capex and opex_benefits of isr and lance, page-67

Well it goes to show you what how fickle market sentiment can be towards a stock (PEN). More work needs to be completed, but the foundation has been created.

Dollar to extraction cost is low compared to others, resource slowly growing and this company is being self reliant (Lance etc). So the only way it can be taken over is if the little investors and the directors sell. Normally the price of production has a good chance of increasing before the mineral has been extracted eg BHP etc.

Interesting article on Paladin:
http://ca.news.finance.yahoo.com/s/29102009/28/link-f-ccnmatthews-paladin-energy-ltd-new-langer-heinrich-kayelekera-expansion.html

" Onsite capital expenditure for the main plant has been estimated at +/-US$300M whilst operating costs are estimated to remain within the US$25-$30/lb range of current operations. Infrastructure costs will be determined in the feasibility study and structured financing options with third party ownership will be considered.

The capital cost for the heap leach facility has been estimated at +/-US$50M with an OPEX of under US$35/lb, and will undergo a detailed evaluation in parallel with the main feasibility study. "

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This is how they are going to extract the mineral:
Taken from http://www.paladinenergy.com.au/default.aspx?MenuID=110

"The mine is designed to give an annual production of 3.3Mlb U3O8 from the processing of 1.5Mtpa of sandstone and associated ores by grinding, acid leaching, resin-in-pulp extraction, elution, precipitation and drying to produce saleable product."

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So in summation, PEN has low cost extraction, is doing it alone and has local area support (stable political), low environmental impact and has only 70-85 weeks to go.
I forgot, a low share price with plenty of room for movement.

Trees
dyor