Christopher Ecclestone reports that consolidation is the name of the game. In other mining sub-spaces it is given lip-service while in the uranium space actions speak louder than words. The fog of post-Fukushima confusion and despair is lifting and now targets are becoming clearer for majors and mid-tiers who view the surviving juniors as a wolf-pack views a sheep herd. We could conjure with a few names and definitely NexGen Energy, with its proximity to some of Fission assets looks good. Ucore is not a uranium target per se but has embedded within it some very interesting uranium assets that the market has long overlooked due to the company focus being different for so long now. These could yet be a money-maker through disposal or demerger.
With the energy sector coming under the microscope in the wake of the oil price collapse, uranium is starting to look like the better end of the sector after years in the doghouse. With any luck it too can be a double beneficiary of rotation into mining AND rotation into alternative energy sources. On top of this we have the slow return to normality in Japan and the ever-present threat that Russian sales of its remaining ex-warhead material might be disrupted in some tit-for-tat action against the US.
All in all, these are the bluest skies uranium has seen for years now and consolidation looks set to continue while there are so many bargain companies lying around, with reported resources which could only be replaced with exploration work at a cost that is multiples of the levels the current juniors are valued at by the markets.
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