovereign, safe, western platform of production

Speaker Change: Cameco is the primary beneficiary of that kind of demand that comes to the market. So it continues to build.

Speaker Change: Term price continues to go up.

Speaker Change: We're seeing, if you look at the reporting from Trade Tech, for example, $70 plus escalated floors, $135

Speaker Change: escalated ceilings and of course Cameco with our position tends to be able to even outperform those markers as we move forward so we are really happy with our position in the market.

Grant Isaac: So we are really happy with our position in the market, and we are being somewhat fussy about the terms and conditions that we would settle for as this market evolves for the reasons I spoke about. Demand is durable; supply is increasingly uncertain, not just Kazakhstan, but look at what's going on in Niger and elsewhere. That supply cost curve, that supply risk has gone up in just a few past months.

Speaker Change: And we are being somewhat fussy about the terms and conditions that we would settle for as this market evolves for the reasons I spoke about. Demand is durable.

Speaker Change: Supply is increasingly uncertain, not just Kazakhstan, but look at what's going on in Niger and elsewhere. That supply cost curve, that supply risk has gone up in just the few past months. That puts us in an extremely strong position.

Grant Isaac: That puts us in an extremely strong position.

Grant Isaac: Okay, Grace, and maybe just switching to Westinghouse a bit here, is there anything you can talk about with regard to the IP dispute between Westinghouse and KHNP, and is there a path for Westinghouse to participate in KHNP bills like the one in the Czech Republic? Yeah, we're certainly happy to make a few comments on it, recognizing, of course, that it is a legal dispute between KHNP and Westinghouse, but that Westinghouse technology, the instrumentation and control, and the fundamental reactor technology, it's pretty strong. It's the best performing reactor on the planet, so no surprise, it's kind of the baseline for best-in-class pressurized water reactors.

Speaker Change: Okay, Grace and maybe just switching to Westinghouse a bit here. Is there anything you can talk about with regard to the IP dispute between Westinghouse and KHNP and is there a path for Westinghouse to participate in KHNP bills like the one in the Czech Republic?

Speaker Change: Yeah, we're certainly happy to make a few comments on it, recognizing, of course, that it is a legal dispute between KHNP and Westinghouse, but

Speaker Change: That Westinghouse technology, the instrumentation and control and the fundamental reactor technology,

Speaker Change: It's pretty strong. You know, it's the best performing reactor on the planet, so no surprise, it's kind of the baseline for best-in-class pressurized water reactors.

Unknown Executive: Over the years, as partnerships developed between Westinghouse and others, the sharing of technology was common, and now, what we see is a dispute based upon a belief at Westinghouse, and shared certainly by Cameco and Brookfield, that there are really critical elements of the Korean technology that are effectively Westinghouse's. And so the dispute is really the ability of Korea to use that technology in foreign jurisdictions.

Grant Isaac: Over the years, as partnerships develop between Westinghouse and others, the sharing of technology was common, and now what we see is a dispute based upon a belief at Westinghouse, and shared certainly by a chemical and work field, that there are really critical elements of the Korean technology that are effectively Westinghouse's, and so the dispute is really the ability of Korea to use that technology in foreign jurisdictions. That dispute has going through a relatively normal dispute resolution, with, of course, the opportunity that maybe at some point Westinghouse and Korea can come together and recognize that there might be an industrial partnership that makes sense to deliver gigawatt-scale reactors globally.

Speaker Change: Over the years, as partnerships developed between Westinghouse and others, the sharing of technology was common, and now what we see is...

Speaker Change: And so the dispute is really the ability of Korea to use that technology in foreign jurisdictions.

Unknown Executive: That dispute is going through a relatively normal dispute resolution process with, of course, the opportunity that maybe at some point Westinghouse and Korea can come together and recognize that there might be an industrial partnership that makes sense to deliver gigawatt-scale reactors globally. So we'll see how that works out, but we believe in Westinghouse's position on this dispute. We stand behind it, and we think that they're taking the right approach and that countries that are choosing Korean technology without adequately engaging Westinghouse may find themselves on the wrong side of a technology transfer law in the U.S.

Speaker Change: That dispute...

Speaker Change: is going through a relatively normal dispute resolution with, of course, the opportunity that maybe at some point Westinghouse and Korea can come together and recognize.

Grant Isaac: So we'll see how that works out, but we believe in Westinghouse's position on this dispute. We stand behind it, and we think that they're taking the right approach, and that countries that are choosing the Korean technology without adequately engaging Westinghouse may find themselves on the wrong side of a technology transfer law in the US. So it's got a way to go, but I wouldn't rule out Westinghouse in markets like Chechi at this point.

Speaker Change: Countries that are choosing the Korean technology without adequately engaging Westinghouse may find themselves on the wrong side of a technology transfer law in the U.S. So it's got a ways to go, but I wouldn't rule out Westinghouse in markets like Czechia at this point.

Unknown Executive: So it's got a ways to go, but I wouldn't rule out Westinghouse in markets like Czechia at this point. Thanks, Andrew. So if you take a slice through our 2024 deliveries, you'll see contracts that were entered into many years ago, and this might be the last year or two of delivery. And then you just roll back and say what the terms and conditions were like back then. And, you know, part of those contracts were caught might be in the middle of a contract signed a few years ago.

Andrew Wong: Okay, and just on the lake, I'm assuming that means none of that business is included in your guidance.

