Cameco Boost Dividend, Upbeat on Future

By Joel ScanlonDec 5 2010

Cameco Corp has boosted its annual dividend from CAD$0.28 to C$0.40 and has said that it intends to boost its dividend by 43% next year. The Saskatoon based uranium producer sees a strong demand for uranium as fuel for nuclear reactors ahead.

The company sees an increase in its annual cash dividend as it sees long term potential for the uranium markets globally. The increase in dividends will be effective staring 2011 and will be paid quarterly. The first boosted dividend payment will be made in the first quarter of next year.

Jerry Grandey the Chief Executive officer of Cameco Corp said in a press statement that the substantial increase in their annual dividend demonstrates their confidence in the business and in the long-term fundamentals of the uranium market.

In an interview in October Jerry Grandey had said that he expected to see uranium prices in the range of $50 to $70 per pound. In November the company has signed a deal with a Chinese company to supply 29 million pounds of uranium concentrate over the next 15 years.

The exact value of the deal signed with China Guangdong Nuclear Power Holding Co was not declassified by the company to avoid tipping off completion.