Hi Guys,I've missed out on a lot of events it seems. I am trying...

Hi Guys,

I've missed out on a lot of events it seems. I am trying to wrap my head around all the KAH shennanigans and who is trying to oust who. I am a long way from understanding what all these dark figures from Uramin and EML are up to but you guys have helped a lot with your thoughts.

The most recent drill results are (as usual) outstanding and we can be sure that this monster is bigger than anyone thought at first.

We have no doubts RIO wants Rossing South but there have been a few people nervous about what RIO can actually do with the world financial crisis still creating havoc.

I will tell you what I think and I look forward to hearing your opinions.

I read this article on Bloomberg http://www.bloomberg.com/apps/news?pid=20601087&sid=a7Qcw2il3mUg&refer=home thanks to one of our British friends (Marben) pointing it out on the KAH thread in London.

So RIO looks to be selling ERA? That is 50% of their Uranium production and Merril Lynch reckon they will get $2 Billion for it.

So then what happens? RIO are left with one remaining U mine which is Rossing. The same Rossing which is near the end of its mineable life.

Does that mean that RIO are happy to be out of the U game altogether? Does anyone believe that RIO wants to totally remove themselves from the big game of the near future?

I'll tell you what I think.

I think if RIO sells ERA then keeping Rossing going becomes even more important to them and therefore the Rossing South deposit becomes even more important. I think RIO has done the figures and they think that with the richness of the Rossing South deposit they can replace and greatly exceed the production loss of selling ERA.

I think they have calculated they can greatly exceed current production by selling ERA, buying EXT and pocketing a billion or so dollars through doing all this. Also, labour costs of Rossing are low so net profit from the production should be much better.

Pretty clever of them if we let them buy it cheap.

I also think that with the shadowy figures behind KAH/URU comes a strong connection with Areva and I would not be in the least surprised to learn that Areva are watching closely.

They may be the ones to snatch this away from RIO and teach them a lesson about the costs of procrastination.