Uranium stocks surged higher overnight on the news that Westinghouse Electric (49% owned by CCJ) had secured a major contract with the US government to build new nuclear reactors. The $US80bn partnership signalled a new wave of renewed confidence in the nuclear sector – we never doubted it! Shares in CCJ powered ~24% higher on the news triggering a broader rally among nuclear companies – Paladin (PDN) and co should see renewed strong interest this morning. This ongoing overseas adoption must be starting to worry the huge short position across the local sector, which could even start to attract some M&A interest as they fail to embrace bullish overseas leads.
The US government is looking to get ahead of the curve, constructing these nuclear reactors to support the looming increased demand driven by AI. Commerce Secretary Howard Lutnick summed up the position: “Our administration is focused on ensuring the rapid development, deployment, and use of advanced nuclear technologies. This historic partnership supports our national security objectives and enhances our critical infrastructure.”
- We believe nuclear power will play a huge role in satisfying growing energy demand in the years ahead, supporting viable companies in the space – MM holds CCJ in our International Companies Portfolio.
MM remains long and bullish towards Cameco (CCJ US)
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