08:49 AM EST, 11/07/2024 (MT Newswires) -- Cameco ( CCJ ) was up 1.1% in US premarket trade on Thursday despite swinging to a loss in the third quarter as its financial results were impacted by purchase accounting. The company provided a strong 2024 financial outlook, increased its 2024 uranium production outlook and outlined a dividend growth plan.

The company said Q3 results reflect normal quarterly variations in sales volumes, as well as delayed sales for Joint Venture Inkai due to continued transportation challenges, and the ongoing impact of purchase accounting for Westinghouse.

It reported a Q3 adjusted per common share (adjusted and diluted) loss of $0.01 compared to a positive $0.32 a year earlier, and versus a consensus mean forecast of $0.25 at Capital IQ.

On 2024 financial outlook, Cameco ( CCJ ) said it continues to expect strong cash flow generation. Due to the continued strengthening of the US dollar, it has updated its exchange rate assumption to reflect the average rate year to date in 2024 of $1.00 (US) for $1.35 (Cdn). As a result, its expected uranium average realized price increased to $77.80 per pound (previously $74.70 per pound), driving up several financial outlook metrics, including estimated consolidated revenue for the year, which is now expected to be about $3.01 billion to $3.16 billion (previously $2.85 billion to $3.0 billion), and the outlook for its share of Westinghouse's 2024 adjusted EBITDA, which is now expected to be between $460 million and $530 million (previously $445 million to $510 million).

Cameco ( CCJ ) updated its 2024 production outlook to be up to 37.0 million pounds (up to 23.1 million pounds its share) of uranium, to advance strategy in step with the positive market momentum and to meet the company's commitments under long-term contracts.

It said the higher planned annual production level is due to the consistent run rate at the Key Lake mill, which it now expects to produce 19 million pounds (100% basis) of uranium in 2024 (previously 18 million pounds of uranium), partially offset by lower expected production and purchases from JV Inkai. It added expected market and committed purchases for 2024 have been realigned to account for the increased uncertainty on the timing of receipt of its remaining share of 2024 production from JV Inkai. Cameco ( CCJ ) said it has either taken delivery of, or have commitments for, the majority of its expected 2024 market purchases, but may look for additional opportunities to add to inventory.

The board approved a 2024 annual dividend of $0.16 per common share, payable on Dec. 13 to shareholders of record on Nov. 27.

The company said it recommended to its board a dividend growth plan for consideration. Based on its plan, Cameco ( CCJ ) expects an annual increase of at least $0.04 per common share over the fiscal periods 2024 through 2026, to achieve a doubling of the 2023 dividend from $0.12 per common share, to $0.24 per common share. In 2022, it noted, the board increased the dividend by 50% to reflect the expected improvement in financial performance as it began the transition to a tier-one run rate.

"Apart from the impact of a stronger US dollar, our financial outlook for both Cameco ( CCJ ) and Westinghouse remained strong and unchanged," said Cameco ( CCJ ) president and CEO Tim Gitzel. "To recognize the return to our tier-one production rate and the continued strengthening of the industry's long-term prospects, our board of directors declared an increased 2024 annual dividend of $0.16 per common share."