Copyright fool
Taking a pause from signing deals with minerals companies, the U.S. government has inked a deal with Cameco (CCJ +24.42%) to facilitate growth of the nuclear energy industry. Naturally, investors are celebrating the news and sending Cameco stock higher this morning. As of 10:49 a.m. ET, shares of Cameco are up 21.1%. Investors are charged up about this transformational partnership Characterizing its new agreement as a "transformational," Cameco, along with Brookfield Asset Management, will partner with the U.S. government, which will arrange financing and assist with permitting and approvals to develop new Westinghouse nuclear reactors to be built in the U.S. The government's investment totals $80 billion and includes near-term financing for select items. In celebration of the new partnership, Tim Gitzel, Cameco's CEO, stated: "We are pleased to see the US government make this commitment to expanding nuclear power capacity using Westinghouse's proven technology. We expect that our highly successful partnership with Brookfield as owners of Westinghouse will be further strengthened through this strategic collaboration with the US Government." Cameco and Brookfield completed the acquisition of Westinghouse, a leading developer of nuclear power plants, in 2023, resulting in Cameco gaining a 49% stake in the company and Brookfield owning the remaining 51%. Should investors now power their portfolios with Cameco stock? While the lion's share of attention regarding nuclear energy has focused on next-generation nuclear power companies like NuScale Power and Oklo, today's announcement signals that traditional power plants aren't falling by the wayside. Those interested in a conservative approach to nuclear power investments, therefore, should remember to pay particular attention to Cameco -- especially after the new partnership with the U.S. government.
