Japanese Consortium’s stake in Uranium One
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Topic: Uranium Mining Stocks — February 19th, 2009
The Tokyo Electric Power Company logo
A Japanese industrial and financial consortium formed by The Tokyo Electric Power Company, Incorporated, Toshiba Corporation, and The Japan Bank for International Cooperation are providing for the private placement of an aggregate of 117,000,000 common shares of Uranium One, for gross proceeds of approximately C$270 million for a 20% stake in Uranium One.
BNN interviewed Jean Nortier, president and CEO, Uranium One, to find out what this means for the miner, which has been beaten down badly in the past year. Click here to watch the clip.
Part of this deal has 20% of future production allocated to the new partner however the price for that supply was not stated which we found difficult to grasp.
Longer term Jean Nortier is bullish on Uranium prices however he did not expect to see much improvement in the near term price.
To read the recent press release in full please click here.
Uranium One Incorporated trades on the Toronto Stock Exchange under the symbol of UUU, has a market capitalization of $920.25 million with 469.52 million shares outstanding and closed in Toronto at a $1.96.
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What is the advantage of having uranium operations in Kazakhstan? The export taxes seem high, and the nation is not a democracy. On the other hand, if India, China and Japan are going to be building nuclear power plants, does Kazakhstan’s proximity to those markets reduce costs?
Comment by James — February 20, 2009 @ 3:56 pm
Despite the recent series of disasters at Dominion, UUU has done well building a share of production in Kazakhstan and other prodn in pipeline from Oz and USA.
Yet at a market cap of CN$1.16Bill = 612 mill shares x CN$1.89
They look fully priced to me looking ahead to their 2010 5.6 mill lb prodn (Macquarie Presentation). Do your own realistic gross earnings numbers on that taking out the Mitsui share. It gives us a benchmark to assess companies like Bannerman BMN on ASX, BAN on TO and ACap ACB on ASX, which both are building 100 mill lb U3O8 resources in mining friendly countries yet have market caps of CN$87.2 Mill and CN$11.2 Mill respectively.
You can download easy to read pdf reports on any ASX company by following links to their ASX code at this very useful alphabetical ASX website, the Quarterly Activity reports are a good start, usually there is also a link to the company website.
http://www.asx.com.au/asx/research/CompanyListed.jsp?coName=A
Comment by Warwick Hughes — February 20, 2009 @ 10:19 pm