What about BHP? What about BHP Billiton as a suitor for FCU? My research shows they generate billions each year in revenue and gave 2014 cash reserves of over 8 billion. Heck they increased cash reserves over 3 billion just last year. They also have lots of experience mining open pit at Olympic Dam in Australia. That is the positive fact... They have the cash an experience.
But... They seem to want out of the uranium business, or at least in Australia that is. In 2012 BHP Billiton announced it would mothball more than $60 billion in expansion projects, then sold its Yeelirrie uranium deposit in Western Australia to Canada’s Cameco for US$430 million. Cameco is currently planning an open pit mine at Yeellirrie. As of late 2013 BHP as no plans to advance the expansion of Olympic, rather they are looking for a partner to share the costs or find a cheaper expansion.
Correct me if I am wrong but BHP has no experience mining uranium in Canada. But they are pursuing potash in Saskatchewan. BHP may have a bitter taste in their mouth by being blocked by the Canadian Government in attempts to take over Potash Corp. Due to this rejection I would assume a JV in required and I just do not see Cameco as a partner. Therefore I can only see Denison as a suitable Canadian JV, they have the experience to make this work. Unfortunately I have found no connection or past history between Denison and BHP.
So I am opening discussion, what are your thoughts of BHP bidding?