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JV Inkai halts uranium production amid permit issues

Published 01/02/2025, 06:36 AM
CCO
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SASKATOON – Cameco (NYSE:CCJ) Corporation (TSX: CCO; NYSE: CCJ), a significant global provider of uranium fuel with annual revenues exceeding $2.2 billion, has announced that its joint venture, JV Inkai, has ceased production activities as of January 1, 2025. According to InvestingPro data, the company has shown revenue growth of 8.46% over the last twelve months, though recent developments may impact this trajectory. The suspension comes after JV Inkai did not receive an anticipated extension for submitting necessary Project Documentation to Kazakhstan's Ministry of Energy.

The majority owner of JV Inkai, National Atomic Company Kazatomprom (LON:KAPq) JSC, holds a 60% interest, while Cameco owns the remaining 40%. Kazatomprom directed the suspension to avoid potential violations of local legislation after the deadline to secure an extension passed without the required documentation being submitted.

Cameco expressed disappointment and surprise over the halt, which was not anticipated based on prior updates from JV Inkai and Kazatomprom. The company received reports as recently as December 26, 2024, with no indication that production suspension was a risk. This uncertainty has contributed to the stock's volatile performance, with InvestingPro data showing the shares trading near their 52-week low of $1.29, reflecting a 22.6% decline over the past year. InvestingPro subscribers have access to 6 additional key insights about Cameco's market position and financial health.

The company is now seeking clarification on the reasons behind the suspension, its potential impact on production and financial outcomes for 2025 and 2026, including future dividends, and exploring how it might assist in resuming operations.

Cameco's profile as a leading provider of uranium fuel is built on its controlling ownership of high-grade reserves and low-cost operations, maintaining a gross profit margin of 48.27%. The company's shares are traded on the Toronto and New York stock exchanges, with headquarters in Saskatoon, Saskatchewan, Canada. Financial metrics from InvestingPro indicate the company operates with significant leverage, as reflected in its total debt to capital ratio of 0.91, while currently working to improve profitability with earnings per share at -$0.30 for the last twelve months.

This news is based on a press release statement and includes forward-looking information, which is subject to change. Actual results and events could differ significantly from current expectations due to various risks, including the complexity of laws in Kazakhstan, geopolitical risks, and supply chain issues. Cameco has noted that it will not necessarily update this information unless required by securities laws.

In other recent news, Clear Channel Outdoor (NYSE:CCO) Holdings has seen several developments. The advertising company reported a 6.1% year-over-year increase in Q3 2024 revenue, reaching $559 million, despite a net loss of $32 million. Adjusted EBITDA rose by 2.6% to $143 million. The company has also secured a significant 15-year contract with the Metropolitan Transportation Authority (MTA) to manage out-of-home advertising displays in the New York, New Jersey, and Connecticut metro area.

Clear Channel has also renewed its advertising contract with Signature Aviation for five years, expanding its advertising reach across over 100 private aviation terminals in the United States. The company is strategically exiting its European operations. For Q4 2024, Clear Channel provided revenue guidance between $628 million and $653 million, with a full-year revenue projection of $2.222 billion to $2.247 billion.

The company has modified its existing agreement with Legion Partners Holdings, an investment management firm, influencing the composition of Clear Channel's Board of Directors. Raymond (NS:RYMD) T. White will be nominated for election to the Board at the 2025 annual meeting of stockholders. The amendment extends the duration of the Cooperation Agreement until either 30 days before the director nomination deadline for the 2026 annual meeting or 120 days prior to the first anniversary of the 2025 Annual Meeting, whichever comes first.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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