NOTE - the author is currently a shareholder in Cameco.
China National Nuclear CEO Wang Ying said that the company is specifically looking at Kazakhstan, Canada and Australia for uranium assets.
Rob Chang of Cantor Fitzgerald has released a note on which projects in those three regions might be acquisition targets for CNNC International.
In Canada, Chang sees Fission Uranium’s (TSX:FCU) Patterson Lake South as one project that fits the bill in terms of size, although production costs have yet to be determined. Then there is Cameco’s (TSX:CCO,NYSE:CCJ) Millennium deposit, whose costs are likely to be within the specified range; it’s just a few million pounds short in size. UEX’s (TSX:UEX) Shea Creek deposit is another large project that is the right size, but its costs are still not finalized. Finally, there is Rio Tinto’s (ASX:RIO,NYSE:RIO,LSE:RIO) Roughrider project in Saskatchewan, which fits the size criteria and will likely be within the cost range as well.
CNNC International is looking to make its acquisitions within the next five years, and taking that into consideration, Chang also sees NexGen Energy’s (TSXV:NXE) Arrow project, Kivalliq Energy’s (TSXV:KIV) Angilak deposit, Denison Mines’ (TSX:DML,NYSEMKT:DNN) Wheeler River project and Areva’s Midwest project as others that may be of interest.
For projects Down Under, Energy Resources of Australia’s (ASX:ERA) Ranger 3 Deeps is a viable candidate, although Chang believes permitting may be an issue.
The other possibility for Australian projects would be Cameco’s Yeelirie, but again, costs are yet to be determined. Looking at the longer-term potential, Cameco’s Kintyre deposit, Toro Energy’s (ASX:TOE) Wiluna-Lake Maitland project and Laramide’s (TSX:LAM) Westmoreland project are also possibilities, although Chang is concerned that costs may be high for all three.
SOURCES- Bloomberg, Uranium Investment News