By Mr David Talbot
"We like Paladin Energy Ltd. (PDN:TSX; PDN:ASX) and rate it as a buy with a $2.40 target price. Paladin has really delivered this year. Production and sales targets were met with realized prices 13% above spot. Cost-cutting targets at both operations exceeded expectations. Operations achieved capacity. Debt was trimmed. Production guidance was increased for next year and we believe a potential game-changing strategic initiative lies waiting in the wings. Paladin has huge leverage to rising uranium prices with costs that are coming down rapidly. We do expect a strategic partnership to be announced likely later this quarter. We believe that Paladin might be willing to sell about 20% of its Langer Heinrich mine in Namibia. Our NAV valuation suggests perhaps a $200–300M price tag for that. The company has a disciplined expansion approach here. We think right now is the time for investors to take advantage of the turnaround in Paladin. The stock still trades at a discount to its peers. With this strategic alliance, we do expect a rerating in the stock as debt levels fall further."
I am not the selling type unfortunately. I said I wouldn't buy anymore, but similarly 2.40 is too low to sell. Clearly, it won't happen this year anyway.
In the meantime, enjoy the ride.
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$12.10 |
Change
0.280(2.37%) |
Mkt cap ! $3.619B |
Open | High | Low | Value | Volume |
$11.91 | $12.28 | $11.85 | $24.59M | 2.033M |
Buyers (Bids)
No. | Vol. | Price($) |
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3 | 1289 | $12.10 |
Sellers (Offers)
Price($) | Vol. | No. |
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$12.11 | 3682 | 3 |
View Market Depth
No. | Vol. | Price($) |
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2 | 1189 | 12.100 |
1 | 3000 | 12.090 |
3 | 10233 | 12.050 |
1 | 33548 | 12.040 |
1 | 82 | 12.030 |
Price($) | Vol. | No. |
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12.110 | 188 | 1 |
12.140 | 700 | 1 |
12.180 | 4000 | 2 |
12.190 | 9869 | 2 |
12.200 | 1846 | 4 |
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