The Conversation (0)
Apr. 13, 2015 10:30PM PST
Cameco is in the final stages of a uranium supply agreement with India. The deal is expected to further mend the relationship between Canada and India as well as add thousands of jobs in Saskatchewan.
The uranium market could see some big moves as Canada’s largest uranium producer looks to finalize a sales agreement with India. Cameco (TSX:CCO,NYSE:CCJ) is currently in advanced talks with India on a deal to supply the country’s nuclear power plants.
Indian Prime Minister Narendra Modi is reportedly looking forward to the deal, which will not only be beneficial to both ends from a business perspective, but will also mark the reconciliation of Canada and India after Canada banned uranium and nuclear hardware exports to India in the 1970s. While the countries began to mend the broken relationship with a 2013 deal, this new commercial export agreement signifies growing trust in India as a safe and responsible user of nuclear power.
Of course, the benefits to Cameco will also be huge. The deal will increase the company’s revenues by millions of dollars, and will boost employment in Saskatchewan. “It’ll mean tax revenue, it’ll mean job retention, it’ll mean new jobs, if in fact there is an agreement here with India,” Saskatchewan Premier Brad Wall told Bloomberg. “Depending on all the specifics, you’re going to be talking about hundreds of millions of dollars worth of sales over some period of time.”
The deal is set to go through prior to the Modi’s visit to Canada, which is scheduled to take place from April 14 to 16, and will include stops in Toronto, Ottawa and Vancouver.
As mentioned, Modi is excited about the deal, and reportedly said on his Facebook page that he looks “forward to resuming [India’s] Civil Nuclear Energy cooperation with Canada, especially for sourcing uranium fuel for our nuclear power plants.”
India uses nuclear power for 3 percent of its electricity, but a Cameco spokesman told Bloomberg that it hopes to increase that number to 25 percent by 2050. Since coming to power, Modi has aimed to speed up price negotiations for building new reactors and purchasing fuel from France and Canada; he decided to visit both countries this month despite domestic opposition.
One project, the Jaitapur nuclear power plant, is on its way to being built after AREVA (EPA:AREVA) signed a pre-engineering agreement contract with the Nuclear Power Corporation of India. If all goes well, Jaitapur, which will include six reactors, will be the world’s largest nuclear power station.
At end of day Monday, Cameco’s share price was up 2.25 percent on the Toronto Stock Exchange, trading at $19.57. It was up 1.97 percent on the New York Stock Exchange at $15.51.
Securities Disclosure: I, Kristen Moran, hold no direct investment in any of the companies mentioned in this article.
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Investor Insight
Generation Uranium offers investors high-leverage exposure to a potential major discovery in Canada’s underexplored and resource-rich Thelon Basin, led by a management team with a proven track record of securing high-value exits.
Overview
Generation Uranium (CSE:GEN, OTCQB:GENR, FRA:W85) is a Canadian exploration company focused on wealth creation through discovery within the uranium sector. The company’s primary strategy is to build a high-caliber exploration team that can rapidly test and drill high-potential targets, de-risking projects for potential takeover by larger producers. Currently centered in the prolific Thelon and Angikuni Basins of Nunavut, the company is also actively evaluating additional project acquisitions in the Athabasca Basin to expand its portfolio.
The company is led by a veteran management team with nearly 30 years of experience in mineral development. CEO Michael Collins has a significant track record of building and exiting public companies, including the co-founding of Bluerock Resources, a conventional uranium producer during the 2000-2008 cycle. This expertise is paired with a focused business model that leverages modern geophysical targeting to accelerate exploration timelines and reduce costs, ensuring the company can deliver results quickly in a bullish uranium market.
Company Highlights
- Strategic Location in a Premier Uranium District: The flagship Yath Project is located in Nunavut’s Thelon Basin, contiguous to ATHA Energy’s Angilak Project, which hosts the high-grade Lac 50 deposit.
- High-Grade Discovery Potential: Historical surface sampling at the Yath Project has yielded exceptional uranium grades, including boulders testing at 9.81 percent, 3.95 percent, and 2.14 percent U3O8.
- Expert Management with Exit Experience: Led by CEO Michael Collins, the team has decades of experience in mineral exploration and a history of co-founding companies that were later acquired, such as Prime Mining and Nuclear Fuels.
- Low-Cost, Rapid Exploration Strategy: By leveraging modern geophysics and extensive historical data, the company aims for a "short road to discovery," de-risking projects quickly to maximize shareholder value.
- Bullish Market Fundamentals: Generation Uranium is well-positioned to meet the growing global demand for carbon-free nuclear power, supported by a projected supply deficit and increased interest from major tech companies seeking clean energy.
Key Project
Yath Project - Nunavut, Canada
The Yath Project is Generation Uranium’s flagship project. This 100 percent owned property covers about 120 square kilometers within the underexplored Thelon Basin in Nunavut, Canada. The project is located where the Yathkyed and Angikuni sub-basins meet, which is a region known globally for high-grade uranium potential. It sits directly along the same trend as the Angilak Project owned by ATHA Energy (TSXV:SASK, OTCQB:SASFK, FWB:XSU.F), which contains the Lac 50 deposit, one of the highest-grade uranium resources found outside of the Athabasca Basin with a historical mineral resource estimate of 43.3M lbs at an average grade of 0.69 percent U3O8.
The Yath Project is contiguous to the Lac 50 trend and is crossed by several regional faults and basin boundaries. Past exploration work has already identified high priority targets, while surface sampling in the area has produced uranium grades from boulders, with some testing at 9.81 percent, 3.95 percent, and 2.14 percent U3O8.
The company has commenced its initial field program at the site, set to define and rank drill targets. Historic showings will be combined with new anomalies from the MMT geophysics survey, preparing the project for an anticipated drill permit.
Management Team
Michael Collins - CEO & Director
Michael Collins is a professional geoscientist with nearly 30 years of experience in mineral exploration. He has co-founded several public companies, including Exploits Discovery, Prime Mining (acquired in 2025), and Nuclear Fuels (merged with Premier American Uranium in 2025). He is also currently a director of First Atlantic Nickel.
Christoph Bruening - Director
Christoph Bruening is the founder and managing partner of Value Relations GmbH, a full-service investor relations and public relations agency in Frankfurt with over 25 years of excellence, focusing on mining, exploration, biotech and health care. In addition, he has listed over 600 companies on the Frankfurt Stock Exchange and is a speaker and author of several publications, including on rare earths and uranium.
Dallas Miller - Director
Dallas Miller has been working within the international mining industry for over 15 years, working with BHP and Santos Ltd. He has experience on the ground from an operational standpoint, as well as being an integral part of raising millions of dollars in capital funding for both private and public companies in recent years.
Roger Leschuk - VP Corporate Development
Roger Leschuk has been in corporate management for over two decades, with the past 15 years dedicated to corporate development and investor relations. He has experience participating in and assisting with mergers and acquisitions, and was an investment advisor for various services such as stocks, mutual funds and tax-sheltered investments. He is a Chartered Investment Manager and a Fellow of the Canadian Securities Institute.
Monty Sutton - CFO
Monty Sutton brings over 35 years of experience in public markets and corporate governance. He previously served as CFO for Nuclear Fuels from its IPO through its acquisition.
