Apr. 8 – Uranium One Inc., a Vancouver-based producer controlled by Russia’s Atomredmetzoloto (ARMZ), is considering listing in Moscow to attract investors from Russia and Asia.
“Most of our shareholders are in North America. We would like to expand our shareholder base, particularly in Asia. We are considering a listing in Moscow,” Fletcher Newton, an executive vice-president of the company, said in an interview this Wednesday.
Uranium One became the first North American mine operator to be controlled by a Russian state company.
ARMZ acquired a controlling interest in Uranium One (51.4 percent of all outstanding shares) for US$610 million in cash plus stakes in two Kazakh mines at the end of 2010.
Remaining shares of stock are in a free float, and are traded on the Toronto Stock Exchange. The company also has a secondary listing in Johannesburg, South Africa.
Troika Dialog analyst Michael Stiskin believes there is warranted demand for the company’s sharers on MICEX (Moscow Interbank Currency Exchange) due to its exclusivity in the market.
Local investment funds and private investors will become the prime lifters of U1 stock shares, Denis Evstratenko, Partner of Prosperity Capital Management considers.
As Vadim Zhivov said, the final decision about the listing on MICEX will be made at the end of this year.
Moscow-based ARMZ is the mining arm of Russian state-owned nuclear giant Rosatom Corp. The company produces primarily in Russia. According to its web site, it became the fifth-biggest company by uranium production with 12 million pounds produced in 2009.
Canada’s Uranium One produces uranium at mines in Kazakhstan and Canada. It produced 7.4 million pounds of uranium ore in 2010.
According to the Troika Dialog forecast, the U1 takings and EBITDA will almost doubled in 2011, and may be amounted to US$620 million and US$398 respectively.
Uranium, processed into fuel for nuclear plants, is rising as Asian utilities secure material for the next decade and China builds stockpiles, according to Macquarie Bank Ltd.
Asia may operate 300 nuclear power reactors by 2030, from 115 units today, inspection and certification agency Lloyd’s Register Group said last December.
Rosatom is also seeking more sources of uranium so that it can supply fuel to the reactors it’s building in foreign countries, including China, Turkey and India.