Uranium stocks and ETFs rose after Cameco (CCJ, Financial), a Canadian uranium producer, announced an unexpected halt in production at its Inkai joint venture in Kazakhstan due to expired government authorization. While CCJ shares saw a modest increase, other uranium stocks, including the Sprott Uranium Miners ETF (URNM), experienced significant gains.
Inkai, a joint venture between Cameco and Kazakhstan's state-owned Kazatomprom, is 40% owned by Cameco. In its Q3 earnings report, Cameco projected Inkai to produce 7.7 million pounds of uranium in 2024, with 2.3 million pounds already delivered to Cameco. This production is slightly above 10% of Cameco's expected annual output of 23.1 million pounds.
Cameco expressed disappointment over the unexpected suspension and is seeking clarification on its potential impact on 2025-2026 production and financials, including future dividends. Kazakhstan's role as a reliable uranium supplier is now in question, as it accounted for 43% of global uranium supply in 2022. Kazatomprom cited delays in document submission as the reason for the halt, expecting resolution in the coming weeks.
