Cameco(US:CCJ)2021-07-29 20:56Uranium Market Dynamics - Nuclear power is gaining traction due to electrification and decarbonization efforts, with both traditional and non-traditional applications [3] - By 2035, annual uranium requirements are projected to reach 166 million lbs, with 82% of requirements uncovered [9] - From 2021 to 2035, cumulative uncovered uranium requirements are estimated at 1.4 billion lbs, highlighting a significant procurement need [9] - Uranium supply faces uncertainty, with a projected supply deficit of approximately 90 million lbs by 2035 based on total demand [11] - Cumulatively, a 300 million lbs uranium supply deficit is expected from 2021 to 2035 [11] - Junior uranium companies and financial funds have purchased 16 million pounds of uranium year-to-date, valued at approximately $550 million (US) [10] Cameco's Strategy and Financial Position - Cameco is focused on preserving tier-one production, strategic purchasing, and maintaining strategic patience in contracting [15] - The company aims for a balanced contracting approach, targeting 60% market-related pricing and 40% fixed pricing [17] - As of June 30, 2021, Cameco has a strong balance sheet with $1.2 billion in cash, $1 billion in long-term debt, and a $1 billion undrawn credit facility [21] - Care and maintenance costs are expected to be 15%-20% ($7.40 to $9.35 per lb) of the 2021 outlook for average unit cost of sales [22]