Financial Performance - For the quarter ended September 30, 2025, Cameco reported a strong financial performance with a revenue increase of 15% compared to the previous quarter, totaling CAD 500 million[10]. - The anticipated financial performance for 2025 includes a forecasted adjusted net earnings increase of 12% compared to 2024[10]. - Consolidated net earnings for the first nine months of 2025 reached $391 million, significantly higher than $36 million in 2024, with adjusted net earnings of $410 million compared to $135 million in 2024[53]. - Adjusted EBITDA for the first nine months of 2025 was $1.3 billion, up 33% from $1.0 billion in 2024[53]. - Adjusted EBITDA for Q3 2025 was $124 million, a slight increase of 2% from $122 million in Q3 2024, and for the first nine months, it rose significantly to $569 million from $320 million, driven by increased revenue from Westinghouse's Dukovany construction project[171][172]. Production and Guidance - The company expects uranium production in 2025 to be between 14 million and 15 million pounds U3O8, down from a previous forecast of 18 million pounds[46]. - Cameco revised its 2025 production guidance for the McArthur River/Key Lake operation, lowering expected output from 18 million pounds to between 14 and 15 million pounds of U3O8 due to development delays[21]. - The company plans to produce 18 million pounds of uranium at Cigar Lake in 2025, with potential to exceed this by up to 1 million pounds depending on operating conditions[88]. - The guidance for uranium sales/deliveries volumes has been narrowed to 32 million to 34 million pounds for 2025, up from the previous guidance of 31 million to 34 million pounds[93]. - The company continues to target an annual production of 13 million to 14 million kgU for fuel services in 2025, with ongoing risks related to inflation and supply chain challenges[199]. Market Conditions and Pricing - Cameco's revenue sensitivity analysis indicates that a 10% increase in uranium prices could lead to an additional CAD 50 million in revenue[10]. - The average reported spot price for uranium as of September 30, 2025, was $82.63 (US) per pound U3O8 equivalent, an increase of $4.13 (US) from the previous quarter[29]. - In Q3 2025, the long-term uranium price increased to $83.00 (US), while the spot price ended at $82.63 (US), indicating a strong upward trend in uranium pricing[19]. - The average realized price for uranium is projected to be $87.00 per lb, with an average unit cost of sales ranging from $59.50 to $63.00 per lb[94][95]. - The average unit cost of sales for uranium in Q3 2025 was $59.54 per pound, a 3% decrease from $61.18 per pound in Q3 2024[142]. Strategic Initiatives - The strategic partnership with Brookfield and the US Government aims to accelerate the global deployment of Westinghouse nuclear reactors, enhancing supply chains and the nuclear power industrial base[12]. - A strategic partnership was announced with the US Department of Commerce to accelerate the deployment of Westinghouse nuclear reactor technologies, with an expected investment value of at least $80 billion[174][175]. - The company aims to expand global nuclear capacity and support the transition to a low-carbon economy through strategic partnerships and initiatives[36]. - Cameco's strategy focuses on capturing full-cycle value in the nuclear energy sector, aiming to support the generation of carbon-free, reliable, and affordable energy[34]. Costs and Expenses - The expected care and maintenance costs for tier-two assets are projected to be CAD 20 million for 2025[10]. - Direct administration costs for Q3 2025 were $46 million, a decrease of 4% from Q3 2024, while for the first nine months, costs increased by 11% to $167 million compared to 2024[59]. - Share-based compensation rose significantly, with Q3 2025 expenses at $21 million, over 100% higher than Q3 2024, and $56 million for the first nine months, also over 100% higher than 2024[59]. - Uranium exploration expenses in Q3 2025 were $8 million, an increase of $3 million from Q3 2024, totaling $22 million for the first nine months, up $7 million from 2024[60]. Cash Flow and Debt - Cash and cash equivalents as of September 30, 2025, totaled $779 million, with total debt at $1.0 billion[46]. - Total cash and cash equivalents as of September 30, 2025, were $779 million, a 30% increase from $600 million at December 31, 2024[139]. - Total debt decreased by 22% to approximately $996 million from $1.281 billion at December 31, 2024[139]. - Cash provided by operations increased by $104 million in Q3 2025 compared to Q3 2024, primarily due to lower working capital requirements[126]. Revenue and Sales - Revenue from the uranium segment for the first nine months of 2025 was $1.847 billion, a 12% increase compared to $1.642 billion in the same period of 2024[142]. - Total revenue for Q3 2025 decreased by 24% to $91 million, primarily due to a 46% decrease in sales volume[164]. - For the first nine months of 2025, total revenue increased by 25% to $388 million from $311 million in the same period last year[166]. - Uranium revenues decreased by 13% in Q3 2025 due to a 16% decrease in sales volumes, despite a 4% increase in the Canadian dollar average realized price[144].

