Nightstalker
At risk of stating the obvious the only problem that remains with PDN and the reason for its lagging SP is the low U spot price.
Reserve increases at LHM only add value from a long term strategic point of view, if one believes in the strategic value of uranium going forward and a significantly higher spot and contract price.
The reality is that FY sales to June 2011 averaged a sale price of $US 54/lb, which clearly isn't enough for PDN to generate a Operating Cash surplus (FY10 had a Net cash outflow from Op. Activities of $41.9m)
Put simply from a cashflow point of view PDN continues to burn money, therefore the market continues to price in a further dilutionary cap raising.
I can understand if someone takes a long term strategic punt on PDN, but there should be no confusion as to why the short term SP continues to lag.
12 month price history, page-11
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Last
$13.98 |
Change
0.810(6.15%) |
Mkt cap ! $4.179B | |||
| Open | High | Low | Value | Volume |
| $13.93 | $14.28 | $13.83 | $47.88M | 3.408M |
Buyers (Bids)
| No. | Vol. | Price($) |
|---|---|---|
| 1 | 2000 | $13.95 |
Sellers (Offers)
| Price($) | Vol. | No. |
|---|---|---|
| $13.98 | 6031 | 2 |
View Market Depth
| Last trade - 16.10pm 11/07/2024 (20 minute delay) ? |
| PDN (ASX) Chart |