Mon, Aug. 10, 11:58 AM
- Japan is rejoining the countries using atomic power after the Fukushima nuclear disaster more than four years ago, as Kyushu Electric Power says it will begin bringing online the No. 1 reactor at its Sendai facility on Aug. 11, start power generation as early as Aug. 14 and return it to normal operations next month.
- The move is an important de-risking event for the uranium market, says BMO Capital analyst Edward Sterck: While "Japanese utilities are sitting on significant excess inventories, the fact that these will now start to be consumed [in Japan] should ease fears of sales from inventory,” and it shows there is a regulatory restart process in Japan that actually works, which clears the way for more.
- Relevant stocks: CCJ +4.1%, DNN +5.1%, LEU -1.3%, URRE +5.7%, UEC -1.5%, URG -2.7%, UUUU +8%.
- ETFs: URA, NLR
Mon, Jun. 22, 12:59 PM
- Canada's government says it has approved an application for Australia’s Paladin Energy (OTCPK:PALAF +4%) to construct its proposed Michelin uranium mine in the provinces of Newfoundland and Labrador, making a rare exception to its policy that requires uranium mines to be majority owned by Canadian companies.
- Analysts say the approval may open the door to other foreign investors seeking majority ownership of Canadian uranium mines, and could encourage investment by two Chinese utilities that have said in recent months they are looking at Canada for acquisitions.
- Canadian companies that own non-producing uranium assets in the country include Cameco (CCJ +0.9%), Fission Uranium (OTCQX:FCUUF +2.1%) and Denison Mines (DNN -1.1%).
Wed, Apr. 22, 12:30 PM
- Uranium names are showing notable strength today following yesterday's ruling in Japan that will allow the Sendai nuclear plant to reopen, which would be the first plant to be reopened since the Fukushima disaster: CCJ +6.8%, DNN +5.6%, LEU +10.3%, URRE +4.5%, UEC +5%, URZ +2.6%, URG +1%, UUUU +1.7%.
- The news is positive for the nuclear industry to the extent that authorities in Japan have not given up on the energy source despite Fukushima.
- China is pushing for more nuclear power, with the government reportedly approving eight new nuclear power projects.
- A MarketWatch article paints a bright picture of the nuclear industry, with uranium prices rising ~35% since last summer and improving public opinion; "China and India believe that the upside from the clean energy from nuclear far outweighs the downside risks of sticking to dirty coal,” says GoldStockTrades.com editorJeb Handwerger.
- Last week, CCJ signed a deal with India to provide 7.1M lbs. of uranium concentrate over the next five years.
- ETFs: URA, NLR
Wed, Apr. 15, 11:12 AM
- Cameco (CCJ +5.5%) confirms it has signed a supply agreement to provide 7.1M lbs. of uranium concentrate to Indian nuclear reactors under a long-term contract through 2020.
- CCJ says the contract is its first with India, which is the world's second fastest growing market for nuclear fuel.
- The agreement was announced on the second day of Indian Prime Minister Modi's official visit to Canada.
- Earlier: Canadians oppose potential uranium deal as Indian PM Modi visits (Apr. 14)
Tue, Apr. 14, 2:59 PM
- With Indian Prime Minister Modi arriving in Canada, a new poll shows Canadians are 60% opposed to helping develop India’s nuclear energy industry.
- Modi is set to meet with political and business leaders, with news of a possible agreement for India to buy uranium from Cameco (CCJ -1.6%) expected as soon as tomorrow in what would be the company's first deal with the country.
- Saskatchewan Premier Brad Wall has lauded the possibility of a uranium deal and said it would boost CCJ's revenue and support jobs in the province.
Mon, Apr. 13, 9:41 AM
Thu, Apr. 9, 11:15 AM
- Cameco (CCJ +3.1%) is higher after Canaccord upgrades shares to Buy from Hold with a C$23 price target, up from C$20.
- Canaccord notes that uniquely among commodities, CCJ did not reduce its Q2 uranium price forecast, and that the company will enjoy the full benefit of the reduced exchange rate between Canadian and U.S. dollars - even more crucial to CCJ’s financial forecasts than spot uranium prices, the firm says.
- The ongoing Canadian Revenue Agency tax disputes remain the key valuation risk for CCJ, Canaccord says, but even adjusting for an assumption that CCJ loses all outstanding tax disputes, the firm sees bottom-of-cycle share price support at C$18-C$20 and mid-cycle share price support at C$17.
Tue, Feb. 10, 11:26 AM
- The IRS is demanding back taxes from Cameco (CCJ +2.3%), believing that the revenue reported by CCJ’s Swiss subsidiary is inadequate and that a portion should be taxed back in the U.S. at a much higher level.
- The claim is similar to that made by the Canada Revenue Agency, which is trying to shift Cameco Europe’s revenue to Canada and apply a back taxes and penalties.
