(URANIUM) CAMECO Signals Production Expansion FREEZE Until Uranium Prices CATCH UP!
(URANIUM) CAMECO Signals Production Expansion FREEZE Until Uranium Prices CATCH UP!
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Kazatomprom, the world’s largest uranium producer is missing target production estimates and lowering estimates for 2025. Now, Cameco is freezing production expansion. With the market already in a substantial supply shortage and utilities needing to stock up, what will the impact be of the 2 largest producers falling short of production targets?
Cameco Corporation (TSX: CCO) has decided to hold off on increasing production at its key McArthur River and Cigar Lake mines in Saskatchewan, citing unfavorable long-term market conditions.
Despite the current rise in nuclear fuel demand, the company believes it is not yet the right time to ramp up output.
Grant Isaac, Cameco’s Executive Vice President and Chief Financial Officer, explained in a recent webcast that while uranium prices surged earlier this year, sustained long-term price levels are still insufficient to justify increased production.
“Any demand not brought to the market in 2024 just means more demand is getting piled up,” Isaac said, highlighting the potential for significant future price spikes if supply disruptions persist or intensify.
This cautious approach reflects the company’s strategy of maintaining “supply discipline” to avoid flooding the market, which could drive prices down.
Cameco’s strategy mirrors the need to balance operational sustainability with market dynamics, focusing on long-term gains rather than short-term profits.
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