PDN - Paladin Energy

[the barry]

Re: PDN - Paladin Resources

in the words of kennas one needs to be objective re: paladin. With no production figures(they have production problems), EPS, cash flows or anything of substance, where is the upside going to come from? Its market cap is $4.5billion dollars, there are plenty of companies making proper cash flow at that market cap.

What production problems? They just did their first order which was reported and will be at full production in about 2 months. Where is it reported that they are having production problems?????

 

[Halba]

Re: PDN - Paladin Resources

In their quarterly? re: production problems they have produced low amounts of u to date. Nothing flash.

Their shipment is barely commercial - 10 tonnes.

10t shipment in 3 months seems very low.

Namibia Economist (Windhoek)

March 9, 2007
Posted to the web March 9, 2007

Windhoek

Paladin Resources' Langer Heinrich in the Erongo Region will export its first production of uranium oxide to Converdyn of the United States on March 20, said general manager Wyatt Buck in a telephone interview from Swakopmund. The 10 tons to be sold to Converdyne will be the mine's first export.

"We expect to reach full production by mid this year producing 90 tonnes of uranium oxide per month or 1180 tonnes per year," said Buck. Paladin has so far spent N$620 million to bring the project into production, Buck said. The mine will be officially opened by President Hifikepunye Pohamba next week Thursday. Langer Heinrich mine construction completed.

The construction and commissioning of the project was successfully completed in December last year. The Australian-based Paladin said early this year that production from Langer Heinrich represents an important step forward in the challenge to meet the rapidly growing demand for uranium in a rejuvenated nuclear industry.

With a continued positive price outlook expected for a decade or more, timing of Paladin's production is optimal in consolidating the company as the pre-eminent new producer, the firm said in January.

 

[the barry]

Re: PDN - Paladin Resources

In their quarterly? re: production problems they have produced low amounts of u to date. Nothing flash.

Their shipment is barely commercial - 10 tonnes.

10t shipment in 3 months seems very low.

Namibia Economist (Windhoek)

March 9, 2007
Posted to the web March 9, 2007

Windhoek

Paladin Resources' Langer Heinrich in the Erongo Region will export its first production of uranium oxide to Converdyn of the United States on March 20, said general manager Wyatt Buck in a telephone interview from Swakopmund. The 10 tons to be sold to Converdyne will be the mine's first export.

"We expect to reach full production by mid this year producing 90 tonnes of uranium oxide per month or 1180 tonnes per year," said Buck. Paladin has so far spent N$620 million to bring the project into production, Buck said. The mine will be officially opened by President Hifikepunye Pohamba next week Thursday. Langer Heinrich mine construction completed.

The construction and commissioning of the project was successfully completed in December last year. The Australian-based Paladin said early this year that production from Langer Heinrich represents an important step forward in the challenge to meet the rapidly growing demand for uranium in a rejuvenated nuclear industry.

With a continued positive price outlook expected for a decade or more, timing of Paladin's production is optimal in consolidating the company as the pre-eminent new producer, the firm said in January. wink.gif

Just because they are a new mine does not mean they have production problems. No mine hits the ground running at full production. The fact that it was 10 tonnes in three months means nothing, just because the first contract fell at the end of the first quarter does not mean they have production problems.

 

[Sean K]

Re: PDN - Paladin Resources

Just because they are a new mine does not mean they have production problems. No mine hits the ground running at full production. The fact that it was 10 tonnes in three months means nothing, just because the first contract fell at the end of the first quarter does not mean they have production problems.

You guys have any idea what they had planned to deliver in the first 3 months? Or produce?

I think that is the issue here. If it was as sceduled/planned, then no drama. If otherwise then we know there is a problem. If we do not know this, then anything here is speculation.

 

[the barry]

Re: PDN - Paladin Resources

You guys have any idea what they had planned to deliver in the first 3 months? Or produce?

I think that is the issue here. If it was as sceduled/planned, then no drama. If otherwise then we know there is a problem. If we do not know this, then anything here is speculation.

From the annual PALADIN RESOURCES LTD
Quarterly Report – December 2006

LHU operations team assisted by GRD-Minproc is methodically mitigating the range of handover list items.Paladin is confident it will achieve design production rate of 2.6Mlb U3O8 by the end of the ramp up period in
June 2007. Production to the end of the ramp up period is difficult to estimate although expected to be in therange or 900,000Mlbs to 1,000,000Mlbs (previously forecast 1,000,000Mlbs to 1,150,000Mlbs).
The first commercial shipment of uranium is scheduled for March 2007.

At present it looks as though everything is going to plan. No production problems according to the schedule.

