who are the major shareholders?, page-6

Check out Citibanks latest analysis of PDN following the equity rasing...

"Paladin Energy Ltd (PDN.AX)
Pre-emptive raising adds $68m to balance sheet

? Market speculations answered with A$68m raising — Paladin has raised A$68m via a placement of 57m shares at A$1.20/share. The placement is at an 8% discount to
the previous close of A$1.31 and represents 7% of issued capital. Suggestions of a capital raising to support the 2013 bonds have plagued Paladin’s share price for
several weeks and we view the current action as a pre-emptive rather than emergency move.

? Cash balance up — cash at 30 June 11 was US$118m and A$127m has been drawn from a new debt facility. Prima facie, the placement brings the total cash balance to
~US$310m or 30% cash backing. A process to of partial asset sales is underway and thus there is potential to further bolster the balance sheet.

? …but cash continues to flow out — we estimate expenditure since 30 June comprises ~US$30m in interest payments, US$25m in debt repayments and US$10m
for Kayelekera, which reduces the notional cash balance to US$245m. If Kayelekera continues to underperform, management’s assertions that the company will be cash
flow positive from CY12 will soon begin to look very shaky.

? Sticking to its guns — in our view, PDN has a window of ~6 months to deliver on the promises of the FY11 results conference call, which include a 10% cut in costs and
both mines reaching nameplate by early 2012. Production guidance for FY12 remains 7.4-7.9Mlbs despite problems at Kayelekera and our unchanged forecast sits below the
range at a cautious 7Mlbs. We expect the Sept Q to be weak and have lowered our profit forecast from US$27m to US$19m but anticipate an improved Dec Q.
? Valuation — we have lowered our target price to A$3.00 and EPS as a result of
dilution from the equity raising and trimming FY12 profit on the back of anticipated Sept
Q weakness from Kayelekera. In our view, the share price is discounting all growth
projects and inventory and is trading well below our bare bones valuation of A$1.74.