Speaker Change: Okay and just on that like I'm assuming that means none of that business is included in your guidance or Westinghouse.

Andrew Wong: You're Western house. Oh, yeah, sorry, Andrew. So remember, we have a 6 to 10% keg or growth rate on Western houses EBITDA over the next five years. And that 10% that upside was really only reflecting the very beginning of some of the energy system new builds. So in Poland, where 6 AP 1000s have been awarded, there's an assumption made that the first three of those six are in the very early stages of the front end engineering and design contracts. And in Bulgaria, where two AP1000s are awarded, there's only an assumption about the first of the two in the front end engineering and design.

Speaker Change: Oh yeah, sorry Andrew. So we remember we have a 6 to 10 percent CAGR growth rate on Westinghouse's EBITDA over the next five years.

Speaker Change: And that 10%, that upside was really only reflecting the very beginning of some of the energy system new builds.

Speaker Change: So in Poland, where six AP1000s have been awarded, there's an assumption made that the first three of those six are in the very early stages of the front-end engineering and design contracts, and in Bulgaria, where two AP1000s are awarded, there's only an assumption about

Andrew Wong: So additional announcements are only going to add upside to that energy systems profile.

Speaker Change: The first of the two in the front end engineering and design. So additional announcements.

Andrew Wong: So obviously, a very exciting opportunity, but these are big binary decisions. And right now it's a very conservative view on energy systems in that Western house outlook. Okay, thank you very much.

Speaker Change: All of these examples are only going to add upside to that energy systems profile. So obviously a very exciting opportunity, but these are big binary decisions and right now it's a very conservative view on energy systems in that Westinghouse outlook.

Orest Wowkodaw: Thanks, Andrew. The next question is from Oris Walkadow with Scotiabank. Please go ahead.

Speaker Change: Okay, thank you very much. Thanks, Andrew.

Orest Wowkodaw: Hi, good morning. Another question about just contracting philosophy here. I'm actually a bit surprised to see that the average of the five-year contract books crept up. Does that, you know, is the implication of that is that you're receiving very favorable terms from utilities because it certainly seemed like you guys were stepping back to me to be more discerning with what customers and what terms are embedded in those contracts. So is that the right way to think about that increase? Yeah, that's the right way to think about it. As we, you know, with each year that rolls off, we are able to move away from contracts that are older to contracts that are newer.

Speaker Change: Hi, good morning. Grant, another question about just contracting philosophy here. I'm actually a bit surprised to see that the average of the five-year contract books crept up.

Speaker Change: Does that, you know, is the implication of that is that you're receiving very favorable terms from utilities? Because it certainly seemed like you guys were stepping back to me to be more discerning with what customers and what terms are embedded in those contracts. So is that the right way to think about that increase?

Speaker Change: Yeah, that's the right way to think about it. As we, you know, with each year that rolls off, we...

Speaker Change: We are able to move away from contracts that are older to contracts that are newer. I mean, the magic of the nuclear fuel cycle is that you contract on a long-term forward basis.

Orest Wowkodaw: I mean, the magic of the nuclear fuel cycle is that you contract on a long-term forward basis. Now, that also creates a situation where the contracts that you're negotiating in the market today may or may not be reflective of the market at the time of delivery. So if you take a slice through our 2024 delivery, you'll see contracts that were entered into many years ago. And this might be the last year or two of delivery. And then you just roll back and say, what were terms and conditions like back then. And, you know, part of those contracts might be in the middle of a contract signed a few years ago.

Speaker Change: Now, that also creates a situation where the contracts that you're negotiating in the market today...

Speaker Change: may or may not be reflective of the market at time of delivery. So if you if you take a slice through our our 2024 deliveries, you'll see contracts.

Speaker Change: that were entered into many years ago, and this might be the last year or two of delivery. And then you just roll back and say, what were terms and conditions like back then? And, you know, part of those contracts were, might be in the middle of a contract signed a few years ago. And then now we're starting to see

Unknown Executive: And then now we're starting to, Okay, just as a quick follow-up, I mean, you're up to 29 million pounds average committed for the next five years. Should we anticipate that potentially continuing to creep up towards your sales volume target of 32 to 34? Is that kind of the end game here? Well, I would say.

Grant Isaac: And then now we're starting to see the early stages of those first contracts signed as the market has really gone through a transition. As we roll forward, we just continue to capture that value. So we like to say, you know, while we don't get spikes the day they arrive in the spot market, our contracting strategy takes those spikes and knocks them sideways and buries them into long-term cash flow and earnings. And so now we're seeing those improving terms and conditions in those outer years of the table. But remember that table only reflects what we're committed to sell.

Speaker Change: The early stages of those first contracts signed is the market has really gone through a transition.

Speaker Change: As we roll forward, we just continue to capture that value. So we like to say, you know, while we don't get spiked the day they arrive in the spot market,

Speaker Change: Our contracting strategy takes those spikes

Speaker Change: and knocks them sideways and buries them into long-term cash flow and earnings.

Speaker Change: And so now we're seeing those improving terms and conditions.

Speaker Change: In those outer years of the table, but remember that table...

Grant Isaac: What's missing from that analysis is all the pounds we haven't yet contracted in that window, which of course is, by definition, market levered to a market that we're finding very constructive. So this is how it works in a long term contracting business. You capture the demand that's for you; before you, you're very disciplined and selective in the terms and conditions that work. And you like to be in a position with a contract orientation in a nut market, not a down market. And that's where we find ourselves. Right now. Okay, just as a quick follow-up, I mean, you're up to 29 million pounds average committed for the next five years.

