I believe PDN management made a significant strategic misstep by setting expectations a sale was imminent. When it was subsequently delayed this reduced of leverage with potential buyers. The last cycle of SP erosion started then. I expect the sale price may have have been negotiated down as a result. This would be unpalatable to PDN shareholders, which is why I expect the process is taking so long.
PDN has a MC of $274m with heaps of debt. With U308 prices so low and no evidence of significant re-contracting (that might demonstrate the underlying medium term demand) I can't see any near term reasons for SP to re rate.
Shareholders are at the capitulation (or stubbornly holding) stage of the cycle and since this has been going on for years, any re-rate would also result in many shareholders wanting to get out.
Having said that, there have been a few examples of mining related Co's that subsequently did 10 baggers in a short period of time (NWH 5c to 67c) (WHC 30c to $2.90) so Maybe PDN can have a run?
A 2.5 bagger would do me. Is $700m MC in 6 months too much to ask?
PDN Price at posting:
16.0¢ Sentiment: Buy Disclosure: Held
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