Pick of the Mining Stocks: Well positioned for a resource rebound

Article Excerpt

CAMECO CORP. $21.22 (Toronto symbol CCO; SI Rating: Extra Risk) (306-956-6200; www.cameco.com; Shares outstanding: 392.4 million; Market cap: $8.3 billion) is the world’s largest uranium producer. Its large, high-grade reserves and low-cost operations, significant market position and access to other supplies of uranium give it a strong competitive position. Cameco is also one of three commercial converters of enriched uranium for use in nuclear reactors in the western world. Cameco gets most of its uranium from its McArthur River and Rabbit Lake mines in Saskatchewan, and the Crow Butte and Highland mines in the U.S. Cameco owns 70% of the McArthur River mine. Through subsidiaries, Cameco has a 31.6% interest in Ontario’s Bruce Power partnership, which operates four of eight reactors at North America’s largest nuclear power complex. Cameco is also the exclusive supplier of uranium for all eight reactors. Cameco focuses on its nuclear business, but it also owns 52.7% of Centerra Gold (symbol CG on the Toronto exchange). Centerra owns gold…