PDN

STW Communications Group (SGN) Loser


STW Communications (SGN) was the overall worst performing stock taking in a 16.37 percent decrease. It was a mixture of media & communications, engineering & infrastructure, mining and aviation companies who were among the worst performing stocks for the week 31 of 2007 on the Australian sharemarket: STW Communications Group (SGN), Downer EDI (DOW), Paladin Energy (PDN), Babcock & Brown(BNB). These worst performing stocks for week 31 recorded losses more than 12.65 percent by the end of the trading week.

Paladin Resources (PDN) Update


Paladin Resources (PDN) have a reiterated $9.30 share price target and a Neutral broker call from Australian shares analyst Macquarie Research equities. Paladin shares plummeted over 5% yesterday, compounding a 33% fall over the past 2 months, following an announcement that uranium production from its flagship Langer Heinrich project would be around half (~0.27mlb U3O8) for the June 07H of the previous guidance of 0.4–0.6mlb. With the stock now around $8.10, and with standout leverage to a booming uranium price, the analysts maintain their $9.30 price target.Recovery issues: The slower than anticipated ramp-up was attributed to equipment failure principally associated with the heat exchangers (caused by the leach tank liner failure and now essentially rectified) and achieving the necessary beneficiation prior to reaching the leaching circuit (being achieved more slowly). Essentially the project is achieving design throughput but the issues still needing to be addressed relate to optimising recovery and improving plant efficiencies. Extended ramp-up: The cumulative magnitude of the downgrades (from original expectations of ~1mlb for the half) is concerning, although it must be remembered that nearly all projects have some commissioning difficulties. They have pulled back our already conservative FY08 production forecast to 2.38mlb (from 2.47mlb). However, management remains confident that the plant is quickly reaching the end of the transitional phase and moving to full production. In short, the analyst would be cautious but not alarmed. Covering purchases: On the sales front, unanticipated delays and seasonal cancellations of vessels from Walvis Bay (Namibia) have caused a temporary misalignment between delivery destinations during the ramp-up phase. PDN is in the process of "making suitable commercial arrangements in accordance with standard industry practice" to ensure all delivery obligations are met. It is unsure whether this implies the need to purchase uranium from third parties at current spot prices (eg 0.1mlb at US$135/lb = US$13.5m). Reality bites: These issues do highlight a key risk with Paladin Resources equity exposure – it’s now delivery time. As the newest entrant to the booming uranium market, the stock has enjoyed the benefits of excellent valuation leverage to uranium price increases, and an attractive apparent growth profile. Delivery challenges include the current plant recovery issues, the recent development injunction sought by NGOs in Malawi (Kayelekera project) and eventual Phase 2 expansion challenges at Langer Heinrich (power and water). Paladin Resources (PDN) has a solid asset suite, strong growth profile and standout leverage to a booming uranium price. Upside drivers include a bullish short-term outlook for spot uranium prices (now US$135/lb and expected to rise further) and clear corporate appeal in a frenzied uranium M&A environment. Key risks include operational delivery (short-term), project development timing (medium-term), and stretched valuation metrics (as with nearly all other uranium plays globally).

Timbercorp (TIM) - Worst Performing Shares


Timbercorp (TIM) was the overall worst performing stock taking in a 12.16 percent decrease. It was a mixture of energy, consumer products, hearing solutions and agribusiness companies who were among the worst performing stocks for the week 40 of 2007 on the Australian sharemarket: Paladin Energy (PDN), Goodman Fielder (GFF), Cochlear (COH), Timbercorp (TIM). These worst performing stocks for the week 40 recorded losses above 5.69 percent by the end of the trading week.

Fantastic Loses by Paladin and Kimberley Diamonds


Other than Progen Pharmaceuticals, the worst performers on the Australian sharemarket were: Paladin closing the week at $9.49, losing 54 cents or 5.4 percent of share value (was the loser of the week for week 15 on the asx100 index); on the ASX200 index, Kimberley Diamonds was the biggest loser shedding 7 cents or 8.33 percent of value closing at 72 cents. The All Ordinaries closed the week at 6187.2 and the ASX200 closed at 6207.5. Paladin was previously a loser of the week. Kimberley mining was also recently a loser of the week.

Paladin Resources (PDN) Share Trading Update


Paladin Resources (PDN) share price has fallen over 8.8% from all time highs of $10.75 in February after the board of Summit Resources rejected its takeover offer, observed by market analyst Maquarie Research Equities. Paladin is a focused uranium mining, development and exploration company with key development projects in both Africa and Australia. The company's flagship project, the Langer Heinrich mine in Namibia, entered into commercial uranium production at the end of 2006. Over the past five years the uranium spot price has surged from around US$10/lb to US$91/lb, its highest nominal level on record. In the short term, the market is expected to remain tight, and reactors are expected to continue to struggle to secure sufficient primary supply in the face of waning secondary supplies. The lion's share of forecast growth in output comes from a small number of mines - any disruption to production at any of these mines is likely to have a major upward impact on spot prices. Paladin has a solid asset suite, strong growth profile and significant leverage to a booming uranium price.

Paladin (PDN): Loser


Paladin (PDN) is the worst performing company on both the ASX100 and ASX200 indexes this week (Loser of the week for week 8 of 2007). The uranium mining company closes the week 15.04 percent lower, shedding $1.57 to close at $8.87 per share. The ASX All Ordinaries closed the week at 5775.2 and the ASX 200 finished at 5786.

Best Performing Stocks for 2005/06


Here are the best performing stocks listed the Australian Stock Exchange (ASX) for the 2005-2006 financial year. As a trader and you run through this list, it makes you wonder... is it worth your while trading actively, or simply spending the time researching a bunch of companies and simply waiting and see if it brings a return? I looked at this issue previously in blog entry.

Paladin Resources Ltd (ASX: PDN)


Name: Paladin Resources Ltd

ASX Code: PDN

Paladin is a Western Australia based ASX listed company involved in the mineral resource sector with a strong emphasis on uranium with projects both in Australia and Africa with control of two advanced uranium projects in Southern Africa.

Company URL: www.paladinresources.com.au

Uranium Stocks


Is there an emerging bubble in Australia’s uranium stocks? Well, the flood of uranium explorer’s listing on the Australian Stock Exchange who aren’t even turning over a cent are seeing their stocks rise in price dramatically. But is it a sound investment fundamentally? Is the demand for uranium going to grow in future? That is the question a lot of people are asking since the growing demand for uranium will be tomorrow’s power supply. One of the barriers that nuclear energy has to overcome is that nuclear = bad because of the nuclear waste it leaves, hence no supply for uranium needed. John Borshoff, chief executive of Paladin a uranium stock said, "So we're looking at a paradigm shift here and that paradigm shift has happened at the speed it's happened because the nuclear reactor utilities were working behind the scenes." (Paladin Resources, which is up five-fold since this time last year and 50-fold in a couple of years.)

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