Cameco Corp. (NYSE:CCJ) is a “Buy”

"There is only one uranium blue chip, and that’s Cameco Corp. (NYSE:CCJ), based in Saskatchewan, Canada. It is the second largest uranium miner in the world, after Kazatomprom. Cameco produced about 20 million pounds last year, or 16% of the world’s supply. It aims to double production by 2018 from its existing assets – nearly a billion pounds of resource – excluding potential acquisitions.

Cameco’s world-class assets have among the lowest costs in the industry. Ore grades at its McArthur River mine, for instance, are 100 times the world average. That means it can produce more than 18 million pounds per year by mining only 150–200 tonnes of ore per day.

Cameco’s MacArthur mine is the world’s highest-grade mine – and it isn’t even a close contest."

"In that world, Cameco stands tall. The stock is trading for only 9 times next year’s cash flow per share guess of $2.59, which is likely too low. It also trades just under my $25 estimate of net asset value per share. Plus, we own a super strong balance sheet with no net debt and over $1 billion in cash."

"Cameco’s exceptional properties and long-term prospects reside within a very bullish long-term outlook for uranium. The bull case for uranium is right here in this chart:"

.....read more Cameco Corp. (NYSE:CCJ) is a “Buy”