Buying..., page-44

AM is doing a pretty good job transforming PDN into a low cost producer. Sure at this exact point in time, with POU where its at, PDN is bleeding cash. Every uranium producer is bleeding cash. The current situation isn't unsustainable (but could conceivably drag on for a while).

But regardless of what anyone believes about the timing of a POU recovery, there seems to be broad agreement of at least a moderate uptick in prices over coming months. I personally feel confident, if POU gets back to high 20s over coming months, PDN can weather this storm. And make no mistake, with its various resources on C&M and highly prospective tenements, if POU does reach previous levels ($60+), the company will be a monster.

However, for any of this to happen I feel there are three things that need to happen in the short to medium term (listed below in order of importance):

1. The CNNC deal needs to go ahead (or alternatively, a stake in LHM needs to be sold to another party on broadly similar terms)
2. The EDF prepaid supply issue needs to be resolved, either by handing over 61% of Michelin, or some other mutually agreeable form of compensation
3. Kayelekera needs to be sorted out quietly, cheaply and efficiently. The last thing we need is a major environmental scandal happening here (low probability but could sink the company if it transpired imo)