Cameco (CCJ)

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It Is Time to Buy Cameco

January 6, 2017Comment

By Holmes Osborne, CFA

There are 396 million shares, the stock price is $11.12 and the market cap is $4.4 billion.

It pays a 40 cent dividend for a 3.6% yield.

Cameco produces 18% of the world's uranium and has 410 million pounds of proven and probable reserves

The company says it provides U3O8 to 47 nuclear reactors worldwide. Of which, 31% are in the Americas, 49% in Asia and 20% in Europe.

The five largest customers account for 47% of commitments. The company reported 190 million pounds are contracted.

There is $131.5 million in cash and $122.6 million in accounts receivable.

The liability side shows $245 million in payables, $235 million in short-term debt and $1.5 billion in long-term debt.

Free cash flow was negative $441 million for the first half of 2016.

Source: GuruFocus.com

http://finance.yahoo.com/news/time-buy- ... 40781.html

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Uranium Stock Cameco Heats Up

By BRUCE KAMICH

Cameco was upgraded at a major sell-side shop so it is worth looking at the charts again and give some upside price objectives.

Maybe "yellow cake" will get some attention going forward.

Prices have moved straight back to the upside. The other thing I notice on this chart is that the major area of resistance is in the $18 area and above. CCJ has a lot of room to advance, in my opinion.

Risk? I would use a sell stop below $10.50 for now

Source: The Street

http://realmoney.thestreet.com/articles ... yptr=yahoo

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WA uranium mine gets go-ahead

The West Australian government has approved Canadian mining company Cameco's Yeelirrie uranium project in the state's midwest.

The Environmental Protection Authority recommended against approval last August because it failed to meet one of its nine key factors, the likely loss of some underground animal species.

The government had considered broader economic and social matters, as well as environmental factors, and the project approval was subject to 17 strict conditions, Environment Minister Albert Jacob said.

Source: AAP

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Cameco expects to report net loss for 2016, cut jobs at uranium mines

(Reuters) - Canadian uranium producer Cameco Corp <CCO.TO> <CCJ.N> on Tuesday said it expected its 2016 adjusted profit to be significantly lower than analysts' estimates and also said it would cut 120 jobs at three of its uranium mines in 2017.

The Saskatoon, Canada-based company said it expects to report a net loss for 2016 citing asset impairments resulting from fair market assessments at the end of the year. The average estimate among Reuters' analysts was a profit of 86 cents per share for 2016.

Cameco said it plans to reduce workforce at the McArthur River, Key Lake and Cigar Lake operations by 10 percent.

"The current earnings expectations do...reflect the consequences of a continued weak uranium market and our resolve to make the necessary decisions to defend and preserve our core uranium business for the long-term benefit of our stakeholders," Chief Executive Officer Tim Gitzel said in a statement.

Cameco reported a 35 percent rise in uranium sales in the quarter ended Sept. 30, even at a time when uranium prices are near multiyear lows.

Excess supplies has kept uranium prices at record lows, forcing mining companies to mothball mines, slice costs and cut debt as they struggle to survive.

Source: Reuters

http://finance.yahoo.com/news/cameco-ex ... ector.html

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Why Cameco Shares Dropped 15% This Morning

The world's top uranium miner had some bad news for investors. Will things improve in 2017?

by Maxx Chatsko

Cameco actually sold the volume of uranium it expected (31.5 million pounds) at a price of $54.46 per pound. Operations weren't the problem.

The hit to earnings came from an enormous asset impairment charge as management sought to more fairly value its core assets in the current market.

The results of the reassessment will result in an after-tax impact to net earnings between $180 million and $220 million, or $0.45 to $0.56 per share. That's quite a shock compared to net income of $0.14 per share for the first nine months of 2016.

The good news is that major production cuts have already been announced in 2017 from leading suppliers.

The bad news is that prices cannot recover soon enough.

