RE:RE:RE:RE:Cameco’s $450-million cash infusion excites Well Wateroperator that makes this post appear a little unrealistic.
CCO’s exit from their Bruce position is somewhat of a surprise. Their “hands on uranium experience” might be sorely missed there. The sale price seems low too but I really have nothing with which to compare it. Most troubling for me is that usually these blue chips like to diversify their holdings and I can’t see why they would withdraw from the Bruce in order to increase their weighting in the mining and exploration sector where they already are providing 20% of world supply just from Cigar. It seems like too many eggs in the same basket for them to invest in “even more” uranium properties. But they may rightly perceive more value in beaten down assets (assets by the way, that are currently being reappraised higher) compared to the Bruce facility whose asset value is likely to remain static. Their timely from the Bruce exit could put a sizeable chunk of their money into these low priced assets. And even if they couldn’t or wouldn’t go all the way in a bona fide takeout of DML they could call some shots as to who would become their new mill partner and make them pay for the assets in the process. That would catapult everything higher and make asset re-evaluation an absolute reality. Besides that general improvement to the sector and shareholders alike, CCO would come away with a nice chunk of money. Why they could even re-acquire their Bruce position if they wished. But if that’s the plan then we’re not the only ones out there that think that Rio or some other entity will shortly be deciding to take a run a DML