Cameco restarts Cigar Lake mine, holds 2026 output at 18 million pounds

Cameco Corp. said its Cigar Lake uranium mine in northern Saskatchewan resumed production Tuesday after a temporary suspension caused by processing disruptions at Orano's McClean Lake mill, with the company's full-year output guidance unchanged.

"The McClean Lake mill has now resumed operations. Cigar Lake has begun shipping stockpiled ore to the mill and has restarted production at the mine," the Saskatoon-based company said in a statement.

Cameco's 2026 production outlook for Cigar Lake remains between 17.5 million and 18.0 million pounds of U3O8 on a 100% basis, the company said. The mine had halted operations after sulfuric acid plant issues at the McClean Lake mill — the facility that processes Cigar Lake ore — forced a shutdown of milling capacity. Cameco holds a 57.418% stake in Cigar Lake.

The resumption removes a near-term operational risk for the world's second-largest uranium producer, which accounted for 15% of global uranium output in 2025. The Cigar Lake disruption followed flooding earlier this year that temporarily halted operations at Cameco's McArthur River mine and Key Lake mill, though production at those assets has since returned to full capacity. The company's 2026 attributable uranium production guidance of 19.5 million to 21.5 million pounds covers output from both McArthur River and Cigar Lake.

Cameco shares have fallen 20.1% over the past 90 days and 6.1% in the session following the initial suspension announcement, though the stock remains up 24.3% over the past year. The company reported first-quarter 2026 revenue of CAD 845 million, up 7% from a year earlier, with adjusted earnings surging 194% to CAD 0.47 per share, supported by stronger uranium sales and equity income from its 49% stake in Westinghouse Electric Co.

The Cigar Lake restart comes as global nuclear utilities accelerate long-term contracting, with Cameco holding contracts requiring average annual uranium deliveries of more than 28 million pounds over the next five years. The company is extending Cigar Lake's mine life to 2036 and ramping McArthur River toward its licensed annual capacity of 25 million pounds.

This article is for informational purposes only and does not constitute investment advice.