It is not clear to me that Areva need to spend hard dollars or pay a premium to take over WME when it can likely get access to WME's U3O8 through mutually beneficial offtake agreements? A closer working relationship between Areva and WME makes sense because WME would not need to raise massive amounts of capital to finance its own processing effort - when one exists down the road at nearby Trekkopje - while Areva would, in turn, get access to additional supply of similarly-graded ore stock at a time when it is not running at full capacity. Worth remembering too, that China Guangdong Nuclear Power Corp signed offtake agreements with Areva which would see it take 35% of Uramin's produced uranium.
However, I concede that if a third-party were to enter the fray and make a bid for WME, it may then force Areva's hand to be more aggressive. In all eventualities, WME is in a win-win situation, which is why it is an attractive investment. Fingers crossed on the mining renewal, but otherwise, like BMN and others which have been supported on other threads, it is clearly undervalued. This one has been a long slog at times, but I think we're getting there...
WME Price at posting:
16.0¢ Sentiment: Buy Disclosure: Held
