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Winnipeg Free Press
02-08-2025
- Business
- Winnipeg Free Press
Nuclear option
Opinion The quest for more power to meet rising demand from electric vehicles and data centres running artificial intelligence technology has led to an apparent 'renaissance' of nuclear energy. The White House recently posted an op-ed piece exalting U.S. President Donald Trump's executive orders for reinvigorating America's nuclear power generation using that just that term, while effusively lauding his agenda to increase the nation's output by 300 gigawatts by 2050. That's enough to power about 300 million homes or, more likely, thousands of data centres for AI, as well as millions of EVs. Climate change commitments may not be high on the U.S. president's mind, but it is on China's list, as it seeks to add as much as 400 GW more from atomic energy by 2050 while aiming to decarbonize its economy. It's arguably off a faster start with 119 GW of nuclear power generation in construction or development. India is next in activity with 32 GW potentially under development. The United States is much further behind at eight GW, even trailing nations like France and Poland. Actual activity and planned growth suggests trillions of dollars being invested in nuclear energy over the coming decades — and investors are intrigued. 'The ducks are coming in a row, finally,' says Scott Clayton, Toronto-based senior analyst for the Canadian Wealth Advisor with the TSI Network in Toronto. The last time nuclear energy was on an upswing with investors was in the 2000s as oil prices surged. Then, the Fukushima plant disaster in Japan in 2011 put the brakes on nuclear power. Companies like Cameco Corp. — based in Saskatoon and the world's largest uranium producer — saw growth put on ice. That is until recently. Today, Cameco's share price, fuelled largely by all the talk of plans for new reactors, is at all-time highs. Although Canada may be an oil and gas powerhouse, its potential as a supplier of the fuel for nuclear energy has arguably more upside. It has the third largest discovered reserves in the world. It is also the second-largest producer behind Kazakhstan and potentially much more production is coming, as exploration companies like NexGen Energy and Paladin Energy look to develop mines in the Athabasca Basin (home to the highest-grade deposits of uranium in the world). Yet before jumping into a surging industry, driven by the future promise of much more nuclear power (not to mention the unnerving revival of the nuclear arms race), let's splash a bit of cold water on the overheating rods of speculation. 'It still faces challenges,' Clayton says. Among them are regulatory concerns. Mining projects in Canada take a notoriously long time to be approved and uranium is particularly tricky, given its environmental impact. Power plants are equally complicated. The public might appreciate the cheap, abundant power, just don't generate it close to where they live. 'The other problem is that the costs (of construction) are just astronomical,' Clayton says. The newest nuclear power generating station in the U.S, for example — two reactors at Plant Vogtle in Georgia — cost US$35 billion and were behind schedule and over budget. 'We definitely think it's (nuclear energy) going to be needed,' says Andrew Bischof, senior equity analyst at Morningstar in Chicago. Yet many projects are far from construction, let alone completion, and a history exists of projects being cancelled, especially in the U.S. Bischof says many major utility companies are talking about amping up nuclear power, but those are far-away ambitions, part of five- and 10-year plans to build capacity, which could take several more years before that power is added to the grid. There does seem to be more buzz around small modular reactors, he adds. These are scaled-down power plants that take less time to build, but it's an emerging technology. To that end, Canada is a leader with a project underway in Darlington, Ont. 'Duke Energy has also mildly stated that it's exploring SMRs, but again, that is 2030 to 2035 for a time frame,' Bischof says about the U.S. power provider, which presently has six nuclear power plants in the U.S.. Notably, big tech — Microsoft, Meta and Alphabet (Google) — are considering or currently entering into contracts with power providers, providing cash up front to restart or build new nuclear capacity, often involving small reactors, to meet climate change goals and growing energy-hungry AI capabilities. The need is substantial. AI is forecast to eat up 20 per cent of new energy growth through 2030. EV expansion is expected to increase demand by 15 per cent. Whether all this growth translates into future profits remains to be seen. In the meantime, investors might consider risk-adjusted exposure. 'If you're looking to invest in more speculative areas, it's best to get exposure through stocks that already have a solid business,' Clayton says. He points to U.S.-based Constellation Energy Corp. as one viable choice. Nearly 70 per cent of its output is nuclear and it pays a small dividend (0.47 per cent yield). Another way to invest in this theme is exchange-traded funds (ETFs). Investors have close to a handful of choices. One of the longest running is VanEck Uranium and Nuclear ETF, launched in 2007. It has seen renewed popularity, after peaking in price around 2011. '(Its) recent asset growth mirrors a broader nuclear renaissance fueled by surging electricity demand, the global pursuit of dependable low carbon power and fresh policy support extending plant life and financing next generation reactors,' says Brandon Rakszawski, director of product management, VanEck in New York. Monday Mornings The latest local business news and a lookahead to the coming week. Its portfolio also holds the aforementioned stocks with Constellation and Cameco among the largest positions. While the stars might be aligning for nuclear, conditions quickly change — i.e. battery power for renewables — that could make a long-term investment in nuclear suddenly less ideal. Still, for investors with an appetite for risk and a long time horizon, the nuclear option could power long-term profitability. Joel Schlesinger is a Winnipeg-based freelance journalist joelschles@
Yahoo
01-08-2025
- Business
- Yahoo
Cameco Corp (CCJ) Q2 2025 Earnings Call Highlights: Strong Financial Performance Amid Global ...
