Hedging Your Uranium Trades For Profit In An Ambiguous Environment
Kevin Feeney • 13 Comments
Kevin Feeney • 13 Comments
Tue, Oct. 4, 1:57 PM
- Cameco (CCJ -3.3%) is going to court beginning tomorrow to clash with the Canadian Revenue Agency over a potential $2.2B tax bill.
- At issue is whether the company set up a subsidiary in low-tax Switzerland and sold its uranium at a low price simply to avoid tax, as the CRA alleges, or whether the company merely was engaging in a legal and sound business practice.
- The current case, which deals specifically with tax years 2003, 2005 and 2006, has been winding its way through appeals and legal motions since 2009 when CCJ first challenged the CRA’s findings.
- The trial is not expected to conclude until March 2017, with a ruling 6-18 months later.
Wed, Sep. 28, 8:14 AM
Wed, Aug. 31, 9:09 PM
- The Nuclear Regulatory Commission says Cameco (NYSE:CCJ) has agreed to corrective measures after two spills of radioactive sludge, the most recent on March 29 when some of the material from a Wyoming mine leaked from a truck onto a highway.
- Besides failing to prevent the spill, CCJ failed to accurately determine the amount of radioactive material in the sludge and adequately document the material in shipping papers, the NRC says.
- CCJ, who says there was no danger to the environment or people, says it will stop shipping barium sulfate sludge without NRC approval, identify specifically what caused the two spills, report on all sludge shipments to the disposal facility in Blanding, Utah, over the past three years and develop a plan to correct the problem.
Wed, Aug. 3, 7:23 AM
- An environmental regulator in Australia recommends the rejection of Cameco's (NYSE:CCJ) proposal to mine uranium in the country's far west because it fails to protect some animals that live underground.
- CCJ is seeking permission to mine up to 7,500 metric tons/year of uranium oxide from the Yeelirrie deposit 390 miles northeast of Perth, which it acquired from BHP Billiton.
- CCJ, which has been exploring for uranium in Australia since 1996, says it will work with government agencies to find a resolution.
Thu, Jul. 28, 12:45 PM
- Cameco (CCJ -7.1%) plunges after reporting an unexpected Q2 loss due to weak uranium demand and prices.
- CCJ says Q2 uranium sales volumes fell 37% Y/Y to 4.6M lbs. while its average realized price per pound fell ~8%, and forecasts FY 2016 uranium production of 25.8M lbs. and delivery volume of 30M-32M lbs.
- CCJ issues downside FY2016 guidance, seeing a 5%-10% Y/Y drop in revenues, equating to C$1.78B-C$1.88B vs. C$2.62B analyst consensus estimate.
Thu, Jul. 28, 7:48 AM
Wed, Jun. 8, 5:58 PM
- A uranium glut that has caused futures prices to drop 18% YTD - the worst performer among all the world's commodities - is set to turn into a shortage as miners cut output and nuclear reactor construction climbs, Uranium Energy (NYSEMKT:UEC) CEO Amir Adnani tells Bloomberg.
- Oversupply from mines in Kazakhstan, Canada and Australia has sent prices plunging even as iron ore and oil rally, but as supply diminishes and demand improves, stockpiles will be eroded and the slump will reverse, the CEO says.
- Prices are not factoring in the pace at which inventories will disappear in coming years, according to Morningstar's David Wang, who expects uranium to more than double to about $65/lb. by 2019 from $28.25 now.
- Relevant tickers include: CCJ, URG, URZ, UUUU, URRE, URA.
Wed, Jun. 1, 2:39 PM
- Cameco (CCJ -2.1%) says the Canadian Nuclear Safety Commission approved an application to increase annual licensed production capacity at the McClean Lake milling operation to 24M lbs. of uranium concentrate.
- CCJ, which operates the mine and owns 50%, says the regulator’s decision means it can meet its 2016 production target, with full annual production of 18M lbs. in 2017.
- Uranium ore from the Cigar Lake mine is milled and packaged at the McClean Lake operation.
- Now read Cameco: Don't lose hope (May 24) and Cameco: Challenges remain in the near term (May 16)
Fri, Apr. 29, 2:10 PM
- Cameco (NYSE:CCJ) declares $0.10/share quarterly dividend, in line with previous.
- Forward yield 3.18%
- Payable July 15; for shareholders of record June 30; ex-div June 28.
Fri, Apr. 29, 7:54 AM
- Cameco (NYSE:CCJ): Q1 EPS of -$0.02 misses by $0.17.
- Revenue of $408M (-27.9% Y/Y) misses by $219.9M.
Fri, Apr. 22, 7:53 AM
- Cameco (NYSE:CCJ) says it is suspending production at its Rabbit Lake operation in Saskatchewan, while also reducing production across its U.S. operations.
- CCJ says the changes will result in ~500 job losses at Rabbit Lake and ~85 at the U.S. operations.
- CCJ is ramping up production at its low-cost Cigar Lake mine, which means it can meet customer needs without the higher-cost output from Rabbit Lake.
- Uranium has been in a major bear market since the 2011 Fukushima nuclear disaster; last week, the spot price dropped to an 11-year low below US$26/lb. after climbing above $130 at the peak of the market in 2007.
- Now read Is Cameco finally turning around?
Mon, Mar. 7, 1:10 PM
- Cameco (CCJ +2.3%) is slowly expanding its McArthur River uranium mine in Saskatchewan - the world's biggest - anticipating that currently well-supplied utilities will need uranium in the coming years, CEO Tim Gitzel tells Reuters.
- CCJ has not signed off on the full expansion but is spending C$30M (~$22.5M) this year to gradually prepare, the CEO says, without specifying how much the full expansion would cost.
- McArthur River is expected to produce 20M lbs. of uranium this year, with a target of 22M lbs. by 2018.
- Spot prices of uranium have been depressed since the 2011 Fukushima disaster in Japan.
Fri, Feb. 5, 6:19 PM
- Cameco (NYSE:CCJ): Q4 EPS of C$0.38 misses by C$0.10.
- Revenue of C$975M (+9.7% Y/Y) beats by C$144.42M.
Thu, Feb. 4, 5:30 PM
- Cameco (NYSE:CCJ) declares C$0.10/share quarterly dividend, in line with previous.
- Forward yield 2.34%
- Payable April 15; for shareholders of record March 31; ex-div March 29.
Thu, Jan. 28, 4:43 PM
- Uranium spot prices likely will remain under pressure for the rest of the decade because of high inventory levels, recycling of already-mined uranium and the slow restart of Japan's nuclear reactors, Fitch Ratings forecasts.
- An extended period of oversupply has contributed to a major build-up in utilities' uranium stockpiles, with European utilities having enough fuel to last three years and Japanese utilities enough for 4-5 years, which will maintain pressure on prices as demand slowly recovers, Fitch says.
- Relevant stocks: CCJ, DNN, LEU, URRE, UEC, URG, UUUU.
- ETFs: URA, NLR
Wed, Jan. 6, 5:58 PM
- Cameco (NYSE:CCJ) says it expects its newest mine at Cigar Lake in Saskatchewan to produce 16M packaged lbs. of uranium concentrate in 2016, subject to regulatory approval.
- Reaching the higher output target depends on regulators approving an increase in the annual production limit at the McClean Lake mill, which processes Cigar Lake ore and is owned by France's Areva.
- Cigar Lake is operated and 50% owned by CCJ, while Areva owns 37%.