Cameco (CCJ) vs peer group uranium miners (Jan 2023-April 2024)
As a sector, uranium mining has been in a strong uptrend throughout 2023 with a peak in early 2024.
Pullback currently underway, based on Uranium U308 (UX1!) spot price softness since January 2024.
Geopolitical and operational factors to be considered: (a) Nuclear energy facilities in Europe and USA are reliant to a large degree on fuel sourced from Russia and Kazakhstan, which may be curtailed via legislation (sanctions on Russia and possibly Kazakhstan) or supply chain disruptions (reduced military presence in Niger, announced operational curtailments in Kazakhstan and Saskatchewan which together produce half of global supply). (b) Legacy nuclear facilities are being extended beyond scheduled retirement dates, which will add to demand-side pressure. (c) Nuclear energy is a significantly less elastic market than other types of fuel due to the continuous operational nature of facilities and imperfect substitution alternatives in the short term, which maintains a floor on uranium demand.
For consideration: Buy uranium miners located in stable jurisdictions, friendly to US and European interests, and located close to natural markets for fuel consumers.
Pullback currently underway, based on Uranium U308 (UX1!) spot price softness since January 2024.
Geopolitical and operational factors to be considered: (a) Nuclear energy facilities in Europe and USA are reliant to a large degree on fuel sourced from Russia and Kazakhstan, which may be curtailed via legislation (sanctions on Russia and possibly Kazakhstan) or supply chain disruptions (reduced military presence in Niger, announced operational curtailments in Kazakhstan and Saskatchewan which together produce half of global supply). (b) Legacy nuclear facilities are being extended beyond scheduled retirement dates, which will add to demand-side pressure. (c) Nuclear energy is a significantly less elastic market than other types of fuel due to the continuous operational nature of facilities and imperfect substitution alternatives in the short term, which maintains a floor on uranium demand.
For consideration: Buy uranium miners located in stable jurisdictions, friendly to US and European interests, and located close to natural markets for fuel consumers.
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