Yes its a good point. I agree a stake more likely to be sold.
I think as with all commodities at the moment, it is fine to chase supply in obscure, unsafe parts of the world until rising food and fuel prices stir up instability. Both oil and grains could likely rally strongly from here on the back of the Ukraine situation, on top of the risk premiums already trading in the market. Then the feedback loops begin to get serious. Africa is dependent on the FSU for affordable grain supplies. Paladin is already struggling in Malawi. Namibia is relatively safe because it is desert.
Point being, Australian supply is not being aggressively targeted yet but it will just as is happening with Australian grain atm. The market needs stable govt and reliable supply. It just doesn't realise it has neither yet in the uranium market.
You can't sustainably have the world's number one resource holder sliding down the production ranks without some correction in thinking occurring in the future.
Russia is awefully close to one of the world's largest producers Kazakhstan. Watch this space ...
A few in the bottom drawer can't hurt at these levels. I like Laramide Resources as well.
SMM Price at posting:
36.0¢ Sentiment: LT Buy Disclosure: Held