Speaker Change: only reflects what we're committed to sell.

Speaker Change: What's missing from that analysis is all the panels we haven't yet contracted in that window, which of course is by definition.

Speaker Change: Market Levered to a market that we're finding very constructive. So this is how it works in a long-term contracting business. You capture the demand that's for you, before you. You're very disciplined and selective in the terms and conditions that work.

Speaker Change: And you like to be in a position with a contract orientation in an up market, not a down market, and that's where we find ourselves right now.

Speaker Change: Okay, just as a quick follow up, I mean, you're up to 29 million pounds average committed for the next five years.

Grant Isaac: Should we anticipate that potentially continuing to creep up towards your sort of sales volume target of 32 to 34? Is that kind of the end game here? Well, I would say we respond to the quality of the demand that comes to the market. Instead of saying we have an absolute hard sales target that we're pursuing on a volume basis. Think of it as we are capturing the demand that's coming, and we'd already talked about earlier in the call. We're not even at replacement rate yet. So we're in a market that has not yet found enough demand to even replace what's consumed on an annual basis, let alone beyond.

Speaker Change: Should we anticipate that potentially continuing to creep up towards your sort of sales volume target of 32 to 34? Is that kind of be the endgame here?

Speaker Change: Well, I would say...

Speaker Change: We respond to the quality of the demand that's come to the market. Instead of saying we have an absolute hard sales target that we're pursuing on a volume basis, think of it as

Unknown Executive: Think of it as, let alone beyond. So think about it as. We would prefer to be a bit more disciplined right now, which we are. We could probably place more volumes if we wanted to. But the issue is making sure there are acceptable terms and conditions, meaning giving us acceptable upward leverage in the market. So when you think about that five-year portfolio, we always like to be covered in-year because there's no in-year demand. We've talked about that before.

Speaker Change: We are capturing the demand that's coming, and we'd already talked about earlier in the call, we're not even at replacement rate yet. So we're in a market that has not yet found enough demand to even replace what's consumed on an annual basis.

Grant Isaac: So think about it as we would prefer to do that. Or, to be a bit more disciplined right now, which we are, we could probably place more volumes if we wanted to. But the issue is making sure they're at acceptable terms and conditions, meaning giving us acceptable upward leverage in the market. So when you think about that five year portfolio, we always like to be covered in here because there's no in your demand. We've talked about that before. It's why we're not a spot-exposed producer. We like to be covered next year because there's not a lot of next year sales that are fundamental and high quality.

Speaker Change: Let alone beyond. So think about it as...

Speaker Change: We would prefer to be...

Speaker Change: A bit more disciplined right now, which we are. We could probably place more volumes if we wanted to.

Speaker Change: But the issue is making sure there are acceptable terms and conditions.

Speaker Change: meaning giving us acceptable upward leverage in the market. So when you think about that five-year portfolio, we always like to be covered in-year because there's no in-year demand. We've talked about that before. It's why we're not a spot-exposed producer.

Unknown Executive: It's why we're not a spot-exposed producer. We like to be covered next year because there are not a lot of next year sales that are fundamental and high quality. But then as we roll out into years three, four, and five, we like those commitments to come off because we want to be positioning new supply into a market that we think is constructive. That's always been our strategy, and it continues to be our strategy.

Speaker Change: We'd like to be covered.

Speaker Change: Yeah, next year.

Speaker Change: Because there's not a lot of next year's sales that are fundamental and high quality.

Grant Isaac: But then, as we roll out into year three, four, and five, we like those commitments to come off because we want to be positioning a new supply into a market that we think is constructive. That's always been our strategy; continues to be our strategy. So I would say watch more for the demand numbers that are coming. In order to think about how we're responding, but don't think of us as having a hard volume sales target, because then we would just be chasing the market and probably not discovering the terms and conditions that we would want.

Speaker Change: But then as we roll out into years 3, 4, and 5, we like those commitments to come off because we want to be positioning.

Speaker Change: New Supply into a market that we think is constructive. That's always been our strategy.

Unknown Executive: So I would say watch more for the demand numbers that are coming in order to think about how we're responding, but don't think of us as having a hard volume sales target because then we would just be chasing the market and probably not discovering the terms and conditions that we would want. Thank you, Orest.

Speaker Change: continues to be our strategy, so I would say watch more for the demand numbers that are coming.

Speaker Change: In order to think about how we're responding, but don't think of us as having a hard...

Speaker Change: volume sales target, because then we would just be chasing the market and probably not discovering the terms and conditions that we would want.

Unknown Executive: Thanks.

Unknown Executive: Thank you, yours.

Gregg: Thanks, Gregg.

Lawson Winder: The next question is from Lawson Winder with Bank of America Securities. Please go ahead. Thanks very much, operator. Good morning, everyone, and I'd extend a congratulations as well to Rochelle, Corey, and Alice. I wanted to ask about the conversion market and just get your views on conversion spot pricing versus long-term pricing. So we haven't seen the spot long term conversion price move to the spot price the way that we've seen in the spot U308 market. Do you have a view on why that might be and what might cause that gap to close? Conversion market is very, very tight for the simple reason that existing facilities are in care and maintenance.

Orest: Thank you, Orest.

Gregg: The next question is from Lawson Winder with Bank of America Securities. Please go ahead.

