rio...., page-7

Ambrian's comment regarding reactor firms are worth keeping in mind, imo.



"The quality of the resource means a takeover premium is warranted; Rio Tinto is the obvious suitor, but nuclear reactor firms would likely pay a larger premium. Mining
companies need value-add from mining, but enrichment and reactor companies can afford to break even as margin is made in downstream fuel/reactor sales, which, in turn, are predicated on guaranteed uranium supply. Large resources in stable countries attract the highest premiums.
This was exemplified by Areva’s purchase of Uramin (Trekkopje marginal as a mine), and is perhaps behind the George Forest cash bid for Forsys."


Ambrian Note - 18 December 2008