The uranium market has been red hot, with prices soaring higher for the element that's used to fuel nuclear power plants. This has also led to the strong performance of uranium miners such as Cameco (CCJ 1.43%) and Uranium Energy Corp. (UEC 0.75%). While both companies are set to benefit from continued increasing uranium prices, Uranium Energy is positioned to benefit more. Here's why.Why prices have been soaringPricing for commodities generally comes down to supply and demand, and uranium is no exception. ...

Location and Infrastructure - The Cigar Lake mine site is located approximately 660 kilometers north of Saskatoon, covering a total contiguous area of 95,601 hectares[55]. - The Cigar Lake mine site has a total area of 715 hectares of Crown land, covering portions of mineral lease ML 5521 and claims S-106556 to S-106560[57]. - The mine site is accessible via an all-weather road and air, with ore being shipped year-round to McClean Lake by truck[59]. - The mine site contains essential infrastructure, including two underground shafts, an airstrip, and various facilities for personnel accommodation and operations[66]. - The Cigar Lake operation is in close proximity to two uranium milling operations: McClean Lake (69 kilometers northeast) and Rabbit Lake (87 kilometers east)[55]. Mining Operations and Techniques - Cameco has been the mine operator for the Cigar Lake lands since 2002, while Orano operates the Waterbury Lake lands[55]. - The Cigar Lake operation has seen progress since the 2016 Technical Report, with updates on mineral resources and reserves as of December 31, 2023[50]. - The Cigar Lake operation is linked to other uranium milling operations, including Orano's McClean Lake and Cameco's Rabbit Lake, enhancing operational synergies[63]. - The Cigar Lake project utilizes the jet boring mining method combined with bulk freezing of the orebody for uranium recovery[139]. - The mining methods include drill and blast with conventional ground support and NATM, with a focus on minimizing groundwater interaction[172]. Mineral Resources and Reserves - The mineral resource estimates for CL Main and CLEXT were updated in late 2023, with no material issues raised during the independent audit of the estimation process[120]. - The Cigar Lake mineral resources, as of December 31, 2023, include 229.9 million tonnes with an average grade of 5.32% U3O8, totaling 27.0 million pounds U3O8[135]. - The estimated mineral reserves as of December 31, 2023, total 555.6 million tonnes with an average grade of 17.03% U3O8, containing approximately 208.6 million pounds U3O8[145]. - The mining recovery rate is estimated at 86%, with mill recovery factors of 98.8% for CL Main and 98.5% for CLEXT[145]. - The estimated pre-tax NPV for Cameco's share of the Cigar Lake mineral reserves is $2.5 billion, based on a discount rate of 8%[238]. Financial Information - The estimated capital costs for the Cigar Lake project are approximately $1.2 billion, with Cameco's share being $680 million[233]. - Operating costs for the Cigar Lake operation are estimated at $20.58 per pound U3O8, an increase from the previous estimate of $18.75 per pound U3O8[236]. - Total operating costs forecasted from 2024 to 2036 amount to $4.2366 billion[237]. - Expected sales revenue for Cameco is projected to reach $8,278.8 million by 2035, with a steady increase from $628.4 million in 2024[239]. - Cameco pays a basic royalty of 5% on gross uranium sales and a profit royalty of 10% on profits up to $28.182 per kilogram U3O8[244]. Environmental and Regulatory Compliance - The Cigar Lake project holds a "Uranium Mine Licence" valid until June 30, 2031, allowing an average annual production rate of up to 18 million pounds U3O8[215]. - The most recent Environmental Risk Assessment for Cigar Lake was completed in 2021, confirming protection of human health and the environment[225]. - Cameco's environmental monitoring programs indicate that environmental effects are generally in line with predictions from previous assessments[224]. - The water treatment plant at Cigar Lake is designed to treat water up to 550 m3/h, with average flows currently at approximately 40 m3/h[222]. - The JEB Toll Milling Agreement allows for processing of Cigar Lake ore at the McClean Lake mill, with a maximum capacity dedicated to 18 million pounds per annum[209]. Production and Future Plans - Cigar Lake mine production for 2023 was 48.8 million tonnes with a grade of 14.09% U3O8, resulting in 15.2 million pounds U3O8 produced[73]. - The company plans to maintain production at 18 million pounds U3O8 per year starting in 2024[73]. - The remaining mine life for Cigar Lake is approximately 13 years, with an expected production of 205.9 million pounds U3O8[243]. - Future drilling in the eastern portion of the CLEXT zone may lead to changes in mineral resource estimates due to sparse drilling density and geological continuity[136]. - Cameco plans to submit information for Ministerial Approval in 2025 to change the planned annual production rate of 18 million pounds U3O8 for CLEXT[215]. Challenges and Risks - The Cigar Lake project faces significant risks from water inflows, which could lead to production delays and increased costs[149]. - Jet boring mining activities in CLEXT may encounter unexpected geological conditions, potentially affecting recovery rates and production[150]. - Water inflows present a significant risk to development and production, potentially leading to delays and increased costs[249]. - Geotechnical challenges, including ground support and groundwater control, are critical factors in the mining operation's success[155]. - The mine's water management system has been revised following significant inflow events in 2006 and 2008, leading to improved design and practices[161].

