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National Bank "Modestly" Positive on Cameco's Increased Stake in Cigar Lake

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Cameco (CCO.TO, CCJ) and Orano Canada are buying Tepco's 5% participating interest in the Cigar Lake joint venture.

National Bank analyst Mohamed Sidibe, who has an $180.00 price target and outperform rating on the shares of the company, views the transaction as "modestly" positive. Cameco's purchase price of $115.75 million implies a 100% Cigar Lake value of $4.03 billion, compared with Sidibe's implied value of $5.0 billion.

"Based on Cigar Lake's 2026 production outlook of 17.5-18.0 mln lbs U3O8 on a 100% basis, the incremental 2.871 percentage-point interest equates to ~0.5 mln lbs of additional annual attributable production. This should further reduce reliance on purchases, inventories and product loans to meet contract commitments," he writes.

Cameco's ownership in the Cigar Lake venture upon closing will increase to 57.42%, while Orano's will edge up to 42.58%.

Price: $155.68, Change: $+0.77, Percent Change: +0.50%

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