Outlook for 2014

Our strategy is to profitably produce at a pace aligned with market signals, while maintaining the ability to respond to conditions as they evolve.

Our outlook for 2014 reflects the expenditures necessary to help us achieve our strategy. We do not provide an outlook for the items in the table that are marked with a dash.

See 2013 Financial results by segment for details.

2014 financial outlook

Subject to closing, we sold our interest in BPLP and related entities effective December 31, 2013, and we will no longer provide an outlook for the electricity segment.

	Consolidated	Uranium	Fuel Services	NUKEM
¹ Based on a uranium spot price of $35.50 (US) per pound (the Ux spot price as of February 3, 2014), a long-term price indicator of $50.00 (US) per pound (the Ux long-term indicator on January 27, 2014) and an exchange rate of $1.00 (US) for $1.03 (Cdn). ² This increase is based on the unit cost of sale for produced material and committed long-term purchases. If we make discretionary purchases in 2014, then we expect the overall unit cost of sales to increase further. ³ Direct administration costs do not include stock-based compensation expenses. See Corporate expenses for more information.
Production	–	23.8 to 24.3 million lbs	13 to 14 million kgU	–
Sales volume	–	31 to 33 million lbs	Decrease 5% to 10%	9 to 11 million lbs U₃O₈
Revenue compared to 2013	Increase 0% to 5%	Increase 0% to 5%¹	Decrease 5% to 10%	Increase 0% to 5%
Average unit cost of sales (including D&A)	–	Increase 0% to 5%²	Increase 0% to 5%	Increase 0% to 5%
Direct administration costs compared to 2013³	Increase 0% to 5%	–	–	Increase 0% to 5%
Exploration costs compared to 2013	–	Decrease 35% to 40%	–	–
Tax rate	Recovery of 30% to 35%	–	–	Expense of 30% to 35%
Capital expenditures	$495 million	–	–	–

Sensitivity analysis

For 2014, a change of $5 (US) per pound in each of the Ux spot price ($35.50 (US) per pound on February 3, 2014) and the Ux long-term price indicator ($50.00 (US) per pound on January 27, 2014) would change revenue by $67 million and net earnings by $42 million.