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« Even our 50 worst Trades still returned 18.61% per Trade, SK OptionTrader | Main | Nuclear reactor not to be kept on stand-by »
Wednesday
Sep072011

Paladin Energy Limited drifting lower

 

PERTH (miningweekly.com) − Uranium miner Paladin Energy said on Wednesday that its Kayelekera mine start-up had been delayed by one week as a result of its drying and packaging plant being temporarily offline.

The ASX- and TSX-listed company (PDN) said in a statement that plant commissioning of the Kayelekera upgrades started at the end of August as planned, with a four-day programme to ready the plant for start-up.

However, with its drying and packaging plant temporarily offline in Malawi, the additional tank storage needed for collecting the wet uranium precipitate needed extra reinforcement to allow for around four weeks of production to be held in front of the centrifuge process step.

Paladin said that the centrifuge was used to pre-dry the yellowcake to 25% moisture content before sending the product to the Langer Heinrich operation, in Namibia, for final drying and packing.

This reinforcement work was expected to take one week to complete, after which plant operation at Kayelekera would start.

Paladin has further decided to undertake remedial maintenance on the acid plant involving pipe repairs and other structural work, to mitigate the problems caused by earth movement.

Once production at Kayelekera restarted next week, the existing acid inventories would be supplemented by purchased sulphuric acid until the work on the acid plant was completed next month.

Paladin Energy Ltd is listed on the Australian Securities Exchange, the Toronto Stock Exchange and the Namibian Stock Exchange under the symbol “PDN”. Paladin is a uranium production company with projects currently in Australia and two operating mines in Africa with a strategy to become a major uranium mining house.  Since 1998, during a period of sustained downturn in global uranium markets, Paladin accumulated a quality portfolio of advanced uranium projects each having production potential.

The Langer Heinrich Mine in Namibia is Paladin’s flagship project. Having reached its initial production of 2.6Mlb U3O8 per annum in 2008, the mine has now completed its Stage 2 ramp-up to 3.7Mlb U3O8 per annum in 2010. Subsequently, the Company has progressed a Stage 3 expansion through the construction phase and is currently commissioning to increase production to 5.2Mlb per annum. An additional Stage 4 expansion is currently under consideration to 10Mlb by 2014.

The Kayelekera Mine in Malawi, the Company’s second mine, provides an excellent follow-up to Langer Heinrich. Kayelekera Mine was officially opened in April 2009 and is now operating close to design production rates. Annual production will be 3.3Mlb U3O8 for eight years with potential for a further 1.1Mlb U3O8 per annum for another four years.

Following the closing of the takeover bid for Summit Resources Limited (ASX Code: SMM), Paladin holds an 82.08% interest in that company.

The uranium spot market price is $48.85 per pound reported by UxC uranium consulting, representing a decline of 13.5 percent from the $56.50 range over the last quarter.

When things look as bleak as this it raises the question of whether or not to buy, how further can such a stock fall, etc. This maybe a good buying opportunity however it will take someone braver than us, at the moment, to make such a purchase.

 

Regarding www.skoptionstrading.com. We currently have a number of open trades at the moment, however, we do not update the charts until the trade is closed and the cash is back in our account.

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Stay on your toes and have a good one.

 

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Reader Comments (1)

this market is dead for years with all Germany offline some of Japan and the new nukes being built elsewhere not due to come online for years.There is also a building surplus and Cameco sales have dropped 8%

September 8, 2011 | Unregistered Commenteruranium bug

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