EX-99.4 5 o69465exv99w4.htm EX-99.4
Exhibit 99.4

2011 Business Review KEEPING PACE WITH GLOBAL URANIUM DEMAND

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2010 2009 2008 2007 2006 Operations

Revenue $2,124 $2,315 $2,183 $1,905 $1,418 Net earnings 515 1,099 450 416 376

Adjusted net earnings1,2 496 528 525 554 237 Cash provided by operations3 507 690 530 756 327

Capital expenditures 470 393 531 362 339 Financial Position

Total assets $7,671 $7,394 $7,011 $5,371 $5,140 Total debt 1,026 1,041 1,313 726 705

Shareholders’ equity 5,216 4,844 3,514 2,744 2,741 Financial Ratios

Current ratio (current assets/current liabilities) 4.3:1 3.3:1 1.5:1 1.9:1 2.7:1 Return on common shareholders’ equity 10% 26% 14% 15% 15%

Net debt to capitalization n/a4 n/a4 26% 18% 12% Cash from operations/total net debt n/a4 n/a4 42% 127% 88%

Production (Cameco’s Share) Uranium production (million lbs U3O8) 22.8 20.8 17.3 19.8 21.0

Fuel services (million kgU) 15.4 12.3 8.3 12.9 15.4 Production (100% Basis)

Electricity generation (terawatt hours)5 25.9 24.6 24.7 25.3 25.8 1 Adjusted net earnings, a non-GAAP measure, should be considered as supplemental in nature and not a substitute for related financial information prepared in accordance with GAAP.

Consolidated net earnings are adjusted in order to provide a more meaningful basis for period-to-period comparisons of the financial results.

2 We have changed our method for determining adjusted net earnings to exclude all amounts related to our investment in Centerra Gold Inc. Previously, we had included our share of operating income from Centerra in our adjusted earnings measures. A reconciliation of adjusted net earnings to net earnings is available on our website at cameco.com/investors.

3 Cash flows are shown after working capital requirements (which may fluctuate significantly from year to year). Please see 2010 annual financial statements and MD&A for further information.

4 Not applicable. For 2009 and 2010, cash and short-term investments exceeded total debt. 5 Represents 100% of output from Bruce Power Limited Partnership (Cameco has a 31.6% interest in Bruce Power).

Dollars are expressed in $Cdn millions. FIVE-YEAR FINANCIAL SUMMARY

Uranium Revenue ($billions)

1.51 1.55

10 1.37 09

08 Cameco’s uranium revenue is expected

to rebound in 2011. Uranium Production

(million pounds) 17.3

20.8 10 22.8

09 08

Cameco’s uranium production rose 10% in 2010 from 2009.

Fuel Services Revenue ($millions)

252 276

10 301 09

08 Revenue from fuel services was up

despite the strong Canadian dollar. Fuel Services Production

(million kgU) 8.3

12.3 10 15.4

09 08

Cameco’s fuel production increased 25% in 2010 over 2009.

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We are well positioned to take full advantage of the growth in nuclear energy. Cameco has a geologically and geographically diverse reserve and resource base, low-cost mines, a strategy to double our annual production to 40 million pounds by 2018, and the financial flexibility to get us there. The uranium contract portfolio we’ve built over the past 23 years, and our discipline and expertise in managing our operations efficiently and costeffectively, give us a steady revenue stream that we can rely on as we grow. At the same time, we’re providing healthy dividends. We’ve increased our annual dividend seven times in the last nine years, including an announced 43% increase from $0.28 to $0.40 per share starting in 2011. Integral to our success is a strong and dedicated group of employees. In addition to being among the top 100 employers in Canada again this year, we were recognized once again as one of Canada’s Best Diversity Employers. This is particularly significant, given our goal to reach 67% northern employment at our northern Saskatchewan operations, and a record of achievement that speaks well for us as we move ahead at Kintyre in Australia. The nuclear business is a long-term story: there’s no predicting the ups and downs of the commodity cycle. But nuclear energy is in demand, and that demand is growing. Cameco, with its new leadership, is uniquely positioned to grow and be successful, and to build value for our shareholders. We’re very excited about the years ahead. Jerry Grandey CEO

CAMECO IS POSITIONED TO CATCH THE VALUE IN THE MARKET AS WE DOUBLE ANNUAL PRODUCTION BY 2018.

