It has been a tough few years for one-time high-flying uranium miner Cameco Corp.. Over the last five years, its value has plummeted by 38% after nuclear power fell into disfavour after the 2011 Fukushima disaster in Japan, which caused the price of uranium to collapse. Since then, uranium has remained caught in a protracted slump, despite claims by industry insiders and analysts that it is poised to rebound because of a combination of growing demand and emerging supply constraints. Nonetheless, despite these claims, there has been no sign of a sustained rally, and an upturn in the fortunes of the radioactive metal may never occur. This is because the outlook for uranium is not as bright as claimed, and there is every indication that nuclear power will remain in disfavour. That will continue to weight on Cameco’s market value.
Motley Fool 28th May 2018 read more »