Nuclear power

After filing for bankruptcy in 2017 following delays and cost overruns at the Vogtle and V.C. Summer nuclear power plants, the company was subsequently bought by Brookfield Renewables and uranium miner Cameco.

This is considerably cheaper than new natural gas combined cycle at $85-$115/MWh and a small modular reactor (in 2035) at $130-$150/MWh.

Our large consumer staples overweight, a source of stability in most environments, was a headwind in a strongly risk- on tape, and materials selection detracted as our nitrogen and uranium exposure gave back prior gains.

Ageing power stations were left in limbo, while coal, oil and nuclear energy were shunned.

As countries seek to secure reliable energy supply for national security and data centre needs — while simultaneously addressing carbon reduction commitments — nuclear energy stands out as an increasingly viable and attractive solution.

Looking past short-term movements in uranium prices, its investment case rests on multi-decade demand growth, long-term contracting, and continued innovation in nuclear power.

While continued margin expansion and aftermarket growth support the investment case, the crux of our thesis is nuclear power.

Cameco is well positioned to benefit from growth in AP1000 nuclear reactor orders.

Constellation’s share price came under pressure as regulatory uncertainty in the PJM Interconnection that coordinates electricity transmission across 13 states delayed the expected timing of nuclear power purchase agreements, tempering investor expectations for near-term deal activity.

Cameco has an important role in meeting the world’s electrical power demand through its production of fuel for nuclear power plants.

The implica- tion seems increasingly difficult to avoid: coal, and in the long-run nuclear power, will certainly remain a significant part of Asia’s future generating mix.

As Western markets continue to shift away from Russian-sourced nuclear fuel, Cameco is well positioned to benefit, particularly given that nuclear power represents approximately 20% of the U.S. energy mix and is moving higher and remains heavily reliant on imports.

Beyond mining, the company operates a fuel services business that refines and converts uranium concentrate, and holds a significant equity interest in Westinghouse Electric, a leading nuclear reactor technology provider — giving Cameco a vertically integrated presence across the nuclear fuel cycle.

Rising 24% was Curtis Wright Corp., a provider of engineered products, solutions, and services to aerospace, defense, commercial nuclear power, and industrial markets.

Our holding Cameco is one of the largest global providers of uranium fuel for nuclear energy and Hitachi provides protection, control, Qua rte rly Initia tions Qua rte rly Liquida tions Albemarle Corporation Atlassian Corp Broadcom Inc.

All three saw customer order growth adding to already strong backlogs in their respective fields of computing infrastructure, and aerospace/nuclear power.