DO BLE PLAY CAMEC

MARKE A Safe, Healthy

and Rewarding Workplace A Clean Environment

Supportive Communities Outstanding Financial

Performance OF SUCCESS:

FOUR MEASURES CAMECO’S

In 2010, we began to see the growth we’ve been anticipating become reality,

as the demand for nuclear power and uranium fuel continued to build around

the world. We acknowledge the tragic events in

Japan and the short-term challenges that the nuclear industry will face, but

the long-term fundamentals remain the same. Many countries are starting

or expanding their nuclear programs, including India, South Korea, Brazil,

Russia, Vietnam and the United Arab Emirates. China is the leader by far,

with over a third of all reactors under construction in the world today.

Overall, we expect about 100 (net) new nuclear reactors will be built

by 2020. In 2010, these nuclear growth

programs began to have an impact on the market. For example,

China began to secure longer-term uranium supplies, and we signed

two key agreements for a total of 52 million pounds. We see

considerable potential to expand our relationships in this important region.

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KEEPING PACE WITH GLOBAL URANIUM DEMAND

the production of clean electricity by nuclear power plants around the world.

We also own Cameco Fuel Manufacturing Inc. based in Ontario,

MORE THAN MINING

DOUBLE U PROJECT PIPELINE Millennium

McArthur River extension Inkai block 3

Kintyre Inkai expansion (blocks 1 & 2)

US ISR expansion Cigar Lake

McArthur River / Key Lake Rabbit Lake / Eagle Point

Inkai (blocks 1 & 2) US ISR

Feasibility Construction Detailed assessment Construction Ramp up

Scoping Construction Ramp up Pre-feasibility Construction Ramp up

Construction Ramp up Production Existing production

2011 > 2018 Pre-feasibility Construction Ramp up

Feasibility Construction Ramp up Projects

under evaluation

Development projects

Operating properties

million lbs U3O8

40 Estimated timelines are subject to the material risks and assumptions described in the last page at Caution about forward-looking information, and on pages 2-3 and 16-19 of our annual MD&A.

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NUCLEAR FUTURE: WHY LONG-TERM GROWTH IN THE NUCLEAR INDUSTRY MEANS OPPORTUNITY FOR CAMECO TODAY. 1. Fuel buying for the future is underway.

With the global reactor fleet expected to increase by more than 20% over the next decade, many

countries and utilities are beginning to procure fuel supplies today.

On average, the first load of fuel for a new powergenerating facility — called the first core — is more

than double the annual reload requirement. To ensure adequate supply, first-core requirements

are generally contracted four to six years ahead of power generation.

This new demand is beginning to impact the uranium market. In 2010, China committed to

purchase more than 170 million pounds of uranium under long-term contracts.

The growing demand helped spark a 50% increase in the average spot-market price for uranium in

the second half of 2010, creating an opportunity to use our market insights to capitalize on

pricing changes. 2. Growing demand fuels price increases.

Expanding long-term fuel requirements are creating a need for new investment in uranium exploration

and production. Developing new supply can take more than a decade and uranium producers need

strong demand-driven prices to commit to long-term investments.

Over the next 10 years, we anticipate demand for uranium will increase moderately, with the potential

for more rapid growth toward the end of the period, as the construction of nuclear plants accelerates

and customers procure first cores. The expected continued growth in demand supports

our plan to invest in development and additional sources of future supply. Growing demand will

add value to our target of Double U. 3. We have a unique ability to benefit from price

increases and demand growth. Our large portfolio of low-cost mining operations,

our extensive long-term contract portfolio supported by 476 million pounds of proven and probable

mineral reserves and our market intelligence provide us with an advantage in capitalizing on

demand and price growth in the uranium industry.

As one of the largest producers, we have relationships with global customers who depend

on our ability to meet their long-term needs. This gives us an advantage over competitors

whose uranium production is a secondary part of their business and over smaller producers

who cannot provide security of supply. For investors, we represent a unique, liquid,

pure-play opportunity in the nuclear industry — with the large-scale reserve base to meet the

long-term needs of global customers and the singular focus to capture value as prices rise.

3 1. Long-term growth in the nuclear industry

2. Higher uranium prices 3. Double U

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Fuel Services Our Port Hope conversion facility

produces both UF6 and UO2 which, after further processing, is used for

which produces fuel bundles and reactor components for Candu reactors.

At Blind River, we refine U3O8 from mines around the world into UO3.

Springfields Fuels Ltd. in the United Kingdom converts five million kilograms

of uranium into UF6 annually for us through a toll processing agreement.

Electricity We own 31.6% of Bruce Power Limited

Partnership in Ontario, which operates four nuclear power plants in Ontario.

