Prosperity Saskatchewan

The state of uranium mining in Saskatchewan

This report draws largely on the presentation by Cameco’s Snr VP/CFO – Grant Isaac – from May 10, 2016 at the Bank of America/Merrill Lynch “Global Metals, Mining & Steel Conference.”  The full item can be downloaded here.

Why am I using this report as a source?  Well, unlike interest groups, lobbyist, news reporters, and government officials – Cameco executives would go to jail if they knowingly misled the public on the topic, since their earnings and stock priced are directly tied to it.  They also need to know the topic since that is their sole business.  And finally, I’ve known several of Cameco’s executives on both a business and personal level for several years – they are honest and nice people.

Long-run fundamentals – look great

The spot-market – so why are prices low?

So, Cameco – which is basically/sort-of the benchmark of Saskatchewan’s uranium mining industry – is in transition from a supply-driven to a demand driven industry.  So, Cameco is going to focus on tier one assets, which ensures maximum rewards and risk mitigation.

 

Now, given the current low prices – junior exploration is not blossoming as it was a few years ago.