Cameco pivots off volatile uranium market with big bet on Westinghouse – by Gabriel Friedman (Financial Post – October 12, 2022)

Cameco is investing $2.2 billion for a 49% stake in Westinghouse Electric, which services nuclear reactors

Decarbonization could end up as a boon for nuclear power, which is capable of generating lots of energy while releasing no carbon dioxide into the atmosphere.

But as of today, there are still plenty of headwinds for uranium producers such as Saskatoon-based Cameco Corp. So on Tuesday, chief executive Tim Gitzel did something that he hopes will make it easier to push through those headwinds: Cameco said it would invest $2.2 billion for a 49 per cent stake in Pennsylvania-based Westinghouse Electric Co., which services nuclear reactors, diversifying Cameco away from the volatile uranium market.

“They do what we don’t do and what we want to do,” Cameco chief executive Tim Gitzel said of Westinghouse, adding that one of those things is providing “very reliable revenue streams.”

Since 2015, shareholders of Cameco, which mines uranium and turns it into fuel for nuclear reactors, have endured a 46-per-cent drop in revenues, to about $1.5 billion in 2021.

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