The relationships
that PTU have cannot be understated. They are in bed with the 2 largest players in the industy. At the end of the day both NXE and FCU have to sell to a third party. And sell to deep pockets in a depressed enviornmnet. The buyers list is incredibly small. NXE is currently sitting at approx $900m MC and about $2.30/lb of U in the ground. Although the latter seems very attractive the former does not. How many companies out there are willing to buy NXE for $900m which is just todays MC @ current SP. And how much would someone be willing to pony up as a premium to that? Very very few, if any, and hence why NXE has boxed themselves into a corner. Would either CCO or Areva spend $900m+ on NXE? Why would they, when they could spend $10-20m (or 1-2% that of NXE) by sending in an army of drills to verify what is already known, and to which they already own a majority stake. Time is on our side no question.