Cameco should benefit from increasing uranium demand, Barron's says

|About: Cameco Corporation (CCJ)|By:, SA News Editor

Cameco (CCJ +3.2%) shares post solid gains as Barron's says the uranium market finally may be ready to heat up, with increased demand benefiting CCJ as China and Russia build nuclear plants.

Mining companies will need to meet global demand expected to climb from ~170M lbs. currently to 220M lbs. over the next decade, the report says, and CCJ's production costs are half the industry average; because CCJ's cost of production is so low, it can earn a nice return even at today's weak uranium price of ~$36/lb.

"The uranium price went below the marginal cost of production, [which is] a good time to get involved in any commodity," says James Hunt of Tocqueville International Value Fund.