Cameco Stock Price, News & Analysis

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.

Cameco has successfully closed its bought deal offering of 34,057,250 common shares at $21.95 each, raising approximately $747.6 million. The funds will be used to partially finance the acquisition of Westinghouse Electric Company through a partnership with Brookfield Renewable Partners. The offering was facilitated by CIBC Capital Markets and Goldman Sachs & Co. LLC, adhering to U.S. and Canadian securities regulations. Forward-looking statements caution about risks related to the acquisition's completion and market factors.

Cameco announced a bought deal offering of 29,615,000 common shares at $21.95 per share, aiming for gross proceeds of approximately $650 million. The offering, which is set to close around October 17, 2022, includes an option for underwriters to purchase an additional 4,442,250 shares for up to $97.5 million in potential proceeds. The funds will help finance Cameco's acquisition of Westinghouse Electric Company in partnership with Brookfield Renewable. This strategic move aims to enhance Cameco's position in the nuclear services sector.

Cameco announced preliminary operating results for Q3 2022, with expected uranium segment deliveries between 5-5.5 million pounds and fuel services deliveries of 2.1-2.4 million kgU. Uranium production is projected at 2 million pounds from Cigar Lake, while fuel services segment estimates at 1.5 million kgU. Restart activities at McArthur River and Key Lake are progressing, with first production expected in Q4 2022. However, delays in the Inkai joint venture's shipping could affect earnings and dividends. Demand for long-term contracts remains strong, leading to historic pricing for conversion.

Cameco Corporation (CCJ) and Brookfield Renewable Partners are partnering to acquire Westinghouse Electric Company for a total enterprise value of $7.875 billion. Cameco will own 49% while Brookfield and its partners will hold 51%. This strategic partnership aims to leverage both companies' strengths in nuclear energy and clean technology, enhancing the nuclear power sector's role in energy transitions. The acquisition is expected to provide stable cash flow and multiple growth opportunities for Westinghouse, which services half of the global nuclear power generation sector.

Cameco reported strong Q2 results with net earnings of $84 million, a substantial recovery from a $37 million loss in 2021. Revenue increased by 55% to $558 million, driven by higher average realized prices in uranium sales, which saw a 41% year-on-year increase. The company added over 45 million pounds to its long-term uranium contracts this year. Production at Cigar Lake is projected at 18 million pounds, but delays at Key Lake may defer some output to Q4. Cameco's balance sheet remains strong with $1.4 billion in cash. Guidance for 2022 production remains up to 11 million pounds.