Cameco Controls the Uranium Refinery That Puts Canada in the Driver's Seat

Nuclear power is experiencing a renaissance thanks to surging electricity demand. While the highlight of the increase in demand is new technologies like artificial intelligence and electric cars, the truth is that countries rising up the socioeconomic ladder are also a key driver. Nuclear power, and the companies that support it, are likely to see huge demand. But don't just think about utilities because nuclear reactors can't run without the nuclear fuel that Cameco (NYSE: CCJ) produces. And, it owns an important asset in Canada that positions it well for the future.

Cameco has mined for uranium for a very long time, so it is well known in the industry. And, given its location in economically and politically stable Canada, it is a reliable supplier to the nuclear power industry. But there's something important to remember here, because just mining for uranium isn't really the end of the story. Raw uranium is actually pretty useless to a utility that owns a nuclear power plant. It has to be processed into a usable form.

Image source: Getty Images.

Continue reading