Another Coincidence

I thought this deserves its own heading but it is worth noting from a timing perspective the following:

*late 2013 DOE agrees to negotiate with GLE for Paducah.
Negotiations continue to take place and Wilmington could commence construction.
*July 14 GLE shelves Wilmington but continues to negotiate Paducah.
*30 Sept 14 DOE announce that they will be offering $2B in loan guarantee to a new uranium enrichment technology.
*late Oct - last days for submission for loan guarantee submissions on the parameters. It is rumoured at that time MG and CFO are over in the USA of this week.

My take is DOE was interested in GLE however GLE are negotiating stating they would not build either Wilmington or Paducah unless the projects are derisked maybe on more favorable terms then the Areva's $2B loan guarantee eg less capital requirements.

These sorts of grants take significant time, tenders and approvals - which is what we are seeing now.

Why build Wilmington or Paducah without the guarantee especially when your competitor has it but is not even using it?

This quote was taken from the article: "GE’s technology wasn’t ready in time to meet a 2008 deadline for a federal loan guarantee to help finance the plant, but Orr says GE would apply if more money becomes available."

Nuclear renissance is alive and well and for those who got on board Silex at 55c, if you can hold on for 5-10 years you should make a fortune.

I am the Iceman!