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Thursday February 16, 2012
Cameco gets boost from China
by Gordon Pape, editor Internet Wealth Builder It's been a rough time for Cameco Corp. (CCJ), the world's number one uranium producer. The stock fell as low as C$17.25 in late November, a level it hadn't seen since the crash of 2008-09. However, the company recently got a boost when Prime Minister Stephen Harper announced a deal to remove restrictions on the sale of uranium to China during a visit to Beijing. Canadian producers will now be allowed to sell uranium yellowcake for use in Chinese nuclear power plants, an area that had previously been off-limits. 
The Chinese market is one of the fastest growing in the world and Canada's exclusion has frustrated Cameco and other Canadian producers. The Saskatoon-based company said after the news was announced that it can begin to deliver 52 million pounds of yellowcake worth up to $3 billion to China this spring. Cameco aso announced fourth-quarter results; revenue increased by 45% over the same quarter last year to $977 million. Net earnings were up 29% to $265 million ($0.67 a share). However, for the full 2011 fiscal year, earnings were off 13% to $450 million ($1.14 per share) compared to $516 million ($1.31 per share) in 2010. Commenting on the state of the nuclear industry, the company said that the near to medium outlook is uncertain due to the after-effects of last year's disaster at Japan's Fukushima-Daiichi nuclear power station. Action now: The road back will take time but the deal with China is an important development for Cameco. The stock is a Buy for aggressive investors. Learn more about this financial newsletter at Gordon Pape's Internet Wealth Builder. Related articles: 
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