"The critical determinant will be RIO's reaction to the bid."
Yeah, I've been thinking about that too. Maybe RIO has done a deal with CGNPC? - Well, what's the deal worth if Cameco or Uranium One ends up with KAH? IMO, RIO has to form a pac among KAH shareholders right now to protect its own interests.
On the other hand, would RIO prefer to be Taurus's processing plant? Or would RIO rather own the lot and expand Rossing? Maybe China wont shop with RIO anymore if RIO bids for KAH?
Get real - China's companies will always shop where they get they best deal and will always play suppliers against each other in order to get the best deal.
If RIO gets EXT's Husab mine they only have to move their earth moving equipment 6k down the road and dig there instead.
So RIO has low capex requirements and can produce uranium for less than anyone else if they get Extract. They are also long term mates with the Namb gov which would help too.
IMO - they would be fools not to acquire KAH & EXT!
EXT Price at posting:
$8.51 Sentiment: Hold Disclosure: Held
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