Source: Motley Fool

http://www.fool.com/investing/2017/01/1 ... yptr=yahoo

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Jan 13, 2017

The Best Uranium Stock of 2016

When it comes to investing in uranium, there was really only one best option in 2016 and it’s the best for 2017, too.

by Reuben Gregg Brewer

It started 2016 with capital spending plans of $320 million. But by the third quarter, industry dynamics led the company to rein that in to just $245 million.

The miner has also been working hard on the cost front by replacing higher cost production from its declining assets with increased production from its Cigar Lake project. This low-cost mine helped Cameco lower its cash costs for mining uranium by around 23% through the first nine months of 2016.

And while it paid 4% more over that span to acquire uranium from others for resale, it bought 33% less uranium from outsiders.

All in, the company's costs for produced and purchased uranium fell 11%.

Debt is still a relatively modest 20%

Its cash balance dropped 50% through the first nine months of 2016. But part of that cash burn has been spending on projects like Cigar Lake that have helped Cameco adjust to the hard times it's currently facing.

Source: Motley Fool

http://www.fool.com/investing/2017/01/1 ... yptr=yahoo

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Cameco cuts jobs

Uranium producer Cameco dropped 18% in the wake of its release of preliminary 2016 results and its 2017 outlook.

Cameco said that it would cut 120 employees by May at its McArthur River, Key Lake, and Cigar Lake operations, representing about 10% of the uranium operations staff.

Other cost-cutting measures should help improve bottom-line results, but CEO Tim Gitzel said that "we expect our adjusted net earnings for 2016 will be significantly lower than analysts' earnings estimates."

With the company anticipating ongoing weak conditions in the uranium market, Cameco intends to "defend and preserve our core uranium business," in Gitzel's words.

Until demand for uranium picks up, Cameco will have to work hard to avoid feeling the impact of rock-bottom spot prices for the radioactive element going forward.

Source: Motley Fool

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Cameco Rejects TEPCO's Uranium Contract Termination Notice

TEPCO alleges that an event of 'force majeure' has occurred because it has been unable to operate its nuclear generating plants for 18 consecutive months due to government regulations arising from the Fukushima nuclear accident in March 2011.

The termination would affect approximately 9.3 million pounds of uranium deliveries through 2028, worth approximately $1.3 billion in revenue to Cameco, including about $126 million in each of 2017, 2018 and 2019 based on 855,000 pounds of deliveries in each of those years.

In 2017, Cameco's consolidated revenue, including the TEPCO volume, is expected to range between $2.1 billion to $2.2 billion. M

Source; Marketwired

http://finance.yahoo.com/news/cameco-re ... 00090.html

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Cameco reports 4Q loss

SASKATOON, Saskatchewan (AP) _ Cameco Corp. (CCJ) on Thursday reported a loss of $107.9 million in its fourth quarter.

The Saskatoon, Saskatchewan-based company said it had a loss of 27 cents per share.

Earnings, adjusted for non-recurring costs, came to 17 cents per share.

The uranium producer posted revenue of $664.5 million in the period.

For the year, the company reported a loss of $46.8 million, or 12 cents per share, swinging to a loss in the period.

Revenue was reported as $1.84 billion.

Cameco shares have climbed 3.5 percent since the beginning of the year. The stock has fallen slightly in the last 12 months.

Source: Associated Press

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Cameco's shares spiked 5.37 percent to close at $12.36 a share on Tuesday.

The stock traded between $11.87 and $12.37 on volume of 4.86 million shares traded.

The company reported a loss of C$144 million, or C$0.36 a share, for the fourth quarter of 2016, compared to a loss of C$10 million, or C$0.03 a share, in the fourth quarter of 2015.

Cameco reported revenues declined 9 percent year-over-year to C$887 million in the fourth quarter of 2016.

Revenues were above analysts' expectations of C$824.8 million, according to Thomson Reuters.

Consensus estimate of adjusted earnings for the company was C$0.26 a share according to Thomson Reuters.

The company produced 7.1 million pounds of uranium in the fourth quarter, compared to 9.6 million pounds a year ago.

Source: Yahoo Finance