 

[Sean K]

Re: PDN - Paladin Resources

From the annual PALADIN RESOURCES LTD
Quarterly Report – December 2006

LHU operations team assisted by GRD-Minproc is methodically mitigating the range of handover list items.Paladin is confident it will achieve design production rate of 2.6Mlb U3O8 by the end of the ramp up period in
June 2007. Production to the end of the ramp up period is difficult to estimate although expected to be in therange or 900,000Mlbs to 1,000,000Mlbs (previously forecast 1,000,000Mlbs to 1,150,000Mlbs).
The first commercial shipment of uranium is scheduled for March 2007.

At present it looks as though everything is going to plan. No production problems according to the schedule.

Thanks Barry. We could be hyper critical here and say they have actually downgraded what they forecast to produce:

expected to be in therange or 900,000Mlbs to 1,000,000Mlbs (previously forecast 1,000,000Mlbs to 1,150,000Mlbs

also unsure about this:

GRD-Minproc is methodically mitigating the range of handover list items

I'm not a big fan of the word 'mitigating'. Sounds like damage control to me. Maybe I'm too critical here.

So, what we want to see is 2.6 m lbs by the end of June. They should update the market before then I suppose. Look forward to it.

 

[Kauri]

Re: PDN - Paladin Resources

I'm not a big fan of the word 'mitigating'. Sounds like damage control to me. Maybe I'm too critical here.

Kennas,
Just a normal part of handover, not many mines operate at full capacity at handover,after commissioning there is always a part of the construction crew left on site to deal with problems ranging from leaking pipework to mis aligned mills. The fact that their ramp-up towards spec plate production levels is pretty much in line with expectations is a good sign.
Kauri..

 

[Halba]

Re: PDN - Paladin Resources

Breaking news. Malawi in doubt

http://www.nyasatimes.com/Breaking-News/382.html

Kauri: The fact that their ramp-up towards spec plate production levels is pretty much in line with expectations is a good sign:

No they are not going to meet their 1,000,000 lb target having only produced 10t

Time will tell if they get it to production properly but i am sceptical. The quarterly report looks suspect and the production issues are basically hidden under stuff about global warming.

 

[Kauri]

Re: PDN - Paladin Resources

No they are not going to meet their 1,000,000 lb target having only produced 10t.

From the annual PALADIN RESOURCES LTD
Quarterly Report – December 2006

LHU operations team assisted by GRD-Minproc is methodically mitigating the range of handover list items.Paladin is confident it will achieve design production rate of 2.6Mlb U3O8 by the end of the ramp up period in
June 2007. Production to the end of the ramp up period is difficult to estimate although expected to be in therange or 900,000Mlbs to 1,000,000Mlbs (previously forecast 1,000,000Mlbs to 1,150,000Mlbs).

 

[Knobby22]

Re: PDN - Paladin Resources

Breaking news. Malawi in doubt

http://www.nyasatimes.com/Breaking-News/382.html




No they are not going to meet their 1,000,000 lb target having only produced 10t

Time will tell if they get it to production properly but i am sceptical. The quarterly report looks suspect and the production issues are basically hidden under stuff about global warming.

If the politicians think that is bad, they should live in Victoria.
Everything is secret.

 

[madcabbie]

Re: PDN - Paladin Resources

Breaking news. Malawi in doubt

http://www.nyasatimes.com/Breaking-News/382.html




No they are not going to meet their 1,000,000 lb target having only produced 10t

Time will tell if they get it to production properly but i am sceptical. The quarterly report looks suspect and the production issues are basically hidden under stuff about global warming.

2 - points to make here

1 - The current operating mine is in Namibia. The Malawi project is in the early developmental phase and the article is of a general socio-political nature
2 - Kauri already has explained the nature of the current production which is progressing well

I don't think titling the snippet 'breaking news' is really appropriate and may lend one the impression that the poster either A. despises Paladin or B. is trying to talk the market down :karaoke:

 

[Sean K]

Re: PDN - Paladin Resources

2 - points to make here

1 - The current operating mine is in Namibia. The Malawi project is in the early developmental phase and the article is of a general socio-political nature
2 - Kauri already has explained the nature of the current production which is progressing well

I don't think titling the snippet 'breaking news' is really appropriate and may lend one the impression that the poster either A. despises Paladin or B. is trying to talk the market down :karaoke:

Actually, that news doesn't look all that great to me. Kayelekera is an important plank in PDNs progress. Will be interesting to see the follow through on it. Calling it 'breaking news' is just what the article was in the newspaper. It was titled 'breaking news'. What's the problem there?

Everyone, let's try and continue to keep things objective here. The discussion has been OK so far, and I am very interested to see if PDN can, or will meet their stated production targets. They have about 3 months to produce about 1 m lbs of uranium. It looks to me to be a bit of speculation one way or the other at the moment, and we'll have to wait for an update from the company....

