Statement to the media by Pdn may be too little too late to starve off a takeover.... AUSTRALIAN PROJECTS A The Bigrlyi Joint Venture (BJV) covers ten granted Exploration Retention Licences located approximately 320km north-west of Alice Springs in the Northern Territory Energy Metals Limited (53.29% and Manager), Northern Territory Uranium Pty Ltd (a wholly owned subsidiary of Paladin) (41.71%) and Southern Cross Exploration NL (5%).
B Angela and Pamela uranium deposits, located 25km south of Alice Springs in the Northern Territory 50:50 Joint Venture between Paladin and Cameco
C Manyingee Project is located in the north-west of Western Australia, 1,100km north of Perth and 85km inland from the coastal township of Onslow. The property is comprised of three mining leases covering 1,307 hectares. Paladin also holds one granted Exploration Licence (EPL 08/1496) totalling 89km² at Spinifex Well, 25km north-east of Manyingee
D Oobagooma Project, beneficially held 100% by Paladin, through its wholly owned subsidiary Paladin Energy Minerals NL, is located in the West Kimberley region of Western Australia, 1,900km north-north-east of Perth and 75km north-east of the regional centre of Derby.
E QUEENSLAND...EXPLORATION PERMITTED as yet URANIUM mining IS NOT allowed in QLD ......if P.M Gillard makes a public request to the Qld Govt then this may pave the way for the LNP to give approval for mining....I believe this is all that is holding premier Newman back at this stage....as he had said before the election he would NOT be lifing the BAN...BUT getting the BLESSING of the LABOR P.M would give him room to manouver Paladin group owning an effective 91.04% interest in the Valhalla/Skal Project. On 26/07/2007 AREVA ANNOUNCED IT HELD 10.46% IN SUMMIT RES WITH PDN HOLDING 82.08% THE FULLY SUMMARY OF THESE VAST HOLDINGS IN QLD ARE AT http://www.paladinenergy.com.au/default.aspx?MenuID=77 ------------------------------------------------------------------------------------------------------------------------- 1 The firm(Fosters Stockbroking) believes that with global output of 150 million pounds against demand of 180 million pounds, the market is already in deficit by 30 million pounds.********
2 The firm expects this shortfall to become even more acute after a US-Russian “megatons to megawatts'' agreement - by which the US buys ** 24 million pounds **of former Russian weapons uranium a year - ends in 2014.
3 USA TRIED TO BUY THE JAPANESE as they expected the jap reactors would not be re-started... the offer was rejected
4 Nuclear power companies order uranium 18 months in advance.... the jap shut down and what appeared to be a firm decision by its Govt to do NO re-starts would have meant that the POWER companies did not place new orders..thus creating a future short fall for themselves..which results in HIGHER prices per /lb
5 Existing japaneses orders would have force majeure allowing them to stop accepting any contracted uranium.....
6 The suppliers would then have been allowed to cancel contracts (given the jap Govt policy at the time) and go on to sell the jap contracted uranium to other buyers...with no recourse to the suppliers...as for all intensive purposes there was no reason to believe the japanese reactors would ever be re started...and the time frame for the closurers was so long that any reasonable person/company could conclude there was no hope of the Japanese ever taking delivery of the contracted uranium.....
7 30 million shortfall now + upcoming 24 million /lb(RUSSIA) = 54 million /lb shortfall potential.. + japaneses would not have taken delivery of their future orders ....so thats another looming shortfall
........how long that part takes to kick in will depend on how fast they re-start all the reactors...and the reserves they had on hand......
the reserves at the plants affected by the eartquake would probably be contaminated or destroyed....or out of reach for safety reasons..... 8 ERA (RIO) production falling and grades decreasing...thats why they bought hathor
9 BHP put expansion of Olympic Dam on indefinite hold..... it would take 6 years to bring it into production "BHP recently temporarily placed on hold its Olympic Dam expansion plans due to rising costs in Australia and slump in commodity prices. The BHP board has until the end of 2012 to decide on its expansion plans for three major projects, including the Olympic Dam"
"BHP Billiton will not approve any of its multibillion-dollar ''mega'' projects within the next six months, according to chief executive Marius Kloppers." BHP estimated it would cost $25 billion for the Olympic Dam expansion
other sources estimate Olympic Dam expansion may fall at last hurdle ABC News, By business reporter Michael Janda May 31, 2012 Analysts estimate the cost of BHP Billiton’s proposed Olympic Dam mine expansion at $30 billion, making it one of the biggest corporate investment commitments in history.
AND
BHP’s investment plans and faltering share price have been a concern for investors, …… Analysts and government ministers have estimated the investment in expanding Olympic Dam could top $30 billion …. 10 more Nuclear power plants have been approved in the USA and China...china to do a IPO to enable iit to undertake the massive expansion of plants in CHINA UK building new plants...U.A.E with plans to replace exiting plants by 2020
11 all of these countries will be placing orders for uranium 18 months before start up.....its the norm for the industry...... -------------------------------------------------------------------------------------------------------------------- so now it appears there is ongoing consolidation in the uranium industry whilst the market prices are well below their highs
I'd suggest producers and Nuclear power companies may join forces to bid for Uranium companies......in order to guarantee future supplies of uranium.........and at the same time shutting out any competitors........
As many uranium explorers require around a uranium price of US$70 to $75/lb many will not be developed for some time.... ---------------------------------------------------------------------------------------------- THIS ONE STILL HAS A LONG WAY TO GO BEFORE IT CAN BECOME A PRODUCER....
Cameco Acquires Advanced Australian Exploration Project July 9, 2008 Cameco (70%) and Mitsubishi Development Pty Ltd (30%)
Kintyre is in Western Australia about 1,250 kilometres northeast of Perth.
"Our plan for 2012 is to keep moving the project towards a production decision. We expect to: carry out further exploration drilling to test for other potential satellite deposits complete the prefeasibility study and decide whether to proceed to the feasibility stage submit a draft environmental review and management program complete the mine development agreement with the Martu"
For community-based information on Kintyre joint venture activities in Western Australia, visit: http://www.cameco.com/australia/kintyre/
PDN Price at posting:
$1.16 Sentiment: Buy Disclosure: Held
(20min delay)