Lawson Winder: Thanks very much, Operator. Good morning, everyone, and an extended congratulations as well to Rachelle, Corey, and Alice.

Unknown Executive: I wanted to ask about the conversion market and just get your views on conversion spot pricing versus long-term pricing. So we haven't seen the long-term conversion price move to the spot price the way that we've seen in the U308 market. Do you have a view on why that might be and what might cause that gap to close?

Lawson Winder: I wanted to ask about the conversion market and just get your views on conversion spot pricing versus long-term pricing.

Speaker Change: So we haven't seen the long-term conversion price move to the spot price the way that we've seen in the U308 market. Do you have a view on why that might be and what might cause that gap to close?

Unknown Executive: The conversion market is very, very tight, for the simple reason that existing facilities are in care and maintenance, for Western facilities, obviously Cameco's Port Hope Conversion Facility. You've seen our guidance on that. We pulled it back a little bit relative to what our initial 2024 target was. We've got a facility in the U.S. that looks to be holding at 7,000 tons of conversion, but it's run at more in the past. You've got a French plant not running at its original design capacity and an EIDL plant at Springfield.

Speaker Change: Conversion market is very, very tight.

Speaker Change: for the simple reason that existing facilities are in care and maintenance.

Grant Isaac: So we have four western facilities. Obviously, Camico's Port Hope Conversion Facility. You've seen our guidance on that. We pulled it back a little bit relative to what our 2024 initial target was. Got a facility in the U.S. Looks to be holding at 7000 tons of conversion, but it's run at more in the past. You've got a French plant not running it. It's original design capacity and an idle plant at Springfield. That's what's keeping real tightness in the conversion market. The conversion market is also one where, if you needed conversion today, there just isn't any kicking around.

Cameco: Four Western facilities, obviously Cameco's Port Hope Conversion Facility, you've seen our guidance on that, we've pulled it back a little bit relative to what our 2024 initial target was. We've got a facility in the U.S.

Cameco: looks to be holding at 7,000 tons of conversion, but it's run at more in the past. You've got a French plant not running at its original design capacity and an idle plant at Springfield.

Cameco: That's what's keeping real tightness.

Cameco: In the conversion market, the conversion market is also one where, you know, if you need a conversion today, they're just

Grant Isaac: Uranium has a bit more option. There's more producers. There's producers in the uranium space that tend to be less disciplined, less focused on the long term market. Conversion doesn't really suffer from that. It really only has actors in it who sell on a term basis, so that the conversion that you might say would be spot is just incredibly hard to come by. But it's not where the vast majority of the work is being done. But let's not forget that the term price in conversion is that historic level. and we expect that tail to continue because of the delays in getting all of the conversion producing centers up to full production in the Western world.

Cameco: isn't any kicking around.

Speaker Change: More producers, there's...

Cameco: Producers in the uranium space that tend to be less disciplined, less focused on the long-term market.

Cameco: Conversion doesn't really suffer from that. It really only has actors in it who sell on a term basis.

Cameco: So the conversion that you might say would be spot is just incredibly hard to come by. But it's not where the vast majority of the work is being done. But let's not forget that the term price in conversion is at historic levels.

Unknown Executive: And we expect that tale to continue because of the delays in getting all of the conversion producing centers up to full production in the Western world. So conversion has a has a very good tale of strength for the next little while for sure until more capacity comes on. But it's not really a spot market, so I wouldn't get too. I wouldn't get too, focused on thinking conversion is going to close with spots, but where conversion is sitting at right now on a term basis is historic and expected to continue, producing facilities sitting out there waiting to go anywhere and so I mean that would be our our first run and then we'd look at our tier two assets that we have Rabbit Lake is sitting there, we've got Wyoming, we've got Nebraska that are on care and maintenance that we could bring on if the market calls for those pounds and then we have our own Greenfields projects as well and I don't want to miss out GLE that we're working very hard on as well, that project down in the United States is very attractive to the US utilities and US government and that goes back to Grant's last answer on conversion if we get that going and start re-enriching those depleted tails I mean that brings uranium and conversion back to the market and so that's another option for us, I don't say we've made any decisions on that but we're working on that project as well and so we've got a stable or suite of projects that we'd love to get after our own so we're not looking for anybody else's, we're focused on our own assets, The next question is from Gordon Johnson with GLJ Research. Please go ahead.

Cameco: And we expect that tale to continue.

Cameco: Because of the delays in getting all of the conversion producing centers up to full production in the Western world. So conversion has a very good tail of strength for the next little while for sure until more capacity comes on.

Grant Isaac: So conversion has a very good tail of strength for the next little while for sure until more capacity comes on, but it's not really a spot market, so I wouldn't get too focused on thinking conversion is going to close with spots. But where conversion is sitting at right now on a term basis is historic and expected to continue.

Speaker Change: But it's not really a spot market, so I wouldn't get too... I wouldn't get too...

Cameco: focused on thinking conversion is going to close with spots, but where conversion is sitting at right now on a term basis is historic and expected to continue.

Grant Isaac: Okay, great, thanks. A little comments, Grant.

Grant Isaac: Also wanted to get a sense of your views on M&A, and so just in light of recent activity in the NASA basket basin, as well as, you know, a view from Investment Canada that they will be approaching foreign acquirers with increased rigor.

Speaker Change: Okay, great. Thanks for those comments, Grant.

