Core Insights - Cameco (CCJ) has signed a long-term agreement to supply natural uranium hexafluoride (UF6) to Slovenské elektrárne (SE), Slovakia's largest electricity producer, through 2036, marking its entry into the Slovak market and aligning with its strategy to expand globally in nuclear fuel [1][7]. Group 1: Company Operations - SE generates over 60% of Slovakia's electricity and has transitioned to carbon-free electricity production by shutting down its last coal-fired power plant in Q1 2024, currently operating five nuclear reactors, 31 hydropower plants, and two photovoltaic plants [2]. - Cameco will provide uranium and conversion services to support SE's Bohunice and Mochovce nuclear facilities starting in 2028, with conversion being a critical stage in the nuclear fuel cycle [3]. - As of December 31, 2024, Cameco had contracts to sell approximately 220 million pounds of uranium and about 85 million kilograms of UF6 conversion services to 41 and 34 customers worldwide, respectively [4]. Group 2: Market Position and Performance - Cameco controls roughly 20% of the world's primary UF6 conversion capacity, positioning it among industry leaders alongside Orano, Rosatom, and ConverDyn [5]. - In 2024, Cameco's fuel services segment produced 13.5 million kgU, including 10,781 tonnes of UF6, with a target of 13–14 million kgU in 2025, indicating strategic importance for growth and long-term contracts [5]. - Year-to-date, Cameco shares have increased by 52%, outperforming the industry growth of 21.5%, while other uranium producers like Energy Fuels and Centrus Energy have seen gains of 138.3% and 240.3%, respectively [6]. Group 3: Financial Estimates - The Zacks Consensus Estimate for Cameco's earnings for fiscal 2025 indicates a year-over-year growth of 130.6%, with a 31.3% growth estimate for 2026 [11]. - The consensus estimate for Cameco's earnings has seen upward revisions over the past 60 days, while the estimate for 2026 has decreased [12].

Financial Data and Key Metrics Changes - Revenue increased by 24%, gross profit rose by 44%, adjusted net earnings grew by 52%, and adjusted EBITDA was up by 5% compared to the previous year [20] - The average realized price for the first quarter increased year over year, despite a 30% decline in the average uranium spot price [20] Business Line Data and Key Metrics Changes - The uranium segment produced 6 million pounds in Q1 2025, slightly higher than 5.8 million pounds in Q1 2024, with an expected total production of 18 million pounds for the year [22] - The Westinghouse segment reported a net loss in Q1 2025, with an expected annual net loss between $20 million and $70 million, but adjusted EBITDA improved by 19% compared to the previous year [21] Market Data and Key Metrics Changes - Long-term uranium contracting activity is expected to gain momentum, with the long-term price increasing from $68 per pound in January 2024 to around $80 per pound [24] - There remains a significant uncovered requirement of approximately £3.2 billion in uranium needs through 2045, with about £1.3 billion of that not yet sourced [56][19] Company Strategy and Development Direction - The company emphasizes a long-term contracting strategy to create value, focusing on operational, marketing, and financial discipline [20] - The management is cautious about capital allocation, prioritizing financial conservatism while exploring growth opportunities in uranium, conversion, and enrichment [33][36] Management's Comments on Operating Environment and Future Outlook - The management expressed optimism about the long-term demand for nuclear energy, citing global commitments to nuclear projects and the need for energy security [16][18] - The geopolitical environment poses risks, but the company is prepared to adapt and manage these challenges [15][27] Other Important Information - The company has a strong balance sheet and expects robust cash flow generation in 2025, having fully repaid a $600 million term loan used for the Westinghouse acquisition [25][27] - The company is actively managing its capital resources to ensure a strong financial position amid geopolitical challenges [27] Q&A Session Summary Question: What are the priorities for capital allocation moving forward? - The management highlighted the importance of maintaining financial discipline and being cautious with capital allocation, considering the current supply discipline in the uranium market [31][33] Question: What are the implications of the recent IP legal settlement with Korea for Westinghouse? - The settlement allows Westinghouse to collaborate with Korea rather than compete, potentially expanding opportunities in new builds [40][42] Question: What industry markers indicate a transition to normal buying prioritization? - The management noted that there is a significant uncovered requirement for uranium, and while there is no panic yet, they expect demand to eventually drive the market [50][52] Question: What is the outlook for the Kazakhstan business and sulfuric acid procurement? - Relations with Kazatomprom have stabilized, and production targets are back on track, but risks related to sulfuric acid availability remain [60][63] Question: How is the company planning for new exploration given the global slowdown? - Exploration remains a critical part of the strategy, with a focus on maintaining and developing key properties in the Athabasca Basin [101][102] Question: What is the current situation regarding pricing and contracting in the fuel services business? - The company is seeing strong pricing due to new contracts and expects further upside as they continue to contract forward [110][116]