AXMIN Inc (TSXV: AXM)
AXMIN Inc. (TSXV:AXM) is a Canadian-based exploration and development company with a strong focus on central and West Africa.
Cameco (TSX: CCO), a Canadian mining company, has a market capitalization of US$23 billion and is one of the largest nuclear fuel providers worldwide. With a growing global demand for nuclear energy, Cameco is experiencing overall growth across its business cycles.
In 2023, Cameco reported adjusted net earnings of US$339 million, compared to US$135 million in the previous year. The company has contracts with 37 customers and is committed to supplying 205 million pounds of uranium in the long term. As of the end of 2023, Cameco has a strong balance sheet, with US$567 million in cash, total debt of US$1.8 billion, and an undrawn credit facility of US$1 billion.
The company anticipates continued growth in 2024. Cameco owns a 49% stake in Westinghouse and expects this investment to increase adjusted EBITDA by US$445 million to US$510 million in 2024. The projected EBITDA growth rate for the next five years is expected to be between 6% and 10%.
Cameco has delivered over 300% return for shareholders over the past five years, surpassing the overall market. Currently, the forward price-to-earnings ratio for the stock stands at 47 times, which may appear relatively high. However, analysts forecast that Cameco’s adjusted earnings will grow at a rate of 48% annually over the next five years.
This suggests that analysts expect Cameco’s earnings per share to expand to US$4.20 by 2028. If Cameco’s stock price-to-earnings ratio were at 30 times, the stock should rise to US$126 per share within the next four years, indicating over 150% potential increase compared to the current level.
Recently, investment bank Goldman Sachs has given a “buy” rating on Cameco stock and set a target price of US$55.
