Morningstar

Good News for Cameco

Although shares rose after Kazakhstan announced production cuts that should support a recovery in uranium, the narrow-moat miner remains undervalued.

Securities In This Article
Cameco Corp
(CCJ)

Following

NAC KazAtomProm, the government-owned uranium miner, plans a 20% production cut that will coincide with Cameco's January 2018 cut and is slated to last for three years. Kazakhstan accounts for almost 40% of global primary uranium production, so this is a meaningful move. Collectively, supply cuts from Kazakhstan and Cameco should allow uranium prices to recover more rapidly as China continues to build out its massive nuclear reactor fleet, increasing long-term demand.

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About the Author

Kristoffer Inton

Strategist
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Kristoffer Inton is a strategist, AM Consumer, for Morningstar*. He covers food, tobacco, and cannabis companies. He also serves as the chair of Morningstar equity research’s ESG methodology.

Before joining Morningstar in 2013, Inton was an investment banking associate for Guggenheim Securities in New York. Previously, he was an investment banking analyst for Merrill Lynch in Chicago and New York. In these roles, he helped advise companies on mergers, acquisitions, and financings.

Inton holds a bachelor's degree in finance with high honors from the University of Illinois Gies College of Business. He also holds a Master of Business Administration with distinction from Northwestern University's Kellogg School of Management.

* Morningstar Research Services LLC (“Morningstar”) is a wholly owned subsidiary of Morningstar, Inc

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