What happened
Shares of uranium company Cameco Corporation (CCJ -0.12%) jumped as much as 14.8% in trading on Wednesday after reporting 2021 financial results. Shares closed the day within a penny of their high in trading.
So what
Revenue was down 15% to $465 million; net earnings for the quarter were $11 million; and adjusted net earnings were $23 million. For the year, the company lost $103 million, or $98 million on an adjusted basis.
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In 2022, management said they will continue to ramp production up to 15 million pounds per year in capacity by 2024 at McArthur River/Key Lake. They were also clear that Cameco isn't going to increase production in anticipation of higher demand that may not come. The company will focus on long-term supply contracts that aim to raise profitability as production increases.
Now what
Results weren't great right now, but it's investments in new mines that will ramp up over the next three years that investors are looking at. We should see both revenue and profits rise as production increases from these properties. Management was even confident enough in operations to say they would increase the 2022 dividend by 50% to $0.12 per share. Today, investors are pleased with that growth path.
