Uranium remains cyclical and geopolitical risks are always a danger (photo: FreePik, Denisw)
The global climate crisis cannot be solved with only renewable energy such as sun, wind and water. For a clean energy mix, a diversified approach is needed. If a net zero emissions of greenhouse gases are to be achieved by the middle of the century, Uranous has to play an important role. The nuclear energy provides capacities of over 400 gigawatts in 32 countries. This saves 1.5 gigatons on CO2 annually.
In addition, the use of atomic energy contributes to reducing the dependence on fossil fuels and at the same time promotes the energetic self -sufficiency of the countries. The International Energy Agency predicts that the electricity requirement will increase by 50 percent by 2040. The extension of the term for existing nuclear power plants and the construction of new innovative reactors can pave the way to the energy transition.
CAMECO: 2 mines with high quality
Cameco Corp. is a worldwide Canadian company in uranium production with mines in the USA, Canada and in Kazakhstan (joint venture with kazatomprom). The 2 Canadian mines McArthur River and Cigar Lake are among the most highest uranium mines in the world and offer reliable access to the core fuel.
As a global actor in the area of nuclear energy, Cameco is broadly diversified. In addition to North America, Cameco also has customers in France and Great Britain as well as Japan, South Korea and China. Cameco covers the entire value chain. From breakdown to refining and conversion to fuel production and nuclear fuel services.
Long -term contracts and regular income
By refining, conversion, enrichment and fuel production, Cameco Rohuranerz processes into highly specialized core fuel in order to supply energy suppliers with the necessary material for the operation of nuclear power plants. By adapting precisely to the requirements of the different reactors, CAMECO ensures safe, reliable and low -emission electricity generation.
It is therefore understandable that CAMECO has become an indispensable partner for energy companies and long -term contracts are desired from both sides. Long-term agreements offer customers both supply and price security, while Cameco benefits from regular income.
Uranic production forecast increased
Most recently, Cameco has shown a strong operational performance, which was supported by a stable cost structure and rising market prices. As a result, the uranium production forecast was increased, although there are challenges with the joint venture in Kazakhstan.
The financial forecast remains positive, with an expected annual turnover of up to $ 3.2 billion. Cameco also increased the dividend and announced a long -term growth strategy to benefit from the growing demand for nuclear energy.
Long -term increasing demand
The global need for nuclear energy increases. Nuclear power is increasingly seen as a reliable and sustainable solution to achieve the climate goals. Several countries have strengthened their investments in nuclear energy. China, Japan and France are planning to expand nuclear power plants. Belgium and Canada expand existing reactors or invest in small modular reactors (SMRs).
These SMRs also opens up new opportunities at remote locations and in developing countries. These are small nuclear reactors that are cheaper and offer a safety advantage even with poor safety infrastructure. Forecasts assume that the global nuclear power capacity from 2024 to 2040 will increase by around 30 percent. Until then, the electricity requirement should increase by 40 percent.
SMRS: Investing in the next generation
Cameco is investing in new technologies and is actively involved in the development of SMRs that promise strong growth. With pilot projects, Cameco already secures long -term delivery contracts. Early positioning could give CameCo an advantage over competitors, because the market with SMRs is to grow by 15 percent annually.
Uranous remains cyclical – geopolitical risks are always a danger
CAMECO depends heavily on a few key mines, which could lead to a loss for high demand and production problems. Despite long -term contracts, Cameco is exposed to the fluctuating uranium prices. Too strong increase in the uranium price could make new degrees more difficult. Additional dangers result from the strict regulatory requirements, the constant danger of geopolitical instability and through the partnership in Kazakhstan.
Uranium ETF as an alternative
Investors who shy away from individual sharescan consider the Vaneck Uranium and Nuclear Technologies ETF (A3D47K). The costs are quite high with a total of expense ratio (ter) of 0.55 percent. With a weighting of around 16 percent, Cameco is in the first position. In total there are 25 companies, primarily from energy and industry, in this ETF.
Disclaimer:
No investment advice. No call to buy or sell securities.