Release Date: July 31, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Positive Points Cameco Corp (NYSE:CCJ) reported strong financial performance across its uranium fuel services and Westinghouse segments, improving overall 2025 expectations. The company is well-positioned to benefit from the global resurgence in nuclear energy, with significant opportunities in North America and Europe. Cameco Corp (NYSE:CCJ) maintains a strong balance sheet with $716 million in cash and cash equivalents, $1 billion in total debt, and a $1 billion undrawn revolving credit facility. The company is strategically investing in long-term contracts for uranium and conversion services, protecting against weaker market conditions while allowing exposure to price improvements. Cameco Corp (NYSE:CCJ) is actively involved in discussions with governments and policymakers to expand nuclear energy, enhancing its role in global energy security and clean energy solutions. Negative Points There is a potential risk to meeting the 18 million pounds production guidance at McArthur River due to slow developments and challenges such as ground freezing and labor availability. The uranium market remains slow, with both spot and long-term contracting down in the first half of the year compared to 2024, leading to supply uncertainty. Cameco Corp (NYSE:CCJ) faces challenges in the uranium production segment, including risks related to new mining areas, equipment commissioning, and skilled labor availability. The company is cautious about the geopolitical bifurcation of the market, which may impact uranium demand and supply dynamics. Transportation risks in regions like Kazakhstan could affect the timely delivery of uranium, although improvements have been noted in the Trans-Caspian corridor. Q & A Highlights Warning! GuruFocus has detected 1 Warning Sign with CMPS. Q: Since the acquisition of Westinghouse, the outlook for nuclear globally has improved, yet your 5-year CAGR guidance for the business hasn't changed at 6 to 10%. Can you explain why that is? A: Grant Isaac, Executive VP and CFO, explained that the guidance remains conservative because many new build projects have not yet reached Final Investment Decision (FID). Once these projects hit FID, they will be included in the business plan, potentially increasing the growth outlook significantly. Q: Can you provide insight into the uranium segment's strong performance and the impact of low-cost inventory? A: Heidi Schake, Senior VP and Deputy CFO, noted that inventory levels vary due to production and purchase timing. The company expects to purchase 11 to 12 million pounds this year, with benefits from low-cost production balancing out over the year. Q: With the significant activity in new nuclear development, can you provide a sense of which regions are more advanced in development? A: Tim Gitzel, President and CEO, highlighted that Central and Eastern Europe have an advantage due to their familiarity with nuclear and strong state support. Markets like Poland and Bulgaria are eager to advance, while new models are being developed in the US. Q: Could you elaborate on the potential risks to MacArthur River's production guidance? A: Tim Gitzel explained that mining challenges include entering new areas, ground freezing, labor availability, and commissioning new equipment. Despite these risks, the company has not changed its production guidance for the year. Q: What is the status of GLE's selection for Department of Energy funding, and what is the potential upside? A: Grant Isaac mentioned that the DOE has not made decisions yet, and the industry is pushing for direct support. The company is evaluating GLE's technical capability and commercial case, with no intention of front-running industry demand. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Globe and Mail
10-06-2025
- Business
- Globe and Mail
Tuesday's Insider Report: Director invests in 2025's top-performing Big 6 Canadian bank stock
Featured below are companies that have experienced recent insider trading activity in the public market through their direct and indirect ownerships, including accounts they have control or direction over. The list features insider transaction activity; it does not convey total ownership information as an insider may hold numerous accounts. Keep in mind, when looking at transaction activities by insiders, purchasing activity may reflect perceived value in a security. Selling activity may or may not be related to a stock's valuation; perhaps an insider needs to raise money for personal reasons. An insider's total holdings should be considered because a sale may, in context, be insignificant if this person has a large remaining position in the company. I tend to put great weight on insider transaction activity when I see multiple insiders trading a company's shares or units. Listed below is a bank stock that has had recent buying activity in the public market reported by an insider. Toronto-Dominion Bank (TD-T) On May 28, director Ana Arsov invested over $283,000 in shares of TD Bank. She acquired 3,000 shares at a cost per share of $94.49, increasing the holdings in this particular account to 6,483 shares. Year-to-date, TD's share price is up more than 25 per cent, making it the best performing Canadian Big Six bank stock. ** Listed below are three stocks that have had recent selling activity in the public market reported by insiders. Cameco Corp. (CCO-T) On May 27, senior vice president