Cameco and Brookfield Establish Transformational Partnership With United States Government to Accelerate Deployment of Westinghouse Nuclear Reactors

Executive Summary

• Cameco and Brookfield entered a binding term sheet with the United States Department of Commerce to create a strategic partnership aimed at accelerating global deployment of Westinghouse Electric Company’s nuclear reactors, targeting an aggregate investment of ≥ US$80 billion.
• The U.S. Government will arrange financing, permitting and approvals; it will receive a 20% participation interest in cash distributions exceeding US$17.5 bn and may convert this interest into warrants tied to a future Westinghouse IPO (valuation ≥ US$30 bn).
• The partnership is expected to drive significant demand growth for Cameco’s uranium and nuclear fuel services, bolster Westinghouse’s Energy Systems segment during construction, and enhance U.S. energy, national and climate security.

Key Details

• Parties Involved: Camec​o Corp. (TSX: CCO; NYSE: CCJ), Brookfield Asset Management, United States Department of Commerce, Westinghouse Electric Company.
• Investment Scope: Minimum US$80 billion aggregate investment in new Westinghouse nuclear reactors in the U.S., including near‑term financing for long‑lead‑time items.
• Participation Interest: U.S. Government granted a 20% interest in cash distributions above US$17.5 bn from Westinghouse; vesting contingent on final investment decision and definitive agreements.
• IPO Warrants: If the participation interest vests by Jan 2029 and Westinghouse IPO valuation ≥ US$30 bn, the interest converts to a 5‑year warrant for equity equal to 20% of post‑deduction public value (after subtracting US$17.5 bn).
• Strategic Benefits:
• Accelerates deployment of proven Westinghouse reactor technology.
• Reinforces supply chains and nuclear power industrial base in the U.S. and globally.
• Expected to generate reliable power for the grid, including data‑center/AI compute capacity.
• Enhances demand for Cameco’s uranium, fuel fabrication, and related services.
• Operational Impact: Westinghouse will commence project execution and order long‑lead‑time equipment upon closing; anticipated growth in Energy Systems segment during construction phase and sustained revenue from core fuel fabrication/reactor services over reactor lifetimes.
• Regulatory & Closing Conditions: Subject to regulatory approvals, customary closing conditions, and execution of definitive agreements replacing the term sheet.

Notable Quotes

“We are pleased to see the US government make this commitment to expanding nuclear power capacity using Westinghouse's proven technology… This new partnership highlights the role that Westinghouse’s reactor technologies … are expected to play in the planned expansion of nuclear capacity and diversification of global nuclear supply chains.” – Tim Gitzel, CEO, Cameco

Materiality Assessment: Material – Positive** (The agreement represents a multi‑billion‑dollar strategic initiative that could materially affect Cameco’s future revenue streams, market positioning, and shareholder value.)