 

[Fab]

Re: PDN - Paladin Resources

In the mentime PDN was up almost 1% on the tsx.

 

[nizar]

Re: PDN - Paladin Resources

Actually, that news doesn't look all that great to me. Kayelekera is an important plank in PDNs progress. Will be interesting to see the follow through on it. Calling it 'breaking news' is just what the article was in the newspaper. It was titled 'breaking news'. What's the problem there?

The problem here is very clear.
Madcabbie holds a few PDNs and he would much rather see ramps, and he only believes articles which support his bullish view

 

[mmmmining]

Re: PDN - Paladin Resources

Old news, PDN officially opened the uranium mine in Namibia, and first U3O8 has been shipped out.

 

[purple]

Re: PDN - Paladin Resources

Old news, PDN officially opened the uranium mine in Namibia, and first U3O8 has been shipped out.

PDN needs to build on positive announcements to claw, er.. i mean, bounce its way back up to the above 10's again..
too much of a big sell-off lately, and a lot of mixed reports from analysts..some up, some down.

still watching n waiting...

 

[Fab]

Re: PDN - Paladin Resources

Looking good for PDN.

AFTER already rising nearly tenfold during the past four years, the spot uranium price is expected to break through the $US100 a pound barrier for the first time, possibly as early as this week.

In a case of perfect timing, Perth's Paladin Resources on Friday officially opened the world's newest uranium mine, Langer Heinrich in Namibia. Paladin stands to be the biggest Australian beneficiary of the higher uranium price, which has spiked as a supply shortage has coincided with a huge jump in demand.

A spot price of even $US100 a pound would not be particularly helpful to long-time producers such as Energy Resources of Australia and BHP Billiton unless it stayed that high for years, because they locked in long-term contracts when uranium was trading at record lows.

But Paladin has positioned itself to be the world's fourth-largest uranium producer by 2010, despite competition from rivals around the world.

"A new exploration cycle is now very much under way, and significant new discoveries will be made," Goldman Sachs JBWere analyst Malcolm Southwood said. "But it takes several years to evaluate and prove reserves, and once the economic reserves are defined, it takes 10 years or more to licence and develop a project and bring the mine into production."

Paladin has already approved development of its next project, the $US185 million ($A232.5 million) Kayelekera mine in Malawi. And the company's managing director, John Borshoff, is today expected to make an announcement regarding its recent $1 billion scrip offer for Queensland explorer Summit Resources. A successful bid would give Paladin full control over its half-owned Valhalla and Skal deposits near Mt Isa.

Paladin has additional prospects in the Northern Territory and Western Australia, and Macquarie Equities thinks it may consider an overseas acquisition to enable it to get a third mine in production by 2010.

Paladin's Langer Heinrich mine could benefit immediately from any increase in the spot price. Although contract terms are kept confidential, Macquarie analysts believe Paladin has contracted about half its production from Langer Heinrich with a ceiling of about $US50 a pound and a floor of $US30 a pound. The remaining production is uncontracted, and uranium last week was selling at a record spot price of $US91 a pound.

Analysts from Macquarie, RBC Capital Markets and Goldman Sachs JBWere all predict uranium prices could hit $US100 a pound this year.

But BHP, which owns the world's largest uranium resource at Olympic Dam in South Australia, is not expected to benefit from higher uranium prices until legacy contracts paying less than $US20 a pound run out in 2010. Even worse, BHP has been forced to buy high-priced third-party uranium to meet the terms of some of its contracts.

The pricing terms of Rio Tinto subsidiary ERA's contracts are confidential, but Goldman Sachs JBWere said it assumed ERA sold its product through a mixture of spot sales and long-term contracts, with the majority weighted towards long-term contracts. Based on an average uranium price of $US90 a pound this year, the investment bank expects ERA to receive only $US23 a pound, rising to $US45 a pound by 2010.

 

[Halba]

Re: PDN - Paladin Resources

concern here:

Paladin has contracted about half its production from Langer Heinrich with a ceiling of about $US50 a pound and a floor of $US30 a pou

 

[nizar]

Re: PDN - Paladin Resources

concern here:

Oh damn.
MUCH concern.

If this spreads, could be a disaster for holders.

Why would permabull Borshoff do this??

 

[the barry]

Re: PDN - Paladin Resources

Oh damn.
MUCH concern.

If this spreads, could be a disaster for holders.

Why would permabull Borshoff do this??

Are you guys serious, did you not read the rest of the article?

http://www.theage.com.au/news/busin...ium-price-soars/2007/03/18/1174152881148.html

As the title suggests "New mine puts Paladin in box seat as uranium price soars."