Although there has been some trepidation over Uranium One (TSE:UUU) selling control of the company to Russia's state-owned Rosatom, when you take a look at the probably outcomes and positive, it's a good move for the uranium miner.
In the last quarter Uranium One revealed solid production numbers, and with the Russians controlling the company, should do better going forward.
The primary uranium asset held by Uranium One is in Kazakhstan; a very volatile and unpredictable country and region.
With the high quality of the uranium ore and the low costs of mining already in place, Uranium One is already a player in the field. That's not what Russia brings, as the company already has that.
What Russia brings is a guaranteed market in place, along with the better ability to influence people in the area, if things go bad for some reason.
That means a more predictable and stable situation that now exists in the geopolitical sense, which brings more confidence and sustainable revenue and earnings from the projects there.
In the short term this also makes Uranium One among the few uranium miners who could be profitable. Most others are in a good position, but will generate revenue and profits in the long term more than the short term.
Uranium One is positioned to do both, assuming shareholders vote for the change in control, which is very likely.
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