Morning Guys, This is an interesting read from Zhejiang...

Morning Guys,

This is an interesting read from Zhejiang University, School of Economics & Management:




There aren't too many U assets available for them to buy:

(1) USA - not a hope that the US Administration would allow the Chinese to buy U mines given S232 and the current focus on energy security

(2) Canada - despite Chinese/ HK interests in NXE and FCU (<19.99%), Canada has a law that prevents foreign entities controlling their U assets (PDN had to get a special exemption for Michelin), so that rules out any Athabasca plays.

(3) Australia - Don't know, but given recent Huawei decision Authorities are at least aware of Chinese 'creep' and given the strategic importance of uranium I would doubt that Australia would allow China Inc to own Australian uranium assets outright (??)

(4) What's left? PDN has two ready to go assets in regions that likely don't have geopolitical animosity/ tension toward China.

Regardless, whilst North American investors think that Nuclear is a dying sector (ref: Mike Alkin's latest podcast), the Chinese know that they will be growing their usage at >7.5% p.a. ... all the while, whilst spot U is currently c. 1/3 of the AIC of production.

Cheers
John