Cameco(US:CCJ)2024-11-07 15:30Demand and Supply - Strong fundamental demand drivers include decarbonization & electrification, sustainability focus, and energy security, supporting both traditional and non-traditional (SMRs, advanced reactors) demand for uranium[5, 7] - Supply uncertainty persists due to low prices leading to curtailments, end of reserve life, lack of investment, global supply chain challenges, and geopolitical issues[8] Production and Outlook - Increased 2024 production outlook at Key/McArthur to 19 million pounds (100% basis), up from 18 million pounds (100% basis)[20, 27] - Joint Venture Inkai production forecast decreased; now expects approximately 7.7 million pounds (100% basis) for 2024, down from the previous target of 8.3 million pounds (100% basis), due to sulfuric acid delivery issues[21, 26, 27] - Uranium production is expected to be up to 23.1 million pounds[31] Financial Performance and Strategy - The company expects strong cash flow generation in 2024 due to improving prices, transition to tier-one costs, and increasing production[35] - 2024 sales/delivery volume for uranium is projected to be 32-34 million pounds[31] - The company anticipates revenue of $2.55 billion - $2.68 billion from uranium[31] - The company plans to pay an annual dividend of $0.16/share, in line with capital allocation priorities[16, 35] - The company recommended a dividend growth plan of $0.04/year to reach $0.24/share in 2026[15, 16, 27] Long-Term Contracting - Average committed sales of 29 million pounds U3O8 per year for 2024-2028[10]