The company said in a press release that it “sees no basis for terminating the contract, considers TEPCO to be in default, and will pursue all its legal rights and remedies.”
The share price of Canadian uranium producer Cameco (TSX:CCO,NYSE:CCJ) dropped steeply Wednesday morning after Tokyo Electric Power Company Holdings (TEPCO) terminated its uranium supply contract with the company.
As of 11:10 a.m. PST, Cameco’s share price was sitting at $14.53 on the TSX, down 12.31 percent. On the NYSE it was down 12.71 percent at $11.13. The company’s 52-week range on the TSX is $9.88 to $17.67, and for most of the month it’s been trading at the higher end of that spread.
Cameco, which produces about 18 percent of the world’s uranium at mines in Canada, the US and Kazakhstan, has vowed to fight the termination. The company said in a Wednesday press release that it “sees no basis for terminating the contract, considers TEPCO to be in default, and will pursue all its legal rights and remedies.”
TEPCO provided Cameco with a termination notice on January 24, and confirmed on January 31 that it would not be accepting a uranium delivery from Cameco scheduled for February 1. The Japanese company has not been able to operate its nuclear plants for 18 months due to government regulations put in place after the Fukushima disaster, and is calling those circumstances a “force majeure” event.
According to Cameco President and CEO Tim Gitzel, his company has been trying to fix the situation with TEPCO since receiving the January 24 termination notice. “During the past week we tried to engage TEPCO to obtain clarification given conflicting information we had received previously from them and only received confirmation of their intent to terminate the contract yesterday,” he said.
The contract has been in place since 2014, and was for the delivery of over 10 million pounds of uranium. TEPCO has already received and paid for 2.2 million pounds, but an additional 9.3 million pounds worth about $1.3 billion in revenue are on the line. The remaining 9.3 million pounds were to be delivered through 2028.
Under the contract, a period of good faith negotiations to resolve the dispute will now take place. If no resolution is reached, it will be resolved by binding arbitration. Cameco expects the process to be lengthy, especially if arbitration is involved.
There is some concern that if TEPCO is successful in terminating its contract, other Japanese utilities may do the same. “The TEPCO force majeure notification to cancel its long-term higher-priced contract raises the question of whether other Japanese utilities may follow suit,” said Orest Wowkodaw, a Scotiabank metals and mining analyst, in a note.
Cameco has reassured shareholders that it “has sufficient financial capacity to manage any loss of revenue in 2017 as a result of the dispute.” The company’s annual results, due for release after market close on February 9, will provide more information on its 2017 outlook.
Don’t forget to follow us @INN_Uranium for real-time news updates!
Securities Disclosure: I, Charlotte McLeod, hold no direct investment interest in any company mentioned in this article.
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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.
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