Core Insights - Cameco reported strong financial performance for the third quarter ended September 30, 2025, highlighting resilience in its uranium, fuel services, and Westinghouse segments [1] Financial Performance - The company demonstrated robust year-to-date financial results, indicating effective strategy execution in a dynamic market [1]

Core Insights - The Nintendo Switch 2 has sold over 10 million units in its first four months, significantly surpassing its predecessor's sales pace [2][3] - Nintendo has raised its sales forecast for the Switch 2 to 19 million units by March 2026, up from an earlier estimate of 15 million [2] - The Switch 2 is selling at a price of $450, which is a 50% increase compared to the original Switch's launch price [6] Sales Performance - The Switch 2 achieved sales of 10.36 million units since its launch on June 5, 2023, compared to 4.7 million units for the original Switch in the same timeframe [2] - The Switch 2 is recognized as the fastest-selling gaming console of all time, with over 3.5 million units sold within the first four days of its release [3] Market Dynamics - Analysts suggest that the higher price of the Switch 2 may have been influenced by tariffs imposed by the Trump administration, which affected manufacturing costs [6] - Despite the price increase, consumer confidence remains strong, indicating brand loyalty and demand for the Switch 2 [4] Game Sales - Over 20 million games for the Switch 2 have been sold in the first four months, with notable titles like "Mario Kart World" and "Donkey Kong Bananza" contributing to these figures [5] - Approximately 8 million of the game units sold were bundled with the Switch 2 consoles [5] Competitive Landscape - The original Nintendo Switch is nearing the sales figures of the Nintendo DS, with 154.01 million units sold, just shy of the DS's 154.02 million [7] - The Switch has the potential to surpass Sony's PlayStation 2, which holds the record for the best-selling console at 160 million units [7]

Market Reaction - Stocks are experiencing a pullback, influenced by comments from CEOs David Solomon and Ted Pick regarding a potential 10% to 20% correction over the next one to two years [1][2] - A 10% to 15% correction in a bull market is considered normal and could be a healthy sign for the market, allowing for reassessment of valuations [2][3] Market Conditions - Recent trading sessions have shown a spike in the repo market, indicating that some financial institutions may need capital, leading to increased high-yield credit spreads [4] - Despite the pullback, the market is still making higher highs and higher lows, maintaining the 20-day moving average for the S&P 500 [5] Volatility and Seasonal Trends - The VIX index is currently at 18, with expectations of a correction being discussed for some time [7] - November is traditionally a good month for stocks, raising questions about the duration of the current market conditions [7] Government Shutdown Impact - The ongoing government shutdown is in its 35th day, with a lack of economic data potentially reducing market volatility [9][10] - As the holiday season approaches, the impact of the shutdown may prompt Congress to negotiate a deal, affecting market sentiment [12] Federal Reserve Outlook - The labor market is a primary focus for Federal Reserve members, with indications that hiring is slowing, which may influence future monetary policy [13][15] - Market expectations suggest that a rate cut in December remains a possibility due to current economic trajectories [14] Company Focus: Humana - Humana is highlighted as a company to watch, particularly due to its exposure to Medicare and potential market share gains from United Health [18][20] - The stock is showing a bullish technical pattern, and a strong earnings report could positively impact the broader health insurance sector [19][20] Company Focus: Chemico (CCJ) - Chemico is noted for its involvement in uranium deals with the U.S. government, with potential for additional partnerships being a key point of interest [21][22] - The company's operations in Kazakhstan and Canada may benefit from reduced Russian uranium supplies, presenting a favorable outlook [22]

