Cameco's stock surged 5.49% during intraday trading on Tuesday, marking a significant upward movement for the uranium producer.

The rally was driven by the company's announcement that its McArthur River uranium mine and Key Lake mill have fully resumed production following a nearly three-week disruption caused by flooding in Saskatchewan. The company has implemented a temporary transportation solution via a secondary supply route, restoring both sites to full capacity while reaffirming its full-year consolidated production guidance of 19.5 to 21.5 million pounds of U3O8.

Additionally, Cameco announced an agreement to acquire a 2.871 percentage point increase in its Cigar Lake joint venture stake from TEPCO Resources for approximately C$115.8 million, bringing its total ownership to 57.418%. The broader uranium sector also saw gains, with multiple uranium-related stocks advancing alongside Cameco's movement.