The Biden administration and Department of Energy have set an ambitious goal to quadruple U.S. nuclear capacity from 100 gigawatts today to 400 gigawatts by 2050. To support this target, the DOE recently committed $2.7 billion to rebuild the domestic uranium enrichment industry. This policy shift, combined with surging electricity needs from AI data centers and electrified manufacturing, creates a multidecade growth runway for uranium producers such as Cameco.

Cameco operates the McArthur River and Cigar Lake mines in Canada’s Athabasca Basin, which rank among the world’s richest uranium deposits. In 2023, these sites produced over 25 million pounds of uranium concentrate, representing nearly 15% of global output. The company also owns the Key Lake Mill—the largest uranium processing facility in the basin—and holds a 40% interest in the Inkai in-situ recovery operation in Kazakhstan, a low-cost producer that contributed 8 million pounds of annual production in 2023.

Approximately 60% to 70% of Cameco’s uranium sales are linked to market prices, while the remainder is sold under base-escalated long-term contracts with price floors and ceilings. From 2025 through 2029, Cameco is committed to deliver an average of 28 million pounds of U3O8 per year. This contract book, combined with selective spot-market purchases to meet delivery commitments, underpins a 26.7% gross margin and minimizes volatility in earnings.

Cameco holds a 49% ownership interest in Westinghouse Electric, a global leader in nuclear plant design and services. In October 2023, Cameco, Brookfield Renewable Partners and Westinghouse entered into an $80 billion framework agreement with the U.S. government to build at least eight new reactors, including large AP1000 units and AP300 small modular reactors. Under the deal’s profit-sharing clause, the U.S. government is entitled to 20% of Westinghouse cash distributions exceeding $17.5 billion, positioning Cameco to benefit from reactor construction and fuel supply over the next two decades.