No Surprises in Cameco's Results

Despite production cutback announcements by

As has been the theme in recent quarters, there was little that surprised us in its fourth quarter’s earnings release. Cameco’s financial results will remain weak as long as the uranium markets struggle.

Although we’ve made adjustments to our near-term forecast based on updated management guidance, our long-term forecast remains intact. We continue to expect a cumulative supply deficit to hit the uranium market by 2023. Due to the long-term nature of uranium contracts, we’d expect to see prices begin improving in 2019 in order to incentivize enough new supply.

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