$3.10 supporting well, page-2

From a previous post - just to reitterate.

To clear up - Retrace/consolidation sorry either way - a downward movement.

Somehow though I think the Canadians/Euros may have the controlling hand at the moment. If we have the same type of 'consolidation' in those other markets tonight then I might lean more towards believing a retrace is occurring.

My gut reaction (not an good solid measurement but what the hay) believes that the Canadians/Germans have taken the lead and pushing the price. When the big money in Europe invest it makes our Australian market look miniscule.

My short/medium term prediction is $3.90 before a ~33% retrace, if it breaks $3.90 its all the way to $4.50 with the obligatory profit takes. If it doesn't crack $3.90 easily I think we are in float mode between $3.10 and $3.90 until something occurs (company release etc). Timeline I guesstimate at 1 - 3 months.

Essentially, the Malawi project holds it all. The 'loss' of this asset would be beyond devastating. It essentially is holding up the SP from 2.60s in my opinion. Its a bit of a bummer that the BFS and the production start of Langer both come in approx the same time . 3Q 2006.

Imagine if Langer gets production problems. As an example - I was a AGM for a gold miner. Problems had occured with a mill (mill needed serious retrofit) due to the rock being 'harder' than expected (WTF? we're goes but we didn't check/measure the hardness?). Then on top of that imagine the Malawi BFS is not a pretty sight (can anyone say PDN at $2 something again)

This is a HIGH RISK investment ladies and gentleman . . . and with the risk comes the ample rewards ( 1.2c to say $3.30 being a ~27,000% return WOW. Even over ten plus years its unbelievable.).

If you take the latest reports circulating stating PDN SP @ US~$5 if U price gets to US$55 per Lb. Now go look at http://www.uxc.com/review/uxc_g_hist-price.html. Yes, that a constant $2005 price of U at $110. Somewhere in the PDN forum is a link to an article stating a $500 'super - spike' in the U price (WT... ah you know).

OK . . . assuming pure profit at $110 USD per Lb that would take my $5 USD share to say $10 USD. Convert to AUD in your time.

All I know is that IF (notice big "IF') the positive scenarios occur and nothing goes wrong calls of 'PDN is overpriced at $3 plus AUD will sound small and hollow. I also know that the PDN management is exceptional with years of U experience. They have made every step right for over a decade. Even more so lately.

When will I get out . . . Hmmmmm dunno it just looks so good at the moment.

Typical Disclaimer - No I am not an expert, no one listens to me, and I'd prefer it that way. This is banter, if you like the banter, do some research, make a spreadsheet, crunch some numbers, talk to an expert, and come to your own decision.