Keep an eye on uranium stocks, like Cameco (CCJ).
After a recent pullback, it’s starting to push higher again on news the U.S. Senate just approved legislation to bar imports of Russian uranium. The legislation would ban the imports 90 days after enactment. It contains waivers in case there were supply concerns for domestic reactors. The bill also frees up $2.7 billion passed in previous legislation to build out the domestic uranium processing industry, according to Reuters.
Cameco just reported solid earnings and guidance.
“In the first quarter operational performance was strong across our uranium, fuel services and Westinghouse segments. Financial results are in line with the 2024 outlook we provided, which has not changed, and are as expected, reflecting normal quarterly variability and the required purchase accounting and other non-operational acquisition-related costs for Westinghouse,” said Tim Gitzel, Cameco’s president and CEO.
CCJ also said, “We are tracking well towards achieving the 2024 outlook provided in our 2023 annual MD&A. We continue to expect strong cash flow generation, with estimated consolidated revenue of between about $2.9 billion and $3.0 billion. We maintain the outlook for our share of Westinghouse’s 2024 adjusted EBITDA of between $445 million and $510 million.”
