Cameco says improved uranium market not enough to warrant new supply
Monday, February 11, 2019 at 6:02PM
Uranium Stocks

A quick update re: Cameco found on Seeking Alpha earlier:


Cameco (CCJ +0.3%warns against investing in new uranium mines, saying "even the promise" of new supply could create a headwind and place downward pressure on uranium prices.

"There is plenty of idle tier one production and tier one expansion capabilities, as well as idle tier two production and expansion capabilities," CCJ says. "And we can't lose sight of material sitting with financial players. This is capacity that can come back to the market relatively quickly. As a result, new supply poses a significant risk to the uranium market recovery."

CCJ says interest in long-term contracting has returned, but prices and contracting opportunities are not where they should be to restart idled capacity or warrant investment in growth opportunities.

The company also says the possibility of Section 232 U.S. tariffs on uranium imports is still creating uncertainty.

Shares are slightly higher after reporting better than expected Q4 earningswhile saying 2019 gross margin could come in weaker.


In the last year Cameco has risen from $8.50 to $12.32 so maybe we shouldnt be too despondant

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