Testing thirty-something cents again?, page-20

Yes I'm happy to work with $70/lb. I think most agree we will see that at least and I'm more than happy to be conservative. C1 costs are already low 20's at LH and low 30's at KL. Administration, interest costs coming down i estimate AISC with both mines combined should be around $35/lb being conservative.

So with Uranium at 70 we have a 35 $ margin.

The question is what guidance do we have with both running 100% - 10 mill lbs pa? lets go with it.

So putting it very basically revenue 700 mill, earnings 350 mill if we put a very basic multiple 10x earnings or cash flow we can value PDN between $2 to $2.50. This is without factoring in the huge growth pipeline that will open up to PDN once the spot price starts moving.

If we go to 12 mill lbs at $80 a valuation of $4 to $5 is very conservative. I envision Paladin following Cameco's footsteps and producing well over 20mill lbs pa from 3 or 4 mines. Everything is in place for this to happen. But hey first things first we need the U price $10 higher and the SP will push up towards $1. I will be definitely taking some off the table when spot gets to $60, what the SP will be is anyone's guess but it will be multiples certainly!