Cameco (CCJ) Goldman Sachs Energy, CleanTech & Utilities Conference 2025 summary

Market fundamentals and demand drivers

• Nuclear demand is experiencing unprecedented durability due to its role in climate, energy, and national security strategies, further accelerated by the need for reliable, clean baseload power and the impact of geopolitical events like the Russian invasion of Ukraine.

• The demand curve is shifting upward as reactors previously slated for shutdown are being saved or restarted, and license renewals and refurbishments are extending plant lifespans globally.

• New customer segments, such as hyperscalers and industries seeking deep decarbonization, are increasingly engaging earlier in the nuclear supply chain, signaling real and growing demand.

• Over 63 reactors are under construction worldwide, and conversations about new builds, including gigawatt-scale and small modular reactors, are accelerating in multiple jurisdictions.

• The market is bifurcating, with Western capacity needing to expand to meet Western demand and reduce reliance on Russian supply.

Supply constraints and investment needs

• Years of low prices led to underinvestment in the nuclear fuel cycle, resulting in supply uncertainty that must be addressed through higher prices and increased contracting.

• Bringing new uranium mines online is a lengthy process, often exceeding a decade, and the market underestimates the complexity and criticality of uranium mining and milling.

• Existing uranium mines are depleting, and replacement or growth capital has not kept pace, making supply discipline and patient investment essential.

• Milling is a critical, often overlooked bottleneck in uranium production, requiring integrated mining, milling, and marketing strategies.

• Recent disruptions, such as the temporary shutdown at Inkai in Kazakhstan, highlight the operational risks and reinforce the need to price supply risk into the market.

Strategic assets and value chain integration

• Strategic, licensed, and permitted assets in safe jurisdictions are prioritized for value creation, as seen in the acquisition of Westinghouse and its global facilities.

• Westinghouse's core businesses, including fuel fabrication and reactor services, are outperforming expectations, driven by new customers in Central and Eastern Europe and the restart of reactors.

• The Springfields conversion plant in the UK offers unique flexibility and potential for value unlock, but requires utility contracting to justify reactivation.

• The enrichment segment, particularly through the GLE project, presents opportunities for technology and supplier diversification, as well as above-ground uranium mining via re-enrichment of depleted tails.

• The company remains disciplined, waiting for clear price signals before expanding production, especially as major assets like Cigar Lake approach end-of-life.