To: Iman EL Meniawy

From: Mathieu Theriault, Consultant for Ram Horn Consulting.

Date: November 24, 2014

SUBJECT: Canadian Operations Analysis Memo

Thank you for allowing me to work and share my findings of Cameco to you. As requested, I have evaluated the business, industry, and issues Cameco currently face. My analysis uses a few citations related to the industry. Based on my analysis, here are some of my thoughts on current opportunities, threats and competition Cameco’s currently faces.

Opportunity
Nuclear energy offers a solution to the world’s search of environmentally friendly energy sources. It is expected that the demand for Uranium will increase considerably resulting in a substantial need of mining company’s .Following Fukushima disaster; it has opened the door for companies, like Cameco, to acquire new investments at a lesser cost. According to Andrea Jennetta (2013), politicians need to get a grip and get leading on nuclear energy – not wasting time and resources on intermittent technologies that blow billions of dollars.

Threat
With Uranium market being unpredictable there are continuously risks with market fluctuation, stock prices and environmental elements. Equipment breakdowns water in- flows and cave-ins at mine sites can cause shutdowns or lags in production. Weather conditions and unforgiving natural elements are a major threat to business survival; effectives mine sites, reactors, exploration sites and potentially employees. Although vulnerable, Uranium has still plenty of safety systems. But as stated in the Canadian Nuclear Association (2013), Licensees have demonstrated, through analysis using conservative initial assumptions and significant safety margins that vital areas and critical SSCs (structures systems and components) is protected to the extent that no offsite consequences are expected for general aviation aircraft impact.

Competition
Owning mining properties on one of the world’s richest uranium deposits allows Cameco to provide the highest quality uranium rich product to its customers, adding significant value and benefit to the customer’s output product. Cameco’s key competitors are large mining industry leaders such as BHP Billiton, Rio Tinto and Areva Resources Inc. Although these are competitors, they have also been great allies and have collaborated and partnered with Cameco on industry projects in the past years. According to Margaret Harding (2013), the increased costs of coal will slow expansion of access to electricity, relegating millions of citizens to a lack of electricity, clean water, and opportunity.

Conclusion
Cameco has proven it is a strong company that can weather good and bad markets, keeping strong financial results, safe operations, quality production and happy employees. Like any business, Cameco faces risks but uses its strengths to develop a strong and sustainable business.

References

* Jennetta, A. (2013, June). Nuclear Energy, Not Unreliables, Is the Solution to Climate Change. Fuel

Cycle Week, p.1.

* Nuclear Power Plants Safe from Terrorist Attack. (2014). Canadian Nuclear Association, p.1.

* Harding, M. (2013, January). The Mongoose and the Snake. Fuel Cycle Week, p.1.