Cameco Corporation (CCJ)

[Destinator]

My take on Cameco Conference Call:

Gitzel Gets it!

Gitzel is a REAL CEO. His defense of Cameco’s “A Contract is a Contract” belief demonstrates that he means business. It is conceivable that in light of the TEPCO ruling, RELIABLE PRODUCERS such as CAMECO are going to be less likely to sign VERY LONG TERM CONTRACTS unless an insurance price is factored into it. If buyers don’t want to live up to their end, then they will have to pay up or they will have to work with shorter term contracts. That is a very real possibility and other operators/buyers will have Tepco to thank for it.

Cameco is NOT there to see others achieve their profit targets. - Well said Cameco.

Cameco holds $1.1 billion in cash. Not bad for a company that shut down their biggest mine.

Cameco is batting 3 for 3 in terms of executing their strategy.

“I’ve seen this movie twice before” – This comment speaks volumes.

Supply is less certain and, in fact, declining. As I stated yesterday on the UEX board, sometimes a picutre is worth $millions.


Discussing with Tier One customers what it takes to protect supply going forward. These customers want certainty of supply from RELIABLE SUPPLIERS. - In other words, price may be important to the buyers but certainty of supply is even more important.


As a Uranium and Cobalt Investor, I never liked the concept of intermediary buyers and some have taken exception to that view when I expressed it in the past. Look at Cobalt 27. They no longer exist. They sold out. Now I hear Cameco addressing intermediary buying and the panic that sometimes kicks in. Listen in to the following part of Cameco’s conference call.

IMPORTANT: 34:23 mark of the Cameco Conference Call – The following is me paraphrasing:

Intermediaries are panicking and not living up to their chosen strategy. Cameco will let them panic and take advantage of it. I could say that the same goes for Uranium Mining Stock Investors who are panicking. That is why I like to say:

LIVE LONG AND PROSPER

Click below for Cameco Conference Call. Thanks for the link @quakes99 twitter feed.

Click here for full Conference Call