Cameco shares surge on uranium prices as governments warm to nuclear power – by Niall McGee (Globe and Mail – September 19, 2023)

With its one-time pariah commodity back in vogue, one of Canada’s biggest mining companies is reaching valuations not seen in more than 15 years.

Cameco benefiting from a resurgence in uranium, as nuclear power is increasingly embraced by countries looking for ways to cut carbon emissions and supply concerns arise. On Monday, the company’s shares closed at $54.54 on the Toronto Stock Exchange, about $5 below their all-time high in 2007.

In recent years, the world’s attention has turned to cutting carbon emissions to fight climate change. One of nuclear’s chief selling points is that it generates no CO2 emissions, leading some observers to predict a surge in construction of new power plants, including small modular reactors (SMRs), which are billed as cheaper and easier to build than their larger cousins.

Raymond James analyst Brian MacArthur wrote in a note to clients Thursday that he expects demand for uranium to grow further as nuclear is increasingly embraced as a “green” power source.

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