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 August, 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):
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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 Provides Information on Short-Term Investment Portfolio
Saskatoon, Saskatchewan, Canada, August 20, 2007 . . . . . . . . . . . . . .
Cameco Corporation today provided information on its short-term investment portfolio in light of
the recent disruptions in the global credit markets. At August 17, 2007, Cameco had an investment
portfolio of about $332 million, of which $152 million was invested in US government debt and $60
million in short-term debt issued by two of Canadas largest banks. The remaining $120 million was
invested in asset-backed commercial paper.
In the Canadian market, Cameco had invested $13 million in asset-backed commercial paper held in
two trusts $7.5 million in Apsley Trust, managed by Metcalf & Mansfield and $5.5 million in
Planet Trust, managed under Coventree Capital both of which matured on August 17, 2007. These
two investments are rated R-1 (high) by DBRS, which is the highest possible rating for commercial
paper. However, the holders of these investments have advised they are unable to repay the funds
owed to Cameco. We are investigating the implications of these events, which appear to be a result
of the current lack of liquidity for asset-backed securities rather than the creditworthiness of
the underlying assets. We expect it will take several months to clarify the situation and the best
approach for Cameco to take.
Cameco also has $101 million (US) ($107 million (CDN)) invested in US asset-backed commercial paper
issued by seven different US investment funds. These investments mature between August 27 and
September 18, 2007. All seven investments are rated A1/P1 or A1+/P1 by S&P and Moodys. These are
the highest possible credit ratings for commercial paper by US agencies. The US funds we are
invested in have been making redemptions as scheduled and none have experienced any defaults to
date. While we expect that these US investments will be repaid to Cameco as they reach maturity,
there is uncertainty until the disruptions in the global credit markets are resolved. If repayment
is disrupted, we do not expect this would impact our plans for the company going forward.
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.
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
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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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Gord Struthers
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(306) 956-6593 |
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