Analysis: China's nuclear program boosts uranium...

Analysis: China's nuclear program boosts uranium producers

http://hken.ibtimes.com/articles/83607/20101119/china-nuclear-program-uranium-producers.htm


""""""""""".................................BUYING THE SOURCE

But building reactors is just the first step for China. Securing uranium supplies to fuel those power plants will be its next big concern.

To that end, the Chinese have already signed three long-term supply deals, one with France's Areva (CEPFi.PA) and two with Cameco. Analysts say China will soon take the quest for secure supplies a step further.

"In nearly every other commodity, China's gone out there and bought assets to ensure that they have some form of captured supply," said Sterck. "They haven't done that in uranium yet."

He said juniors are a prime target, as they are cheaper, and have longer timelines to get into production, which meshes well with China's nuclear rollout.

Sterck said he favors Extract Resources (EXT.AX) (EXT.TO) as a key target. Other promising names are Mantra Resources (MRL.TO) and UR Energy (URE.TO).

But Sterck doesn't rule out a mid-tier producer being gobbled up by China, or a diversified miner with uranium interests. He sees Paladin, which has no majority shareholder, as a prime takeover target...........................................

.................................According to Thomson Reuters I/B/E/S, Fidelity Management holds a 7.9 percent stake in Uranium One, along with smaller stakes in Paladin and Extract...........................""""""""""""