- CCJ says it has done nothing wrong but that the amount of back taxes and transfer pricing penalties could amount to as much as C$1.5B plus other penalties if it loses the CRA dispute; the IRS demand is much smaller, as it seeks to collect US$32M it feels it was owed in 2009, and the agency is auditing tax returns from 2010-12.
Mon, Feb. 9, 2:52 PM
- Cameco (CCJ +2.6%) enjoys solid gains after Q4 earnings routed analyst expectations, as rising uranium prices and a drop in sales expenses helped fuel a 14% Y/Y increase in profit; revenue slipped 9% to C$889M but the result was well ahead of estimates.
- CCJ’s full-year results of C$1.04/share were the lowest since 2006, but the company thinks it is the trough, as it foresees the Cigar Lake mine’s output of 340K lbs. grow to 18M by 2018.
- Looking to FY 2015, CCJ projects revenue remaining little changed to falling as much as 5% compared with last year due to an expected decline in uranium and fuel service sales, which would indicate a range of C$2.27B-C$2.44B, trailing the analyst consensus expecting ~$2.5B.
Wed, Jan. 14, 2:56 PM
- Cameco (CCJ -4%) says it expects its newest mine at Cigar Lake, Saskatchewan, to produce 6M-8M lbs. of uranium concentrate in 2015, rising to 18M lbs. by 2018, but the results apparently disappoint investors as shares slide.
- CCJ says Cigar Lake produced 340K lbs. of uranium concentrate during 2014, matching company projections.
Nov. 24, 2014, 2:37 PM
- Uranium prices have reversed recent gains, plunging $6/lb. (~13.5%) to $38 over the past week in their biggest weekly drop since 1996.
- TD Securities' Greg Barnes thinks the current volatility is more reflective of trader positioning in a thinly traded market than utilities exhibiting strong fundamental demand; the analyst is not convinced that the rapid drop will be enough to trigger a wave of buying by utilities.
- Uranium names are broadly lower today: CCJ -3%, DNN -3.8%, UEC -1.6%, URG -5.7%, URZ -4.4%, UUUU -1.5%, URRE -0.4%.
- ETFs: URA, NLR, NUCL
- Earlier: Uranium spot prices could pass $50/lb. in next 12 months, analyst says
Nov. 10, 2014, 2:41 PM
- Uranium names are moving briskly higher after H.C. Wainwright analyst Jeffrey Wright says uranium spot prices could rise above $50/lb. in the next year, as a positive decision on the restart of two Japanese nuclear reactors could alleviate psychological pressures on the uranium market.
- The firm maintains Buy ratings for Uranium Energy (UEC +9.3%), Uranerz Energy (URZ +14.7%) and Ur-energy (URG +8.6%).
- Also higher: CCJ +2.9%, DNN +7.1%, URRE +30.9%, UUUU +10%.
- ETFs: URA, NLR, NUCL
Nov. 7, 2014, 12:20 PM
- Reports that Japan is restarting some reactors may be helping uranium stocks catch a bid today.
- Two reactors at Japan's Sendai nuclear plant are due to become the first to be restarted in the country since the 2011 meltdown at the Fukushima facility.
- Also, Denison Mining (DNN +22.2%) reported Q3 earnings last night, delivering a loss of $0.01 vs. a loss of $0.10 in the prior-year quarter.
- CCJ +10.3%, UEC +5.4%, UUUU +6.1%, URRE +27.2%, URG +16.9%, URZ +11.5%.
- ETFs: URA, NLR, NUCL
Oct. 29, 2014, 3:13 PM
- Cameco (CCJ -3.9%) says it expects full-year revenue to fall up to 5% as it trims its 2014 uranium production forecast to 22.6M-22.8M lbs. from an earlier view of 22.8M-23.3M lbs.
- CCJ says it cut its production outlook to reflect the impact of labor issues at its McArthur River mine and Key Lake mill, and lower than expected production from Cigar Lake mine; McArthur River, the company's biggest mine, was offline for two weeks in August and September due to a lockout.
- CCJ reported Q3 earnings and revenues that fell short of expectations, as its average realized uranium price fell to $45.87/lb. from $50.73 in the year-ago quarter.
- ETFs: URA, NLR, NUCL
Sep. 12, 2014, 2:21 PM| Sep. 12, 2014, 2:21 PM | Comment!
Aug. 27, 2014, 11:39 AM
- Cameco (CCJ -2.3%) says it has started shutting down operations at its McArthur River uranium mine and Key Lake mill in Saskatchewan after the union representing workers at those operations issued a strike notice.
- The United Steelworkers union advised CCJ of its intention to begin strike action on Aug. 30, and CCJ says it then issued a lockout notice to ensure a safe and orderly shutdown of its facilities.
- CCJ does not expect any labor disruption to its 2014 uranium delivery commitments, but says it may draw on a variety of supply sources including primary production, and existing purchase commitments and inventories.
CCJ vs. ETF Alternatives
Cameco Corp is engaged in the exploration for and the development, mining, refining, conversion, fabrication and trading of uranium for sale as fuel for generating electricity in nuclear power reactors in Canada and other countries.
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