Could be Time to Double Down??
https://business.financialpost.com/2012/11/08/cameco-downgraded-at-jpmorgan-but-others-see-opportunity/
Cameco also announced a $500-million debenture offering, with the proceeds to be used to strengthen its capital position and enhance financial flexibility to support its planned expansion.
Cameco has been on the acquisition trail in recent months with purchases of the Yeelirrie uranium project in Australia from BHP Billiton and AREVA’s 27.94% stake in the Millennium project in the Athabasca Basin.
Cantor Fitzgerald analyst Rob Chang thinks the debenture offering gives Cameco more room to buy Uranerz Energy Corp.
He noted that Cameco has adjacent in-situ recovery uranium projects near Uranerz’ Nichols Ranch project in Wyoming, and Cameco has announced that it is working to expand production in the region.
“At current levels, making a bid for Uranerz may be an opportunistic (and discounted) approach for exposure to an asset that will be in production by next quarter and ramping up to over 1 million lbs U3O8 by 2015/2016,” Mr. Chang told clients.
He also noted that Cameco currently has a fair amount of financial flexibility given its existing $1.75-billion revolving credit facility.
DD