Economic value
Cameco's vision is to be a dominant nuclear energy company producing uranium fuel and generating clean electricity. Our strategy is to increase annual uranium production to 40 million pounds by 2018, and to invest in opportunities across the nuclear fuel cycle that complement and enhance our business.
Our continuing profitability depends on production growth and operating efficiency, as well as support from all of our stakeholders. We encourage our employees to help us achieve these goals by managing our operations effectively and by using innovative approaches to meet the challenges of the work we do.
We report on seven measures of direct economic value:
- revenue
- operating costs
- employee wages and benefits
- payments to shareholders
- payments to governments
- community investment
- economic value retained
View our results here.
You can review our full financial results for 2011 here.
Minding the triple bottom line
Evaluating projects in a way that considers their environmental, social and financial impacts strengthens our business and our reputation, and it is now standard practice for all of our major projects.
The Pembina Institute's Life Cycle Value Assessment (LCVA) process is a rigorous, systematic approach to analysis and decision making that takes a holistic look at financial, social and environmental risks and benefits.
Because it considers more than economics alone, LCVA helps us more effectively assess environmental and social impacts and risks, and objectively consider concerns our stakeholders may have, leading to better business decisions and a more transparent decision-making process.
Our environmental leadership team facilitated the development and integration of the LCVA tool in 2008 and it has gradually gained wider acceptance and use in the organization.
With LCVA, we are able to demonstrate that we've considered our investments carefully, with equal care and attention to all three aspects of the triple bottom line – something that is good for our relationships, our reputation and the long-term success of our business.
GRI Indicators
EC1 – Direct economic value
^Outstanding Financial Performance and Governance
This indicator provides information about Cameco's annual revenues, operating costs, employee wages and benefits, payments to shareholders, payments to governments, community investments, and economic value retained.
| 2009 | 2010 | 2011 | |
|---|---|---|---|
| Revenues | 2,314,985 | 2,123,655 | 2,384,404 |
| Operating Costs | 937,411 | 1,024,461 | 1,216,268 |
| Employee Wages and Benefits | 590,000 | 599,731 | 654,293 |
| Payments to Providers of Capital | 144,648 | 173,084 | 207,936 |
| Payments to Government | 57,093 | 74,827 | 60,744 |
| Community Investments | 4,794 | 4,794 | 5,294 |
| Economic Value Retained | 581,039 | 246,758 | 239,869 |
2009 employee wages and benefits have been estimated (not tracked separately at that time).
All figures in Canadian dollars (1000s).
What it means
Revenues
Consolidated revenues increased 12% from 2010 to 2011 because of increased sales volumes.
Operating costs
Operating costs increased by 19% from 2010 to 2011 because of increased sales volumes.
Payments to shareholders (providers of capital)
Payments to shareholders increased 14% from 2010 to 2011 mainly due to higher dividend payments.
Payments to governments (taxes)
Tax payments decreased from 2010 to 2011 due to reduced earnings before taxes overall, and the difference in income between jurisdictions as compared to 2010.
Community investments
We donated approximately $4.8M to communities in both 2009 and 2010. In 2011, our community investments increased approximately 10% to $5.3M.