Cameco Uranium: Goldman Report Goes Nuclear

Authored by GoldFix ZH Edit

Yesterday, ZeroHedge posted a piece entitled The Next AI Trade, which, while on the surface of it was about AI; once read was loaded with info on America's insufficient power generation sources and dilapidated transmission infrastructure woven from multiple bank perspectives and their own insights.

Among the industry recommendations noted was the growing push for Nuclear power. Within that sector, Cameco was discussed in context of Goldman initiating coverage. This video is a summary of that  Cameco analysis

The Bank's 34 page report with slides have been broken out at bottom. It contains industry information including financials, industry fundamentals, and  geopolitical drivers Frankly, its all you need if you want to get familiar with the investment potential, and if you already understand the industry, you can compare your assessments with theirs.If you want to understand the opportunity better in context of  the industry, the ZeroHedge post noted up top is a must read. 

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Topics

• 0:00- Market Rundown
• 2:14- Goldman Believes in Uranium
• 8:37- Macro Market Comment
• 11:00 CCJ, Gold, Silver chart analysis
• 16:00- News

Goldman Key Drivers

(GoldFix Comments)

Point 1. We see Estimate Change Potential from Better Realized Prices vs Consensus Estimates Longer Term

• Now that supply overhang is gone, demand is outstripping production…

Point 2. Integrated Business Model Provides Exposure to Entire Value Chain vs more Isolated Peers

• Vertical integration to the whole value chain at this stage of a cycle is the way to go…

Point 3. Estimate Revisions Should Be Aided by the Migration of Demand to Cameco

• Consensus estimates for CCJ production are low in a market with a net supply deficit…

More analysis  here