cold hard facts, page-44

During the latter part of April I suggested here that PDN should reach $5 by mid May. Given their rate of change over the last five months.

I would now suggest the North East trend continues, with maybe $5.50 in mind before months end




sekrub, as for the Chinese buying into PDN, well I'm sure it would rapidly turn into a hot topic around the world. Though in light of Wayne Swan's past performance of quickly doing the bidding of his Chinese masters, it's not inconceivable. However, what we might see is a partnership deal for guarantee of supply. That is, if Areva don't argue about it - which they might.

The point is, when Areva bought into SMM(a PDN company these days) they paid US$32 per lb for the privilege, which used as a valuation model today, translates to more than US$12 per share for PDN - or US$7.5 billion for the company.

PDN is grossly undervalued these days, indeed these broker reports we sometimes hear of, assigning a strange value to the share, are based on nothing but earnings from Africa. A pretty short sighted outlook from where I stand, indeed a juvenile methodology when it comes to takeovers.