Core Insights - Nuclear energy is transitioning from a speculative topic to a significant focus, indicating a potential race for supply chains in the sector [1] - There is an expectation of a notable increase in long-term contracts within the nuclear energy industry [1] Company and Industry Analysis - The article emphasizes the importance of macroeconomic factors, technological disruptions, policy changes, and capital flows in identifying investment opportunities in the nuclear energy sector [1] - The author highlights a beneficial long position in the shares of a specific company, indicating confidence in its future performance within the nuclear energy market [1]

Core Insights - Nuclear energy is transitioning from a speculative topic to a significant focus, indicating a potential increase in long-term contracts within the supply chain [1] Industry Overview - A race for supply chains in the nuclear energy sector is emerging, suggesting heightened competition and investment opportunities [1] - The article emphasizes the importance of macroeconomic factors, technological disruptions, and policy shifts in identifying investment opportunities in the nuclear energy market [1]

Core Insights - Cameco Corp. and Uranium Energy Corp. are key players in the uranium sector, expected to significantly contribute to the global nuclear energy supply chain [1] Uranium Market Overview - Uranium prices faced pressure earlier in the year due to ample supply and uneven demand but have recently rebounded to around $80 per pound, driven by renewed buying from major funds and expanding nuclear ambitions [2] - The inclusion of uranium in the U.S. Geological Survey's Final 2025 Critical Minerals List underscores its growing importance for U.S. energy security and national defense [2] - The long-term outlook for uranium is positive, supported by rising electricity demand and a global shift towards clean energy [3] Cameco Corp. Analysis - Cameco accounted for approximately 16% of global uranium production in 2024 and operates across the entire nuclear fuel cycle [4] - In Q3 2025, Cameco reported a 2% increase in uranium production to 4.4 million pounds but a 12.8% drop in uranium revenues to CAD 523 million ($379 million) due to lower sales volumes [5][6] - The company expects uranium production of up to 20 million pounds in 2025, with a revised delivery target of 32–34 million pounds [7][8] - As of Q3 2025, Cameco had CAD 779 million ($565 million) in cash and cash equivalents, with a total debt to total capital ratio of 0.13 [9] - Cameco is focused on maintaining financial strength to boost production and has plans to extend the mine life at Cigar Lake to 2036 [10] Uranium Energy Corp. Analysis - Uranium Energy has a production capacity of 12.1 million pounds from three processing plants and has transitioned from developer to producer with the restart of the Christensen Ranch ISR mine [13] - In Q1 fiscal 2026, the company produced 68,612 pounds of uranium but did not recognize any revenues due to no sales [14] - Operating costs surged 55% to $20.9 million, leading to an adjusted loss of two cents per share [15] - UEC maintained a debt-free balance sheet with over $698 million in assets as of October 31, 2025 [16] - The company launched a new initiative to become vertically integrated in uranium mining, processing, and refining [17] Financial Estimates Comparison - The Zacks Consensus Estimate for Cameco's 2025 revenues implies a 4% year-over-year growth, with earnings expected to rise by 95.9% [18] - In contrast, Uranium Energy's fiscal 2026 revenues are estimated to decline by 10.7%, with a projected loss of 10 cents per share [19] Stock Performance and Valuation - Over the past three months, Cameco's stock appreciated by 10.4%, while Uranium Energy's shares declined by 8.8% [22] - Cameco trades at a forward price-to-sales multiple of 16.15X, compared to Uranium Energy's higher multiple of 67.34X [24] Conclusion - Both companies face short-term revenue challenges due to volatile uranium prices, but Cameco is better positioned due to fixed-price contracts and a more stable revenue base [25] - Cameco's stronger recent performance and more attractive valuation suggest it may be a better investment choice currently [26]

