Cameco on Tuesday announced that it swung to a profit of $148 million in its third quarter of 2023, from a $20 million loss a year earlier, on revenue that rose to $575 million from $389 million during the same period in 2022, as the company realized an average selling price for its uranium of US$70 per pound, a multi-year high.
An improved uranium price environment also allowed Cameco to raise its full-year revenue outlook to between $2.43 billion and $2.58 billion, up from its earlier expectations of $2.38 billion and $2.53 billion.
The company noted its bullish forecast was also aided by geopolitical uncertainty brought on by Russia’s invasion of Ukraine and a coup in Niger that "has intensified supply concerns as future uranium supply and downstream processing is needed to balance the market."
"Compared to previous price cycles, the market does not have the inventory or secondary supplies to absorb market shocks," Cameco CEO Tim Gitzel said in a statement.
Shares of Cameco climbed 9% to C$56.92 in midday trading on Tuesday.
Cameco’s results also boosted other uranium stocks, with NexGen Energy shares rising 6% and Denison Mines gaining 5%.
As well, smaller juniors Baselode Energy and F3 Uranium Corp, saw their stock price move 3% and 6% higher, respectively.
Contact Sean at sean@proactiveinvestors.com