Here’s our Pick of the Month – August 2010

Article Excerpt

CAMECO CORP. $25 (Toronto symbol CCO; SI Rating: Extra Risk) (306-956-6200; www.cameco.com; Shares outstanding: 393.0 million; Market cap: $9.8 billion; Dividend yield 1.1%) has moved up from under $22 in early July on an improving long-term outlook for uranium. The metal’s strong prospects were highlighted by Cameco’s first major supply agreement with a Chinese nuclear utility. China plans to build at least 60 reactors by 2020. Under the deal, Cameco will deliver 23 million pounds of uranium to China National Nuclear Corp. (CNNC) by 2020. At current levels, that equals roughly one year of Cameco’s production. Cameco is the world’s largest uranium producer. It supplies over 18% of global production, and has large, high-grade reserves, low-cost operations, significant market share and a number of uranium mines. The company also holds a 31.6% interest in Ontario’s Bruce Power partnership, which operates four of the eight reactors at the Bruce plant, North America’s largest nuclear-power complex. In the three months ended March 31, 2010, Cameco’s…