Seeking Alpha

Denison Mines +5.2% as Bloomberg sees a possible takeover target

  • Uranium takeovers are on the verge of a comeback that could put companies such as Denison Mines (DNN +5.2%), Ur-Energy (URG +4.9%) and Fission Uranium (FCUUF) in play, according to a Bloomberg report.
  • Uranium prices are forecast to rise more than 40% by year's end as Japanese power plants restart nuclear reactors that have been shut down since the March 2011 Fukushima disaster, and analysts say the rebound in uranium demand may fuel takeovers as buyers try to get ahead of rising prices.
  • DNN would make an attractive target for someone looking to gain access to Canada’s Athabasca Basin, home to the world’s richest high-grade uranium; a Raymond James analyst thinks Rio Tinto may be particularly interested.
  • Cantor Fitgerald thinks DNN and Fission could be targets of Cameco (CCJ +0.8%), which has been building up cash and last month sold a stake in a power plant for C$450M.
  • Also: URRE +5.5%, URZ +4.6%, UEC +0.9%, USU +0.4%.
  • ETFs: NLR, NUCL.
Comments (24)
  • Yorick
    , contributor
    Comments (488) | Send Message
     
    Don't see how Japan can restart reactors when Fukashima continues to spiral out of control...without Japan restart, UX prices go nowhere and overcapacity reigns.
    24 Feb, 11:49 AM Reply Like
  • NH Erik
    , contributor
    Comments (15) | Send Message
     
    I agree Fukashima is out of control to some major extent. However, to the Japanese people, Electircity costs are truly spiraling. Think Nat Gas is high here... they pay 3-4 times market price to get it shipped over there!
    In the most recent election, the local citizenry voted in a Pro-Nuclear Governor based mainly on bringing electric costs under control.
    24 Feb, 12:03 PM Reply Like
  • eilea
    , contributor
    Comments (126) | Send Message
     
    i don't see how Japan can afford not to restart the reactors when the Energy cost keep going up for them. If you put a gun on my head, Japan restart or not start with in one year. I would put all my money on restart.

     

    Coal reactors' pollution in China killed more people than Nuclear Reactors. I don't see how China not going to build more Nuclear also.

     

    People who are living in China's major cities like Beijing, shanghai's life expectancy are lower by 15 to 16 years
    24 Feb, 11:29 PM Reply Like
  • john001
    , contributor
    Comments (555) | Send Message
     
    Yorick....."Fukashima continues to spiral out of control". Where did you get that dramatic news?
    24 Feb, 11:54 AM Reply Like
  • redavenger
    , contributor
    Comments (3) | Send Message
     
    He got it from the same authoritative source of all the news of catastrophes at Fukushima: Chicken Little. Death toll remains zero. Public injuries remain zero. But we are all going to die real soon now.
    24 Feb, 12:12 PM Reply Like
  • john001
    , contributor
    Comments (555) | Send Message
     
    redavenger...it would appear that the MSM like to play up nuclear incidences. Here is a bit of trivia they don't report....more people died in the back seat of T. Kennedy's car then at three mile or Fukashima combined.
    24 Feb, 12:21 PM Reply Like
  • NH Erik
    , contributor
    Comments (15) | Send Message
     
    OMG, I'm gonna be chucklin' about this comment all day!
    24 Feb, 12:39 PM Reply Like
  • 1jforrest
    , contributor
    Comments (57) | Send Message
     
    To date, their are 17 applications in place for reactor restarts in Japan. Estimated that 10 will restart this year. http://bloom.bg/1fiCwKm
    24 Feb, 12:39 PM Reply Like
  • Pastor_x
    , contributor
    Comment (1) | Send Message
     
    Where are a huge amount of new reactors to come online soon. So Fukashima doesn't make sense anymore.
    24 Feb, 01:19 PM Reply Like
  • john001
    , contributor
    Comments (555) | Send Message
     
    X...these are NOT NEW REACTORS....they are RE-STARTS of existing reactors that were shut down manually after Fukashima, as a precaution.
    24 Feb, 01:25 PM Reply Like
  • 11146471
    , contributor
    Comments (453) | Send Message
     
    Hopefully for the mankind nuclear energy will stop and uranium will stay buried in the earth's crust forever.
    24 Feb, 03:12 PM Reply Like
  • john001
    , contributor
    Comments (555) | Send Message
     
    111...you express a similar view as the German Government. Shut down all nuclear reactors and ramp up dirty coal power plants because their solar and wind isn't sufficient to meet their industrial energy demands. Sounds "progressive" enough I guess.
    24 Feb, 03:52 PM Reply Like
  • NH Erik
    , contributor
    Comments (15) | Send Message
     