Core Insights - Uranium is experiencing rising demand due to energy and nuclear applications, making it a valuable commodity with significant upside potential [1] - The Sprott Uranium Miners ETF (URNM) is seen as an optimal investment vehicle for exposure to uranium mining stocks in the coming months and years [1] Uranium Prices - Cameco's spot uranium price was $84.25 and the long-term price was $79.50 at the end of July 2024, while URNM was trading at $41.22 per share [2] - By the end of November 2025, Cameco's spot price decreased to $75.80, but the long-term price increased to $86.00, indicating a generally bullish trend in uranium prices over five years [4] Market Trends - Uranium mining stocks have seen significant price increases in 2025, with Cameco Corp. (CCJ) rising 114.4% from $51.39 at the end of 2024 to a peak of $110.16 in October 2025 [7] - CCJ shares are currently trading just below the October peak at over $90 per share [7] Demand Drivers - Geopolitical tensions and technological advancements have bolstered uranium demand, particularly for nuclear power and alternative energy sources [5][6] - The bifurcation of nuclear powers has led to increased weapons production, further driving uranium demand [6] ETF Holdings - URNM holds shares of leading uranium mining companies, with over 17% of its assets allocated to Kazakhstan's NAC Kazatomprom JSC and 16.01% to Cameco Corp. [8][9]

Company Performance - IsoEnergy has significantly underperformed the broader market and its peers over the last 12 months, with a stock gain of only 4% compared to an 11% rally in the S&P 500 and Cameco [1] Market Context - The performance of IsoEnergy is contrasted with the overall market trends, highlighting a lack of competitiveness in the current investment landscape [1]

Core Viewpoint - The nuclear energy sector is experiencing a significant resurgence, driven by rising electricity demand, energy security concerns, and climate goals, leading to increased investment and supportive government policies [2][3][5]. Industry Overview - Nuclear energy is being re-embraced as a reliable, carbon-free power source, with around 65 reactors currently under construction worldwide [4]. - Governments have committed to tripling global nuclear capacity by 2050, with estimates suggesting that capacity could reach 1,428 GWe, exceeding the target of 1,200 GWe [5]. - The U.S. is focusing on nuclear independence to enhance national security and reduce reliance on foreign nuclear fuel supplies, involving significant legislative actions and public-private investments [6]. Company Highlights Cameco Corp. (CCJ) - Cameco is one of the largest global uranium providers, with a licensed capacity to produce over 30 million pounds of uranium concentrates annually and 457 million pounds of proven and probable mineral reserves [10]. - The company has entered a strategic partnership with the U.S. Government, which includes an investment of at least $80 billion to accelerate nuclear reactor technology deployment [11]. - The Zacks Consensus Estimate projects a 96% year-over-year growth in fiscal 2025 earnings and a 55% growth for fiscal 2026, with the stock gaining 26.7% in the past six months [13]. Uranium Energy (UEC) - Uranium Energy is advancing low-cost in-situ recovery (ISR) uranium mining projects, transitioning from developer to producer with the restart of the Christensen Ranch ISR mine [14][15]. - The acquisition of Rio Tinto's Sweetwater Complex added approximately 175 million pounds of historic resources, increasing its total licensed annual production capacity to 12.1 million pounds, the largest in the U.S. [16]. - The Zacks Consensus Estimate for fiscal 2025 indicates a loss of 10 cents per share, a narrower loss than the previous year, with the stock gaining 84.6% in the past six months [18]. Centrus Energy (LEU) - Centrus Energy supplies nuclear fuel components and is the only licensed producer of High-Assay, Low-Enriched Uranium (HALEU) in the Western world, which offers improved efficiency and lower waste [20]. - The company plans to expand its uranium enrichment plant in Piketon, OH, contingent on securing funding from the U.S. Department of Energy [21]. - The Zacks Consensus Estimate for Centrus Energy's 2025 earnings indicates a 2.46% year-over-year growth, with shares gaining 37.1% in the past six months [24]. Conclusion - The nuclear energy sector is poised for steady, policy-backed expansion, with Cameco, Uranium Energy, and Centrus Energy providing diversified exposure across uranium mining, fuel services, and advanced enrichment technologies [25].

