The war in Ukraine is causing an energy reset. Western governments are rethinking dependence on Russian oil and gas, and it is a big opportunity for investors, observes Jon Markman, editor of Strategic Advantage.

It’s time for investors to consider buying Cameco Corp. (CCJ). Uranium is a far more efficient source of energy. It is also cleaner. Using it to create electricity does not release carbon into the atmosphere. This is especially as the world races toward zero emissions.

Prime Minister Boris Johnson recently announced that Britain will begin developing small scale, modular nuclear power plants. The new energy path is a big win for uranium assets.

Britain used to be a hub of nuclear power innovation. The United Kingdom had 15 nuclear facilities operating in 1997, generating 27% of the country’s electricity. By 2024 only two plants will remain. With the help of Rolls Royce, Prime Minister Johnson wants to reverse the trend. The goal is to build smaller power generation facilities based on Rolls’ nuclear-powered submarine engines.

During a conference call in February CEO Tim Gitzel told analysts that since 2016 Cameco has removed 190 million pounds of uranium from the spot market. Gitzel notes that the Netherlands, Czechia, Poland, Estonia, Slovenia and Serbia are now studying their nuclear options. Also, the European Union has labelled nuclear power as a climate-friendly investment, giving ESG funds a green light to begin investing in the sector.

Cameco Corp. is uniquely positioned to take advantage of both the current geopolitical crisis and the inevitable transition back to nuclear power. The Canadian uranium producer holds the world’s largest deposits, and executives are strategically removing supply from the market in an effort to maximize the value of those assets.

Cameco is licensed to produce 53 million pounds annually. The current market capitalization is only $12.1 billion. I rate the stock a buy into any price weakness.

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