basic value comparison, page-6

"it leads me to believe that Azarga's strategy now is beginning to account for this reality - diversify "the company" (including the legacy BLR) to the point they are no longer reliant on Hansen resource mined by UBHM and Ablation to stay afloat.
"

Zubana, I don't take issue with your proposition but I find it curiously self-defeating. If the 'reality' as you put it is so dire that even before Azarga has stumped up any cash, they have to strategise a way out of it, that seems nonsensical to me.

I can tell you that BLR are engaged in a process of clarification over the regulatory issues, and have, in very recent discussions with me, indicated the likelihood of this being state-by-state. The discussion thus far at least on this forum, has centred on the assumptions that BLR SH are being led to believe that it'll be raining yellowcake any tick of the clock.

The definitive statements thus far have centred around 3 things

-The acquisition
-The 'probable' timing of AT to proven status
-The ablation of the October stockpile

Now, my own view of all this is that there are two factors here that influence SH investment decisions.

1/HANSEN TAYLOR
The first is based on the assumption that HT (whose key advantage is its size) will move to production (and doubtless be ablated as stated). This scenario requires the same leap of faith required of anyone investing in the U-space right now, large or small cap.

In personal conversations I've had with MH, he has in no uncertain terms indicated that the PRIMARY aim is for BLR to be a major player on the US U308 stage. This obviously requires SH preparedness to put the money 'away' for however long it takes. This I have to say is not necessarily the reason I'm in, but that is as much a function of my age etc as anything else.


2/ABLATION/AZARGA and the ACQUISITION.

Much has been said about the possible Machiavellian motives behind AZARGA's interest in BLR. I have always found this a little bizarre, when the rationale for the concerns of some, are based on (vis a vis your statement above), that the business may be so distressed that there must be some kind of 'rescue' plan in the offing. Why would anyone bother?

Clearly, the second factor above has introduced the following...

-A demonstrable and highly accelerated path towards vertical integration

-A proprietary technology (likely to be proven up) that creates a blip on global mining radar (and no one needs this now more that the U-miners)

-A big question mark surrounding a level of cornerstone investor interest that is not matched at either the big or the small end of town.

The combination effect of the above two factors (for me) represents reasonably compelling likelihood of SP upside, especially in the new year.

As for the regulators, and the tree huggers, they are part of the process too.

Now, in the interests of fairness, and given that there has been a bit of a biffo of late (neither side immune from criticism on this score) I should say, that as an ex PEN holder I can attest to the quality of that operation and of my respect for Gus Simpson. He's a straight shooter, and sooner or later Ross will become a reality. If the spot price changes, so does the game in my view and given I understand the PEN story well enough from years as a SH, I might have a look at it again. What is happening to your SP now is a function of penny-end trading, not fundamentals. all IMHO.