Cameco (CCJ), India's $26 billion contract · U.S. $80 billion nuclear energy alliance... Riding the uranium supercycle

Cameco (CCJ), a Canadian uranium company, is further strengthening its position in the “nuclear revival” wave through expanded long-term supply agreements and strategic cooperation with the U.S. government. From signing large contracts with India to expanding Westinghouse’s reactor business, Cameco’s long-term growth outlook in the uranium market continues to heat up.

Recently, Cameco announced it has signed a nine-year long-term contract with India’s Department of Atomic Energy to supply approximately 22 million pounds of uranium (U3O8). The contract is valued at about $2.6 billion (roughly 3.744 trillion KRW), with supply from 2027 to 2035. The price is based on $86.95 per pound, linked to market prices, with specific terms not disclosed. This move is considered significant, as it locks in India’s growing demand amid global nuclear power plant expansion trends.

Its influence in the European market is also expanding. Cameco has signed a supply contract for uranium hexafluoride (UF6) with Slovakia’s state-owned power company, Slovenské Elektrárne, from 2028 to 2036. The contract supplies fuel and conversion services for the Bohunice and Mochovce nuclear power plants, aligning with policies to strengthen energy security and diversify supply chains.

Cameco’s performance has also exceeded market expectations. In 2025, the company is projected to achieve annual sales of $3.482 billion (about 5.0364 trillion KRW) and a net profit of $590 million (about 849.6 billion KRW). Adjusted EBITDA is expected to reach $1.929 billion (about 2.7778 trillion KRW), driven by uranium and fuel services businesses and Westinghouse equity earnings. By year-end, the company held $1.2 billion in cash (about 1.728 trillion KRW), maintaining financial stability.

Notably, Cameco has secured approximately 230 million pounds of long-term supply contracts, establishing a stable revenue base for the coming years. This indicates that, compared to the more volatile spot market, its strategy centered on long-term contracts is proving effective.

In the U.S., bigger opportunities are emerging. Cameco is collaborating with Brookfield to advance a strategic partnership with the U.S. Department of Commerce aimed at expanding Westinghouse’s reactor deployment. This is a new investment project totaling $80 billion (about 115.2 trillion KRW), with large-scale nuclear plant construction expected to commence under federal support. Under this framework, the U.S. government could earn 20% of the profits under certain conditions, and if the company’s valuation exceeds $30 billion (about 43.2 trillion KRW) before 2029, there is potential for an initial public offering.

Westinghouse’s contribution to performance is also rapidly increasing. Cameco expects its 49% stake in Westinghouse to generate an additional EBITDA growth of about $170 million (roughly 244.8 billion KRW) in 2025. The Dukovany nuclear plant project in the Czech Republic is a key factor, and further expansion into fuel supply and services could significantly boost long-term returns.

However, there have been some setbacks in production. Due to delays in developing the McArthur River mine and issues with ground freezing, production outlook has been revised downward from 18 million pounds to a range of 14-15 million pounds. Cameco states it will minimize supply disruptions through spot market purchases and inventory utilization.

Despite these variables, the market remains optimistic about Cameco’s strategic positioning. The combination of nuclear expansion policies, energy security reinforcement, and carbon neutrality goals suggests that uranium demand growth is likely to be structurally sustained. The company also emphasizes: “Expanding long-term contracts and disciplined operational strategies will be central to future value creation.”

Comment: As the nuclear market experiences structural growth, Cameco is evolving from a resource company into a core energy infrastructure supplier. The synergy between Westinghouse’s cooperation and expanding global long-term contracts makes it more likely to establish itself as a beneficiary of the uranium supercycle.