Cameco (Toronto: CCO, or NYSE: CCJ) is a C$54 billion (£28.8 billion) nuclear-industry provider protecting the entire spectrum from uranium exploration, mining, refining, enrichment and gas fabrication to designing, creating and servicing reactors.
The Iran battle and ensuing interruption of oil and gasoline provides reveals how geopolitical tensions can disrupt provide chains and have an effect on share costs. Markets would drop precipitately ought to China invade Taiwan or Russia assault the Baltic states. Given these uncertainties, there’s a sturdy case for investing in safe, dependable, zero-carbon baseload energy. The development of information centres for AI can be including to demand for such energy.
The renaissance in nuclear for zero-carbon baseload electrical energy meets these wants. There are already 436 nuclear reactors on this planet with 70 new reactors below development and one other 115 deliberate. And 38 nations have signed a declaration to triple nuclear producing capability by 2050.
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Cameco’s reserves of uranium are in Canada, Australia, the US and Kazakhstan, with the majority of its proven and probable reserves in Canada. In 2025, Cameco was the second-largest producer with 15% (Kazatomprom was the largest at 20%). Planned production is expected to fall below demand in 2033 and be only 50% of demand by 2041. Cameco’s strategy is to build a portfolio of long-term supply contracts with utilities rather than to rely on the spot market. Current contracts run into the 2030s.
Cameco also has a 49% interest in Global Laser Enrichment (GLE) (and the option to attain 75% ownership); GLE has a worldwide exclusive licence on separation of isotopes by laser excitation (SILEX) – a third-generation enrichment Technology.
Cameco’s reactor design, improvement, development and servicing actions are supplied by Westinghouse Electrical Firm, which is a Cameco/ Brookfield Asset Administration strategic partnership, with Cameco holding a 49% stake.
Cameco’s 4 drivers of progress
4 elements are anticipated to drive progress. Firstly, the anticipated shortfall of provide from 2030-2031 onwards (quickly growing the shortfall from 2033), which is able to result in stronger pricing and allow the agency to boost manufacturing from its reserves. Uranium costs are already rising. Cameco’s fuel-manufacturing division allows IT to seize extra of the worth added than IT would as a miner.
Secondly, there’s the rising world fleet of nuclear reactors that Westinghouse inspects, companies and gives for. The third issue is the 185 new reactors deliberate or below development. Westinghouse already has six of its AP1000 reactors in operation, one other 30 below development and 16 deliberate. The fourth is the potential of SILEX Technology for the re-enrichment of depleted uranium and for making low-enriched gas for future light-water reactors.
Cameco’s 2025 outcomes to the tip of December confirmed income up 11% to $3.5 billion, adjusted EBITDA up 26% to C$1.93 billion and adjusted diluted earnings per share up 321% to C$1.44. First-quarter results show revenue up 7% and adjusted earnings per share up by more than 100% to $0.47. IT says dedicated gross sales volumes for 2026 are 29 million kilos (mlbs) to 32mlbs of uranium in comparison with 33mlbs in 2025. However costs are rising, with a mean value within the fourth quarter of 2025 of C$91.3 per pound in contrast with C$80.9 for similar interval in 2024. Lengthy-term contract costs in 2026 are round C$131 and 2033 costs are anticipated to be in a variety with a ceiling of C$200.
Cameco focuses on securing long-term contracts that anticipate growing demand and shortfall of provide fairly than serving the spot market. For instance, in March 2026 Cameco signed a nine-year settlement with India to produce almost 22 million kilos of uranium ore at market costs. This contract has an estimated worth of C$2.6 billion.
Cameco’s share value is on the rise
(Picture credit score: Future)
Cameco enjoys stability due to long-term contracts and progress potential in all divisions. With respect to the mining of uranium, IT has massive reserves in secure nations, most being in Canada. The gas companies division refines, converts and manufactures fuels, and advantages from the growing demand for nuclear reactors to offer zero-carbon baseload electrical energy.
Cameco’s curiosity in GLE’s third-generation laser-enrichment Technology and its choice to take majority possession gives an additional progress driver for this division. Then there’s its 49% stake in Westinghouse (WH), which has the confirmed AP1000 and AP300 reactors, 30 extra below development and others deliberate. Westinghouse can be creating small modular reactors.
In October 2025, WH signed an settlement whereby the US authorities will facilitate the financing and constructing of recent reactors within the US to the worth of at the very least $80 billion to energy AI-heavy information centres. This raises the prospect of a separate initial public offering (IPO) for WH that could value IT at $15 billion-$35 billion or extra (in contrast with the $8.2 billion Cameco/ Brookfield paid for IT in 2023) and yield a capital acquire. The UK authorities bought to Toshiba in 2006 for under $5.4 billion.
Cameco’s current share value is C$123, with a one-year goal of C$185, a ahead yield of 0.19% and a robust steadiness sheet with internet money of C$0.2 billion. The ahead price-earnings ratio is 46 for 2027 falling to 36.3 for 2028 and, over one yr, the shares are up 13.6%. IT is vertically built-in (mining to reactor development and upkeep) and will likely be a key provider within the renaissance of fresh, dependable nuclear energy. The rising value of uranium and new reactors deliberate globally recommend a long-term rising share value, with the opportunity of a capital return from a Westinghouse preliminary public providing.
This text was first printed in MoneyWeek’s journal. Get pleasure from unique early entry to information, opinion and evaluation from our group of economic consultants with a MoneyWeek subscription.
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