PDN - Paladin Energy

[It's Snake Pliskin]

Re: PDN - Paladin Resources

mark,
I reposted this for you in this thread.
A uranium bubble of sorts may be forming. But I don't know becuase it is not my specialty. Anyway worty of a read: http://www.news.com.au/dailytelegraph/story/0,22049,21801546-5001024,00.html

 

[markrmau]

Re: PDN - Paladin Resources

Yes, we could be in a U bubble - I don't know, only time will tell.

But the reason I suspect it is not a U bubble is that the proponents of the bubble theory only point to price - has increased by factor of blah blah over the last 3 years.

No consideration to the fact that:

1. U price was artificially low 3 yrs ago by the reuse of U from decommissioned cold war nuclear armanents.

2. U costs for nuclear power generators is actually not a great cost as a percentage of overall running costs (despite the generator companies moaning).

I think $15 for PDN next year is a dam safe bet.

 

[philby3]

Re: PDN - Paladin Resources

Just announced:
Takeover bid for Summit Resources Limited 80.1% acceptance (CGT rollover) and no further extensions Paladin Resources Ltd (Paladin) advises that it has now received acceptances under its takeover bid for Summit Resources Limited (Summit) for 80.1% of Summit’s fully paid ordinary shares. As a result, Summit shareholders who have accepted the offer, or who do so before the offer closes, will be entitled to claim scrip for scrip capital gains tax rollover relief if their shares are held on capital account (as explained in section 10.2 of Paladin’s bidder’s statement dated 27 February 2007). John Borshoff, Paladin’s Managing Director, commented: “We are pleased to have passed the 80% mark. This will allow many Summit shareholders to hold on to all their Paladin shares rather than having to sell some to fund capital gains tax on the transfer.” “Most importantly, Paladin now has an economic interest in over 90% of the Valhalla/Skal deposit and over 80% of Summit’s remaining Mt Isa resources and prospects. With this position, Paladin and Summit can now progress the exploration and appraisal activities at Mt Isa in a more unified manner. This will have many positive outcomes for the growth of the uranium resource and for the potential development of the Mt Isa project if or when Queensland State Government policy changes.” Paladin’s offer is scheduled to close at 5:00pm (Perth, Western Australia time) on 1 June 2007. Paladin confirms that its offer will not be extended beyond that date.

 

[prawn_86]

Re: PDN - Paladin Resources

finally. this has dragged on way too long. hopefully it can all be put behind us and pdn can concentrate on growing once again.........

 

[eMark]

Re: PDN - Paladin Resources

PDN in pre-open as at 10.37am.

EME : Encouraging Start to 2007 Drilling Program at Bigrlyi

 

[Kauri]

Re: PDN - Paladin Resources

Keeping a lazy eye on PDN... but just doesn't seem too inspiring currently, has lost all momentum... for one the buyers just don't seem to be stepping up to the plate.. I wont be jumping in until/if the vol picks up...

 

[j4mesa]

Re: PDN - Paladin Resources

kauri, would you say that PDN is double top formation (bearish)?
as indicated by line 5?

 

[Kauri]

Re: PDN - Paladin Resources

kauri, would you say that PDN is double top formation (bearish)?
as indicated by line 5?

j4..
It may be.... one thing I always keep in mind though is that all ascending triangles have by definition a double top... I always look at patterns in context to other factors to try to see if they are important.

 

[j4mesa]

Re: PDN - Paladin Resources

Thank you for ur reply kauri.

Forgive me for my inexperience in the technical charting , when you mention pattern, what pattern do you mean?

Also you said that by definition all asc triangle has double top,I am bit confused with that statement?

 

[It's Snake Pliskin]

Re: PDN - Paladin Resources

Keeping a lazy eye on PDN... but just doesn't seem too inspiring currently, has lost all momentum... for one the buyers just don't seem to be stepping up to the plate.. I wont be jumping in until/if the vol picks up...