and deputy chief financial officer Heidi Shockey exercised her options, receiving 10,030 shares at a cost per share of $11.32, and sold 10,030 shares at a price per share of $83.34 with 13,553 shares remaining in this particular account. Net proceeds totaled over $722,000, excluding any associated transaction charges. On May 27, Leontine van Leeuwen-Atkins, who sits on the board of directors, sold 3,252 shares at a price per share of $85 for an account in which she has control or direction over (Leontine Atkins Professional Corporation), after which this specific account did not hold any shares. Proceeds from the sale exceeded $276,000, not including trading fees. Fortis Inc. (FTS-T) On May 27, executive vice president, sustainability and chief legal officer Jim Reid exercised his options, receiving 20,000 shares at a cost per share of $47.57, and sold 20,000 shares at a price per share of $67.4109. Net proceeds totaled over $396,000, not including any associated transaction fees. There are currently 30,117 shares in this particular account. On May 27, executive vice president, chief financial officer Jocelyn Perry exercised her options, receiving 17,060 shares at a cost per share of $41.27, and sold 17,060 shares at a price per share of $67.1551. Net proceeds totaled over $441,000, excluding any associated transaction charges. There are currently 27,077 shares in this particular account. WSP Global Inc. (WSP-T) On May 27, chief operating officer Mark Naysmith exercised his options, receiving 10,424 shares at an average cost per share of approximately $64.90, and sold 10,424 shares at an average price per share of roughly $281.30, after which this particular account did not hold any shares. Net proceeds exceeded $2.2 million, excluding any associated transaction charges. Be smart with your money. Get the latest investing insights delivered right to your inbox three times a week, with the Globe Investor newsletter. Sign up today.
Yahoo
23-05-2025
- Business
- Yahoo
URA, Uranium ETFs Surge as Trump Orders Nuclear Reforms
Nuclear energy and uranium ETFs leaped Friday, charged by expectations that President Donald Trump is poised to remove barriers to the industry's expansion. The biggest U.S. uranium exchange-traded fund, the $2.9 billion Global X Uranium ETF (URA) soared more than 12% Friday afternoon, adding to the past month's 26% gain. The No. 2 fund, the $1.4 billion Sprott Uranium Miners ETF (URNM) also gained more than 12%. The top holding in both funds is Canadian miner Cameco Corp. (CCJ), which rose 14%. Trump signed an executive order today making approvals for new reactors easier, opening federal lands to nuclear power plant construction and providing for more robust uranium supply lines. Artificial intelligence computing has created massive new demands for electricity, and Trump in his first day in office declared an energy emergency. 'Trump's embrace of nuclear energy is a tide that lifts the entire nuclear industry, adding a premium to nuclear stocks and increasing demand for uranium,' said Research Lead Kent Thune, CFP. The performance of Uranium and nuclear ETFs has been mixed over the past year, with uranium miners hit particularly hard. URNM has dropped 35%, while the $229.4 million Sprott Junior Uranium Miners ETF (URNJ) has lost 45%. That's, in part, due to a 49% drop in uranium prices since January 2024, according to data on Cameco's website. The world's top producer is Kazakhstan, a close ally of Russia, which has been hit by global sanctions over the war with Ukraine. Canada is the world's No. 2 supplier and has been threatened with sanctions by the Trump administration. Other nuclear and uranium ETFs jumping today include the VanEck Uranium+Nuclear Energy ETF (NLR), which moved 11% higher, and the Range Nuclear Renaissance Index ETF (NUKZ), which added 7%. NUKZ is the outlier with its 39% gain over the past & Uranium ETF Flows—Source: Only eight ETFs are listed on as nuclear/uranium-focused | © Copyright 2025 All rights reserved
Hamilton Spectator
01-05-2025
- Business
- Hamilton Spectator
Uranium miner Cameco reports $70M Q1 profit as revenue up from year ago
SASKATOON - Cameco Corp. reported a first-quarter profit as its revenue rose compared with a year ago, citing strong production of uranium and fuel services. The company says it earned a profit attributable to equity holders of $70 million or 16 cents per diluted share for the quarter ended March 31, compared with a loss of $7 million or two cents per diluted share a year earlier. On an adjusted basis, Cameco says it earned 16 cents per diluted share in its latest quarter, up from an adjusted profit of 11 cents per diluted share a year earlier. Revenue for the quarter totalled $789 million, up from $634 million a year earlier. Uranium production totalled 6.0 million pounds for the quarter, up from 5.8 million a year earlier, while sales volumes amounted to 6.9 million pounds, down from 7.3 million pounds. Cameco's average realized price for uranium was $89.12 per pound, up from $77.33 a year earlier. Cameco's fuel services business saw production of 3.9 million kilograms, up from 3.7 million a year earlier, while fuel services sales volumes totalled 2.4 million kilograms, up from 1.5 million kilograms. Fuel services reported an average realized price of $56.64 per kilogram, up from $48.36 in the first quarter of 2024. This report by The Canadian Press was first published May 1, 2025. Companies in this story: (TSX:CCO)
