In its second quarter earnings statement, Canadian uranium miner Cameco said it had settled its tax dispute with the U.S. Internal Revenue Service (IRS) for the years 2009 through 2012. “We are required to pay about $122,000, compared to the originally proposed tax expense of $122 million,” said Tim Gitzel, president and CEO, Cameco. “We are encouraged by this outcome as we believe it confirms, from an IRS perspective, our view that our structure and transfer pricing arrangements are appropriate.”

Gitzel also shed light on the current market conditions for uranium. “We continue to face difficult market conditions, with the average year-to-date uranium spot price down 13% compared to the 2016 average,” Gitzel said. “Our weaker outlook for 2017 compared to 2016 reflects the low uranium prices and the effects of the actions we have taken to address them.”

Cameco has reduced its planned capital expenditures for 2017 by 20% compared to 2016.