Paladin
Uranium miner, Paladin Energy (ASX:PDN) has struck a 6 year supply deal between 2019 and 2024 with an undisclosed energy utility. In the deal they have agreed to sell 13.73 million pounds of uranium from one of its mines in Africa or one of its future projects based on spot prices at a time with agreed floor and ceiling prices. Current uranium prices are at lows of less than US$50 per pound.
Among the best performing stocks last week (week 42) on the Australian sharemarket were a mixture of energy and mining companies: Nexus Energy (NXS), Paladin (PDN), Pan Australian Resources (PNA), AWB, Mt Gibson Iron (MGX), Sino Gold (SGX), Roc Oil (ROC) and Flight Centre (FLT). All the above best performing stocks for week 42 stocks managed more than 10 percent gain on the trading week. Nexus Energy was the overall winning stock taking in a 16 percent increase after new company takeover speculation and the recent increase in the oil price.
Paladin (PDN) was the worst performing company listed on the ASX 100 index (Loser of the week, week 40 of 2007). The uranium company saw its shares fall by 11.9 percent or 92 cents closing the week at $6.82. Uranium erased most of the gains it has made this year in trading yesterday as supply outpaced demand, as the metal fell last week. The Australian dollar closed the week at US88.90 cents, gold at 736.35, All Ordinaries at 6617.3 and ASX 200 at 6605.4. The company was previously a loser of the week back in March this year.
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.
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.
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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