Shares of uranium producers came under pressure today; the URNU.DE ETF loses more than 5%, and Uranium Energy Corp (UEC.US) shares retreat nearly 3% to $7; Canada's largest 'western' uranium miner, Cameco (CCJ.US), loses more than 3.5%.
- Uranium production operations at Block 1 of the Inkai uranium deposit in Kazakhstan, which Cameco operates jointly with Kazatomprom (KAP.UK), a joint venture, have been temporarily suspended. The state-owned Kazakh giant holds a 60% stake in the project. Cameco conveyed that it was surprised By December 30, 2024, the Inkai JV had not obtained the necessary approvals from the relevant state authorities due to delays in submitting the required documentation.
- As a result, JV Inkai decided to temporarily suspend production. The project's documentation is currently being updated and a positive outcome is expected. Data received by Cameco as recently as December 26, 2024, did not mention the risk of production suspension due to the process cited by Kazakh authorities. JV Inkai expects to submit documentation to the ministry in the coming weeks, and the situation is expected to be clarified shortly thereafter according to a January 2 statement from Kazatomprom.
- The Canadian company says it will seek further clarification on how the situation occurred, as well as the potential impact on the company's production and financial position in 2025 and 2026; also on future dividends. Kazatomprom stated that under the current circumstances it does not anticipate a significant impact on its production plans for 2025, The company has sufficient inventory levels to manage supplies throughout the year.
Cameco (H1 interval chart)
Cameco's Q4 results indicated $528 million in revenue, with just $5.45 million in net income and $0.01 in earnings per share. A valuation of around 250 price/earnings remains very challenging, especially for minign company, given potential downtime at the company's key production JV Inkai project.
Start investing today or test a free demo
Create account Try a demo Download mobile app Download mobile app
Source: xStation5
The content of this report has been created by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, (KRS number 0000217580) and supervised by Polish Supervision Authority ( No. DDM-M-4021-57-1/2005). This material is a marketing communication within the meaning of Art. 24 (3) of Directive 2014/65/EU of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments and amending Directive 2002/92/EC and Directive 2011/61/EU (MiFID II). Marketing communication is not an investment recommendation or information recommending or suggesting an investment strategy within the meaning of Regulation (EU) No 596/2014 of the European Parliament and of the Council of 16 April 2014 on market abuse (market abuse regulation) and repealing Directive 2003/6/EC of the European Parliament and of the Council and Commission Directives 2003/124/EC, 2003/125/EC and 2004/72/EC and Commission Delegated Regulation (EU) 2016/958 of 9 March 2016 supplementing Regulation (EU) No 596/2014 of the European Parliament and of the Council with regard to regulatory technical standards for the technical arrangements for objective presentation of investment recommendations or other information recommending or suggesting an investment strategy and for disclosure of particular interests or indications of conflicts of interest or any other advice, including in the area of investment advisory, within the meaning of the Trading in Financial Instruments Act of 29 July 2005 (i.e. Journal of Laws 2019, item 875, as amended). The marketing communication is prepared with the highest diligence, objectivity, presents the facts known to the author on the date of preparation and is devoid of any evaluation elements. The marketing communication is prepared without considering the client’s needs, his individual financial situation and does not present any investment strategy in any way. The marketing communication does not constitute an offer of sale, offering, subscription, invitation to purchase, advertisement or promotion of any financial instruments. XTB S.A. is not liable for any client’s actions or omissions, in particular for the acquisition or disposal of financial instruments, undertaken on the basis of the information contained in this marketing communication. In the event that the marketing communication contains any information about any results regarding the financial instruments indicated therein, these do not constitute any guarantee or forecast regarding the future results.
