Cameco Corporation (TSX:CCO) stands as the top mining stock to buy and hold in a long-term growth-oriented portfolio as the United States enters a new uranium market regime, pro-nuclear legislation comes into force, and the integrated uranium mining company fortifies its financial position while looking toward a decade of revenue and earnings growth outperformance.
Cameco stock and peer nuclear industry names surged recently following new orders signed by U.S. president Trump that seek to boost the U.S. nuclear industry as a provider of cheap and reliable base-load electricity as power-hungry artificial intelligence (AI) data centres gobble energy from increasingly strained grids. This regulatory tailwind makes Cameco a compelling mining stock to buy for uranium exposure.
Cameco stock dominates the uranium space
As the largest uranium miner in North America and a low-cost producer, Cameco operates a scalable operation that’s ramping up production in response to uranium price recoveries and demand growth. But what sets Cameco apart isn’t just its mining prowess; it’s the company’s ownership and interests across the entire nuclear power value chain.
Cameco operates uranium exploration, mining, refining, and conversion, plus reactor fuel fabrication assets. The company holds a 49% stake in Westinghouse, whose operations span conversion, fuel fabrication, and light water reactors, and another 49% in Global Laser Enrichment (GLE), which is developing uranium enrichment assets.
Europe, Asia, and now the United States are investing and plan to invest heavily in new nuclear-powered electricity generation facilities. If the global uranium-power generation industry continues its growth spree, and uranium demand and prices soar, then Cameco should be a big winner for its investors.
Perfect storm of bullish fundamentals
The uranium market is experiencing a perfect storm of bullish fundamentals. Reactor life extensions in France and Belgium extend demand lifespans, while the uranium industry anticipates a widening supply gap by 2030 as planned production volumes decline and demand grows. The uranium mining industry suffered a decade of minimal to no investment in exploration and development, creating today’s supply constraints.
Adding fuel to the fire, a U.S. import ban on Russia-sourced uranium, which triggered a reactionary export ban by the Kremlin, took away potential competition for Cameco. This geopolitical shift has strengthened North American uranium producers’ market position significantly, making Canadian mining stocks like Cameco particularly attractive.
Cameco’s strategic advantages pay off
Cameco’s long-term contracting strategy is bearing fruit. Realized prices continued trending up during the first quarter of 2025, even during a period when uranium spot prices fell slightly. The company has already secured a lucrative market for its monthly production for at least the next five years, with an average annual delivery target of 28 million pounds of uranium per year through 2029. Impressively, Cameco has contracted for about 220 million pounds of uranium deliveries spanning a full decade.
The Westinghouse optionality adds another layer of value. Any new uranium power plant design and services deals globally may include Westinghouse as a bidder, and the company recently reached a favourable settlement with South Korean competitors with significant winning potential, positioning it to benefit from the global nuclear renaissance.
Strong financial position and shareholder returns
With recently cleared term loans from the Westinghouse acquisition, Cameco enjoys enhanced financial flexibility. Given strong free cash flow production at current market prices, the company is well-placed to more than double its dividends and shore up its balance sheet over the next five years.
For Canadian investors seeking long-term mining exposure, Cameco represents the ideal mining stock to buy, with essential commodity exposure, integrated value chain control, and a decade-long growth runway. When evaluating mining stocks to buy and hold, Cameco’s unique positioning makes it stand out from traditional mining operations. Shareholder returns could be significantly positive — and I’m not missing that chance.
