Cameco Corp. (CCJ)

Shares of Cameco Corp. (CCJ) dropped by 5.55% from $46.34 to $43.77 in the trading on Tuesday, December 19, 2023. The reason why CCJ down today is due to a presentation from Canadian uranium miner Cameco Corporation (CCJ), which had recently experienced significant growth. Following the presentation, Canaccord Genuity downgraded CCJ from Buy to Hold. Cameco's CFO, Grant Isaac, highlighted the company's advantageous position, with nuclear power utility customers buying uranium in anticipation of future electricity demand. Cameco could fulfill this demand using existing mines, avoiding the need for new developments. However, concerns arose regarding the sustainability of uranium price surges, which had spiked from under $47 per pound to as high as $87 per pound. The majority of focus and stability were attributed to the term market, where buyers secured long-term uranium supplies. This discrepancy between the spot and term markets prompted caution among investors and Canaccord Genuity, leading to the Hold rating.