AS WE INCREASE ANNUAL PRODUCTION, WE ARE ALSO

INVESTING IN OUR FUEL SERVICES CAPABILITIES TO SUPPORT

OUR OVERALL GROWTH IN THE NUCLEAR BUSINESS.

McArthur River/Key Lake Northern Saskatchewan, Canada

McArthur River is the world’s largest high-grade uranium mine, with an average

reserve grade of over 15% — approximately 100 times the world average. We are

transitioning to new mining areas and refurbishing the mill at Key Lake to ensure

continued reliable production. We are a 70% owner and operator of the mine.

Project Overview Cigar Lake Project Northern Saskatchewan, Canada

Cigar Lake, under development, is the world’s second largest high-grade deposit,

with an average reserve grade of 17%. We expect it to come into production in

mid-2013 and, after a three-year ramp up, provide us with an additional 9 million

pounds of uranium annually. We are a 50% owner and operator of the mine.

Inkai Mine Republic of Kazakhstan

Inkai is a very significant uranium deposit. In 2010, we continued to ramp up production

at Inkai blocks 1 and 2, exceeding 2009 production by 136%. We are seeking

approval to increase annual production from these blocks to 5.2 million pounds (our

share 3.1 million pounds). We continue to investigate the opportunities in block 3,

which shows great potential. We jointly own Inkai (60%) with Kazatomprom (40%).

2010 Production 13.9 million lbs U3O8 (our share) — 2.6 million lbs U3O8 (our share) In 2011, we will continue work on the

McArthur River extension project, to advance the underground exploration drift

to the north of the current mining areas. We will also begin work on a feasibility

study for the zones north of the current mining areas.

Goals & Milestones In 2010, we completed dewatering the underground development and began

implementing a surface freezing strategy. In 2011, we expect to complete sinking

shaft 2, remediation of the underground workings, and resume underground

construction. In 2011, we expect to continue delineation

drilling at block 3, and begin developing infrastructure and engineering for a test

leach facility. We are co-operating with our partner to eventually obtain government

approval to double annual production to 10.4 million pounds (our share 5.7 million

pounds) from blocks 1 and 2. Uranium Assets

476 million lbs proven and probable mineral reserves

DOUBLE TIME: AS NEW PROJECTS COME ONLINE, AND EXISTING ONES INCREASE CAPACITY, CAMECO’S PLAN IS TO DOUBLE URANIUM PRODUCTION B

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3 Global energy demand and a significant increase in nuclear reactor

construction represent an opportunity for our long-term growth as one of the

world’s largest uranium producers. With utilities beginning to build fuel

supplies for new reactors, market prices for uranium have risen. With our

focus on uranium, we have unmatched market intelligence that allows us to

capitalize on shifts in prices. Our plan to double annual uranium

production to 40 million pounds by 2018 will increase our ability

to capitalize on the nuclear renaissance by selling higher

volumes at higher prices. TO VALUE CREATION

THREE ROADS CAMECO’S

Kintyre Project Western Australia

We own 70% of and operate Kintyre, an advanced uranium exploration project in

Western Australia. It adds potential for low-cost production and diversifies our

geographic reach and deposit types. We are working on a prefeasibility study.

Rabbit Lake Mine and Mill Northern Saskatchewan, Canada

In 2010, the mineral reserves and mine life were, once again, increased at Rabbit

Lake. It has been in production for more than three decades, producing 183 million

pounds over that time. We are refurbishing the mill to ensure continued reliable

production. We expect the mill to process about half the uranium from Cigar Lake

when it comes into production. Smith Ranch-Highland

Wyoming, US Crow Butte

Nebraska, US Our US operating mines are longestablished

in situ recovery operations. Smith Ranch-Highland operates as a

combined uranium production facility, the largest in the United States. Crow Butte is

the first uranium mine in Nebraska. Millennium Project

Northern Saskatchewan, Canada Millennium shows potential as a

uranium deposit that could be mined in the future. Should Millennium prove

economic, it could take advantage of the planned increase in milling capacity

at Key Lake. Our share of the project is 42%.

3.8 million lbs U3O8 2.5 million lbs U3O8 — — In 2011, we will continue to move toward

a production decision. We expect to generate a mineral resource estimate,

carry out further exploration, complete a memorandum of understanding for a

mine development agreement with the Martu, submit an environmental review

and management program to the regulator, and complete the prefeasibility study.

In 2010, we added mineral reserves, extending Rabbit Lake’s expected mine

life by two years to 2017. In 2011, we expect to produce 3.6 million pounds.

