paladin analyst's top pick for uranium

Sent: June 21, 2005 8:43 AM
To: Stockwatch News
Subject: Stockwatch: Paladin Resources Ltd (2): Post says Paladin analyst's top pick for uranium

Post says Paladin analyst's top pick for uranium
Paladin Resources Ltd (2) (TSX:PDN)
Shares Issued 400,885,713
Last Close 6/20/2005 $1.05
Tuesday June 21 2005 - In the News

The Financial Post reports in its Tuesday edition that the share prices of uranium producers wilted earlier in the year by about 19% from their peak, according to a Sprott Securities index of uranium companies. The Post's David Berman, writing in the Trading Desk column, writes that the retreat, however, has created an excellent opportunity for investors to enter the sector, according to Sprott analyst George Topping. "We have now emerged from that correction and are entering a renewed growth period for uranium-driven equities," he said in a research note Monday. His reasoning: The global demand for nuclear power is on the rise, with more than 100 new reactors expected to be commissioned over the next 15 to 25 years. Yet the demand for uranium remains much stronger than supply and stockpiles are in decline. As a result, Mr. Topping believes today's uranium industry is still in its infancy, with the long-term price expected to rise to $50 (U.S.) from the current $29 (U.S.). His top pick: Paladin Resources, which explores for uranium in Africa and was recently listed on the Toronto Stock Exchange. The shares traded at $1.05 Monday, down from a 52-week high of $1.22.

© 2005 Canjex Publishing Ltd.