Summary
Cameco is the world's largest and lowest cost uranium producer. The uranium market is very opaque and it is important for the market to know what Cameco has to say about the demand/supply of uranium. The financial crunch has definitely created opportunities for large companies in the M&A front. This talks about Cameco wanting to do an acquisition which is very important for the junior uranium companies. This also talks about the HEU agreement between Russia and the US which will expire in 2013 after which the supply will drop by about 30-40%. This could lead to a big increase in the uranium price.
Analysis
The russian supply coming off the market in 2013 should be very positive for cameco.
This author consults with leading institutions through GLG
Analyses are solely the work of the authors and have not been edited or endorsed by GLG.
