1. Total Metals Corp (TSXV:TT, FSE: O4N)
Total Metals Corp. is focused on advancing high-grade gold projects to production.
As global energy demand continues to rise and geopolitical risks intensify, Cameco (CCJ), a leading uranium miner in North America, is becoming a focal point for investors. Analysts believe that the company, leveraging its high-quality uranium assets in North America and its strategic stake in Westinghouse Electric Company, stands to benefit significantly from the U.S. effort to reduce its reliance on Russian uranium and the growing demand for nuclear power.
So far this year, the surge in energy demand has shown no signs of abating, particularly driven by a sharp increase in electricity consumption from data centers. Meanwhile, escalating geopolitical tensions have highlighted the fragility of global energy supply chains. Recent conflicts in Iran serve as a case in point: disruptions to shipping through the Strait of Hormuz have affected 9.1 million barrels of oil supply per day, which the International Energy Agency (IEA) has called the “largest supply disruption in history.” Against a backdrop of uncertain conflict prospects, energy prices continue to experience significant volatility.
However, recent market fluctuations also present opportunities for investors. As a leading uranium company in North America, Cameco possesses high-grade uranium resources in Canada. The U.S. nuclear power industry is seeking to reduce its dependence on foreign uranium suppliers, particularly Russia, which has historically supplied nearly a quarter of U.S. enriched uranium. This creates a strategic opportunity for Cameco. The company holds high-grade assets in Canada’s Athabasca Basin, which hosts some of the world’s largest uranium deposits.
Additionally, Cameco owns a 49% stake in Westinghouse Electric Company, a global leader in nuclear equipment and services, serving nearly half of the world’s operating nuclear power plants. This stake extends Cameco’s operations across the entire nuclear value chain, beyond just uranium mining. Through Westinghouse, Cameco is involved in downstream fuel manufacturing, reactor maintenance, and the design and engineering of next-generation reactors. Last year, Cameco’s adjusted EBITDA from its Westinghouse stake grew by 61% year-over-year to $780 million.
Cameco, along with its co-investor Brookfield Renewable and Westinghouse, has partnered with the U.S. government to plan the construction of at least $80 billion worth of Westinghouse reactors. As the U.S. plans to add 10 new reactors by 2030, demand for Westinghouse’s AP1000 nuclear reactors is strong. This partnership with the U.S. government is expected to significantly drive growth for Westinghouse’s energy systems division and fuel manufacturing business throughout the lifecycle of the new reactors.
Analysts project that Cameco’s earnings per share will grow to $2.30 by 2028, representing a compound annual growth rate of 29% over the next few years.
In summary, as a leading North American uranium producer and strategic investor in Westinghouse, Cameco is well-positioned to fully benefit from the surge in energy demand driven by data centers and the Western decoupling from Russian uranium sources. This is due to its low-cost, high-grade uranium assets, its business layout across the nuclear fuel value chain, and its deep collaboration with the U.S. government on new reactor construction. Consequently, it stands as a core holding worth considering for the long term in the nuclear energy sector.
