On the heels of SXR Uranium One’s announcement to accumulate UrAsia Energy, one might conclude this might spawn the start of widespread consolidation within the uranium sector. within the early morning hours after the $5 billion deal was announced, SXR Uranium One chief executive Neal Froneman emailed StockInterview writing, “Our specialise in the U.S. has not changed.” In previous interviews, Mr. Froneman has kindly Namibia phone number list been transparent in his intentions to not only build up his uranium assets within the us , but to pursue a senior stock market listing, presumably the ny stock market .
On Tuesday, the Financial Times (UK) reported that investors wanting high-quality exposure to the uranium market are basically limited to purchasing shares in Cameco Corp. Froneman told the newspaper, “The new Uranium One will provide an alternate to Cameco.” He’s right, but there also are two mid-size uranium producers – Denison Mines and Paladin Resources – with sufficient market capitalisation to accumulate one or more of the smaller uranium juniors. Widely respected Justin Reid, uranium analyst at Sprott Securities, told the Financial Times, “for them to retain market share, they need to try to to something aggressively, and that they need to roll in the hay now.”
Justin Reid’s recent thesis, 2007 – Uranium Equities, is appropriately sub-titled, “The Sector Moves Towards Production & Consolidation.” His dual theme for uranium mining stocks in 2007 is consolidation and U.S. uranium miners offering a security of supply. Reid wrote in his February 14th report, “We expect that the acquisition parade has just begun and can become a standard theme in 2007. Moving forward we propose that the U.S. are going to be attention , as security of supply, aggressive development plans, and an outsized resource base expecting exploitation should be attractive to companies trying to find production visibility within a stable political climate.”
As an aside, we phoned Justin Reid to congratulate him on his brilliant and comprehensive 120-page uranium mining report. We also wanted to thank him for joining the growing minority of analysts who view the various advanced uranium exploration companies, developing their U.S. assets, together of the brighter and safer havens for investors – the dominant theme in our articles over the past year. After all, the us presently operates quite 23 percent of the world’s nuclear reactors and annually consume about 55 million pounds U3O8. against this , U.S. uranium production has only recently risen to about three million pounds of mined uranium oxide. U.S. utilities need reassurance there’ll be security in future supply so this market remains the premier country for uranium mining production for a minimum of subsequent decade.
Who’s on the Menu?On Thursday, TheInvestar website reported, “… it must be noted that our uranium index for Canada, also as Australia, has closed at a record high for the past three days. The juniors are showing strength across the board also b2c phone list as across continents.” Investors are phoning their favorite companies, since Monday, asking if the corporate is on SXR Uranium One’s, or another’s, radar. The record uranium price of US$75/pound has helped enhance the currency of not only the potential acquiring companies, but also those on their menu.