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« Uranium Spot Price now at $122/lb | Main | Uranium: Interview with James Dines »
Tuesday
May222007

The Chinese move closer to UraMin

News from Shanghai is that the State-owned China National Nuclear Corporation is in talks with uranium miner UraMin Incorporated. The objective of the talks appears to be to bring the two organisations closer.

Liu Xuehong, Deputy General Manager of the Chinese corporation's uranium procurement unit has said that talks are in the initial stages. Is this a prelude to a takeover bid we wonder? Or maybe the Chinese would be satisfied with a long-term arrangement to take delivery of UraMin’s uranium at mutually advantageous prices. News of the talks will certainly put the spot light on UraMin and we should see their stock price benefit from the interest shown by the Chinese. In these situations the more uncertainty there is, the more stock price volatility can be expected. We guess that this it is case of watch this space and see how these developments unfold.

Its also interesting to note that Sprott Asset Management Incorporated have recently increased their stake in UraMin to just over 13 million shares or 4.78%, a good sign.

Taking a step back and looking at the bigger picture, can we expect more of the same? An absolute YES! The Chinese cannot continue choking themselves with coal fired power plants. They must know what their future energy requirements are and therefore they need to get into position before the rest of the world realizes that their demands are indeed massive.

We have written about China a few times and we see this move as a tiny part of their much bigger energy jigsaw.

In our opinion any uranium miner of substance will be on a list somewhere in Shanghai entitled:

CRITICAL TO OUR ENERGY NEEDS: MUST ACQUIRE


So, we will continue to hold on to our uranium stocks and add to the portfolio as and when we can. We are still confident that our prediction of $200/lb will materialise thus boosting these stocks to much higher levels and a little Merger and Acquisition activity will provide the spice so stay awake!

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Reader Comments (3)

I would recheck your figures. Sprott Asset Management Incorporated just had decreased their holdings. Bet they would like those shares back now.

http://www.londonstockexchange.com/LSECWS/IFSPages/MarketNewsPopup.aspx?id=1481996&source=RNS

TIDM UMN
Headline Interest in Shares-Amendment
Released 08:40 14-May-07
Number 5196W
14 May 2007

UraMin Inc has been notified by Sprott Asset Management Inc (“Sprott Asset Management”) that as of 30 April 2007 it holds in aggregate, an interest of 13,234,700 ordinary shares of no par value, or 4.78% of UraMin’s outstanding shares. This represents a decrease of 768,500 shares since their last notification on 28 February 2007.

May 22, 2007 | Unregistered CommenterStielf Erdmann

Please accept my apologies, it was SAM's holdings of 4.78% that impressed me. UMN is trading at around $7.06 at the moment.

May 22, 2007 | Unregistered CommenterUranium Stocks

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