Q: Good afternoon,
Given setback in CCO production, how do you assess the stock their ability to replace should this be for an extended period?
Thank you.
Given setback in CCO production, how do you assess the stock their ability to replace should this be for an extended period?
Thank you.
5i Research Answer:
The delay is really the joint-venture's fault, for not filing paperwork on time. This at least is better than the government stopping production for some other reason. The JV has indicated that 2025 production overall is not likely to be impacted. If it is, CCO will have a bit of a difficult time replacing production, but this would likely be offset on an earnings basis by higher uranium prices (due to the shut down). So, there is a bit of an offset here. Investors seem non-plussed, with the stock already up 6.4% in 2025.