Cameco To Seek Remedies For TEPCO's Contract Termination - Quick Facts

(RTTNews) - Cameco (CCO.TO, CCJ) announced Tokyo Electric Power Company Holdings, Inc. (TEPCO) has issued a termination notice for a uranium supply contract with the company. On January 31, 2017, TEPCO confirmed it would not accept a uranium delivery scheduled for February 1, 2017. TEPCO alleged that an event of 'force majeure' has occurred because it has been unable to operate its nuclear generating plants for 18 consecutive months due to government regulations arising from the Fukushima nuclear accident in March 2011.

The contract termination would affect approximately 9.3 million pounds of uranium deliveries through 2028, worth approximately $1.3 billion in revenue to Cameco, including about $126 million in each of 2017, 2018 and 2019 based on 855,000 pounds of deliveries in each of these years. Under the contract, TEPCO has already received and paid for 2.2 million pounds of uranium since 2014.

Cameco said it will be moving expeditiously to enforce rights under the uranium supply contract to recover losses arising from TEPCO's actions. Cameco said it has sufficient financial capacity to manage any loss of revenue in 2017 as a result of the dispute. In 2017, Cameco's consolidated revenue, including the TEPCO volume, is expected to range between $2.1 billion to $2.2 billion.