The Globe and Mail reports in its Tuesday, July 26, edition that uranium prices are down, which obviously has not helped the share price of Cameco. The Globe's guest columnist Gordon Pape writes that Cameco was trading at about $41 at the time the uranium price peaked. It has since pulled back to $29.46, but that is still 6.8 per cent ahead of its 2021 exit price of $27.58. Canadian uranium is looking a little brighter than it did a year ago thanks to Russia's unprovoked attack on Ukraine. Russia has been one of the world's major uranium suppliers. The imposition of sanctions on Russia may dramatically change that, to Cameco's advantage.
The company reported adjusted first quarter earnings of $17-million (four cents a share), compared with a loss of $29-million (minus seven cents), in the same quarter last year.
Even with the recent pullback, Mr. Pape notes that the stock's trading range this year is higher than at any time since 2011. The Globe reported on Jan. 20 that CIBC began coverage on Cameco with an "outperformer" rating and $37 share target. The shares could then be had for $26.80. The Globe reported on May 9 that Canaccord's Katie Lachapelle rated Cameco "buy." It was then worth $27.33.
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