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« Fronteer Development Group | Main | Uranium: A question of Time »
Saturday
Jul152006

Cameco Corp

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When it comes to uranium producers this one cannot be ignored as it is easily the most dominant player in the uranium arena.

By comparison to other market sectors the uranium market is comparatively small making it difficult for fund managers to find suitable investment vehicles to place their money. Fund managers are looking for a piece of the action and not for majority ownership which rules out most of the companies in this sector. So Cameco provides them with a certain amount of liquidity enabling them to freely move some of their funds in and out of the market as they see fit. This action will force the price of this stock to be a little more volatile but will inevitably drive the stock price up.

Cameco Corp is the world’s largest, uranium miner accounting for about a quarter of the world’s uranium production. Cameco controls more than half of all identified new uranium production that may come to the market over the next 10 years.
It has four mines operating in Canada and the US. It should be noted in Saskatchewan, Canada, the ore grades are approximately 100 times higher in quality than the world average. There are two new mines being developed in Canada and Kazakhstan, Central Asia.
This energy company has a total of proven and probable reserves amounting to approximately 550 million pounds of uranium.
For gold bugs there is the added kicker of a controlling interest, just over 50% in Centerra Gold Inc.
We are buyers at these levels even though there could be greater value in smaller uranium miners this one is set to do very well indeed.
Cameco has a market Capitalisation of $13.5 billon, a P/E ratio of 53 and is currently trading at around $40.00. It is traded on the NYSE under the symbol of CCJ and on the TSX under CCO.

For more information about Uranium see the Uranium Information Centre and the Canadian Nuclear association.

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