paladin expansion program , page-6

DULL, we in Australia have a very poor track record at value adding, preferring instead to let others do that. Our role is to sell raw materials only. Say, iron ore for a few dollars per tonne, then spend an obscene amount of dollars in foreign purchases to buy the ore back, perhaps in the form of a ship, or a motor vehicle. It is truly one of our great weaknesses leaving us vulnerable to the whims of the industrialised world.

In Paladins case, the next step in the food chain might be to step up to making UF6(hexafloride) which sells for about $200. Of course Australia is not the place to do it, anti technology and all. So it might happen in Asia, or the US, as John Borshoff has suggested.

If one looks at Areva, the French government arm of their vast nuclear food chain, it will be seen that raw processed uranium is a mere fragment of their business. It is my view that Paladin have been searching for best methods of expansion and Areva is a good model in this regard. This thinking comes from secure knowledge that raw uranium to run a nuclear reactor is a nothing cost, just a few per cent. Less than ten. Thus it is puzzling to see a stock market focus on the spot price of the metal, whereas much bigger things are afoot. Investment criteria wise

Note; not a peep out of Areva on their supposedly expensive foray into SMM, where a massive amount of investment money appears to lie idle. "Chicken feed, in the big picture.

However, investors here are not good at big picture mentality, term of life project thinking rarely enters their conversation, whereas short term share prices are the grail. A month is a long time, and a year is forever, therefore few investors make the grade on defining growth stories, fund managers included

In simple terms, we are simple farmers for the rest of the world.

Among other things, Borshoff has alluded to "value add", so look out for the moves.