CXO Uranium Assets

Here we are again, uranium is back in vogue for some reason. Evidently, there is a use case for uranium in dense electricity markets that requires a large economy of scale (i.e. in Asia). As I write this Cameco reckons the spot uranium price is sitting at USD$33.75 and coming off a base following the heady days in 2008-2012 - I wasn't there for it (I was busy being an awkward teenager), but I understand people made lots of money in that period.

See this announcement regarding CXO's Napperby Resource. I'm well aware the resource in its current state is nothing special. But I can also see potential value in a Uranium bull market.

There's a lot of hype that the uranium price could go above USD$60/lb. Evidently, CXO has an undeveloped JORC resource and a couple of exploration prospects in its portfolio.

	Mine, Jurisdiction	Tonnage	Grade
1	Napperby, Australia (CXO)	9.34Mt	0.0359%
2	Napperby, Australia (CXO) (INDICATIVE HYPOTHETICAL ONLY)	~18.68Mt	~0.0359%
3	Budenovskoye 2, Kazakhstan	40.7Mt	0.022%
4	South Inkai, Kazakhstan	58.1Mt	0.013%
5	Langer Heinrich, Namibia	108.1Mt	0.052%
6	Tortkuduk, Kazakhstan	16.51Mt	0.75%
7	Olympic Dam, Australia	619Mt	0.057%
8	Ranger, Australia	21.43Mt	0.1%

Are there any uranium buffs out there who know if there are producing mines similar to the Napperby deposit? If so, CXO should spin out its uranium assets in a separate float. There's no benefit to developing it alongside Finniss, nor is there any point in selling the assets for additional capital. Give the shareholders some capital back in a burgeoning uranium market, I say!

All IMO.