I agree totally Kauri.
Points a. and b. are showing selling.
Points c. and d. are showing lack of buyers.

Uninspiring to say the least. The fundamentals may inspire but I can read books and they tell a lot. Inexspensive charting programs tell the same, hey some are for free.

 

[rederob]

Re: PDN - Paladin Resources

It was always my intention to pick up more PDN under $9 and today my order was filled at $8.60 giving me a total of 9k shares at average $7.03 - and means I stop buying for now.
Again the charts have provided a very useful guide to a good re-entry point, and while this stock is immediate term "weak", it is long term very strong.
Once PDN mop up SMM it will do exactly what MGX has done: Both good equities, but PDN has more upside potential.

 

[billhill]

Re: PDN - Paladin Resources

Again the charts have provided a very useful guide to a good re-entry point, and while this stock is immediate term "weak", it is long term very strong.

Great point. Just topped up myself. IMO the current weakness in uranium is the perfect buying opportunity. I don't think uranium will take off as before but i think companies with good fundamentals will continues to grow solidly as the U price rises (Just need to shake out the U pretenders). Obviously PDN is fundamentally at the top of that list.

 

[eMark]

Re: PDN - Paladin Resources

Just a thought

PDN closed at 8.63 yesterday (May 31) at 4pm. It closed after the adjustment period "indicative price" (Westpac broking market depth area) at 8.75, with bids at 8.70, and sells at 8.76. Now that's not unusual other than it's quite a big jump in the 10 minute adjustment period, considering PDN had been hanging around in the 8.60's for much of the afternoon. I will post the last 10 trades. They are quite large. Does this mean anything? I know after market trades happen all the time, but the big jump/large trades normal? Is there somethinmg I don't know? Also does anyone know if these are BUYS or SELLS?

Paladin Resources Limited (PDN)
Date Time Price ($) Quantity Value ($) Conditions
31-05-2007 05:57 PM $8.750 3094 $27,072.500 Late Trade,Crossed
31-05-2007 05:09 PM $8.750 1435 $12,556.250 Late Trade,Crossed
31-05-2007 05:01 PM $8.704 26706 $232,449.024 Portfolio Special Crossing,Crossed
31-05-2007 04:55 PM $8.750 91039 $796,591.250 Portfolio Special Crossing,Crossed
31-05-2007 04:48 PM $8.750 12085 $105,743.750 Late Trade,Crossed
31-05-2007 04:41 PM $8.743 83421 $729,349.803 Portfolio Special Crossing,Crossed
31-05-2007 04:40 PM $8.750 81142 $709,992.500 Portfolio Special Crossing,Crossed
31-05-2007 04:27 PM $8.750 68 $595.000 Late Trade,Crossed
31-05-2007 04:15 PM $8.750 2500 $21,875.000 Late Trade,Crossed
31-05-2007 04:10 PM $8.750 2633 $23,038.750

 

[eMark]

Re: PDN - Paladin Resources

No posts today?

I'll bite the bullet.

Can anyone explain what happened today? Down to $8.42... before recovering to $8.60. Still it closed down 15c today. With everything else that's going on around it, PDN appears to be really on the nose at the moment.

* 81% accepatances of SMM (Positive/Negative)
* No recent movement in the Uranium price? (Negative) (I hear though that there may be an auction today?)
* Second bounce of $8.40 area (Positive)
* Closing at lower lows (Negative)

What's gonna turn around the negative sentiment?

 

[alankew]

Re: PDN - Paladin Resources

A takeover might helpStill holding at much higher price and this is doing my head in.Reminds me of ZFX earlier on in the year when it was at nearly $20 then for no apparent reason(to me at least!)it tanked.POZ has brougt it back and i think the same with the price of U will help this recover.Not sure what will happen re SMM and Areva though so i think this doesnt help either

 

[eMark]

Re: PDN - Paladin Resources

* 81% accepatances of SMM (Positive/Negative)?

Maybe I've just answered my own question.

