Cameco Corp: Flooding Causes Production Disruption

Cameco has disrupted production at its McArthur River mine and Key Lake mill due to a flood-related bridge collapse in Saskatchewan, putting 2026 guidance at risk. Goldman Sachs maintains a Buy rating, citing potential support for uranium spot prices from the supply disruption.

Key Takeaways

• 1.Flooding in northern Saskatchewan caused a bridge collapse, severing the primary supply route to Cameco's McArthur River mine and Key Lake mill.
• 2.Cameco has halted production at Key Lake mill and reduced activity at McArthur River, putting the 2026 production guidance of 19.5-21.5mn lbs at risk.
• 3.The Cigar Lake mine remains operational and unaffected by the flooding issues.

Table of Contents

• Potential to revise 2026 production
• Production impact currently unknown
• Unrelated to prior production issue
• Potential supply/demand and pricing implications
• Estimates unchanged
• Valuation and Key Risks
• GS Forecast
• Disclosure Appendix

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