Q1 2024 Earnings Summary
Reported on Apr 30, 2024 (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.
Research analysts covering CAMECO.