Cameco (NYSE:CCJ) Soaring on Growing China Uranium Demand

Since June Cameco (NYSE:CCJ) has soared, as they signed an agreement with China National Nuclear to supply 23 million pounds of uranium concentrate through 2020.

In November they signed a another deal, this time with China Guangdong Nuclear to supply them with 29 million pounds of uranium through 2025.

The companies are making the long-term deals in order to lock in supply as the nuclear energy market has come back in favor, and companies around the world are starting to, or are planning to build, hundreds of nuclear reactors over the next couple of decades to help meet their energy needs.

China's goal is to increase their generating capacity using nuclear power to 5 percent by 2020. At this time nuclear is two percent of their generating capacity.

As for Cameco, they've risen from $21 a share in early July to close Friday at $38.76, gaining $0.51, or 1.33 percent.