Ann: Quarterly Activities Report for period endin, page-15

re: Ann: Quarterly Activities Report for peri... RBS Australia 28/01/2010 1 Buy $4.60 23.7%
Target $4.60 (was $4.65). Capex at Langer Heinrich stage 3 has blown out to be higher than previously indicated yet production guidance is still unlikely to be achieved, while the broker notes Kayelekera has continues to suffer from delays.

These issues are shorter-term ones in the broker's view and the long-term value story remains in place, so it views recent share price weakness as an opportunity and retains its Buy rating accordingly.

Macquarie 28/01/2010 1 Outperform $4.50 21.0%
The broker viewed December quarter production at Langer Heinrich as showing some good signs but it note Kayelekera remains well off guidance as the ramp up progresses slower than had been expected.

To reflect this it cuts its FY10 earnings per share forecast by around 50%, though there is no change to its price target or Outperform rating as it continues to see long-term value in the stock despite these shorter-term issues.

Citi 28/01/2010 1 Buy, High Risk $5.40 45.2%
Despite being records, production and sales disappointed Citi, as they came in below the broker's estimates. Citi notes the result was driven by ongoing commissioning issues at Kayelekera and slower than expected ramp-up of Langer Heinrich Stage 2.

The company also increased capex for Langer Heinrich stage 3 by almost 30% due to a stronger Rand and some changes to the project scope.

Yet despite the production miss and higher capex for Langer Heinrich Stage 3, the inclusion of Stage 4 into the broker's valuation sees it maintain its valuation and $5.40 target price.

And at the current share price, Citi thinks you're getting all the undeveloped resources and projects for free, thus the Buy call is maintained.

JP Morgan 28/01/2010 3 Neutral $4.01 7.8%
The broker notes December quarter production was 24% below its expectations despite total production being up 33% on the previous quarter due to the successful ramp up of Langer Heinrich, which somewhat offset the slower than expected ramp up at Kayelekera.

The broker has cut its FY10 earnings estimates by 20.7% due to a decline in its FY10 production forecast, yet despite the disappointing result, the broker continues to see more favourable medium-term conditions for Paladin.

The Neutral recommendation is maintained, given the share price is trading in the neighbourhood of the broker's target.