Press Release Source: Paladin Resources Ltd.


Paladin Resources Ltd.: Takeover Bid for Summit Resources Limited; Close of Offer Period and Notification of Relevant Interests
Friday June 1, 8:15 am ET


PERTH, WESTERN AUSTRALIA--(CCNMatthews - June 1, 2007) - Paladin Resources Ltd. ("Paladin" or "the Company") (TSXDN - News; ASXDN - News) announces that the takeover bid by Paladin for all the fully paid ordinary shares in Summit Resources Limited (Summit) closed at 5:00pm (Perth, Western Australia time) on 1 June 2007.
For the purposes of ASX Listing Rule 3.3, Paladin gives notice that:

- it has a relevant interest in 81.82% of Summit's shares; and

- as the applicable thresholds have not been reached, compulsory acquisition of the outstanding Summit shares will not proceed.

A.C.N. 061 681 098

What now happens in this scenario when the accepted level for compulsory aquistion is not reached? and noting that the offer is now closed. Does the Areva thing make it more complicated?

PDN TSX had a muted response, though not the big drop we had on Friday (although we only had the "substantial holdings" statement on Friday, not the one I've cut n' pasted, that was supplied to the TSX just before their open).

TSX - PDN

Last Trade: 7.77
Trade Time: 3:59PM ET
Change: + 0.01 (0.13%)
Day's Range: 7.70 - 7.94

 

[rederob]

Re: PDN - Paladin Resources

eMark
The first thing to remember is that the takeover action has had no impact on production, nor the uranium price.
In that light PDN remains a company relatively cheap at today's price, and destined to go significantly higher.
As is always the case with takeovers, equities involved go into a graveyard shift, as players involved try to dig deeper holes for their adversaries, until they lie at rest.
In this case PDN has enough SMM to ensure that it, a as company, makes life for other major stakeholders not worth worrying about. Whatever PDN wants to do with SMM it will be able to do due to its voting power.
However, other major stakeholders can still be flies in the ointment of PDN's uranium solution, and cause irritation; although it would generally be to SMM's detriment.
I suspect that the next spot price announcement will tack on another $15 or so to uranium's price, and whatever woes are faced at the boardroom will be overlooked as a result of the balance sheet.

 

[eMark]

Re: PDN - Paladin Resources

I suspect that the next spot price announcement will tack on another $15 or so to uranium's price, and whatever woes are faced at the boardroom will be overlooked as a result of the balance sheet.

Thanks Redrob, informative as usual. I have highlighted your quote here as I found an article with the 'link posted on Uranium a raging Bull by Kromey', and thought I would post the actual article here also.

Sounds like there is a 3rd auction to come, but I'm confused re the auction pricing and the spot prices. Correct me if I am wrong, but I don't think these prices were announced officialy until after close of trade for PDN TSX??

http://www.stockinterview.com/News/06022007/Uranium-Auctions-Higher-Price.html

June 2, 2007
By Julie Ickes and James Finch


Uranium Auctions Drive Spot Price 11.5 Percent Higher

Two Auctions Down; Another on June 12th
‘Could Reach Well Above US$140/Pound’ by Monday



According to NUEXCO/TradeTech Uranium Spot History chart, the past three years have witnessed the most dramatic rise in the spot price of U3O8 since this consulting service began keeping records in 1968. Courtesy of Nuclear Market Review, a TradeTech publication. Changes in the weekly spot price are posted on the company’s website: www.uranium.info

COPYRIGHT © 2007 by StockInterview.com, Inc. ALL RIGHTS RESERVED.


Another wild week in the spot uranium pricing market broke all historical records, no matter how it is calculated. On Thursday night, Nuclear Market Review’s (NMR) month-end report announced US$133/pound. (We posted this on the front page of StockInterview.com as ‘Breaking News’ Thursday night.) Ostensibly, this was the final price for U3O8 auctioned by Mestena Uranium LLC on Wednesday when the sealed envelopes were opened.

