On the heels of SXR Uranium One’s statement to accumulate UrAsia Energy, one would possibly finish this can spawn the start of enormous consolidation inside the uranium sector Namibia Email List. In the early morning hours after the $five billion deal became introduced, SXR Uranium One chief government Neal Froneman emailed StockInterview writing, “Our recognition at the U.S. Has no longer changed.” In previous interviews, Mr. Froneman has kindly been obvious in his intentions to now not handiest increase his uranium assets in the United States, but to pursue a senior stock exchange listing, presumably the New York Stock Exchange.
On Tuesday, the Financial Times (UK) reported that traders looking amazing exposure to the uranium bull marketplace are basically limited to buying stocks in Cameco Corp. Froneman instructed the newspaper, “The new Uranium One will offer an alternative to Cameco.” He’s right, but there also are two mid-size uranium producers – Denison Mines and Paladin Resources – with enough market capitalization to accumulate one or more of the smaller uranium juniors. Widely respected Justin Reid, uranium analyst at Sprott Securities, told the Financial Times, “for them to keep marketplace share, they need to do some thing aggressively, and that they ought to do it now.”
Justin Reid’s current thesis, 2007 – Uranium Equities, is as it should be sub-titled, “The Sector Moves Towards Production & Consolidation.” His twin theme for uranium mining shares in 2007 is consolidation and U.S. Uranium miners presenting a safety of supply. Reid wrote in his February 14th report, “We anticipate that the purchase parade has simply began and turns into a not unusual subject in 2007. Moving ahead we advise that the U.S. May be a focus, as security of deliver, aggressive development plans, and a large useful resource base waiting for exploitation need to be attractive to companies searching socialposts out manufacturing visibility inside a stable political weather.”