DearCEO.net - PALADIN ENERGY LTD - View Question - John, The company's performance have been very disappointing in the last 6 months. Although the Japan nuclear disaster was a temporary setback, much of our underperformance cannot be attributed solely to it. Current realised uranium price is not far off pre-crisis levels, and production levels are 33% higher (despite missing forecast) - yet our share price is at GFC lows. Investors are concern about the following : 1. Changes in Namibian government policy giving all future licenses to state owned miners. Does this affect future exploration and expansion of Langer Heinrich? 2. Moratorium on the Michelin project - when the acquisition announcement was made, there was no mention of the moratorium. Was management aware of it, and felt that the odds of a favourable review was worth the C$260mil punt? Can you update us on the review in March 2011? Thank you for your attention, i look forward to your response.

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PALADIN ENERGY LTD - View Question

Q: John,
The company's performance have been very disappointing in the last 6 months. Although the Japan nuclear disaster was a temporary setback, much of our underperformance cannot be attributed solely to it. Current realised uranium price is not far off pre-crisis levels, and production levels are 33% higher (despite missing forecast) - yet our share price is at GFC lows. Investors are concern about the following :
1. Changes in Namibian government policy giving all future licenses to state owned miners. Does this affect future exploration and expansion of Langer Heinrich?
2. Moratorium on the Michelin project - when the acquisition announcement was made, there was no mention of the moratorium. Was management aware of it, and felt that the odds of a favourable review was worth the C$260mil punt? Can you update us on the review in March 2011?

Thank you for your attention, i look forward to your response.

Asked By: plandau
Asked On: 04/09/2011 EDT

Votes: 3 Views: 188

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Answered By: PDN
Answered On: 05/09/2011 EDT

Comment	Posted by	Actions	Date
guys looking at the report, the most important thing u didnt mention was their cost of production - they are running at a loss even at todays prices. good thing its only their secondary mine and it APPEARS to be temporary (thats what they all say). proof is in the pudding, investors are staying on the sidelines to see if they can really bring the costs down.	theinflationist	Flag	06/09/2011 EDT
folks, difficult to value pdn - no profit to speak of, 1/7 of the company asset frozen in canadian inuit grounds, missed forecast. Is it good value based on $per pound of uranium reserves? no idea. Thats what i would look at before investing in pdn	theinflationist	Flag	06/09/2011 EDT
thank you matthew - much needed reassurance in days like these.	plandau	Flag	05/09/2011 EDT
"World's largest uranium resources" - i like +++	monopolize	Flag	05/09/2011 EDT
Thanks Matthew and dearceo team - got the email!	monopolize	Flag	05/09/2011 EDT
mono, i like PDN but its hard to put a value to it. market cap about 1.5b - who knows what its really worth. have you compared with other Uminers in terms of $/lb resource? its not profitable so PE is out of the question. unprofitable companies are hard to value. ive held AGS for yonks too, still no light at the end of the tunnel	plandau	Flag	05/09/2011 EDT
GFC low was 1.60s - time to jump in front of the train yet guys???	monopolize	Flag	04/09/2011 EDT
another bad day - i sense a default in europe coming. Bank run on greece underreported by the media. often the precipitant.	monopolize	Flag	04/09/2011 EDT
voted - comsec has PDN as a buy with a target of $2.90	monopolize	Flag	04/09/2011 EDT
admin, please add : Why did we spend $260m on assets that were locked in the ground? Was it because at $1.90/lb it was cheap? But was it cheap because it had the uncertainty of the moratorium factored into the price?	plandau	Flag	04/09/2011 EDT

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