Markets
We sell uranium and fuel services directly to nuclear utilities around the world, as uranium concentrates, UO2, UF6, conversion services or fuel fabrication. Utility companies buy the majority of their uranium and fuel services products under long-term contracts with suppliers and meet the rest of their needs on the spot market.
We are also active in the spot market, buying and selling uranium where it is beneficial for us. Our activity in the spot market takes prudent consideration of the spot price and other business factors. This activity gives us insight into the underlying market fundamentals and is a source of profit.
Supply & Demand
While demand for uranium and nuclear fuel continues to increase, future supply is not keeping pace. Heightened supply risk caused by growing geopolitical uncertainty, shrinking secondary supplies and a lack of investment in new capacity over the past decade has motivated utilities to evaluate their near-, mid- and long-term nuclear fuel supply chains.
Contracting Framework
The purpose of our contracting framework is to deliver value. Our approach is to secure a solid base of earnings and cash flow by maintaining a balanced contract portfolio that optimizes our realized price.
Our Customers
We provide uranium and nuclear fuel services to utilities to 16 countries, with contracts for U308 with 41 customers in our uranium segment and UF6 conversion services with 34 customers in our fuel services segment.
Uranium Price Sensitivity
Our Uranium Price Sensitivity table is designed to indicate how our portfolio of fully-executed, long-term contracts in place on a specified date would respond to various spot prices on the same date. It is not a forecast of prices we expect to receive and the prices we actually realize will be different.
Supply & Demand
Growing geopolitical uncertainty, shrinking secondary supplies, and a lack of investment in new capacity over the past decade have placed new emphasis on security of supply.
Cameco Customers
We have executed contracts to sell about 220 million pounds of U308 and about 85 million kilograms of UF6 conversion with nuclear utilities in 16 countries.
Caution about Forward-Looking Information
Please click here for additional information about the assumptions applied in making the forward-looking statements on this page and the factors that could cause results to differ materially.