Cameco Corporation CCJ has announced plans to increase its ownership stake in Cigar Lake to 57.418%. Located in northern Saskatchewan, Canada, Cigar Lake is widely recognized for its exceptionally high-grade ore body and long reserve life, making it one of the most valuable uranium mines globally.
Under the agreement, Cameco will acquire a portion of TEPCO’s 5% interest in Cigar Lake for $115.75 million, subject to customary closing adjustments. The transaction is expected to close in the third quarter of 2026, subject to fulfillment of closing conditions. This will take Cameco’s ownership in the mine from the current 54.547% to 57.418%. The remaining TEPCO’s stake will be acquired by Orano, which will then hold the remaining 42.582% in Cigar Lake.
The additional stake will provide Cameco greater exposure to Cigar Lake’s substantial resource base, which currently includes 172.4 million pounds of proven and probable uranium reserves, along with additional measured, indicated and inferred resources. The mine has been in operation since 2014 and has produced approximately 174.5 million pounds of uranium concentrate through the end of 2025.
In 2025, the mine produced 19.1 million pounds on 100% basis, with Cameco’s share at 10.4 million pounds. The mine is expected to produce between 17.5 million and 18 million pounds in 2026, on a 100% basis.
Operationally, the focus in 2026 will remain on mining activities within the current production area, known as CLMain, while advancing development work associated with the Cigar Lake Extension (CLExt) project.
The move comes at a time when the uranium industry is benefiting from renewed global interest in nuclear energy. Governments worldwide are increasingly embracing nuclear power as a reliable source of low-carbon electricity and a critical component of long-term energy security strategies.
As one of the world's largest uranium fuel suppliers, Cameco is well-positioned to capitalize on this trend. Its competitive advantages include ownership in the world's largest high-grade uranium mine and mill (McArthur River mine and Key Lake mill) and world’s highest-grade uranium mine (Cigar Lake) and strategic investments throughout the nuclear fuel cycle. These include interests in Westinghouse Electric Company and Global Laser Enrichment, which broaden the company's exposure beyond uranium mining.
In this environment, increasing ownership of a high-quality, low-cost uranium asset such as Cigar Lake could provide meaningful long-term value as demand for nuclear fuel continues to rise.
Other companies that stand to benefit from the nuclear energy and uranium investment theme include Energy Fuels UUUU and Centrus Energy LEU. Energy Fuels has produced nearly two-thirds of all uranium in the United States since 2017. It also produces rare earth oxides and adds new products like titanium, zircon minerals and medical isotopes.
Centrus Energy’s core offering is low-enriched uranium, or LEU, the fissile component used to fuel commercial nuclear reactors. The company also provides advanced uranium enrichment and technical, manufacturing and engineering services. It is pioneering the production of High Assay Low-Enriched Uranium (HALEU), a specialized fuel expected to support the next generation of advanced nuclear reactors and growing global demand for carbon-free power.
CCJ’s Price Performance, Valuation & Estimates
Cameco shares have gained 88.6% in a year compared with the industry’s 24.6% growth.
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CCJ stock is trading at a forward price-to-sales ratio of 19.31 compared with the industry’s 5.33.
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The Zacks Consensus Estimate for Cameco’s earnings for fiscal 2026 indicates year-over-year growth of 28.2%. The same for 2027 implies growth of 59.2%.
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While the consensus estimate for 2026 earnings has moved down over the past 60 days, the same for 2027 has moved up, as shown in the chart below.
Image Source: Zacks Investment Research
The company currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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