Thought this discussion may warrant a new thread, and hoping some brighter minds than my own might be able to provide a view. Putting aside its Canadian operations (Though similar will apply)
Paladin Energy operates in Namibia, and while a lot of its costs will be incurred in USD (materials, ex-pats etc) There would still be a significant amount incurred in the local currency which is pegged to the South African Rand.
Paladin Energy report costs in USD, but any weakness in the local currency I expect would translate to a weaker USD cost when reported. This makes it murky as 'cost reduction' could purely be a function of fx weakness and not operational improvements.
To further complicate it, being ASX listed its stock is in AUD and all revenues etc will be reported in AUD so while a weaker AUD does not directly help PDN, it does boost the nominal value of its revenues and shares when converted back to its listing (AUD)
Anyone have any thoughts or clarity on how PDN handles these issues? To be honest the above is something I have only recently started having an appreciation for, particularly local Namibian FX and how that translates to a reduced cost in USD.
Probably not so much a direct question but point of interest.
PDN Price at posting:
$4.29 Sentiment: Buy Disclosure: Held
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