Cameco Stock: High Uranium Prices Are Starting To Bite

Cameco Stock: High Uranium Prices Are Starting To Bite

Summary

The company closed Q3 2021 with a loss of $72 million and each $5/lb increase in uranium prices is expected to increase its Q4 loss by $3 million.

Cameco is stuck in no man’s land as uranium prices don’t seem high enough for the company to restart the idled McArthur River mine.

Even if McArthur River is restarted immediately, investors are currently paying over $22/lb for reserves. If uranium prices reach $100/lb and stay there, Cameco’s average realized price will vary between $58/lb and $65/lb in the next four years. caracterdesign/E+ via Getty Images Investment thesis Back in September, I wrote an article on how Sprott Physical Uranium Trust ( OTCPK:SRUUF ) is likely pushing up uranium prices through large purchases on the spot market. However, those high prices are having a negative effect on the financials of Cameco (NYSE: CCJ ). The company closed Q3 with a […]

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