just what we didn't need..!, page-38

Several observations I would like to make about the events of the past two days in the context of Paladin's history since it started yellowcake production at Langer H end-2006.

It seems about time Mr Borshoff gave some idea of the identity of the two bidders said to have been interested in acquiring a minority stake in Langer H. O/w how seriously can we take it? What has changed in the past 5 weeks since JB said at the end of June the strategic divestment process was being postponed because an improved offer had been received from one of the firms? It was already clear (at least to any half-way savvy uranium market participant) that the price would continue to slide in the short term.

LH has provided the firm with reliable cash flow (I'm not including Kayelekera which has probably almost continuously operated at a loss)for five years, even at the post-2011 depressed uranium price. The Paladin marketing team have been excellent at getting above average market prices for the product.

But Paladin has yet to make a net profit or pay any dividend to its shareholders. One (but not of course the only reason) is that Paladin keeps writing down the Kayelekera mine because of the low uranium price, so taking a hit on its income and expenditure account, and turning a gross profit into a net loss.

Word is that Paladin has written Kayelekera down again (for the third time according to my count)in its FY2013 half year accounts out soon.

Why does it keep doing this?

Was it to protect the asset value of LH so as to part-divest at the highest price? Or is there more to it than that.

Why also do other uranium producers- eg Rio and Cameco not also write down their producing mines due to low yellowcake prices but only Paladin?