paladin energy ltd globe investor, page-5

Yup - wouldn't be selling my PDN for anything. Now is the time to be topping up if you don't already have enough, then just shove them in the drawer and don't look at the prices for a year or two.

I've always said PDN is a 3-5 year play at the LEAST, and in about two years from now, we'll have LH at full extended capacity, Malawi commissioned, Queensland in the bag (when, not if), and the long term contract price of uranium will be up around the $90 or more.

The spot price of U is totally manipulated, just like the closing price of any stock can be manipulated by a single tiny trade just pushing it one way or the other. Most spot sales are single, small trades, and the price that really matters is the long term contract price. This is much more stable, is still high (about $95/lb in PDN's case) and PDN are only hedged to a locked price for a very small proportion of their output. Most of the contracts are at moving prices - sort of like an annual CPI adjustment..... ;)

The reality of the PDN situation is that they are now a producer - the only new one on the planet in 25 years. They look like being the only one to meet their 2008 targets, they have brilliant management that have not put a foot wrong from the beginning, (one of Buffet's key requirements), and they are probably the best-positioned uranium producer to take advantage of the fact that the world WILL be going nuclear. The UK just announced they are going nuclear - that's another big customer in the market place.

Nope - for me, PDN stays in the bottom drawer, and will be still there in another 2 years at least.