Ole_CNX Back in January, I placed a “Hold” rating on Cameco (NYSE:CCJ), noting that while the company is a solid play on the improving uranium and nuclear market, the stock is pretty pricey by historical standards. With the stock down about -12% since then, though, now is the time take the stock to "Buy." With the company reporting results last month and recently hitting the investor conference circuit, let’s catch on the name. Company Profile As a refresher, CCJ is a uranium miner and nuclear service p ...

Shares of the world's largest publicly traded uranium company, Cameco Corp (NYSE:CCJ), are up 1.4% at $40.11 this afternoon. However, a recent downtrend just placed CCJ near a trendline with historically bullish implications. The stock has come within one standard deviation of its 200-day moving average for the sixth time in the past three years. According to Schaeffer's Senior Quantitative Analyst Rocky White, Cameco stock was positive one month later 67% of the time, averaging a 12.7% gain.  A similar mov ...

Cameco Corporation (NYSE:CCJ) 2024 Raymond James International Investors Conference March 4, 2024 1:40 PM ET Company Participants Grant Isaac - CFO Conference Call Participants Unidentified Analyst So Grant is going to give us a presentation today. And then we're going to leave a little bit of time at the end for questions. So, I'll turn it over to Grant. Grant Isaac Okay, great. Thank you very much. Obviously, thank you to Raymond James, for inviting us. We have been into this conference before. And I ho ...

Financial Data and Key Metrics Changes - The company is emerging from a period where 70% of its production was shut in as part of a supply discipline strategy, indicating a potential increase in earnings and cash flow as production ramps up [45] - The average realized price for 2024 is currently below the spot market, but the company emphasizes that it does not sell below the market in terms of term contracts [34] Business Line Data and Key Metrics Changes - The company is involved in multiple segments of the nuclear fuel cycle, including uranium mining, conversion, enrichment, and fabrication, which positions it well in a bifurcating market [6][7] - The uranium segment is highlighted as receiving significant attention due to strong demand fundamentals, with utilities needing to procure 140 million pounds of uranium per year collectively over the next 16 years [14][18] Market Data and Key Metrics Changes - The uncovered requirements curve indicates a stock of demand totaling 2.2 billion pounds of uranium that has not yet been procured by utilities, reflecting a strong demand outlook [14][12] - The market is experiencing a shift towards longer-term contracts, with utilities increasing the duration of contracts from 2-4 years to 2-10 years, which is favorable for producers [20][21] Company Strategy and Development Direction - The company's strategy focuses on high-quality term contracts rather than the small spot market, aiming to secure contracts before increasing production [33] - The company emphasizes the importance of not oversupplying the market and waiting for demand to be expressed before making production decisions [37][44] Management's Comments on Operating Environment and Future Outlook - Management notes that the nuclear sector is experiencing robust demand due to a focus on energy security and clean energy, with a recent pledge to triple nuclear power by 2050 [4][5] - The company believes that higher uranium prices are necessary to incentivize new production and balance the strong demand outlook with supply [31][30] Other Important Information - The company has a significant investment in Westinghouse, which enhances its position across the entire nuclear fuel cycle, including reactor services and new builds [6][7] - The supply side of the uranium market is constrained, with primary supply not meeting global requirements for about 30 years, indicating a need for new production incentives [24][30] Q&A Session Summary Question: Utility contracting trends - Management highlighted that utilities are increasingly focused on security of supply, leading to more demand being brought into the market and longer contract durations [40][41] Question: Financial performance outlook - The company is in the early stages of participating in the current cycle, with expectations of stronger earnings and cash flow as production increases and uranium prices rise [45]

Thanks to supply-demand issues, uranium prices are at 16-year highs. And they’re not likely to come down any time soon, creating an opportunity for beaten-down uranium stocks.To start, one of the world’s biggest producers of uranium, Kazatomprom just said, “It will produce only 80% of its permitted maximum uranium output allowed under Kazakh subsoil usage contracts, instead of the previously announced 90% level,” as noted by S&PGlobal.com. “The company had warned in a Jan. 12 statement about the potential t ...

Cameco Corporation (NYSE:CCJ) BMO Global Metals & Mining Conference Transcript February 26, 2024 2:30 PM ET Executives Tim Gitzel - Chief Executive Officer Analysts Alexander Pearce - BMO Alexander Pearce Ladies and gentlemen, I have the pleasure of introducing Tim Gitzel, CEO of Cameco. Welcome, Tim. Tim Gitzel That was short and sweet. So, thank you, Alex. Good afternoon, everybody. Nice to see you and thanks for coming out this afternoon. We’re always delighted to be in Florida at this time of the year. ...

While the concept of energy stocks to buy might seem a bit controversial due to the uncertainty – and in some cases volatility – involved, the narrative comes down to a simple equation. If you believe in the broader economic recovery, then more people will be consuming more resources. And if that’s the case, the full spectrum of energy sources could be in high demand.First, the hydrocarbon sector would get a new lease on life, at least from the investment point of view. To be blunt, hydrocarbons have always ...

RHJ (A Lengthy) Introduction ...Where I explain why uranium is the place to be Ever since the global energy transition was accelerated in 2020, we have discussed a wide variety of energy sources, including fossil fuels, renewables, and nuclear energy. Although I am massively overweight oil and gas stocks, I am a big believer in the importance of clean energy. In this area, I am a fan of nuclear energy. While I have to agree with critics who say that nuclear reactors are expensive to build, there is no denyi ...