Cameco Corporation (NYSE:CCJ) Q2 2018 Earnings Conference Call - Final Transcript
Jul 25, 2018 • 08:00 am ET
Thank you for standing by. This is the conference operator. Welcome to the Cameco Corporation Second Quarter 2018 Results Conference Call. (Operator Instructions) After the presentation there will be an opportunity to ask questions. (Operator Instructions)
I would now like to turn the conference over to Rachelle Girard, VP, IR. Please go ahead, Ms. Girard.
Thank you, operator, and good morning everyone. Thanks for joining us. Welcome to Cameco's conference call to discuss our second quarter financial results and our decision to suspend production at McArthur River and Key Lake for an indeterminate duration. With us today on the call are Tim Gitzel, President and CEO; Grant Isaac, SVP and CFO; Brian Reilly, SVP and COO; Alice Wong, SVP and Chief Corporate Officer; and Sean Quinn, SVP, Chief Legal Officer and Corporate Secretary.
Tim will begin with comments on our decision and the results. After, we'll open it up for your questions. If you've joined the conference call through our website event page, you will notice there will be slides displayed during the remarks portion of this call. These slides are also available for download in a PDF file called conference call slides through the conference call link at cameco.com.
Today's conference call is open to all members of the investment community, including the media. During the Q&A session, please limit yourself to two questions, then return to the queue.
(Forward-Looking Cautionary Statements)
With that, I will turn it over to Tim.
Well, thank you Rachelle and welcome to everyone on the call today. We appreciate you taking the time to join us, to discuss Cameco's second quarter results and our decision to extend the production suspension at our McArthur River/Key Lake operation, for an indeterminate duration or in other words, indefinitely. I'm going to start with the latter.
You heard me say earlier this year that we are cautiously more optimistic than we were in 2017 and I would say that -- that sentiment prevails. And while we are seeing some positive developments, the reason for our continued caution is that we have not yet seen the type of response we need to see from the uranium market. Prices remain unsustainably low and with about 16 million pounds placed under long-term contracts industry-wide so far this year, there have clearly been very few acceptable long-term contracting opportunities.
As a result, we've decided to extend the suspension of production in McArthur and Key Lake indefinitely. That is a decision our partner Orano fully supports. In addition, to further reduced cost, we will downsize our corporate office workforce in accordance with the decreased level of activity at our operations. These were difficult decisions to make, because of the impact they will have on our employees, their families and other stakeholders. But we must take these actions to ensure the long-term sustainability of the company. We thank our workforce for their hard work and dedication.
We believe our assets are among the best in the world and we will continue to show the