is this a massive......, page-23

Nightstalker

PDN is not producing Operating Cash Flow, as per below taken from the annual report.

OCF FY 2010 -34.5m
OCF FY 2011 -102m

This has nothing to do with Kayalekera or Langer Heinrich Stage 3 which are funded from Investing Cash flows, in fact PDN has yet to even post positive Net receipts.

Its simply a function of low contract prices, and rising costs including higher interest costs.

I am not arguing whether PDN will be a good investment long term based on a changed Uranium demand/supply equation all I am stating is that currently PDN can't make any profit or positive cash flow. This is resulting in further cash raisings and higher levels of debt.

Isn't Borshoff showing his own frustration at the contract prices and lack of profitability in this article?

http://news.smh.com.au/breaking-news-business/uranium-pricing-needs-overhaul-paladin-20110831-1jlgt.html

The market tends to weigh value over time. PDN's SP retreating is not simply a function of shorters attacking the stock for no reason. It is being shorted because it is currently unprofitable and vulnerable due to its debt level. NIBD is now over $600m, how is this servicable if the depressed pricing continues for some time?

I am not being antagonistic just offereing a view that I feel is relevant, as you also know this isn't the first time I have raised this issue.