paladin expects to seal 3 deals to sell stakes, page-6

KOLELIN

Its hasn't been a good time for any company to look at new investments....

the global economy has put almost everything on hold and slowed down progress.

many companies have used this period to become leaner ,consolidate cash reserves and raise capital when possible...

promises not kept......earthquakes like the one in japan are a bit tough for even BHP to fight off....
the Euro zone problems ....a bit hard to fight that one too ..its all now hit CHINA with growth now predicted to be DOWN to ONLY 5% p.a..(European growth is predicted to be negative)(growth in S.E Asia is expected to be steady and rise...)

...ONLY 5% ..if the rest of the world could get close to only 5% ...there would be NO problems.....

and in australia toss in the new Carbon Tax and resources tax......
the carbon Tax has been the last straw for overseas investors.....

companies that were not already committed to projects have now backed off
or moved to a go slow program.....

BHP put on hold the expansion of Olympic dam not just due to high costs to develop it...
..but also in protest over the Carbon Tax......

all 4 are hitting companies badly.......its not just Paladin Energy.....

at least Paladin is still standing....many other have fallen into grave pits
Paladin actually turned in a PROFIT THIS YEAR..small as it may be......
The write downs or impairment made it an overall tax loss.....
BUT a cash profit ..is a cash profit.....the rest is a tax deduction
that will be offset against future profits to reduce tax payable

Pdn has had some teething problems at both mines....they have been resolved
after all new Plants always have some initial problems ..its expected....
no such thing as perfect from day one.......

Pdn now sources its supplies direct and has cut out the middle men.....

Pdn has managed to get transport costs reduced.........

Pdn has undergone a program of reducing ALL administrative cost..across the board...

PDN sales are for the most to canada and the USA and new contracts are all above US$60 /lb

PDN has signed more new contracts for sales to the USA

Pdn has a large reserve inventory to cover itself in the event of any mine incidents..slowing down production

Pdn has all sales contracts denominated in US$

Malawai 50% currency devaluation benefits Pdn


This company never has problems raising cash....
APRIL 2012
US$274m conv note just finished..TAKEN UP IN RECORD TIME.... note value US$2.19 p/share (a premium of 25% to the asx closing price****************

placement to funds managers Sept 2011 $70 mill taken up fast (only 8.4% discount to the market price)

Setbacks happen....but all 4 mentioned have hit every company every exchange globally......

But now more reactors are being built...more are on orders ..CHINA IS accelerating its Nuclear power plant development and want to be online as fast as possible.......

So a massive Uranium supply shortage is looming..
As plants order supply 18 months in advance........that means the supply shortage will happen WELL before the new plants even start up.......

And the Russians contract to sell to the USA end at the end of 2013...thats around a 23 to 24mill/lb p.a supply shortfall......

its been estimated that at present the global uranium shortfall is approx 30 mill/lb

Foster research report june 2012
quote
"global output of 150 million pounds against demand of 180 million pounds,
the market is already in deficit by 30 million pounds."

The spot market is seeing little to now trading in uranium.....

the buyers and producers are dealing direct with each other....bypassing the spot market

As the supply shortage hits home globally....the price per /lb will spike.....

Cash flow to Pdn will rise just at the wright time..a time when its at maximum production capacity..
and has a huge inventory in reserve.....

So sit back and enjoy the ride

buying below placement price of $1.20 seems a good bet

and there are ONLY 5 PAPER LOSS TAX TRADING DAYS LEFT IN 2012