Uranium giant Cameco Corp. reported fourth quarter earnings late Wednesday of $598 million, or $1.52 per share, compared to $31 million, or eight cents per share, during the same quarter in 2008, and also announced a potential startup date for the Cigar Lake uranium mine.

On an adjusted basis, net earnings were $248 million, or 63 cents a share, compared with $179 million, or 49 cents a year earlier.

Net earnings for the quarter and the year were significantly affected by the sale of the company's stake in Centerra Gold Inc. for $871 million, which delivered an after-tax gain of $374 million, the company said.

"With the sale of Centerra, we are now fully focused on the growing interest in nuclear energy," chief executive Jerry Grandey said on a conference call with investors on Thursday morning.

"Operationally and financially, we are well positioned to meet our goal of doubling annual uranium production by 2018."

For the year of 2009, the Saskatoon-based company reported record net earnings of $1.1 billion, or $2.82 per share. In 2008, the company earned $450 million, or $1.28 per share.

On an adjusted basis, annual net earnings totalled $582 million, or $1.49 a share, compared with $589 million, or $1.67 a share in 2008. It said higher unit costs in its uranium business, lower sales volumes in gold and higher profits from its electricity business accounted for the one per cent decline.

Cameco, the world's largest uranium producer, also reported a long-awaited date for the start of production at its Cigar Lake mine in northern Saskatchewan, saying it is targeting mid-2013 as the new operational date for the site.

Speaking on a conference call with investors, analysts and media Thursday morning, Cameco chief executive Jerry Grandey said the interior of the mine – which flooded in 2006 and 2008 – is looking better than expected.

The company expects the underground workings at Cigar – the world's largest undeveloped high-grade uranium deposit – to be secured by October.

In early trading, Cameco's shares on the Toronto Stock Exchange dropped 65 cents, or 2.18 per cent, to $29.12.

The Saskatoon StarPhoenix
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