Cameco's Q4 2024: Contradictions in Kazakhstan Operations, Market Demand, and Westinghouse Guidance

These are the key contradictions discussed in Cameco's latest 2024Q4 earnings call, specifically including: Kazakhstan operations and market demand expectations, term contracting activity and utility interest, and Westinghouse's financial guidance:



Strong Financial Performance and Market Fundamentals:
- Cameco reported strong net earnings and adjusted net earnings in Q4 2024, driven by a return to Tier-1 production levels and higher sales volumes.
- The company's optimism is supported by supportive market conditions in the nuclear sector and expectations for continued growth in demand.

Long-term Contracting and Supply Discipline:
- Cameco's long-term contract book in uranium totals approximately 220 million pounds, with commitments averaging 28 million pounds over the next five years.
- The company is strategic in its contracting, aligning production with its portfolio and only producing where there is demand, as reflected in their production plans for 2025.

Impact of Tariffs and Trade Uncertainty:
- Cameco took proactive steps to mitigate potential impacts from a proposed 10% tariff on Canadian energy products by the U.S.
- The company's contractual arrangements ensure that any tariff-related costs are borne by the customer, with no material financial impact expected in 2025.

Westinghouse Growth and Opportunities:
- Westinghouse, in which Cameco has a majority stake, reported strong adjusted EBITDA, benefiting from new market opportunities and strategic collaborations, such as with Korea's KEPCO and KHNP.
- The company is positioned to participate in growth opportunities for nuclear new builds, with a focus on AP1000 technology and significant potential with Korean energy solutions.