Uranium Fundamentals Have NEVER Been Better, says Cameco CFO Grant Isaac

This is an interview with Cameco's CFO Grant Isaac, about the current developments in the physical uranium market, the bottleneck in uranium conversion & enrichment, and Cameco's plans for purchases on the spot market, as well as a few other topics related to the uranium contracting cycle.

For more information, please contact Cameco at https://www.cameco.com/contact-us/?group=93

Grant told me that a uranium cycle has never started from this high of a price before.

He also added that "this is a very tight spot market".

"The primary supply stack is not poised to respond to improving spot prices immediately. The secondary supply of all shapes and forms is just not available the way it's been in the past. So, it's increasingly harder to source uranium".

"One of the really exciting developments in 2022 was people realizing that the nuclear cycle is not only about uranium (...) as folks are starting to understand the fuel cycle more, they're starting to understand how critical it is for a company to actually be across the nuclear fuel cycle - because of the value creation opportunities".

"As we continue to de-bottleneck that part, we will probably see a move to more overfeeding, which brings more demand for UF6. This is a pretty exciting adder to the demand story".

"So, it's not like the lack of conversion capacity is holding uranium back in absolute terms, it's that - as utilities work from fabrication through enrichment, through conversion, back to U308 - they're really focused on enrichment & conversion right now, and that's a little bit to the expense of their demand for uranium. But, as you saw from the numbers you quoted, that demand is returning and we're getting close to replacement rate contracting and perhaps even pushing above that on the uranium side".

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Timestamps
00:00 Skip intro & find out
01:50 How is this uranium cycle different than the previous one?
05:10 Why have we seen so much uranium contracting in H1 already?
07:40 What is the incentive price for uranium production?
14:40 How much uranium is Cameco buying in the spot market?
21:15 How hard is it to buy uranium on the spot market now?
24:00 How full is Cameco's contract book?
30:00 How do price predictions & reporting work in uranium?
34:50 How long does it take for Cameco to turn on more supply?
39:25 Will open-pit uranium mines be a thing in the Basin again?
42:45 Will other producers be ready to sell uranium on time?
49:00 Is overfeeding a thing in 2023?
52:35 Is conversion a bottleneck for uranium prices to go up?
54:35 Will Cameco be growing conversion capacity soon?
55:25 When is the Westinghouse transaction closing?
59:20 Will Cameco invest more in Silex GLE technology?
01:03:20 What will Cameco do if it makes more money soon?
01:06:45 What does Cameco do with is cash?
01:08:20 Are investors interested in how the uranium market works?
01:11:10 Cameco contact information

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