Speaker Change: Also wanted to

Speaker Change: Get a sense of your views on M&A. And so just, you know, in light of recent activity in the Athabasca Basin, as well as, you know, a view from Investment Canada that they will be approaching foreign acquirers with increased rigor, does this maybe open up a window for Cameco to look at

Timothy Gitzel: Does this maybe open up a window for Canada code to look at potentially consolidating in the NASA basket basin? I might frontrun your answer and acknowledge that, obviously, Cameco doesn't need to do that, but there's always opportunities and chances to be opportunistic, and I would just like to get your views on that in particular. Well, we always appreciate when analysts answer their own questions, so we appreciate that. So, you're right; you know what I'm going to say. You know, you heard me earlier say that the best pounds on the planet are already in our portfolio: the MacArthur River.

Speaker Change: Potentially consolidating in the Athabascan Basin.

Speaker Change: I might front run your answer and acknowledge that obviously Cameco doesn't need to do that, but there's always opportunities and chances to be opportunistic, and I would just like to get your views on that in particular.

Speaker Change: Well, we always appreciate when analysts answer their own questions, so we appreciate that, Lawson.

Speaker Change: So you're right, you know what I'm going to say.

Speaker Change: You know, you heard me earlier say that the best ponds on the planet are already in our portfolio. The MacArthur River, you know, if we took it up to full speed, would be a 7 million pound increase. There's not another 7 million pound.

Timothy Gitzel: You know, that's if we took it up to full speed, would be a seven million-pound increase. There's not another seven million pound producing facilities sitting out there waiting to go anywhere, and so I mean, that would be our first run, and then we'd look at our tier two assets that we have. Robert Lake is sitting there. We've got Wyoming, we've got Nebraska that are on Karen maintenance that we could bring on if the market calls for those pounds, and then we have our own green fields projects as well. And I don't want to miss out to GLE that we're working very hard on as well. That project down in the United States is very attractive to the US utilities and US government, and that goes back to Grant's last answer on conversion.

Speaker Change: Producing facilities sitting out there waiting to go anywhere and so I mean that would be our our first run And then we'd look at our tier two assets that we have Ravid Lake is sitting there. We've got Wyoming We've got Nebraska that are on care and maintenance that we could bring on if the market

Timothy Gitzel: If we get that going and start reenriching those depleted tails, I mean, that brings uranium and conversion back to the market, and so that's another option for us. I don't say we're made any decisions on that, but we're working on that project as well. And so we've got a stable or sweet of projects that we'd love to get after our own.

Speaker Change: Conversion, if we get that going and start re-enriching those depleted tails, I mean, that brings uranium and conversion.

Speaker Change: back to the market. And so that's another option for us. I don't say we're made any decisions on that, but we're working on that project as well. And so we've got a stable or a suite of projects that we'd love to get after our own. So we're not looking for anybody else's. We're focused on our own assets.

Lawson Winder: So we're not looking for anybody else's. We're focused on our own assets. Thanks very much. Yeah, thanks, Lawson.

Gordon Johnson: The next question is from Gordon Johnson with GLJ Research. Please go ahead. Hey guys, thanks for taking the question.

Speaker Change: The next question is from Gordon Johnson with GLJ Research. Please go ahead.

Timothy Gitzel: I guess just taking a step back, a lot of the questions I have been asked, but just looking at some of the positive news that come out, you know, you've had the trying to launch the construction of a new, you know, 1,250 megawatt reactor. You had Biden signed the advance act. You had an SMR announced in Canada and Saskatchewan, a number of positive news stories out of Europe with respect to advancing nuclear, yet price is seen to be stuck. So I just wanted to get your thoughts on why that may be and what your outlook is near term.

Gordon Lee Johnson: Hey guys, thanks for taking the question. I guess, just taking a step back, a lot of the questions I had have been asked, but just looking at some of the positive news that's come out, you know, you've had China launch the construction of a new, you know,

Speaker Change: 1,250 megawatt reactor. We had Biden sign the ADVANCE Act.

Speaker Change: You had an SMR announced in Canada and Saskatchewan.

Speaker Change: A number of positive news stories out of Europe with respect to advancing nuclear.

Speaker Change: Yet, prices seem to be stuck. So I just wanted to get your thoughts on why that may be and what your outlook is near term.

Timothy Gitzel: Thank you.

Timothy Gitzel: Yeah, I think we touched on a bit already, Gordon, on the price situation with the, you know, the Russian Act in the US and looking at waivers, and it's the doldrums of summer, a few things like that. Let me go back to the exciting part. I mean, we've never seen so much interest from utilities and governments and policymakers and the general public for nuclear that we're seeing today. And I was we were just listing before the call, the different countries that have committed to building new nuclear. You know, Grant and I were at COP28 in December of last year when I think those 30 countries came together that said they're going to triple, triple nuclear power.

Unknown Executive: Yeah, I think we've touched on it a bit already, Gordon, on the price situation with the, you know, the Russian Act in the U.S. and looking at waivers and it's the doldrums of summer, a few things like that. Now, let me go back to the exciting part. I mean, we've never seen so much interest from utilities and governments and policymakers and the general public for nuclear energy as we are seeing today. And I was, we were just listening before the call to the different countries that have committed to building new nuclear plants.

Speaker Change #100: Yeah, I think we've touched on it a bit already, Gordon, on the price situation with the Russian Act in the U.S. and looking at waivers and it's the doldrums of summer, a few things like that. Let me go back to the exciting part. I mean, we've never seen...

