Uranium Market Would Need to Triple in Size to Become a Pillar of BHP Portfolio
Dow Jones
Sep 07
0842 GMT - BHP continues to monitor the uranium market, but needs it to be at least three times the size to potentially become a pillar of the giant miner's portfolio, says Citi. "Uranium is only a $10 billion market currently and needs to be a circa $30 billion market in 2-3 decades to be one of BHP's pillars," it says. The bank's remarks follow recent meetings with BHP management. Discussions centered on the company's organic growth pipeline in copper, which appears to preclude near-term, large-scale M&A, says Citi. "Regarding copper, the buy vs build decision is heavily stacked in favor of organic growth (difficult to justify acquiring copper companies at over $80,000/ton of production when BHP is developing assets at $20,000-30,000/ton of production), according to the company," Citi says.
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