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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Last
$13.99 |
Change
0.010(0.07%) |
Mkt cap ! $4.182B |
Open | High | Low | Value | Volume |
$13.78 | $14.02 | $13.62 | $27.61M | 1.999M |
Buyers (Bids)
No. | Vol. | Price($) |
---|---|---|
1 | 198 | $13.99 |
Sellers (Offers)
Price($) | Vol. | No. |
---|---|---|
$14.00 | 5278 | 3 |
View Market Depth
No. | Vol. | Price($) |
---|---|---|
1 | 198 | 13.990 |
3 | 7182 | 13.970 |
1 | 300 | 13.960 |
1 | 18347 | 13.940 |
2 | 1614 | 13.930 |
Price($) | Vol. | No. |
---|---|---|
14.000 | 1000 | 1 |
14.020 | 12412 | 3 |
14.030 | 32 | 1 |
14.060 | 8054 | 3 |
14.070 | 1800 | 1 |
Last trade - 16.10pm 12/07/2024 (20 minute delay) ? |
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