Growth outlook strong for these two miners

Article Excerpt

CAMECO CORP. $29.62 (Toronto symbol CCO; SI Rating: Extra Risk) (306-956-6200; www.cameco.com; Shares outstanding: 392.8 million; Market cap: $11.6 billion; Dividend yield 0.8%) is the world’s largest uranium producer. Its large, high-grade reserves, low-cost operations, significant market share and access to a number of sources of uranium give it a strong competitive position. Cameco gets most of its uranium from its 70%- owned McArthur River mine and the Rabbit Lake mine, both of which are in Saskatchewan. The company also owns the Crow Butte and Highland mines in the U.S. Through subsidiaries, Cameco holds a 31.6% interest in Ontario’s Bruce Power partnership, which operates four of the eight reactors at the Bruce plant, North America’s largest nuclear-power complex. In the three months ended September 30, 2009, Cameco’s earnings (excluding one-time items) fell 18.1%, to $104 million from $127 million. Earnings per share fell 29.7%, to $0.26 from $0.37, on more shares outstanding. Revenue fell 4.8%, to $694.1 million from $728.9 million. Lower uranium prices offset improved electricity sales and prices. In December 2009, the company sold its 48.5% stake in Centerra Gold Inc. (Toronto…