Cameco Corp. saw a significant increase in its stock value by over 20% following an announcement of a partnership between the uranium company, Brookfield Asset Management Ltd., and the U.S. government to support the construction of nuclear reactors in the United States. The agreement involves the U.S. government facilitating financing, permits, and approvals for new Westinghouse nuclear reactors valued at least $80 billion US in the U.S. Brookfield and Cameco acquired Westinghouse in November 2023.
Cameco’s CEO, Tim Gitzel, expressed optimism about the partnership, stating that the commitment to new nuclear builds in the U.S. will enhance confidence in the growth outlook for nuclear power, leading to increased demand for their products and services.
Trading on the Toronto Stock Exchange reflected the positive news, with Cameco shares rising to $146.62, an increase of $25.36, while Brookfield Asset Management class A shares also saw a gain of $1.50, reaching $77.91.
U.S. Commerce Secretary Howard Lutnick emphasized the government’s focus on advancing nuclear technologies rapidly for national security and critical infrastructure enhancement. The partnership agreement entails the U.S. government receiving a participation interest, granting it 20% of cash distributions exceeding $17.5 billion US from Westinghouse post-granting.
To secure the participation interest, the U.S. government must finalize investment decisions and enter definitive agreements for constructing a minimum of $80 billion US in new Westinghouse nuclear reactors in the U.S. Additionally, the U.S. government has the option to convert the participation interest to a warrant for purchasing shares in Westinghouse’s initial public offering equivalent to 20% of the company’s public value after deducting $17.5 billion US under specified conditions.