japan to restart 48 nuclear plants, page-32

Regarding the discount rate, it is only that high because their actual Weighted average cost of capital based on Re x E/V + Rd x (1 - corporate tax rate) x D/V is so high. Their bond rate in 9%.

BHP won't be borrowing even half that rate. When you are in debt as bad as PDN are and you have had to issue bonds at the rates they have, then you warrant a high discount rate. I imagine most investors have them at over a 10% discount rate. I rarely value a company that isn't some huge long standing company with a big competitive advantage (e.g Cameco for this industry) at much less than 10% anyway.

I agree that if the market remains bullish companies will start upping their gearing to take advantage....and because PDN have already done a lot of spending they will be a step ahead of some.....but they have borrowed that money at such a high rate that for me it offsets their profits far too much. Not saying there cannot be upside but don't get carried away, there isn't as much upside as it would look on the face of it - I also thought wow highly geared company exposed to uranium upside before I looked at the nitty gritty. I still wish all you holders all the best because this has been an unforeseeably bumpy ride.