    Right on John! Sometimes people seem to forget the fact that opinions expressed here, and throughout the internet do not shape global energy policy. They can either utilize the information for investment purposes, or ride thier moral horse off to fantasy land. The world is leaning heavily pro-nuclear, as expressed by a dozen great articles in the past year. I suppose you're right John, investment advice by multiple investment advisors on an investment blog isn't "progressive" enough for some! I suppose we could direct them to go to the Daily Kos or HuffPo...
    24 Feb, 04:06 PM Reply Like
  • 11146471
    , contributor
    Comments (453) | Send Message
     
    Germans are absolutely right on this...There is a plan to produce all the necessary energy by renewable and eco-friendly resources gradually during the years to come.

     

    Plus until this happens you can always rely on clean natural gas or LPG to cover energy needs.

     

    Nobody said anything about coal or crude oil!
    25 Feb, 02:29 AM Reply Like
  • starboard
    , contributor
    Comments (80) | Send Message
     
    111---

     

    "While nuclear energy indeed has declined in Germany 10 percent since 2011, natural gas power is down 23 percent. Coal power is up 9 percent, and electricity production overall is up 3 percent." (Excerpted from National Geographic News--Feb 2014).
    26 Feb, 03:18 PM Reply Like
  • W Wood
    , contributor
    Comments (59) | Send Message
     
    I've spent considerable time in Germany, they do many things well - affordable energy is NOT one of them. I would love to see the details of such a plan (by the Germans) as you cite here.
    4 Jul, 11:54 AM Reply Like
  • 1jforrest
    , contributor
    Comments (57) | Send Message
     
    World wide, there are 70 new reactors under construction, 434 operating reactors, and over 173 new reactors are being planned or on order, 310 being proposed, and an estimated 60 being shut down or phased out by 2030. http://bit.ly/1h7pbtc
    24 Feb, 06:00 PM Reply Like
  • Investor Talkroom
    , contributor
    Comments (472) | Send Message
     
    Cameco CEO at CC commented that they are holding up ramp up in their cigar lake mine until uranium prices rebound sufficiently.
    So I would be surprised if CCJ decide to go buy another mine, very doubtful.

     

    Rio Tinto? Not very familiar with them - but aren't they extremely busy in Mongolia? With all capital investing they do over there I doubt they will be willing to spend on anything else.

     

    BHP - don't they have huge uranium project on hold in Australia? Why would they want to buy one more?

     

    Long CCJ and URG but don't see any take overs any time soon. But who knows, might happen.
    24 Feb, 11:09 PM Reply Like
  • eilea
    , contributor
    Comments (126) | Send Message
     
    huge day for uranium. Japan to restart nuclear soon. And they may even going build more nuclear reactors.

     

    http://nyti.ms/1mGujJX
    25 Feb, 10:10 PM Reply Like
  • Roaddriver
    , contributor
    Comments (84) | Send Message
     
    Thanks for the link **eilea**
    Very informative. And makes sense..
    The world needs over 65 000 tons of URANIUM.
    25 Feb, 10:55 PM Reply Like
  • Bruce from Oak Harbor
    , contributor
    Comments (2) | Send Message
     
    Germans restarting coal plants with their gawdawful lignite. Sorry, no link here. Antinuke is not translating into anti hydrocarbon exactly.
    26 Feb, 09:12 PM Reply Like
  • Bruce from Oak Harbor
    , contributor
    Comments (2) | Send Message
     
    Germans shut their nukes down and threw an extension cord to the French, who reached over and turned their reactors from 7 to 8. Germans still have nuclear power they just pay too much for it and fired their own while hiring theirs. No cheap shot political comment here, just sayin'. Fukushima has long term problems but most of the area's reactors were not ruined, will be restarted and they sold their warehouse full of fuel rods in the panic and will be among the buyers now.
    26 Feb, 09:12 PM Reply Like
  • skippy the kangaroo..
    , contributor
    Comments (57) | Send Message
     
    if you guys are into uranium stocks ,should look at paladin energy, they produce about 6million pounds of u a year , there debt problem looks to be fixed up..cash cow in the making ,leverage to an expected price rise of u spot,
    27 Feb, 01:27 AM Reply Like
  • skippy the kangaroo..
    , contributor
    Comments (57) | Send Message
     
    you gut=ys should look at peninsula mining , PEN , in Australia , jpm major share holder , possible USA listing , Dundee is covering it
    13 Mar, 10:54 AM Reply Like
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