STOCKWATCH Areva higher as takes control of Australian uranium project

STOCKWATCH Areva higher as takes control of Australian uranium project

	Published : Wed, 14 Feb 2007 13:49 By : Agencies Print this Story

PARIS (AFX) - Areva investment certificates rose on news that the French nuclear energy group has tripled its stake to 18.5 pct in Australia's Northern Uranium Ltd (NTU) and is taking operational control of the uranium explorer's main project - the Gardiner-Tanami project in Australia's Northern Territory, dealers said.

At 1.05 pm, Areva was up 2.48 pct at 681.00 eur as the CAC-40 index gained 0.24 pct to 5,696.40.

The project comprises 9,950 square kilometers of exploration ground in the Granites-Tanami region which extends into Western Australia.

NTU said Areva unit Cogema, which previously held 6.25 pct, has taken up a placement of 6 mln shares at 0.80 aud a share.

The 4.8 mln aud raised by NTU through the placement will fund further exploration.

As part of the deal Cogema and NTU have formed a strategic alliance.

NTU's Kevin Schultz said Areva will provide technical expertise, noting the French company already has a successful uranium exploration and mining record in Canada.

Dealers said Areva certificates are also being supported by reports yesterday that Areva will receive a contract to suppply two of its EPR European Pressurised Water reactors to China.

'This would be the third and fourth order for EPRs after Olkiluoto 3 in Finland and Flamanville in France. The learning curve should continue to

ease, but we estimate that the company will not yet be in a position to achieve

an optimal operating margin of 4-5 pct,' Arnaud Schmit of Natexis Bleichroeder said in a note to clients.

He kept a 'Sell' rating and 410 eur fair value, judging that the reported contracts are already integrated into the share valuation.

Andrew.Newby@Thomson.com

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