solid work by management.

To say that Paladin is finally headed in the right direction is true in one sense (share price - hopefully) but not in another. They appear to have been headed in the right direction for some time, with some good decisions having made over the last few years that have been overshadowed by some bad PR, memories of previous exuberance and poor U prices.

When talk of small and medium mining companies folding due to the end of the mining boom was at its peak, I thought that this was simplistic talk. It was said the smaller miners were at serious risk. Whilst some small debt laden miners with lower quality assets could well have folded, such talk seemed overblown. Small miners in exploration stage could have reduced costs significantly by limiting further exploration work. What has happened it seems is it is the large miners who have many diversified projects on the go have been letting the less immediately profitable projects go to concentrate on their immediate money making ventures. This will be to the advantage of the small to medium miners, in particular those who are operating in areas away from Iron ore and the like. What are the smaller un-diversified miners to do but to hold on or be taken over?

Producers in the position of Paladin were potentially at most risk. They are smaller and un-diversified so have to rely on one commodity price being at a reasonable level and they are a producer, so they cannot just slow down exploration to ride out the storm and may have to keep producing at a loss (though Paladin also kept undeveloped assts on hold). Paladin's debt levels were a product of the mining boom exuberance, but they were not alone in this.

Frankly, aside from a few things, which probably were more of a PR problem rather than poor decision making (such as the last 'sale' of LH and the MD selling shares) management have done a good job. Perhaps there were other things not done well that I have forgotten to mention. However, management appear to have knuckled down, tried to lower production costs as much as possible, entered into some long term agreements, generally lessened cash drain and looked at generally improving the balance sheet by the possible sale of assets. This latest refinancing news was unexpected and a very confident and positive announcement.

Many commentators have indicated generally that companies that survive the recent tough market conditions in whatever area they operate are ready for speedy growth when conditions improve as their survival has been due to producing a tighter ship

Whilst the past few years have not been good for Paladin, it seems the ship is a tighter and a more focused one. Should the storm be ridden out, then Paladin should be in line for solid growth. Reduced production costs and debt reduction are a huge positive to come out of this and something that would not have occurred if U prices had remained at a higher level (had Fukushima not occurred). I think management have done a pretty solid job in the last few years, in stressful conditions. Combined with what will likely be more interest in Paladin's secondary assets. Things are (touch wood) looking promising.