$31.21
0.23 (+0.74%)
Cameco Corp (USA) (CCJ)
CAPS Rating:
The Company is engaged in the exploration, development, mining, refining, conversion, and fabrication of uranium for sale as fuel for generating electricity in nuclear power reactors in Canada and internationally.
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On June 19, 2009 at 1:16 PM, 100ozRound (99.84) wrote:
Cameco is the world's largest uranium miner and has high-grade reserves and low-cost operations. With the push for clean energy and Urianium's reputation as a reliable source of power, Cameco is in a position for growth and continued profitability. With the large gap between Uranium demand and Uranium production, Cameco's potential for profitability is rather high.
So let's break it down:
McArthur River - world's largest, high-grade uranium deposit with proven and probable reserves of 332.6 million pounds U3O8 (Cameco's share – 232.2 million pounds).
Key Lake - largest high-grade uranium milling operation in the world - production capacity of 18.7 million pounds U3O8 (Triuranium octaoxide) annually.
Rabbit Lake - second largest uranium milling operation in the world with a capacity of 12 million pounds - 100% owned by Cameco.
Cigar Lake - world's largest undeveloped high-grade uranium deposit;proven and probable reserves of more than 226.3 million pounds U3O8 at an average grade of 20.7% (Cameco's share – 113.2 million pounds).
Inkai (Kazakhstan) - owned and operated by Joint Venture Inkai (JVI) which is owned by Cameco (60%) and KazAtomProm (40%); reserves of 141.8 million pounds U3O8 (Cameco's share 85.1 million).
They also pulled about 103,000 ounces of Gold out of the ground in 1st qtr '09. Cameco owns approximately 53% of Centerra Gold. Centerra owns 100% of the Kumtor mine in the Kyrgyz Republic, 100% of the Boroo mine in Mongolia, 100% of the Gatsuurt property in Mongolia near Boroo (exploration), and 63% of the REN joint venture in Nevada, U.S. (exploration).
In addition, Cameco owns significant interests in several junior explorations companies:
UEX Corporation - uex-corporation.com
UNOR Inc.- unorinc.com
Minergia (Cameco has the right to earn a 50% ownership in Minergia by investing $10mil in two payments over the next 4 years).
Western Uranium Corporation - westernuraniumcorp.com
Govi High Power Exploration Inc - goviex.com
Uranium is currently trading around US$53.00/lb (Mid June 2009) compared to an all time high of US$136.00/lb in June 2007; so there is ostensibly some upside to Uranium spot prices and CCJ should benefit from a surge in Uranium prices.