Cameco Adds a Deposit

Article Excerpt

CAMECO CORP. $41.26 (Toronto symbol CCO; SI Rating: Extra Risk) (306-956-6200; www.cameco.com; Shares outstanding: 334.5 million; Market cap: $14.2 billion) will join with Japan’s Mitsubishi Corp. to acquire Rio Tinto’s Kintyre uranium exploration project in Western Australia for $495 million U.S. Cameco will hold a 70% stake in the joint venture. Cameco estimates that the Kintyre deposits range from 62 million to 80 million pounds of uranium. The project still requires state government approval. In the longer term, Cameco is well positioned to participate in the global expansion of nuclear power. However, in the short term, lower uranium prices and delays at Cigar Lake continue to hold back profits. Cameco is still a hold. hold…