RE:RE:NexGen next Cameco?Oscarwilde,
I concur. Further to your comments, from a balance sheet perspective, the most likely players in order as I see it are:
1.
BHP (could use Arrow to triple or quadruple their U production and to increase co marketing of uranium and copper production from Olympic Dam deposit to asian buyers who also have nuclear utilities).
2.
Rio Tinto (a significant uranium producer that would like a large, high grade resource, and could co market with iron ore sales)
3.
Areva (has aligned itself with China for upstream opportunities and to repair its balance sheet, and also has sovereign backing if needed or for strategic reasons as it is mostly French gov't owned and controlled-nuclear power is critical to France's economy)
4.
Cameco (smaller balance sheet than any of the above and hobbled by foreign ownership controls-a minnow swimming in a big pond). The best known, but in my opinion, least likely to take over NXE, short of a merger that fully reflected the value of Arrow. Would Cameco consider taking a fairly valued merger route to maintain U hegemony and double its reserves? I doubt the existing board and management would consider it.
Timing? If pinch point analysis is correct about an increase in utility buying to start early 2016, and reflected in a sustained increase in U pricing, that should trigger one of the above companies to make a move against NXE 1H2016.
oscarwilde wrote: Toa,
Welcome to this forum if this is your first post. Yes, the Arrow discovery is a great one and affects people emotionally in many different ways, viz, happy smiles on their face, lumps (in their throats), etc.
Your statement could well come to reality (the one regarding NXE/Cameco). However, anyone who thinks Cameco is in trouble (Tax problems, Cigar problems) had better think twice. My guess is that NXE has virtually no chance of making it to being a Miner. It effectivelly has to walk over Cameco, Rio Tinto, BHP, a large pile of Chinese money and even Newmont for that matter. The present mining world is in the hands of the cashed up.
We would welcome your opinions.