“they could potently offer 25% more than any other bidder”
I don’t think so, if Aveva make a bid, he can offer higher than RIO, because Aveva sell nuclear fuel, RIO sell U3O8, Aveva has much higher margin than RIO. Mr Dettals said before. The best offer is from Nuk fuel maker.
“The trouble for Rio is that the longer they wait the more valuable EXT will become. As RIO's SP is currently trading around A$60 I don't think this would be a issue.”
Even Rio make a offer now, he still has to pay exploration upside, if RIO make a offer by himself, I think it will be a scrip offer, and then sweet by some cash, so RIO may wait for early next year, when his share price is $70+.
“So I don't see the likelihood of uranium prices falling any time soon. In fact I see a greater chance of them steadily increasing.”
I hope so.
“The Chinese are very pragmatic. If there is a chance that they could do a deal with Rio to have a stake in one of the world largest uranium mines, I'm sure they would. It may also be a way of saving face.”
Yes, they need each other.
Regards
Stayhere
EXT Price at posting:
$7.42 Sentiment: Buy Disclosure: Held
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