Uranium Investing: The Chinese Are Coming

Source:

...The low prices set by the uranium equities lately have attracted the attention of a few prospective buyers. It seems that the Chinese have finally arrived to the market- as some have expected for years now - much as the French did during the American Revolution. That was a pivotal moment during that war, and if the Chinese are serious about locking up supplies through agreements and acquisitions, then this will be a watershed moment for the uranium mining industry as a whole...

...The low prices set by the uranium equities lately have attracted the attention of a few prospective buyers. It seems that the Chinese have finally arrived to the market- as some have expected for years now - much as the French did during the American Revolution. That was a pivotal moment during that war, and if the Chinese are serious about locking up supplies through agreements and acquisitions, then this will be a watershed moment for the uranium mining industry as a whole. This market has been waiting for a catalyst to reverse the current trend, and that moment has potentially arrived as Bloomberg has reported that Chinese officials with China National Nuclear "met with their counterparts" at Cameco Corporation (CCJ). These same officials were quoted as saying that they were looking for deals in the range from, "several hundred million dollars to more than a billion."

This is very positive news regarding the industry as a whole, as the Chinese have finally "tipped" their hand, and should they go through with a deal, will have shown the world that they really are serious about building all of those nuclear power plants they have plans for. Most likely the Chinese would look at a company like Uranium One (SXRZF.PK) as a takeover target and to Cameco to fill supply needs...

Should China deliver on their talk, we will see much higher volatility in all things uranium. The Canadians will perform much better than the Australian miners as the Australian government and regulators are peeved at the way China has shown disregard for proper procedure as required by their laws. They have already shot down one iron ore merger and the Prime Minister himself supposedly told the Chinese to forget about getting involved with BHP-Billiton.

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