From a Macquarie Note today:Event�� Nuclear Power...

From a Macquarie Note today:

Event
�� Nuclear Power Corporation of India Limited (NPCIL) indicated that it plans to
invest $1.2bn buying equity in overseas uranium mining companies. The
announcement was made in conjunction with details surrounding a potential $4bn
debt issuance to fund a partnership between NPCIL and Areva to supply reactors
for its nuclear build program.
�� Also, CNNC International (CNNC), a 74%-owned subsidiary of China National
Nuclear Corporation, announced a definitive agreement to acquire Western
Prospector Group (WNP CN). The C$31m, C$0.56/sh offer represents a 51%
premium to yesterday’s close.
Impact
�� Positive – Asian utilities continue to execute on transactions to achieve direct
investment in uranium companies. With the CNNC transaction, Asian groups
have now spent a total of roughly $956m over the last eight months to secure
about 226m lbs of uranium supply. As indicated in the details of the NPCIL
transaction, it plans to invest an additional $1.2bn in uranium equities to secure
fuel supply.
�� We believe that these Asian groups will continue to make direct investments in
uranium companies. With robust nuclear build programs and sufficient cash and
access to debt, they are well positioned to continue to invest in uranium
companies. Reactor vendors may also be looking to secure additional uranium
supply. In the NPCIL agreement, Areva has indicated that it may supply 60 years
of uranium.
�� Quotes from Shreyans Kumar Jain (Chairman of NPCIL) are clearly bullish for
uranium equities. “We want to insulate all future programs from any possibility of
starvation on account of fuel.” “We want to maintain a big inventory so that any
disruption won’t result in wastage of the huge investments we plan to make
building nuclear capacity.” “We simply want to buy stakes to enable us to have a
life-long commitment in proportion to our equity.” “A couple of concrete proposals
are with us and we are reviewing them.”

Close above 15c last night was good news IMHO. DYL guys now have to giddy up and get some Asian corporate interest in the stock, there is a window opening up for some cracker deals and they need to get out from under Paladin's shadow.