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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 6-K
Report of Foreign Private Issuer
Pursuant to Rule 13a-16 or 15d-16 Under
the Securities Exchange Act of 1934
For the month of July, 2007
Cameco Corporation
(Commission file No. 1-14228)
2121
11th Street West
Saskatoon, Saskatchewan, Canada S7M 1J3
(Address of Principal Executive Offices)
Indicate by check mark whether the registrant files or will file annual reports under cover
Form 20-F or Form 40-F.
Indicate by check mark whether the registrant by furnishing the information contained in this Form
is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the
Securities Exchange Act of 1934.
If Yes is marked, indicate below the file number assigned to the registrant in connection with
Rule 12g3-2(b):
Exhibit Index
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Exhibit No. |
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Description |
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Page No. |
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Press Release dated July 30, 2007
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SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused
this report to be signed on its behalf by the undersigned, thereunto duly authorized.
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Date: July 31, 2007 |
Cameco Corporation
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By: |
Gary M.S. Chad
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Gary M.S. Chad, Q.C. |
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Senior Vice-President, Governance,
Legal and Regulatory Affairs, and
Corporate Secretary |
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Share |
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Listed |
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Symbol |
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web site address: |
TSX
NYSE
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CCO
CCJ
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www.cameco.com |
2121 11th Street West, Saskatoon, Saskatchewan, S7M 1J3 Canada
Tel: (306) 956-6200 Fax: (306) 956-6201
Cameco Clarifies Impact of Future Uranium Sales Volumes
Saskatoon, Saskatchewan, Canada, July 30, 2007 . . . . . . . . . . . . . . . . . . .
Cameco Corporation today provided clarification following a conference call discussion on the sales
assumptions related to future realized uranium prices. While future sales levels were reduced in
our assumptions about forecast realized prices, this is not expected to significantly impact our
profitability.
During the call, the company provided some background information regarding the updated sales
volume assumption for the 2007 to 2017 period. The sales volume assumption in the 2007 first
quarter report was 35 million pounds per year for 2008 to 2017. In our 2007 second quarter report,
the sales volume assumption was reduced to 30 million pounds per year to eliminate the influence of
near-term spot market purchases and subsequent resale.
Camecos profit margin from the sale of pounds purchased on the spot market is less than other
sales. Therefore, while the reduction in sales level assumption impacts our average realized
prices, it is not expected to significantly impact profitability.
The sales volume assumption used in the price table included on page 19 of the second quarter
report is used to calculate the average realized price under different spot price levels. We have
used 30 million pounds of annual sales over the 10-year period, but our actual annual sales volume
will differ depending on market conditions as well as future production and purchase levels. For
example, at this time, our sales volumes are expected to average about 32 million pounds per year
from 2008 to 2011. Notwithstanding the changed assumption, Cameco has not altered its long standing
strategy of purchasing limited quantities of uranium in the spot market for market intelligence or
when deemed attractive.
The price table is intended to show sensitivity of Camecos expected realized prices to changes in
the spot price. As we have previously disclosed, Cameco is in the market continuously signing
contracts with a mix of market-related and fixed prices. As we sign additional attractive contracts
to build our long-term profitability, our sensitivity to movements in the spot price changes.
Cameco, with its head office in Saskatoon, Saskatchewan, is the worlds largest uranium producer.
The companys uranium products are used to generate electricity in nuclear energy plants around the
world, providing one of the cleanest sources of energy available today. Camecos shares trade on
the Toronto and New York stock exchanges.
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Statements contained in this news release, which are not historical facts, are forward-looking
statements that involve risks, uncertainties and other factors that could cause actual results to
differ materially from those expressed or implied by such forward-looking statements. Factors that
could cause such differences, without limiting the generality of the following, include: the impact
of the sales volume of fuel fabrication services, uranium, conversion services, electricity
generated and gold; volatility and sensitivity to market prices for uranium, conversion services,
electricity in Ontario and gold; competition; the impact of change in foreign currency exchange
rates and interest rates; imprecision in decommissioning, reclamation, reserve and tax estimates;
environmental and safety risks including increased regulatory burdens and long-term waste disposal;
unexpected geological or hydrological conditions; adverse mining conditions; political risks
arising from operating in certain developing countries; terrorism; sabotage; a possible
deterioration in political support for nuclear energy; changes in government regulations and
policies, including tax and trade laws and policies; demand for nuclear power; replacement of
production; failure to obtain or maintain necessary permits and approvals from government
authorities; legislative and regulatory initiatives regarding deregulation, regulation or
restructuring of the electric utility industry in Ontario; Ontario electricity rate regulations;
natural phenomena including inclement weather conditions, fire, flood, underground floods,
earthquakes, pit wall failure and cave-ins; ability to maintain and further improve positive labour
relations; strikes or lockouts; operating performance, disruption in the operation of, and life of
the companys and customers facilities; decrease in electrical production due to planned outages
extending beyond their scheduled periods or unplanned outages; success of planned development
projects; and other development and operating risks.
Although Cameco believes that the assumptions inherent in the forward-looking statements are
reasonable, undue reliance should not be placed on these statements, which only apply as of the
date of this report. Cameco disclaims any intention or obligation to update or revise any
forward-looking statement, whether as a result of new information, future events or otherwise.
- End -
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Investor and media inquiries:
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Alice Wong
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(306) 956-6337 |
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Investor inquiries:
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Bob Lillie
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(306) 956-6639 |
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Media inquiries:
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Lyle Krahn
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(306) 956-6316 |
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