Q1 2024 Earnings Summary
Reported on Jan 4, 2025 (Before Market Open)
Pre-Earnings Price$49.42Last close (Apr 29, 2024)
Post-Earnings Price$48.12Open (Apr 30, 2024)
Price Change
$-1.30(-2.63%)
- Cameco is well-positioned to benefit from increasing uranium prices in the long-term market, with the average term price rising to $77.50 per pound and utilities seeking longer-term contracts due to supply concerns.
- Cameco has substantial uncontracted uranium resources (approximately 800 million pounds), allowing it to capitalize on future price increases, with only about 20% of reserves committed.
- Cameco is ramping up production from Tier 1 assets and evaluating expansion plans like McArthur River, with the ability to bring back Tier 2 capacity, positioning the company to meet growing market demand without costly greenfield investments.
- Supply chain and transportation risks due to geopolitical events are impacting nuclear fuel procurement strategies and the fuel cycle, potentially affecting Cameco's operations and deliveries.
- Cameco's Inkai joint venture faces production risks due to sulfuric acid shortages, which may persist for a couple of years until a new plant is built, potentially impacting the guidance of 8.3 million pounds from Inkai.
- There is uncertainty and potential delays in expanding production at McArthur River, as the company is still evaluating what it will take to expand, with no definite timeline provided.