Camco 4000-word in-depth research report

$Cameco(CCJ.US)$BHP(BHP.US) $Rio Tinto(RIO.US) dug out a Cameco research report, with the core logic being the revaluation of low-cost uranium mining leaders under a strong cycle.

🎯 Core logic: The uranium mining industry is highly concentrated (CR5 over 70%), with significant cyclicality (5-10 year cycles, uranium price rose from $30 to $70/lb in 2023), and extremely high entry barriers (new mine approvals take 10+ years, compliance costs hundreds of millions). Cameco's advantage lies in low-cost operations (cash cost $23/lb vs industry average $33), scale effects accounting for 40% of North American production, 80% revenue from long-term contracts locking in 40%+ gross margins. Growth drivers come from global nuclear power expansion (IEA forecasts 30% uranium demand growth by 2030, China/India adding over 50GW capacity), plus 20% production expansion at Cigar Lake project.

📈 Financial highlights: Gross margin rose from 5.91% in 2020 to 33.91% in 2024, ROE recovered from -2.09% in 2021 to 6.05% in 2023. 2024 free cash flow reached $694M, operating cash flow/net profit ratio at 5.26x showing strong earnings conversion. Debt-to-asset ratio dropped from 35.54% to 29.64%, current ratio at 2.96 indicates optimized financial structure. 2024 revenue hit $3.136B, doubling from 2021 trough, with profit growth lagging revenue - awaiting uranium bull market to realize full potential.