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« Khan Resources Incorporated Update as of 06 October 2008 | Main | The Hyperion mini nuke wins an award »
Thursday
Oct022008

Paladin Energy Limited: 02 October 2008

Paladin logo 17 April 2008

Paladin Chart 02oct08


We have had a number of requests to take a look at Paladin Energy Limited, a stock that is a favourite with many investors in the uranium sector. We do not own this stock although we are well aware of it, but for one reason or another we chose to place our cash elsewhere.

Taking a look at the above chart we can see that it formed a vague double top around July 2008, which is a similar chart pattern to other uranium stocks. We can also see that PDN has lost half of its value in last three months. The RSI, MACD and STO and struggling along at the bottom of their respective ranges which suggest to us that it is oversold. However we thought that this was the case with other uranium stocks such as Crosshair but it now trades for a miserly twenty-five cents! As we write it difficult for us to determine if Paladin has actually reached the bottom yet as today it has dropped a further 13.65% as the carnage continues. Maybe when the ‘bailout’ is finally determined there will be less uncertainty as to what it contains and the markets will settle a little, but we are not holding our breath.

Geographical areas of operation include Australia, Northern territories, Queensland and Western Australia, Namibia and Malawi. The Langer Heinrich mine in Namibia is Paladins only operating mine as far as we aware, with a targeted annual production of 2.6 million pounds U3O8 and a minimum project life on current reserves of 17 years. The latest news release by the company reported the following for the mine:

Ore Reserve increased from 37.6Mlb to 65.8Mlb
Allows more than 10 years mine life at expanded Stage III production rates. Remaining Inferred Mineral Resources of 91.6Mlb offers strong potential of further increase with additional drilling and additional reserve potential from Heap Leach study.

The political hurdles in Australia we believe will be resolved in the not too distant future with the objections to the mining of uranium being overcome. Some of our Australian readers will no doubt disagree with us on this point but we will stick with our view.

The management team has lots of experience as we can glean from the thumbnail bios of the Chairman, Rick Crabb and the Managing Director, John Borshoff, as stated below:

Rick Crabb: B Juris (Hons), LLB, MBA, FAICD
Chairman, Non-Executive Director
Rick Crabb holds degrees of Bachelor of Jurisprudence (Honours), Bachelor of Laws and Master of Business Administration from the University of Western Australia. He has practiced as a solicitor from 1980 to 2004 specialising in mining, corporate and commercial law. He has advised on all legal aspects including financing, marketing, government agreements and construction contracts for many resource development projects in Australia and Africa. Mr Crabb now focuses on his public company directorships and investments. He has been involved as a director and strategic shareholder in a number of successful public companies. He is presently also a director of Alcaston Mining NL (since 2001), Ashburton Minerals Ltd (since 1999), Otto Energy Ltd (since 2004), Port Bouvard Ltd (since 1996), Royal Resources Limited (since 2004) and Thundelarra Exploration Ltd (since 2003).
Rick Crabb was appointed a director on 8 February 1994 and Chairman on 27 March 2003.



John Borshoff: B.Sc., F.AusIMM, FAICD
Managing Director
John Borshoff is a geologist who has been involved in the Australian and African exploration and mining industry for 34 years. Mr Borshoff worked for International Nickel and Canadian Superior Mining before joining a German mining group, Uranerz from 1976 to 1991. He became Chief Geologist/Exploration Manager during the period 1981-1986 and served as its chief executive from 1987 to mid 1991 when the German parent of Uranerz made the decision to close its Australian operations. The primary focus of the Uranerz Group was the search and development of uranium with the company operating extensively throughout Australia, North America and Africa. John Borshoff founded Paladin Energy Ltd and was appointed a Director on 24 September 1993. He has extensive knowledge of the uranium industry and experience in company management, strategic planning and administration.


Both gentlemen are heavy weights bringing them with lots of experience and sound professional qualifications.

Paladin has some exciting projects coming up and it is hard not to recommend them as a ‘buy’ at the moment. Its not the company that stops us investing it’s the current environment that we operate in, where commodities are out of favour and uranium appears to be especially out of favour. We were wrong when we moved recently and acquired call options on Denison mines, so a watching brief is the order of the day here.

Having stated our position please don’t be put off by us, the time to buy is when there is blood in the streets, and there is plenty of red on our screens!

Paladin Energy Limited is listed on the Australian Stock Exchange, the Toronto Stock Exchange and the Namibian Stock Exchange under the symbol “PDN”.

Trading decisions belong entirely to you as your circumstances are different from ours and we trade to suit our investment criteria and cash position.

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Reader Comments (3)

the sector will turn around when john mccain wins the election.he's pushing for nuclear power big time.the markets always follows the U.S. lead...Wall st. will finally believe in uranium & nuclear power come next month.Reactors are being built all over the world as i write & the deal with the U.S. and India on Wednesday is HUGE for the uranium sector.When this sector gets back in favor, it's going to take off....the question is when ????

October 3, 2008 | Unregistered Commenterrick

Any thoughts on Thorium Power THPW.OB which is up 25 percent today .It has had some very good press lately even
though it is 50 percent down on its highs.
Will Thorium be used as an alternative or in addition to
Uranium as the fuel for the nuclear reactors..India has the largest reserve i believe in the world and the 123 agreement looks like being ratified next year..the UAE are also very interested.

October 3, 2008 | Unregistered Commenterrich

Have a look at this site to see why Thorium Power may be up 25%:

http://thoriumenergy.blogspot.com/2008/10/thorium-energy-independence-and.html

I believe in Uranium but until this thing bottoms its just one suckers rally after another...

Nick.

October 6, 2008 | Unregistered CommenterNick

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