Speaker Change #102: So much interest from utilities and governments and policy makers and the general public.

Speaker Change #110: for Nuclear that we're seeing today and I was we were just listening before the call the different countries

Unknown Executive: You know, Grant and I were at COP 28 in December of last year when, I think, 30 countries came together and said they were going to triple, triple nuclear power. And that theme has continued through about four other conferences we've been to since then.

Speaker Change: that have committed to building new nuclear. You know, Grant and I were at COP28 in December of last year when I think it was 30 countries came together and said they're going to triple, triple.

Timothy Gitzel: And that theme has continued through about four other countries as we've been to since then. And you're just seeing countries, whether it's Canada, Ontario, 18 new games. We got a lot of nuclear. We were down at the Vogel opening a couple months ago. Secretary Granholm said, "Okay, nice." We're opening two new reactors. We need 198 more in the US. I mean, that's the themes of what we're seeing around the world. So clearly, a lot of good news on the demands side, the new, I mean, old reactors coming back on, Dwayne Arnold and Iowa. I think Palisades, TMI, Diablo Canyon, those ones are ready to go.

Speaker Change: Nuclear Power, and that theme has continued through about four other conferences we've been to since then.

Unknown Executive: And you're just seeing countries, whether it's Canada, Ontario, 18 gigawatts of nuclear power. We were down at the Vogel opening a couple months ago, Secretary Granholm said, okay, nice, we're opening two new reactors, we need 198 more in the U.S. I mean, that's the theme of what we're seeing around the world. So clearly, a lot of good news on the demand side, the new and old reactors coming back on, Dwayne Arnold in Iowa, I think of Palisades, TMI Diablo Canyon, those ones are ready to go. I mean, they take a few years to bring them back, but they're not new builds or new starts.

Speaker Change: And you're just seeing countries, whether it's Canada, Ontario, 18 gigawatt of nuclear. We were down at the Vogel opening.

Secretary Granholm: A couple months ago, Secretary Granholm said, OK, nice, we're opening two new reactors. We need 198 more in the U.S.

Speaker Change: I mean, that's the themes of what we're seeing around the world. So, clearly, a lot of good news on the demand side. The new, I mean, old reactors coming back on, Dwayne Arnold in Iowa.

Speaker Change: I think Palisades, TMI, Diablo Canyon. Those ones are ready to go. I mean, they take a few years to bring them back, but they're not new build, new starts.

Timothy Gitzel: I mean, they take a few years to bring them back, but they're not new build new starts. And so lots on that front on the uranium and the fuel supply side, as Grant mentioned, boy, lots of instability. We mentioned a few of the players, Niger, a place that I spent a lot of time at, a bit chaotic, I would say, for Arano and Global and GoviEx and some of the companies that are in there, really having a tough time in there. So, yeah, I don't think it's anything that's long lasting. I think the supply demand fundamentals are outstanding.

Unknown Executive: And so lots on that front, on the uranium and the fuel supply side, as Grant mentioned, boy, lots of instability. We mentioned a few of the players, Niger, a place that I spent a lot of time at, a bit chaotic, I would say, for Orano and Global and GoVX and some of the companies that are in there really having a tough time there. So yeah, I don't think it's anything that's long-lasting.

Speaker Change: Lots on that front. On the uranium and the fuel supply side, as Grant mentioned, boy, lots of instability. We mentioned a few of the players. Niger, a place that I spent a lot of time at.

Speaker Change #116: A bit chaotic, I would say, for Orano and Global.

Speaker Change: and Go VX and some of the companies that are in there are really having a tough time in there. So, yeah, I don't think it's anything that's long-lasting. I think, you know, the supply-demand fundamentals are outstanding. I think there's...

Unknown Executive: I think the supply and demand fundamentals are outstanding. I think there's something like 2 billion or 2.2 billion pounds to be contracted between now and 2040. I think that's a lot. That's an average of 150, 160 million pounds every year and growing. So no, we're not concerned at all about the fundamentals or about a short-term Depression in the price. I mean, we're still at historic prices.

Timothy Gitzel: I think there's something like 2 billion or 2.2 billion pounds to be contracted between now and 2040. I think it is something like, that's a lot. That's an average of 150, 160 million pounds every year and growing. So, no, we're not concerned at all about the fundamentals or about a short-term depression in the price. I mean, we're still at historic prices, and the term price, which is the price we watch, is very strong. So, we're excited about the future.

Speaker Change: Something like 2 billion or 2.2 billion pounds to be contracted between now and...

Speaker Change: 2040, I think it is, like that's a lot, that's an average of 150, 160 million pounds every year and growing. So no, we're not concerned at all about the fundamentals or about a, you know, short-term

Unknown Executive: And the term price, which is the price we watch, is very strong. So we're excited about it affect the fundamentals in any substantial way. It might create a bit of softness if it's all dumped into the spot market, but we'll quickly move through it, and we're back on the fundamentals. Because, remember, as primary production is underperforming demand, we no longer have the shock absorbers of secondary supply that we used to have. This is a very constructive market, and I wouldn't be taking the bet. I wouldn't be taking the bare bet,

Speaker Change: Depression in the price. I mean, we're still at historic prices and the term price, which is the price we watch, is very strong. So we're excited about the future.

Gordon Johnson: One last one, if I could.

Gordon Johnson: Some of the naysayers out there and bears have argued that if slash wind prices fall, we could see some of the financial buyers step in and begin to sell products.

