Increasing Energy Demand
Our industry is driven by energy and electricity consumption, which continues to increase. Since 1980, global electricity consumption has tripled, and is forecast to increase by 70% over the next two decades. The largest growth is coming from countries with rapidly expanding economies, like China and India. Nuclear power is a clean, reliable, affordable baseload energy source, and an important part of the energy mix.
New Reactor Construction
Reactors are being built all over the world — in China, India, Russia and the US, to name a few. Approximately 70 of those are under construction right now. In 2023, we expect there will be 526 reactors operating, up from 433 today. That's a level of growth we haven't seen in this industry for many years.
Expected Supply-Demand Gap
Annual uranium demand is expected to increase to 260 million pounds per year by 2023. This is less growth than had been expected before Fukushima, but the effect on supply could be greater as projects are delayed because they are not economic at today's prices. The supply challenge is compounded by diminishing secondary supplies, particularly with the end of the Russian Highly Enriched Uranium (HEU) agreement last year. Read more in our Markets section.
Cameco Positioned for Growth
Cameco's strategy is focused on taking advantage of the long-term growth we see coming in the industry, while maintaining the ability to respond to market conditions as they evolve. We have world class assets that are the foundation of our strategy, providing an extensive base of mineral reserves and resources and diversified sources of supply. These assets are complemented by vertical integration throughout other parts of the nuclear fuel cycle, including fuel services and nuclear power generation.
History of Strong Performance
One of Cameco's core values is outstanding financial performance, and we have a track record of delivering on this value. We have low cost operations and a contracting strategy that we expect will provide a solid revenue stream, even in challenging market environments.
Caution about Forward-Looking Information
Please click here for additional information about the assumptions applied in making the forward-looking statements on this page and the factors that could cause results to differ materially.