Industry Overview - Nuclear energy is experiencing a resurgence due to rising electricity demand from data centers, AI workloads, and large-scale electrification, alongside energy security concerns and climate goals [1][2] - Governments are committing to tripling global nuclear capacity by 2050, with the World Nuclear Association estimating that global nuclear capacity could reach 1,428 GWe, exceeding the target of 1,200 GWe [4] Uranium Market - The U.S. Geological Survey's inclusion of uranium on its 2025 Critical Minerals List underscores its strategic importance for national security and domestic supply chains [2] - Stocks such as Cameco Corp. (CCJ), Uranium Energy (UEC), and Centrus Energy (LEU) are positioned as key beneficiaries of the nuclear revival [2] Cameco Corp. (CCJ) - Cameco is one of the largest global providers of uranium, with a licensed capacity to produce over 30 million pounds annually and 457 million pounds of proven and probable mineral reserves [8] - The company has entered a strategic partnership with the U.S. Government to accelerate the deployment of nuclear reactor technologies, benefiting from the U.S. government's energy security goals [9] - The Zacks Consensus Estimate for Cameco's fiscal 2025 earnings projects a 96% year-over-year growth, with a stock gain of 26.7% in the past six months [11] Uranium Energy (UEC) - UEC is advancing low-cost, in-situ recovery (ISR) uranium mining projects, transitioning from developer to producer with the restart of the Christensen Ranch ISR mine [12][13] - The acquisition of Rio Tinto's Sweetwater Complex has increased UEC's total licensed annual production capacity to 12.1 million pounds, the largest in the U.S. [14] - The Zacks Consensus Estimate for UEC's fiscal 2025 earnings indicates a narrower loss of 10 cents, with a stock gain of 84.6% in the past six months [16] Centrus Energy (LEU) - Centrus Energy supplies nuclear fuel components and is the only licensed producer of High-Assay, Low-Enriched Uranium (HALEU) in the Western world, which offers improved efficiency and lower waste [18] - The company plans to expand its uranium enrichment plant in Piketon, OH, contingent on securing funding from the U.S. Department of Energy [19] - The Zacks Consensus Estimate for Centrus Energy's 2025 earnings indicates a 2.46% year-over-year growth, with a stock gain of 37.1% in the past six months [22] Conclusion - The nuclear energy sector is poised for steady, policy-backed expansion, with Cameco, Uranium Energy, and Centrus Energy providing diversified exposure across uranium mining, fuel services, and advanced enrichment technologies [23]

Industry Overview - The 2010s were challenging for nuclear energy stocks due to the Fukushima disaster and the COVID-19 pandemic, which led to halted nuclear projects and suspended uranium mining operations [1][2] - The nuclear energy market has seen a recovery in the 2020s, driven by decarbonization initiatives and the growth of cloud and AI markets, alongside advancements in safer nuclear reactor technologies [2] Company Analysis: Cameco - Cameco is one of the largest uranium miners globally, accounting for approximately 17% of the world's uranium production in 2024, operating in Canada, the U.S., and Kazakhstan [4] - The company faced significant revenue declines from 2011 to 2021, with annual revenue dropping from $2.4 billion to $1.2 billion due to falling uranium prices [5] - By November 2025, uranium prices rebounded to $75.80 per pound, and Cameco's revenue grew at a CAGR of 29% from 2021 to 2024, with expectations of an 8% revenue increase in 2025 [6][7] - The recovery in Cameco's business is attributed to renewed interest in nuclear power, geopolitical conflicts affecting uranium supply, and the reopening of its McArthur River and Key Lake mines [7] - Cameco is evolving into a comprehensive provider of nuclear energy solutions, justifying its premium stock valuation despite being considered expensive [8]

