ranked 25th out of 232 Canadian companies by Globe and Mail in governance practices
Revenue and Operating Costs*
2011
2012
2013
Revenue
2400000000
1900000000
2400000000
Operating Costs
1200000000
1200000000
1600000000
G&M Governance Scores
2011
2012
2013
G&M Governance Scores
91
91
88
Community Investment Dollars
2011
2012
2013
Community Investment
5300000
5300000
4100000
*Starting in the first quarter of 2013, IFRS 11 – Joint Arrangements requires that we account for our interest in Bruce Power Limited Partnership using equity accounting. Our results for 2012 have been revised for comparative purposes; however, our results prior to 2012 have not been revised.
Corporate Targets
Our corporate objectives are designed to help us achieve our strategy, which you can read about in the Approach section of this report.
Outstanding Financial Performance
2013 Objectives
Results
1 We use adjusted net earnings and cash flow from operations (before working capital changes) as a more meaningful way to compare our financial performance from period to period. These measures do not have a standardized meaning or a consistent basis of calculation under IFRS (non-IFRS measure), and they should not be considered in isolation or as a substitute for financial information prepared in accordance with IFRS. Other companies may calculate these measures differently. Adjusted net earnings (non-IFRS measure) is our net earnings attributable to equity holders, adjusted to better reflect the underlying financial performance for the reporting period. This measure reflects the matching of the net benefits of our hedging program with the inflows of foreign currencies in the applicable reporting period and adjusted for impairment charges, inventory write-downs, losses on exploration interests and income taxes on adjustments. Cash flow from operations (before working capital changes) of $669 million is cash provided by operations of $530 million with the changes in non-cash working capital of $139 million added back. Changes in non-cash working capital includes changes in accounts receivable, inventories, supplies and prepaid expenses, accounts payable and accrued liabilities, and certain other operating items, as further detailed in note 24 to our audited 2013 financial statements.
Earnings Measures
Achieve targeted adjusted net earnings and cash flow from operations (before working capital changes).
Exceeded
Adjusted net earnings1 were $445 million, 11% higher than our target.
Cash flow from operations (before working capital changes)1 was $669 million, 11% higher than our target.
Capital Management
Execute capital projects within scope, on time and on budget.
Partially achieved
Our cost performance indicator for 2013 was 0.87 (over budget), above the threshold; however, below the target of 1.0, due to cost overruns and necessary scope additions at Cigar Lake.
Our schedule performance indicator was below our threshold for 2013, resulting in a zero rating.
Cigar Lake
Achieve production at Cigar Lake in 2013.
Not achieved
In 2013, we made strong progress toward production, including jetting in waste, assembling a second jet boring system underground, and commissioning most of the other mine systems. We were also successful in obtaining the required construction and operating licence. However, production of the first packaged pounds was delayed as a result of additional work to ensure the safe, efficient operation of the mine and mill. In December, we began jet boring in ore, and have since completed the first cavity in ore.
Safe, Healthy and Rewarding Workplace
2013 Objectives
Results
1 Measured against the Occupational Safety and Health Administration (OSHA) safety metrics, total recordable incident rate (TRIR) and days away, restricted or transferred (DART), adopted by the company to continue to drive improvements in safety performance. TRIR is a measure of the rate of “recordable” workplace injuries. Examples of “recordable injuries” are a medical treatment (other than first aid), restricted work, lost time and other specific injuries such as 10 decibel hearing loss, loss of consciousness and broken bone. DART is a measure of the rate of workplace injuries and illnesses that require employees to miss work, perform restricted work activities or transfer to another job within a calendar year.
Strive for no lost-time injuries (LTI) at all Cameco-operated sites and, at a minimum, maintain a long-term downward trend in combined employee and contractor injury frequency and severity, and radiation doses.
Exceeded
Overall safety performance was strong in 20131. Injury rates trended downward across the company and were better than expected. Average radiation doses remained low and stable. In the past two years, we have met our targets for safety performance.
Attract and retain the employees needed to support operations and growth.
Achieved
We were listed as both a Top 100 Employer (for the fourth year in a row) and one of the Financial Post’s 10 Best Companies to Work For, in addition to receiving awards for being among Saskatchewan’s Top 10 Employers, Canada’s Best Diversity Employers, Top Employer for Canadians Over 40, and a Top Employer for Young People.
Our 2013 turnover rate of 8.3% (excluding the impact of restructuring) was lower than our target of 9%.
The expected turnover rate for new hires within the first year of employment was slightly higher than expected at 12.7%.
Clean Environment
2013 Objectives
Results
Do not incur an incident that results in moderate or significant environmental impacts or remediation costs of greater than or equal to $1M or which has reasonable potential to result in significant negative impact on the company’s reputation. Achieve a decreasing trend for environmental incidents, measured as less than the long-term average.
Exceeded
There were no significant environmental incidents in 2013, and our reportable environmental incidents were significantly lower than our long-term average of 38, with only 22 over the course of the year.
Supportive Communities
2013 Objectives
Results
Increase employment of residents of Saskatchewan’s north (RSN) by 2% (15 net additions) over 2012.
Support northern business development opportunities by procuring at least 75% of northern services from northern Saskatchewan vendors.
Not achieved
Overall RSN employment decreased seven positions from 2012 to 747 positions. However, we were successful in adding 18 RSN employees at Cigar Lake, and maintained a 50% RSN workforce overall at the northern sites.
Only 67% of northern services were procured from northern Saskatchewan vendors. We did not achieve our target due to disproportionate growth in overall spend, cost efficiencies and a temporary increase in expenditures, largely growth capital at Cigar Lake which required specialized services that were not available from northern Saskatchewan vendors. Over the past few years, overall spend has grown faster than the growth in capacity of northern vendors. Despite not achieving our targeted ratio, the nominal business volume with northern Saskatchewan vendors has more than doubled since 2009.
2014 Objectives
Outstanding Financial Performance
Achieve targeted adjusted net earnings and cash flow from operations.
Execute capital projects within scope, on time and on budget.
Achieve production at Cigar Lake in 2014, and advance other activities needed to achieve medium and long-term growth objectives.
Safe, Healthy and Rewarding Workplace
Improve workplace safety and performance at all sites
Attract and retain the employees needed to support operations and growth.
Clean Environment
Improve environmental performance at all sites.
Supportive Communities
Build and sustain strong stakeholder support for our activities.
