Cameco hikes outlook despite earnings hit as demand for nuclear energy powers up

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Uranium miner Cameco has raised its revenue outlook as demand for nuclear power grows in the transition away from fossil fuels. Read on

Cameco said that as of June 30, its long-term commitments require an average annual delivery of 28 million pounds of uranium over the next five years as opposed to the 26 million pounds reported at the end of March. The company also said it hopes to deliver between 31 million and 33 million pounds of uranium this year, a boost from previous expectations of 29 to 31 million.

Overall, Cameco increased its revenue outlook for the year to $2.4 billion to $2.5 billion from $2.2 billion to $2.4 billion. “The significant momentum seen in the nuclear energy industry and the heightened supply risk caused by geopolitical developments are translating into increased opportunities for Cameco,” Tim Gitzel, the company’s chief executive, said in a statement.

“We expect industry long-term contracting volumes in 2023 to exceed those in each of the last 10 years. We believe this is a good indication that a new long-term contracting cycle is underway.” Cameco’s positive outlook is a welcome change for the uranium sector, which has endured a tough decade following the Fukushima nuclear disaster in Japan in 2011 that put a chill on nuclear energy demand globally.There was an error, please provide a valid email address.By clicking on the sign up button you consent to receive the above newsletter from Postmedia Network Inc. You may unsubscribe any time by clicking on the unsubscribe link at the bottom of our emails or any newsletter.

 

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