Industry Overview - Nuclear power is gaining momentum globally as governments seek sustainable energy sources to meet rising electricity demands, particularly with the growth of AI data centers [1] - The U.K. government is investing £18 billion (approximately $24 billion) to foster a "Golden Age" of nuclear investment, while Poland has begun construction on its first nuclear plant with EU funding of €14.2 billion (about $16.7 billion) [2] - The U.S. has passed the ADVANCE Act to streamline nuclear reactor construction, reflecting bipartisan support for nuclear energy [4][5] Company Focus: Cameco - Cameco controls mining operations capable of producing 30 million pounds of enriched uranium annually and holds 457 million pounds of proven and probable uranium reserves [7] - The company is positioned to address a portion of the 180 million pounds of global uranium demand, although the U.S. still relies on Russian imports, amounting to $624 million in 2024 [8][9] - Cameco's production of enriched uranium increased by 33% in 2023, reaching 23.4 million pounds, with forecasts of 32 to 34 million pounds in 2025 [10] Government Relations - The U.S. government has partnered with Cameco and Brookfield Asset Management to invest $80 billion in nuclear reactor construction, indicating strong governmental support for the company [11][12] Market Dynamics - The uranium market is experiencing a bullish trend, with prices rising from approximately $42 per pound in mid-2021 to $75.8, with projections of reaching $135 per pound by 2026 [13][14] - Despite a significant increase in Cameco's stock price by 86% this year, it is viewed as a buy due to potential growth in the uranium market and robust earnings growth of 33% year over year [15]

Summary of Key Points from the Nuclear Industry Conference Call Industry Overview - The conference call focuses on the nuclear industry, particularly the outlook for 2026 and beyond, including supply and demand forecasts, pricing, and investor positioning in nuclear equities [1][2]. Core Themes and Insights 1. **US Government Investment in Nuclear** - The US government has partnered with Cameco (CCJ), Westinghouse, and Brookfield, committing over $80 billion to support new large-scale nuclear projects [2][3]. - This investment aims to jumpstart supply chains and mitigate costs for initial projects, addressing concerns from utilities about previous project overruns, such as the Vogtle project, which exceeded its budget by approximately $17 billion [3]. 2. **Future Nuclear Projects and Technology** - The announcement of new nuclear Final Investment Decisions (FIDs) is expected to correlate with available capital and the risk profile of developers. Larger projects, particularly AP1000 technology, are favored over Small Modular Reactors (SMRs) due to established data and government backing [4][6]. - The first large nuclear reactor FID in the US could be announced as early as the first half of 2026 [6]. 3. **Uranium Pricing Outlook** - Uranium prices are projected to rise, with long-term prices increasing from $80/lb to $86/lb since August 2025, driven by renewed nuclear power demand and contracting activity [9][41]. - Spot prices are expected to reach approximately $91/lb by the end of 2026, up from around $76/lb currently [9]. 4. **Nuclear Fuel Supply Chain Developments** - Urenco plans to add 700,000 SWU/year capacity at its New Mexico facility by 2025, and Orano is investing $1.8 billion to increase enrichment capacity by 2.5 million SWU by 2028 [10]. - Updates on uranium refining and conversion capacity expansions are anticipated in 2026 [10]. 5. **Policy and Regulatory Issues** - A final ruling on a Section 232 investigation into uranium imports is pending, which could impact uranium pricing depending on the outcome [11]. - Historical context includes a previous investigation in 2019 that did not result in restrictions but highlighted national security concerns regarding the nuclear fuel supply chain [13]. 6. **Catalysts for SMR Companies** - 2026 is expected to see an acceleration of catalysts for SMR companies, including customer contracts and progress on the DOE's reactor pilot programs targeting criticality for at least three SMR projects by July 2026 [14]. - The European Commission's Strategic Action Plan for SMRs is also anticipated in early 2026 [14]. 7. **Uranium Supply Updates** - Key updates include a public hearing on NexGen's Rook 1 project, which could significantly impact uranium supply in the 2030s [15]. - Kazatomprom has revised its 2026 production guidance down by approximately 10% [16]. Additional Insights - The cumulative uranium deficit is projected to reach 1,914 million lbs between 2025-2045, indicating a structural supply-demand imbalance [24]. - The nuclear sector has seen significant equity performance, with Goldman Sachs' nuclear coverage outperforming the S&P 500 by 124% year-to-date [45]. - Investor interest has shifted towards upstream uranium producers like CCJ and UEC, with expectations of continued upward pressure on uranium prices due to increasing demand from new reactor builds [52]. Conclusion - The nuclear industry is poised for significant growth driven by government investments, rising uranium prices, and a focus on large-scale reactor construction. The landscape for SMRs and uranium supply chains will be critical to monitor as developments unfold in 2026 and beyond [1][50].