RE:RE:RE:RE:RE:If you believe in UraniumInteresting observations. The only contracts CCO has had cancelled are those with TEPCO...what are the others? CCO is suing TEPCO over breach of contract which they will likely win since the "force majuer" arguments from TEPCO are very weak (their inability to protect their plant against tidal waves that are common in that region - albeit a rather large one this time around - is not in that category...ie they brought it on themselves..The point I was making is that CCO is a very diversified company in the Uranium business and has multiple revenue streams and does not rely entirely on U3O8 as a source of revenue.I agree with you that the Kazakhs would like to displace CCO from that dominant position in multiple fuel markets but it will take time. What is more important for the Kazakhs right now is to increase the spot price of Uranium and drive it towards the mid and long term contract price. That will be of great benefit to CCO would it not?
Regarding the CRA lawsuit...I am most definitely NOT a lawyer...and thank my lucky stars I am not.....so I do not profess to know what the outcome will be. I am aware that international Corporate tax law is very complex and CCO appears to have convinced the US tax agencies that its activities were above board. A 2 billion dollar fine is already baked into the stock price Any decision of course is a political one in Canada. Will the tax courts really want to destroy on of Canada's landmark companies. The political backlash against Mr. Trudeau in Saskatchewan and Ontario as a result of the CRA forcing or even contributing to the bankruptcy of CCO will be unimaginable. I will be very surpised that - even with the case law you mention - the political folks in Ottawa will allow the CRA to do that. We shall see.
Good post - interesting comments. But do not agree that CCO is anywhere close to being down and out.
Malcolm