The article below may help to explain the surge in PDN/ERA share price.
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Consolidation Revalues ERA, Paladin
FN Arena News - February 13 2007
By Greg Peel
Canada's SXR Uranium One has entered into an agreement to buy all the shares of Kazakhstan's UrAsia to form the world's second largest uranium producer by market capitalisation.
UBS analysts have crunched the numbers implicit from the bid, and arrived at a valuation of uranium resource of US$31.61/lb.
Australian listed exploration companies tend to trade at only US$16/lb, the analysts note, up from US$9/lb last year. But more important is the valuation implications for Australia's two uranium pure-plays (which are actually producing uranium), Energy Resources Australia (ERA) and Paladin Resources (PDN).
Applying the resource valuation implies a share price valuation for Paladin of $16.86. Equivalently, ERA would be valued at $44.04. Add Jabiluka, and ERA would be worth $100.
Food for thought.
The article below may help to explain the surge in PDN/ERA share...
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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 |
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