Americore Resources (TSXV: AMCO)
Drilling Value in the Silver State
When fear grips the market, the right move for investors is often the opposite of what instinct suggests.
Volatility has been the new normal this year. Geopolitical tensions remain elevated, rate cut expectations have cooled, and even traditional safe havens like gold have failed to provide the stability many had hoped for. Add in a sharp pullback in bond ETFs—especially those holding long-duration bonds—and it’s easy to see why some are whispering about a repeat of 2022. Fear, it seems, is spreading.
But moments like these call for a clearer head. The S&P 500 hasn’t even entered correction territory, yet market sentiment feels far more dire. For long-term investors, this turbulence may not be a signal to exit, but rather a window to buy quality assets at reasonable prices. Trying to time the market—getting out and then back in—often backfires when volatility is high.
Against this backdrop, Cameco Corporation (TSX:CCO) stands out for its resilience. Canada’s premier uranium miner has pulled back about 18% from its peak, yet it remains up nearly 10% year-to-date. Over the past 12 months, the stock has more than doubled, gaining 127% and significantly outperforming the broader market.
This strength is no accident. The thesis behind Cameco is straightforward and compelling: the surging energy demands of the AI data center buildout are putting nuclear power front and center.
As AI workloads expand—from training to inference—data center electricity consumption is rising exponentially. Nuclear power, with its stable, carbon-free, round-the-clock output, has become the baseload energy source of choice for tech giants. With major nuclear supply deals already in place, the nuclear renaissance is no longer a distant possibility—it’s happening now. As one of the world’s top uranium producers, Cameco is a direct beneficiary of this long-term trend.
But the company’s value proposition extends far beyond mining. Through its 49% stake in Westinghouse, Cameco has built a presence across the full nuclear value chain—from fuel supply and reactor design to fuel processing and maintenance services. Market speculation around a potential Westinghouse IPO has intensified, and at a US$30 billion valuation, Cameco’s stake would be worth nearly US$15 billion—a figure that would rival the company’s entire market cap just a few years ago.
Then there’s Global Laser Enrichment (GLE) , a project once written off but now emerging as a potential game-changer. As the exclusive licensee of SILEX laser enrichment technology, GLE is working to convert depleted uranium tails held by the U.S. government into usable nuclear fuel. If successful, Cameco’s option to increase its stake to 75% could turn what was once a written-down asset into a highly valuable growth driver.
On the contract front, while uranium spot prices have moderated slightly, the long-term contract market tells a far more bullish story. Term prices averaged US$90 per pound in February, signaling that utilities are prioritizing long-term supply security over short-term cost savings. Cameco’s substantial backlog of long-term commitments provides a stable foundation for revenue and cash flow in the years ahead.
Investing in Cameco is, at its core, a bet on a broader energy transition. As the world enters an era of surging electricity demand, nuclear power is emerging as an indispensable part of the solution—and Cameco sits at the center of the value chain.
For long-term investors, selling into this pullback may be the riskier move. The potential upside from Westinghouse, the optionality of GLE, and the sustained demand for uranium driven by AI—these catalysts are not yet fully reflected in the stock. Short-term market sentiment has created an opportunity, and for those willing to look beyond the noise, the current dip may well prove to be a rare entry point.
