Cameco Corp.

Strong Financial Performance: Cameco reported robust fourth-quarter and annual results for 2024, achieving strong net and adjusted net earnings driven by Tier-1 production levels, higher sales volumes, and improved average realized prices. Notably, the company delivered nearly 34 million pounds of uranium and maintained commitments to deliver an average of 28 million pounds of uranium annually over the next five years.

Positive Market Outlook for Nuclear Energy: The nuclear sector is experiencing favorable market conditions, driven by increasing global energy security concerns and a shift away from reliance on Russian uranium. The current landscape presents opportunities for utilities to contract long-term to meet growing demand, as there remains a significant structural deficit with uncovered requirements estimated at around 2.1 billion pounds of uranium needed through 2040.

Increased Long-term Contracting and Pricing Trends: While long-term contracting volumes have been muted, pricing has significantly improved year-over-year, indicating a tightening market. As Cameco holds a substantial contract portfolio covering about 220 million pounds of uranium—representing roughly 25% of its current reserves—they can afford to be patient, selectively adding contracts that provide downside protection while leveraging potential price upsides.