We are planning to expand the tailings management facility by mid-2016 to

support the extended mine life and future mill operation.

Smith Ranch-Highland and Crow Butte are both slated for expansion. In 2011,

we expect applications for expansion to be reviewed by the regulator and

production of 2.5 million lbs. In 2010, we completed our mine design,

achieving positive results. In 2011, we expect to complete environmental

assessment work and submit the environmental impact study to the

regulators in late 2011 or early 2012. We will also undertake further studies

and design work to advance the project. BY 2018. E Existing production U Under development P Potential

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Common Shares Toronto (CCO) | New York (CCJ)

Transfer Agents and Registrars For information on common share holdings, dividend cheques, lost share

certificates and address changes, contact: In Canada: In the United States:

CIBC Mellon Trust Company BNY Mellon Shareowner Services P.O. Box 7010 480 Washington Blvd.

Adelaide Street Postal Station Jersey City, New Jersey 07310 Toronto, Ontario M5C 2W9 U.S.A.

Canada Telephone:

1-800-387-0825 (toll-free within Canada and the United States) OR

1-416-643-5500 (from any country other than Canada and the United States)

Fax: 1-416-643-5501 (all countries)

cibcmellon.com/investorinquiry Annual Meeting

The annual meeting of shareholders of Cameco Corporation is scheduled to be held on Tuesday, May 17, 2011 at 1:30 p.m. at Cameco’s head office

in Saskatoon, Saskatchewan. Dividend Policy

The board of directors has established a policy of paying a quarterly dividend of $0.10 ($0.40 per year) per common share for 2011. This policy

will be reviewed from time to time in light of the company’s cash flow, earnings, financial position and other relevant factors.

Inquiries Cameco Corporation

2121 — 11th Street West Saskatoon, Saskatchewan S7M 1J3

Phone: 306-956-6200 Fax: 306-956-6201 Caution about forward-looking information

We are making statements and providing information about our expectations for the future which are considered to be forward-looking information or forward-looking statements under Canadian

and United States securities laws. These include our statements about our aim to double our annual uranium production by 2018 and how we expect to achieve this goal, our statement that our uranium

revenue is expected to rebound in 2011, the timing expectations shown in our “Double U Project Pipeline”, the number of new nuclear reactors we expect will be built by 2020 and our statement that

our uranium contract portfolio and discipline and expertise in managing our operations give us a steady revenue stream that we can rely on as we grow. They also include other statements using

words such as will, slated, potential, could, expect, ensure, continue, plan, anticipate, seek and target, or statements described as goals or milestones. These statements represent our views as of March 14,

2011, and can change significantly. We are presenting this information to help you understand management’s current views of our future prospects, and it may not be appropriate for other

purposes. We will not necessarily update this information unless we are required to by securities laws.

This information is based on a number of material assumptions, and is subject to a number of material risks, which are discussed in our current annual MD&A, including under the heading

“Caution about forward-looking information”. In particular, we have made assumptions about 2018 production levels at our existing mines, and assumptions about the development of mines that are not

operating yet and their 2018 production levels. If an assumption about one or more mines proves to be incorrect, we will not reach our 2018 target production level unless the shortfall can be made up

by additional production at another mine. The material risks that could prevent us from reaching our target include the risks that we may not be able to maintain or increase production levels at McArthur

River, Inkai and our other operating properties, there are further delays in reaching full production levels at Cigar Lake, development of Kintyre is delayed because of political, regulatory or Aboriginal

issues, we cannot move ahead with production at Kintyre, Millennium or our other projects under evaluation, we cannot upgrade mineral resources to mineral reserves, lack of milling capacity,

uranium prices or development and operating costs make it uneconomical to develop projects under evaluation, and disruption in production or development due to natural phenomena, labour disputes,

political risks or other development and operating risks. Qualified Persons

Information of a scientific and technical nature concerning Cigar Lake was prepared under the

supervision of Grant Goddard, P. Eng., Cameco’s Vice-President, Saskatchewan Mining North, concerning McArthur River was prepared under the supervision of David Bronkhorst, P. Eng.,

Cameco’s Vice-President, Saskatchewan Mining South, and concerning Inkai was prepared under the supervision of Charles Foldenauer, JV Inkai’s General Manager, Operations and Development.

Each of these individuals is a qualified person for the purpose of NI 43-101. CAMECO.COM FOR COMPREHENSIVE FINANCIAL INFORMATION VISIT:

INVESTOR INFORMATION