crossroads for some

A few posters like to tell us they're out. Some have the grace to wish us the best, others have these endearing lines like "see you at 3.1c". They may well be right and wouldn't be the end of this short term PEN run IMO.

There could be a way to go on this re-rate:

1. We're leading up to SML
2. Then finance to be formalised
3. Construction updates to follow
4. Leading to production.

These new analysts are a breath of fresh air. Dundee Capital have spelt out why they have a target of 7c and today we reached half way.

But the wild card is overall market pick up on uranium. We saw the response from Japanese cabinet decision last week, then many U stocks dropped back this week (three year anniversary of tsunami didn't help) but PEN powered on - rerate. There will be more news from Japan and possibly more coverage of the looming supply impact.

So there's more to PEN rise than just the Japan update. We know Pala have been selling at the crossroads and JP Morgan just bought in at 3.1c - though wouldn't surprise me if Gus has got them buying on market as well (we'll issue you $5m at 3.1c if you buy x amount on market) or perhaps other parties to take up the Pala offload.

There have been enough market commentaries signalling a uranium recovery is on the way, so we shouldn't be surprised if real smart money (like JP Morgan) recognise that PEN, as the next producer in a safe location and compelling market, is a good horse to take best advantage of the U turn.

So those of you selling after the little run up - best wishes for the rest of the year and who knows when you'll be back in the PigPEN.