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Investing in Cameco. About Cameco. One of the largest uranium producers in the world Headquarters are located in Saskatoon SK. Leading provider of processing services for nuclear power plants to produce clean energy Hold premier land positions in Canada and Australia. Nuclear Energy.
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About Cameco • One of the largest uranium producers in the world • Headquarters are located in Saskatoon SK. • Leading provider of processing services for nuclear power plants to produce clean energy • Hold premier land positions in Canada and Australia
Nuclear Energy • Uranium is produced from Ore • Ore is a mineral produced from the earth and mined and milled to produce Yellowcake • Yellowcake is a powdery yellow substance that gets transformed into Uranium dioxide or Hexafluoride • Then it goes through the enrichment and fuel manufacturing stage to be used for the generation of electricity
Plan for Growth • Cameco plans to double their annual uranium production from 20 million lbs. to 40 million lbs. by 2018 • To achieve this, they plan on investing in the company itself, expanding production at existing mines and looking into other uranium production opportunities • “Double U focuses on expanding production at existing mines, bringing development properties into production, and advancing other projects already in Cameco’s portfolio.” –Cameco
Increasing Demand for Nuclear Energy • Expanding countries are choosing to use nuclear reactors to power their grids because they want safe, reliable, clean, and affordable energy • Today with big issues such as global warming, focus is being placed on reducing greenhouse gas emissions and ensuring energy security
Agreement with China • Prime Minister Stephen Harper announced the successful agreement between Canada and China • To permit the sale of uranium Yellowcake to China
Contracting Strategy • Commitments to supply more than 290 million lbs. of uranium under long-term contracts • Has contracts with 54 customers worldwide • In 2010, two long-term agreements were signed with China
Radioactivity • Uranium has a low level of radioactivity • Most of the radioactive material ends up in a tailings dam • Environmental approvals are needed to start mining in a new area.
Conclusion and Recommendations • Cameco’s stock is a low price right now. It is a good time to buy in • Developing countries will need a huge supply of nuclear energy in the future • The outlook for uranium prices are expected to reach $100/lb. within the next few years