Speaker Change #108: And then one last one, if I could, you know, some of the, some of the naysayers out there and bears have argued that if slash when prices fall, we could see on some of the financial buyers step in and begin to sell products. Can you guys address that and give us your thoughts on kind of what that may be?

Timothy Gitzel: So, if you guys address that, give us your credit content on what that means. Yeah, you know, it's a phenomenon that we've seen before in the market. If you think about that, 0607 price run up. I would say the last marginal buyers were financial interests, and the first marginal sellers were financial interests. It's why we never go out of our way to support that.

Speaker Change #104: Yeah, you know, it's a, it's a...

Speaker Change #105: phenomenon that we've seen before in the market. If you think about that 06-07 price run up, I would say the last marginal buyers were financial interests and the first marginal sellers were financial interests. It's why we never go out of our way to support that.

Timothy Gitzel: What is different this time, though, is I think the orientation or commercial strategy of some of the big financial buyers. And that is to really look at uranium as almost like a precious metal, as saying there's an intrinsic quality to an energy supply that will hold value. And so, we haven't actually seen any evidence that some of the big holes or the big funds have any interest in selling. And we haven't seen any leakage out of those funds. Now, there are some private holes, and that material does make it back into the market. I think maybe you could see a bit of material coming into the spot market as a result of that.

Speaker Change: What is different this time, though, is I think the orientation or commercial strategy of some of the big financial buyers.

Speaker Change: To really look at uranium as almost like a precious metal, as saying there's an intrinsic quality to an energy supply that will hold value, and so we haven't actually seen any evidence that some of the big holds or the big funds have any interest.

Speaker Change: in selling and we haven't seen any leakage out of those funds. Now there are some private holds and that material does make it back into the market. I think maybe you could see a bit of material coming into the spot market as a result of that.

Timothy Gitzel: But that doesn't change the fundamentals in any way. The fundamentals are still that the term demand is growing, as evidenced by the uncovered requirements. I would add to that that uncovered requirements don't capture inventory building.

Speaker Change #111: But that doesn't change the fundamentals in any way, the fundamentals are still that the term demand is growing as evidenced by the uncovered requirements. I would add to that.

Timothy Gitzel: We're starting to see very strong evidence of utilities beginning to build new inventory policies, both independent utilities as well as sovereign buyers looking to acquire very significant volumes. Now, these are one time, but they're going to hit at a very tight market as well. So, if you look at the gap between supply and demand, there really isn't a pocket of uranium that is big enough to... to affect the fundamentals in any substantial way. It might create a bit of softness if it's all dumped into the spot market, then we'll quickly move through it and we're back on the fundamentals.

Speaker Change: That uncovered requirements don't capture inventory building. We're starting to see very strong evidence.

Speaker Change: of Utilities Beginning to Build New Inventory Policies both

Speaker Change: Independent Utilities as well as Sovereign Buyers looking to acquire very significant volumes. Now these are one time, but they're going to hit at a very tight market as well. So, if you look at the gap between supply and demand,

Speaker Change: there really isn't a pocket of uranium

Speaker Change: to affect the fundamentals in any substantial way. It might create a bit of softness if it's all dumped into the spot market, then we'll quickly move through it and we're back on the fundamentals.

Timothy Gitzel: Because remember, as primary production is underperforming demand, we no longer have the shock absorbers, a secondary supply that we used to have.

Speaker Change: And I think that's a good way to end this. Because remember, as primary production is underperforming demand, we no longer have the shock absorbers of secondary supply that we used to have. This is a very constructive market. And I wouldn't be taking the bet. I wouldn't be taking the bare bet.

Timothy Gitzel: This is a very constructive market, and I wouldn't be taking the bet. I wouldn't be taking the bear bet. Thanks for the questions, guys.

Unknown Executive: Thank you.

Speaker Change #107: Thanks for the question, guys.

Unknown Executive: And the last question is from Brian MacArthur, which is Raymond James. Please go ahead. Good morning, and let me start again by congratulating Alice on a retirement after all those years, and also Michelle and Corey on their new positions. My up to quick questions in the interest of time, just on MacArthur River. It obviously had a very good production quarter. Can I read into that? Was that grade related or something unique to the ore body? Or is that actually starting to demonstrate, and there's always the flexibility, the potential of the mine, and you talked about being licensed for 25, and then the bottleneck to get up there, the mill versus the mine. And my second question goes back to the statement saying costs are similar potentially based on a whole bunch of assumptions.

Brian MacArthur: And the last question is from Brian MacArthur with Raymond James. Please go ahead. Good morning, and let me start again by congratulating Alice on her retirement after all those years and also Rachelle and Corey on their new positions. Yeah, and Brian, more to come, as Tim mentioned, we're evaluating the proposed tax increase and its implementation, and there are a number of assumptions that need to go into it, but the comment was more of a general comment that if you look on sort of an average unit cost of sales basis that rolls in things like taxes and royalties, that cost advantage in Kazakhstan seems to be gone, and yet it's a higher-risk jurisdiction, so the Great, thanks very much.

Speaker Change #114: Thank you.

Timothy S. Gitzel: Thank you, Brian. This concludes the question and answer session. I'd like to turn the conference back over to Tim Gitzel for any closing remarks. So we're a responsible commercial supplier with a strong balance sheet, long-lived tier one assets, and a proven operating track record. We're invested across the nuclear fuel and reactor life cycles and believe we have the right strategy to achieve our vision of energizing a clean air world, and we'll do so in a manner that reflects our values.

