The Canadian mining stocks may not be the hottest thing powering the markets these days. The commodity plays tend to be quite volatile and often lack long-term momentum. In any case, not all volatile commodity stocks are to be passed, especially those with distinct operating advantages.

In any case, playing commodity prices can be a very hard game. With so many variables that dictate commodity price moves, trading in and out of commodity futures or mining plays may not be a consistent winning strategy. And with certain fossil fuel producers, there are longer-term secular headwinds that one will need to keep tabs on.

The case for looking at commodity miners again

Of course, oil demand isn't going to fade over the next few years or even the next decade. However, in a few decades, as more renewable energy projects go online, many of which were sparked by big-tech firms looking to reduce the carbon footprints of their data centres, there may be a longer-term overhang weighing heavily on energy prices.

For now, though, many such commodity producers are cash cows with incredibly discounted valuations. Until the cash flows begin trending lower, I view such names as real value in a market that's crowding into very specific corners of the tech sector.

Indeed, when all you hear about is AI and tech by the talking heads, it can be easy to forget that there are neglected, perhaps severely undervalued names out there ripe to be picked.

In this piece, we'll check in with one incredibly sound Canadian mining play that may have the wind at its tail. Though short-term commodity price projections are sure to fall short, I view the longer-term trajectory as incredibly sound.

Cameco stock: A top mining play fit for long-term investors

Consider shares of uranium producer Cameco (TSX:CCO), which recently fell into correction territory, now down around 12% from all-time highs close to $76 per share. Indeed, prior to the latest plunge, CCO stock had been on a furious bull run that helped it more than double (up over 135%) in the past two years. Indeed, the world seems to be increasingly interested in nuclear energy projects again.

As demand for cleaner energy increases, uranium (and CCO stock) prices may continue to run. Heck, the nuclear power surge may span many years. And if that's the case, perhaps the stock, which trades at over 46 times forward price to earnings (P/E), is far cheaper than it looks.

The road ahead looks quite bright for the uranium producers

Looking ahead, I expect Cameco to keep doing its best to expand its production capacity better to feed the growing demand for nuclear reactor fuel. Additionally, management may also explore cost-cutting initiatives to further improve operating economics.

Further, with bans on Russian-produced uranium in place, global uranium producers like Cameco will need to step up to the plate. Though Cameco stock looks richly valued, I'd not be afraid to have a closer look if the recent correction were to drag into mid- to late summer.

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