Equity-accounted investee

12 Months Ended

Dec. 31, 2020

Investments accounted for using equity method [Abstract]

11. Equity-accounted investee

JV Inkai is the operator of the Inkai uranium deposit located in Kazakhstan. Cameco holds a 40% interest and Kazatomprom holds a 60% interest in JV Inkai. Cameco does not have joint control over the joint venture and as a result, Cameco accounts for JV Inkai on an equity basis.

JV Inkai is a uranium mining and milling operation that utilizes in-situ recovery (ISR) technology to extract uranium. The participants in JV Inkai purchase uranium from Inkai and, in turn, derive revenue directly from the sale of such product to third-party customers.

The following tables summarize the financial information of JV Inkai (100%):



		2020		2019


Cash and cash equivalents	$	47,539	$	16,699
Other current assets		115,647		139,324
Non-current assets		343,767		398,721
Current liabilities		(26,397)		(71,162)
Non-current liabilities		(39,991)		(41,508)

Net assets	$	440,565	$	442,074



		2020		2019


Revenue from products and services	$	252,764	$	261,860
Cost of products and services sold		(57,358)		(64,199)
Depreciation and amortization		(24,081)		(27,740)
Finance income		367		651
Finance costs		(825)		(2,939)
Other expense		(12,305)		(23,767)
Income tax expense		(44,804)		(30,999)

Net earnings		113,758		112,867

Other comprehensive loss		(97)		(1,773)

Total comprehensive income	$	113,661	$	111,094

The following table reconciles the summarized financial information to the carrying amount of Cameco’s interest in JV Inkai:


		2020		2019


Opening net assets	$	442,074	$	416,843
Total comprehensive income		113,661		111,094
Dividends declared		(64,456)		(66,369)
Impact of foreign exchange		(50,714)		(19,494)

Closing net assets		440,565		442,074

Cameco's share of net assets		176,226		176,830
Consolidating adjustments^(a)		(38,975)		(30,633)
Fair value increment^(b)		89,184		91,697
Dividends declared but not received		-		13,859
Dividends in excess of ownership percentage^(c)		(9,669)		-
Impact of foreign exchange		2,922		928

Carrying amount in the statement of financial position at December 31, 2020	$	219,688	$	252,681

(a) Cameco records certain consolidating adjustments to eliminate unrealized profit and amortize historical differences in accounting policies. This amount is amortized to earnings over units of production.

(b) Upon restructuring, Cameco assigned fair values to the assets and liabilities of JV Inkai. This increment is amortized to earnings over units of production.

(c) Cameco’s share of dividends follows its production purchase entitlements which is currently higher than its ownership interest.