Speaker Change #107: And the last question is from Brian MacArthur with Raymond James. Please go ahead.

Speaker Change #120: Good morning and let me start again by congratulating Alice on her retirement after all those years and also Rachelle and Corey on their new positions.

Brian MacArthur: Two quick questions in the interest of time.

Brian MacArthur: Just on MacArthur River, it obviously had a very good production quarter.

Brian MacArthur: Can I read into that, was that grade related or something unique to the ore body or is that actually starting to demonstrate, and there's always been flexibility, the potential of the mine and you talked about being licensed for 25 and then the bottleneck to get up there, the

Speaker Change #106: Mil versus DeMine. And my second question goes back to the statement saying costs are similar.

Brian Macarthur: I get it between Kazakhstan and northern Saskatchewan right now. Are we talking, when you do that, just at a curiosity, what sort of pricey abacing at that? Because I assume it compares costs in the northern mines, including graduated royalties versus royalties in Kazakhstan. Thanks.

Speaker Change #117: Potentially, based on a whole bunch of assumptions, I get it.

Speaker Change #113: between Kazakhstan and northern Saskatchewan right now. Are we talking, when you do that, just out of curiosity, what sort of price are you basing at that? Because I assume it compares costs in the northern mines, including graduated royalties versus, you know, royalties in Kazakhstan. Thanks.

Brian Reilly: Thank you, Brian.

Brian Reilly: Just so, on the operational front, let me turn it over to Brian Riley, your Chief Operating Officer, and then, grant me, if you can, chip in on the cost comparison. So Brian, just on the operations at MacArthur Key. Sure. Thanks, Tim. Brian, great, great question. Let me just say it's all about the mill, Brian. This is not a great, great issue in terms of mine production. And Tim, you know, Tim alluded to this. We, you know, for the past, I would say the past two quarters. We have this mill running at steady state, Brian. And so those investments we made in digitization, automation, robotics, they're starting to pay dividends now.

Tim: Thank you, Brian . So on the operational front, let me turn it over to Brian Reilly, our Chief Operating Officer, and then Grant, maybe you can chip in on the cost comparison. So Brian , just on the operations at MacArthur Key. Sure. Thanks, Tim and Brian . Great question. Let me just say it's all about the mill, Brian . This is not a grade.

Tim: Great issue in terms of mine production. And Tim, you know, Tim alluded to this. We

Brian Reilly: So we're seeing the results of those investments, Brian. So this is, this is all about the mill operating at a very high level at the moment.

Grant Isaac: Yeah, and Brian, like more to come, as Tim mentioned, we're evaluating the proposed tax increase and its implementation, and there are a number of assumptions that need to go into it. But the comment was more of a general comment that if you all, if you look on sort of an average unit cost of sales basis, that rolls in things like taxes and royalties.

Grant E. Isaac: Yeah, and Brian , like, more to come. As Tim mentioned, we're evaluating.

Grant Isaac: That cost advantage in Kazakhstan seems to be gone. And yet it's a higher risk jurisdiction. So the benefit to a MacArthur and a cigar and a rabbit and our U.S. assets is clearly in chemicals' favor.

Speaker Change #112: So the benefit to a MacArthur and a cigar and a rabbit and our U.S. assets is clearly in Cameco's favor.

Brian Macarthur: Great. Thanks very much. Thank you, Brian.

Tim: Great, thanks very much. Thank you, Brian .

Unknown Executive: Yes, concludes the question and answer session.

Timothy S. Gitzel: Embedded in all our decisions is a commitment to address the risks and opportunities that we believe will make our business sustainable over the long term. So, thank you all again for joining us today. Stay safe and healthy, and have a great day. Thank you.

Timothy Gitzel: I'd like to turn the conference back over to Kim Gitzel for any closing remarks. Thank you very much, Gayleen, and thanks to everyone who joined us today. As Cory noted in the intro, if you have any detailed questions or follow-up you want on the second quarter results or any questions that we didn't get a chance to answer today, please send those in, and we will be absolutely happy to address them directly. So we're a responsible commercial supplier with a strong balance sheet, long-lived tier one assets and approve an operating track record. We're invested across the nuclear fuel and reactor life cycles and believe we have the right strategy to achieve our vision of energizing a cleaner world, and we'll do so in a manner that reflects our values embedded in all our decisions as a commitment to address the risks and opportunities that we believe will make our business sustainable over the long term.

Tim: Thank you very much Gaylene and thanks to everyone who joined us today. As Corey noted in the intro if you have any detailed questions or follow-up you want on the second quarter results or any questions that we didn't get a chance to answer today please send those in and we will be absolutely happy to address them directly.

Speaker Change #118: So we're a responsible commercial supplier with a strong balance sheet, long-lived Tier 1 assets, and a proven operating track record. We're invested across nuclear fuel and reactor life cycles and believe we have the right strategy to achieve our vision of energizing a clean air world, and we'll do so in a manner that reflects our values.

Timothy Gitzel: So thank you all again for joining us today. Stay safe and healthy, and have a great day. Thank you.

Operator: This brings to an end today's conference call. You may just connect your lines. Thank you for participating, and have a pleasant day.

Speaker Change #115: This brings to an end today's conference call. You may disconnect your lines. Thank you for participating and have a pleasant day.

Speaker Change #119: ?? ?? ?? ?? ??