Uranium is produced and sold by Cameco Corporation. The company operates through the Fuel Services and Uranium sectors. The Uranium segment is engaged in uranium concentrate acquisition and sales as well as uranium concentrate exploration, mining, and milling. The Fuel Services business unit refines, transforms, and fabricates uranium concentrate in addition to buying and selling conversion services. For CANDU reactors, this sector also manufactures fuel bundles or reactor parts.

In the Americas, Europe, and Asia, the corporation offers its uranium and fuel services to nuclear utilities. Canada's Saskatoon serves as the corporate headquarters for the 1987-founded Cameco Corporation. Their nuclear fuel products are used by utilities all over the world to provide nuclear electricity that is risk-free, dependable, and emission-free. Together, they are providing energy solutions to support the global net-zero targets while addressing the ever-increasing need for sustainable, baseload electricity.

With more than 464 million pounds of known and probable mineral deposits, they have tier-one mining and milling operations with the authorized ability to produce more than 30 million pounds of uranium concentrate per year. They are also a top provider of uranium fuel manufacture, conversion, and refining services. They take pride in being one of the largest Indigenous employers in Canada. Their property holdings, which include exploration, total around 2.1 million acres, with the bulk located close to their current activities in northern Saskatchewan.

FINANCIAL HEALTH

First-quarter results were driven by regular quarterly variances in contract deliveries and the continuous application of the approach in a market that is in the early stages of transition. Net earnings were $40 million; adjusted net earnings were $17 million. Strong performance in the fuel services and uranium businesses: First quarter results show the impact of higher average realized prices in both the fuel services and uranium segments.

They produced 1.9 million pounds of uranium during the quarter and sold 5.9 million pounds of it, with an average realized price that was 34% more than it was at the same time the previous year. Average realized prices in the petroleum services business were 8% higher than in the first quarter of 2021. The company had $1.5 billion in cash, cash equivalents, and short-term investments as of March 31, 2022, whereas they had $1.0 billion in total debt. Because working capital requirements were lower this quarter than they were in the first quarter of 2021, cash from operations was $127 million greater this time around. Approximately $1.6 billion in financial guarantees were still due on March 31, 2022, the same amount as on December 31, 2021.

DIVIDEND

The board of directors declared an annual dividend of $0.12 per common share for 2022, which was announced on February 9, 2022. The dividend will be paid on December 15, 2022, to shareholders of record on November 30, 2022. The board routinely reviews the decision to declare an annual dividend and bases it on the cash flow, financial situation, business plan, and other pertinent elements, such as the proper cyclical alignment with the earnings.

OUTLOOK

Due to recent fluctuations in the price of uranium, they have revised the outlook for the anticipated uranium average realized price to $58.60 per pound (up from $50.90 per pound), estimated uranium revenue to be between $1,380 million and $1,470 million (previously between $1,150 million and $1,240 million), and estimated consolidated revenue to be between $1,730 million and $1,880 million (previously between $1,500 million and $1,650 million).

Due to the increased spot price and its effect on purchasing behavior, the average unit cost of sales is now anticipated to be between $53.50 and $54.50 per pound (vs. $50.00 to $51.00 per pound before).

Based on a uranium spot price of $58.20 (US) per pound (the UxC spot price as of March 28, 2022), a long-term price indicator of $48.00 (US) per pound (the UxC long-term indicator as of March 28, 2022), and a conversion rate of $1.00 (US) for $1.27, uranium revenue and the average realized price is calculated (Cdn).

PERFORMANCE

1. The 52-week high of CCO is $41.05 which has changed by 28.44%

2. The 52-week low of the stock is $19.68

3. The BETA(5y) of the company is 0.87 and has an outstanding share of 398.40 Million

FUNDAMENTAL ANALYSIS

The Canadian Oil and Gas business outperformed CCO last year, returning 32.2 percent. CCO outperformed the Canadian market, which had an annual return of - 4.3 percent. Over the past three months, CCO has not been noticeably more volatile than the other Canadian equities, generally moving +/- 8% weekly. Weekly volatility for CCO (8%) has been constant over the previous 12 months. Based on its Price- To-Sales Ratio (7.3x) in comparison to the average among its peers, CCO is a decent bargain (50.6x). Based on its price-to-sales ratio (7.3x) in comparison to the average for the Canadian Oil and Gas business, CCO is pricey (2.6x). Based on its Price-To-Sales Ratio (7.3x) in comparison to the anticipated Fair Price-To-Sales Ratio, CCO is pricey (1.2x).

Over the next three years, CCO is anticipated to turn a profit, which is regarded to be quicker growth than the savings rate (1.6 percent ). Over the following three years, CCO is anticipated to turn a profit, which is seen as above normal market growth. Within the following three years, CCO is anticipated to turn a profit.

It is anticipated that CCO's revenue (1.9 percent annually) will increase more slowly than the Canadian market (6.5 percent per year). It is anticipated that CCO's income will increase by 1.9 percent annually rather than 20 percent. Due to its present loss, CCO has a negative Return on Equity (-1.17 percent). The short-term assets of CCO ($2.2B) are more than its short-term and long-term liabilities ($434.2M and $2.2B, respectively). Compared to its overall debt, CCO has greater cash. Over the last five years, CCO's debt to equity ratio has decreased from 28.6 to 21.2 percent. The management at CCO is skilled and knowledgeable. In the previous year, shareholders have not seen any significant dilution.