Cameco’s tax dispute with the Unites States Internal Revenue Service has been settled.
The original ask was $122-million from the Saskatoon-based uranium mining company but instead, Cameco will pay $122-thousand.
President and CEO Tim Gitzel believes this confirms that the company’s structure and transfer pricing arrangements are appropriate.
The court case with the Canada Revenue Agency is ongoing.
Both sides have presented evidence, with the final arguments scheduled for September and then it’s up to the judge, which Gitzel estimates could be anywhere from 6 to 18 months after that.
Cameco released its second quarter report today (Thurs) which shows the uranium spot price down 13 per cent compared to last year.
Gitzel says that means a weaker outlook for this year in difficult market conditions.
To mitigate the conditions, Cameco has reduced supply, resisted locking in to long-term commitments at today’s low prices, and has cut costs significantly.
Gitzel says short term is challenging, but he expects the global need for uranium for nuclear power to rise as the population does and therefore so does the need for safe, reliable electricity.