Uranium's Nuclear Profits (CCJ, URRE, UEC, URA)

Uranium miner Cameco Corp. (NYSE: CCJ) reported third quarter EPS of $0.20 today on revenue of $419 million. Revenue was down -19% from the same period a year ago and EPS was down -17%, but the company’s share price is up about 6% on prospects for the fourth quarter.  Cameco is also lifting other uranium stocks, including Uranium Resources Inc. (NASDAQ: URRE), Uranium Energy Corp. (AMEX: UEC), and the newly launched Global X Uranium ETF (NYSE: URA).

Cameco has boosted production and lowered costs while seeing prices rise. The best news, though, is this statement from the company’s earnings release: “We expect about one-third of our uranium sales will be delivered in the fourth quarter.”

The company also raised its guidance on production, from 21.5 million pounds to 22 million pounds for 2010. Capital expenditures were reduced from $510 million to $475 million. The company still expects to double production by 2018.

Uranium Resources has returned to compliance with NASDAQ listing rules requiring a $1.00/share minimum price, and signed a deal with Cameco for an exploratory property in south Texas. Cameco and Uranium Resources have also agreed on an option for a joint venture on the property.

Uranium Energy has just completed a private placement of more than 8.1 million units at a per share price of $3.40. Each unit includes one share of common stock plus “one-half of one transferable common stock purchase warrant (each a “Warrant”) of the Company, with each such whole Warrant being exercisable for one additional common share of the Company (each a “Warrant Share”) at an exercise price of $3.95 per Warrant Share for a period of one year from closing.”

The Global X Uranium ETF was launched last week at a per share price of around $16.58. Shares are trading up nearly 10% today at about $18.84.

Both Uranium Resources and Uranium Energy are up nearly 20% today, while Cameco shares are up more than 6%. All three stocks set a new 52-week high today as well.

Paul Ausick