But on Friday night, Nuclear Market Review marked the weekly spot uranium price indicator higher – to US$138/pound. This represents an increase of more than 11.5 percent from the previous weekly spot price of US$122.

Losing bids at Mestena were given another chance at a second auction on Friday to win the material they failed to buy on Wednesday, according to Nuclear Market Review editor, Treva Klingbiel.

During a phone call Friday night, we caught TradeTech chief executive Gene Clark between flights (he was on his way to Athens, Greece to make his presentation at the World Nuclear Fuel Market conference). “We issued a conservative increase to US$138 because Friday’s bids have not yet been announced,” Clark told StockInterview.com. “Our sources provided us with guidance of $138, but we believe the final sale could reach well over US$140/pound.” Clark cautioned, “Each auction has taken the spot uranium price higher, and we anticipate this could again occur at the June 12th auction.”

What then happens after June 12th? That’s when yet another auction – the third in less than two weeks – plans to offer 125 thousand pounds of U3O8.

TradeTech increased the consulting service’s long-term U3O8 equivalent price indicator on Friday to US$95/pound. This has been the market’s only month-end long-term price indicator reported, which others tend to utilize or report as their own.

According to Treva Klingbiel, “Long-term demand remains strong with 14 utilities seeking offers totaling approximately 26 million pounds U3O8 equivalent for delivery in 2007 – 2018.”

We have also observed a stronger increase in the spot uranium trading volume, after a hesitant start in 2007. As a comparison, spot volume to date was at about the same level as 1997. Yet by the end of 1997, more spot uranium was sold than at any other time during the ten-year period 1996 to 2006.

Chart courtesy of www.theinvestar.com which tracks both Canadian and Australian stocks. In the Canadian chart, 43 uranium companies – each with more than C$40 million in market capitalization comprise this weekly index. The Australian Index tracks 25 companies, which own uranium assets.

Matthew Smith of TheInvestar.com reports uranium stocks are suffering from lower lows and lower highs. This is generally a bearish indicator, but Smith pointed out, “After each new low, we only dip down less than one percent.”

Smith reports that the market needs an uplifting trigger to turn stock prices around. He pointed to additional changes in the spot weekly uranium price and possible deal-making with Energy Metals (NYSE ARCA: EMU) for a possible acquisition of that company.

As we believe, more consolidation is expected in this junior uranium mining space. Any significant drop in the price of uranium mining stocks at this point – especially those expected to become producers before 2013 – could lead to announcements of acquisitions, business combinations or mergers.

Previous comments from the chief executives of Denison Mines (AMEX: DNN) and Uranium One (TSX: SXR) suggest they have been waiting for a better time to make acquisitions. As has been found with most investors, no one really enjoys over-paying for their purchases.

 

[bigdog]

Re: PDN - Paladin Resources

http://www.smh.com.au/news/business...-1b-paladin-bid/2007/06/04/1180809376458.html

Summit out of reach for $1b Paladin bid
June 4, 2007 - 9:19AM

Uranium company Paladin Resources has failed to reach a minimum threshhold of shares in rival miner Summit Resources and has dropped any plans for compulsory acquisition of the remainder.

Paladin has told the Australian stock exchange that, when its offer for Summit closed at 5pm last Friday, Perth time, it held 81.82 per cent of Summit's ordinary shares, less than the 90 per cent required for compulsory acquisition.

Paladin said, "As the applicable threshholds have not been reached, compulsory acquisition of the outstanding Summit shares will not proceed".

Under the $1.07 billion bid, which was recommended by the Summit board, shareholders would have received one Paladin share for for every 1.67 Summit shares, equating to about $6.22 per Summit share.

Full acquisition by Paladin was stymied when Summit struck a deal with French nuclear giant Areva NC, which took 10.46 per cent of Summit.

 

[dj_420]

Re: PDN - Paladin Resources

so what happens now??

PDN back to business as usual as they have around 90% or so interest in valhulla and skal?