Cameco Stock Price, News & Analysis

Cameco (NYSE: CCJ; TSX: CCO) filed its annual report on Form 40-F with the US Securities and Exchange Commission, including audited financial statements for the year ended December 31, 2022.

It also submitted its Canadian annual information form (AIF) to Canadian securities authorities. The financial results were previously filed in February 2023.

Additionally, Cameco plans to release its management proxy circular on April 6, 2023, for shareholders ahead of their annual meeting on May 10, 2023.

Cameco is a leading provider of uranium fuel for nuclear power, benefitting from significant high-grade reserves and efficient operations.

Cameco (NYSE: CCJ; TSX: CCO) has announced that the Canada Revenue Agency has issued revised reassessments for the tax years 2007-2013. This will result in a refund of approximately $300 million, including $89 million in cash and $211 million in letters of credit. The reassessments follow court rulings that deemed Cameco’s foreign subsidiary income from non-Canadian uranium sales not taxable in Canada, reducing the transfer pricing adjustment from $5.12 billion to $3.25 billion. However, a broader tax dispute with the CRA remains unresolved, with $480 million still held by CRA.

Uranium prices are surging, driven by the green energy transition and energy security concerns amid the European energy crisis. Experts anticipate rising prices in 2023, with uranium remaining above $48 per pound throughout 2022. Although inflation and interest rates have impacted the market, supply concerns continue to support prices. Traction Uranium Corp. announced the receipt of drill permits for its winter 2023 program, targeting high-grade uranium zones at the Key Lake South Property. Ur-Energy is ramping up production to meet increased contract commitments, while Cameco reported significant contracting success, further bolstering the uranium market outlook.

Cameco reported its financial results for Q4 and the year ended December 31, 2022, highlighting record demand for uranium and a strong market outlook. The company contracted 80 million pounds of uranium and achieved a net loss of $15 million for Q4, contrasting with annual net earnings of $89 million. The resumption of production at McArthur River and Key Lake is projected to improve financial outcomes. The partnership with Brookfield Renewable to acquire Westinghouse aims to enhance strategic growth. Cameco anticipates a production increase, planning 18 million pounds annually from McArthur River/Key Lake starting in 2024.

Cameco Corporation (TSX: CCO; NYSE: CCJ) has secured a major supply contract with Ukraine's Energoatom to provide natural uranium hexafluoride (UF₆) through 2035, fulfilling all of Ukraine's nuclear fuel needs. This 12-year agreement, which is subject to finalization in Q1 2023, will supply 100% of UF₆ for nine reactors at three nuclear plants, amounting to approximately 15.3 million KgU. There is also an option to extend supply to the Zaporizhzhya plant, pending its return to Energoatom's control. The contract's financial terms remain confidential.

Uranium prices are projected to rise due to a strong fundamental demand-supply scenario, with 180 million pounds needed annually for existing nuclear reactors. Current production is 130 million pounds, expected to reach 140-145 million pounds by next year. Notably, uranium rose 41% in 2021 but only 10% in 2022.

Experts predict a significant price breakout, comparing the current market to early 2000s patterns. Traction Uranium has entered an option agreement for the Grease River Property in the Athabasca Basin to enhance its uranium exploration efforts. Ur-Energy plans to ramp up production to meet increased contract obligations, while Cameco has resumed uranium production at McArthur River.

Cameco (NYSE: CCJ) has announced the successful initial production of uranium ore from the McArthur River mine, now milled and packaged at the Key Lake mill. This marks a significant milestone, following a four-year suspension due to market weakness. With a workforce of approximately 730, including many Indigenous employees, operational readiness costs are projected at $15 million to $17 million monthly until production stabilizes. The company anticipates substantial financial performance improvements with targeted annual production of 15 million pounds starting in 2024.

Cameco (NYSE: CCJ) has signed a significant uranium supply agreement with China Nuclear International Corporation, a subsidiary of China National Nuclear Corporation. This agreement, finalized earlier this year during the China International Import Expo 2022, is part of Cameco's strategy to enhance its long-term uranium contract portfolio, which has added 50 million pounds in 2022. Cameco's CEO, Tim Gitzel, emphasized China's reliance on nuclear energy to achieve net-zero emissions, aligning with the company's commitment to support these climate goals.

Cameco reported Q3 2022 results, showing a net loss of $20 million but adjusted net earnings of $10 million. The company benefited from higher average realized prices in uranium and fuel services, with uranium production of 2 million pounds and deliveries of 5.3 million pounds at 48% higher prices than last year. Year-to-date, Cameco added 50 million pounds to its long-term uranium contract portfolio. Operational readiness for McArthur River and Key Lake is underway, with production expected in Q4. Cash and short-term investments stand at $1.3 billion, enhancing financial resilience.