Cameco's adjusted earnings per share for the period of C$0.18 (US$0.14) beat the consensus estimate amongst analysts of C$0.01.

"Our results reflect the very deliberate execution of our strategy of full-cycle value capture," Cameco's president and CEO Tim Gitzel said.

"And, we are benefiting from higher average realized prices in both our uranium sales and our fuel services sales as the market continues to transition and geopolitics continue to highlight concentration of supply concerns," he said.

Cameco said that in its uranium segment its share of production was 2.8 million pounds and it delivered 7.6 million lbs at an average realized price 41% higher year on year at C$58.74/lb. The production was more than double the 1.3 million lbs recorded for the same period a year earlier and the sales were up 25%.

BMO Capital Markets said the uranium shipments were 12% of its forecast and the realized price was 5% higher.

"Negatively, the company continues to delay its deliveries of uranium from Inkai, while it awaits alternative non-Russian routes to be utilized," BMO noted.

Cameco's fuel services segment saw production rise 3% year on year to 3.7 million kgU, sales fall 10% to 2.8 million kgU, and average realized prices climb by 8% to C$35.09/kgU.

The company changed the split between its Cigar Lake and McArthur River/ Key Lake but overall kept its share of 2022 production guidance from its tier-one assets unchanged at 11 million lbs.

Stronger production at Cigar Lake is to offset a slower ramp-up at the Key Lake mill due to some delays in the work schedule, the company said.

"At the Key Lake mill, we have encountered some challenges with respect to the availability of critical materials, equipment and skills for some of our critical automation, digitization and other projects," Gitzel said.

Cameco's share price rose 8% day on day to C$32.20 on July 28. The company has a market capitalization of C$12.83 billion.

BMO has a target price for Cameco of C$42.