Group 1 - BWX Technologies (BWXT) is set to report third-quarter earnings and revenue, with analysts expecting Q3 EPS to grow by 2.4% to 85 cents and sales to increase by 18% to $793.4 million [1] - Analysts have advised investors to build up exposure to the nuclear sector, indicating a positive outlook for BWX Technologies [1] - Cameco has announced a nuclear partnership with the U.S. government, which is expected to enhance its position in the nuclear energy market [2] Group 2 - Cameco's stock is experiencing significant gains, attributed to its strong performance in the uranium sector and favorable market conditions [4] - Clean energy stocks, including those in the nuclear sector, are outperforming fossil fuels despite challenges related to ESG concerns [4] - Palantir Technologies is recognized among tech leaders and has been elevated to best stock lists, indicating strong market performance [4]

Investment Rating - The report suggests a positive outlook for the nuclear power sector, particularly in the context of AI energy consumption, recommending attention to companies involved in nuclear energy and related infrastructure [6]. Core Insights - The U.S. government has reached a cooperation agreement with Westinghouse Electric and shareholders Cameco and Brookfield to develop a nuclear power project valued at $80 billion [4]. - The report highlights a significant increase in electricity infrastructure investment in the U.S., projected to reach $1.4 trillion from 2025 to 2030, which is double the investment of the previous decade [2]. - The demand for data centers is surging, with major companies like OpenAI and Oracle planning to develop large-scale data center facilities, indicating a robust growth trajectory in the sector [9][10]. Summary by Sections Global Infrastructure and Construction Equipment - North America's data center vacancy rate has reached a historic low of 1.6%, driven by high demand and limited power supply [9]. - The average price for data center cabinets has increased significantly, with a 19% rise for deployments over 10 MW [9]. - The U.S. energy market is experiencing a "super cycle" in investment, with rising retail electricity prices and a strong demand for infrastructure upgrades [2]. Global Electrical and Intelligent Equipment - The gas turbine price index in the U.S. increased by 3.43% year-on-year, indicating a stable demand for industrial equipment [3]. - The report notes a significant increase in transformer exports from China, with a 23% year-on-year growth in September 2025 [37]. - Companies like GE Vernova and Siemens Energy are expanding their production capacities to meet the growing demand for electrical equipment [42]. Global Energy Industry - The U.S. government is actively promoting the development of small modular reactors (SMRs) as a key energy solution for AI data centers, with significant investments and regulatory support expected [46][47]. - The report anticipates that by 2028, the total nuclear power capacity in the U.S. will reach 81 GW, with plans for further expansion [48]. - The collaboration between major tech companies and the nuclear sector is expected to enhance the viability and deployment of SMR technology [48]. Global New Materials - The report tracks the price movements of uranium and rare earth materials, noting a 10% increase in uranium prices in September 2025 [5]. - The demand for advanced materials is expected to rise in conjunction with the growth of the energy and technology sectors [5].

Group 1 - The nuclear supply chain, particularly uranium miners like Cameco Corporation and BWX Technologies, has shown positive performance over the past few years [1] - The analyst has over 30 years of experience analyzing various industries, including airlines, oil, retail, mining, fintech, and e-commerce, which contributes to a comprehensive understanding of market dynamics [1] - The analyst has navigated multiple crises, including the dot-com bubble, 9/11, the great recession, and the COVID-19 pandemic, providing a robust foundation for analyzing diverse business models and innovations [1]

