The second quarter saw a huge spike in trading activity, with spot market transactions between utilities, traders, and producers tripling the prior year's volume. The 21 million pounds of uranium that changed hands actually marked a quarterly record.
Cameco's wheeling and dealing once again made the company's operating metrics appear worse than they are, given the firm's low cost of production. Still, with perhaps an unparalleled insight into uranium market dynamics, the company's seeing an opportunity to make some money here. More power to them.
Speaking of power, Cameco's quarterly financial results were greatly bolstered by above-market power prices realized by 32%-owned Bruce Power, which is an operator of six nuclear plants. Not even XTO Energy
Uranium production was light this quarter, down 27% year over year. The decline was largely attributable to planned maintenance shutdowns at both the McArthur River/Key Lake complex and the Rabbit Lake mine. As with any miner, from Suncor Energy
Just in case someone was worried, the company noted that it has the potential to double annual production over the next decade. And that's entirely organic growth, based on existing assets like Kintyre, which Cameco acquired from Rio Tinto
This profound growth trajectory, combined with low production costs and a strong long-term demand outlook, puts Cameco right alongside Goldcorp
Fool contributor Toby Shute doesn't have a position in any company mentioned. Check out his CAPS profile or follow his articles using Twitter or RSS. The Motley Fool owns shares of XTO Energy and Cameco and has written covered calls on Cameco. The Fool has a disclosure policy.