2015 Financial Results by Segment – NUKEM

Highlights		2015	2014	Change
¹ Includes sales and revenue between our uranium, fuel services and NUKEM segments (0.9 million pounds in sales and revenue of $19.3 million in 2015, 1.1 million pounds in sales and revenue of $43 million in 2014).
Sales volume U₃O₈ (million lbs) ¹		10.7	8.1	32%
Average realized price	($Cdn/lb)	48.82	44.90	9%
Cost of product sold (including D&A)		512	327	57%
Revenue ¹		554	349	59%
Gross profit ($ millions)		42	22	91%
Gross profit (%)		8	9	33%

During 2015, NUKEM delivered 10.7 million pounds of uranium, an increase of 2.6 million pounds compared to the previous year due to an increase in market activity. Revenues from NUKEM amounted to $554 million, 59% higher than in 2014 as a result of higher sales volumes and an increase in the average realized price, mainly due to weakening of the Canadian dollar. Gross profit percentage was 8% for 2015, compared to 6% for 2014.

The net effect was a $20 million increase in gross profit.

NUKEM outlook

For 2016, NUKEM expects to deliver between 9 million and 10 million pounds of uranium. Total revenue and unit cost of sales, not including intersegment sales, is expected to increase by 5% to 10% compared to 2015; however, the overall gross profit percentage is expected to be slightly lower than 2015 at 4% to 5%.