Group 1: Hong Kong and China Market Focus - The resilience of non-US exports is expected to support mainland foreign trade data, with a forecasted year-on-year growth of 4.5% for exports and 3.5% for imports in October 2025 [19][20]. - The meeting between the Chinese and US leaders is anticipated to ease uncertainties, positively impacting risk appetite for Hong Kong stocks, particularly benefiting companies like Tencent Holdings and Alibaba [22][23]. - The iShares Hang Seng Tech ETF is highlighted as a vehicle to capture opportunities in technology-related Hong Kong stocks [26]. Group 2: US Market Focus - Federal Reserve Chair Powell has downplayed the expectations for a rate cut in December, with market implied probabilities dropping from 85% to around 70% [34]. - The divergence within the FOMC regarding interest rate decisions indicates a complex economic outlook, with expectations for a potential 25 basis points cut in December still on the table [33][34]. - Companies like Digital Realty and Cameco are identified as key players, with Digital Realty benefiting from AI-driven demand and Cameco positioned to capitalize on nuclear energy expansion [44]. Group 3: Malaysia Market Focus - New agreements are expected to reduce uncertainties in trade with the US, providing a more supportive macro environment for companies like Petronas and the broader Malaysian economy [49][50]. - The iShares MSCI Malaysia ETF is noted as a means to invest in Malaysian equities, reflecting the positive outlook for the market [49].

Economic Outlook - The Bank of Canada has cut its policy rate from 2.50% to 2.25%, indicating that further cuts are unlikely as they do not address the underlying productivity issues in the economy [4] - Canada's economy is undergoing "structural changes," leading to concerns that it may become less competitive compared to the U.S. [4] Digital Economy - Canada's digital economy generates over $100 billion annually, but 87% of innovation is foreign-owned, highlighting a lack of Canadian-controlled venture funding for research and development [7] - In 2025, U.S. startups raised $91.5 billion in venture funding, while Canada only generated $920 million, with 80% of that being U.S.-controlled [8] Government Initiatives - Ucore Rare Metals Inc. received $18 million from the Pentagon to build a commercial plant in Louisiana, with shares increasing by 700% [9] - The U.S. government is actively partnering with private enterprises, such as JPMorgan's $1.5 trillion strategic-industries investment fund, to enhance growth and innovation [10] Critical Minerals - Canada is competing against U.S. initiatives that secure tangible commitments for critical minerals, while Ottawa is focused on long-term international agreements [11] - Canada plans to lead a new G7 critical-minerals pact to stabilize markets and combat China's dominance in this sector [12] Infrastructure Development - Ontario's Premier signed a partnership with the Webequie First Nation for a critical-mineral supply road, which is expected to generate 70,000 jobs and add $22 billion to the economy [13][14] - Delays in road construction due to federal reviews could hinder the development of critical minerals in Canada [14]

Core Viewpoint - The stock of Cameco, the world's largest uranium provider, surged by 16% following the announcement of an $80 billion deal with the U.S. government, indicating a significant opportunity in the nuclear energy sector [1][2]. Group 1: Company Overview - Cameco's current market capitalization stands at $46 billion, with a stock price of $102.21 and a gross margin of 25.57% [2]. - The stock has experienced a 52-week range between $35.00 and $110.16, reflecting its volatility and potential for growth [2]. Group 2: Recent Developments - Cameco and Brookfield Asset Management have entered into a partnership with the federal government, valued at $80 billion, to power reactors using technology from Westinghouse Electric [2][3]. - The deal may also involve up to $100 billion from Japan as part of a broader $550 billion agreement established during a recent diplomatic tour [3]. Group 3: Market Implications - The construction of new nuclear reactors, the first since 2000, is expected to significantly increase demand for uranium, positioning Cameco favorably in the market [4]. - Analysts from RBC Capital and Goldman Sachs have maintained their outperform and buy ratings for Cameco, suggesting confidence in the company's future performance [4]. Group 4: Industry Context - The current momentum in the nuclear energy sector presents a strategic opportunity for Cameco, highlighting its potential as a valuable investment [5].