We sell uranium and fuel services directly to nuclear utilities around the world, as uranium concentrates, UO2, UF6, conversion services or fuel fabrication. Utility companies buy the majority of their uranium and fuel services products under long-term contracts with suppliers and meet the rest of their needs on the spot market.
We are also active in the spot market, buying and selling uranium where it is beneficial for us. Our NUKEM business segment enhances our ability to participate in this market as they are one of the world's leading traders of uranium and uranium-related products. Our activity in the spot market takes prudent consideration of the spot price and other business factors. This activity gives us insight into the underlying market fundamentals and is a source of profit.
Supply & Demand
Almost two billion people across our planet are without access to electricity. Nuclear power is an important part of the global energy mix, providing clean, reliable and affordable baseload energy.
Our contracting strategy is designed to reduce volatility of future earnings and cash flow, allow us to adapt to market conditions, and deliver the best long-term value to our shareholders.
Uranium Price Sensitivity
The sensitivity of our average realized price under various uranium spot prices based on Cameco's long-term contract portfolio.
Supply & Demand
With more than 60 new reactors under construction, the long-term outlook for the uranium industry is strong.
Our extensive contract portfolio, based on the long-term, trusting relationships we have with our customers around the world, is one of our core strengths.
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.