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PDN - Paladin Energy

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This might explain the sudden explosion in PDN​

Another Kicker for Uranium Equities​

The Global X Uranium ETF rallied 4.0% overnight after the US Department of Energy announced the next steps to build domestic uranium supply for advanced nuclear reactors.

  • The DoE issued request for proposals for uranium enrichment services to help establish a reliable domestic supply of fuels called high-assay low-enriched uranium (HALEU)
  • HALEU is uranium fuel that is enriched up to 20% compared to traditional uranium fuel used in today's reactors of about 5%
  • Biden's Inflation Reduction Act will provide up to US$500 million for HALEUenrichment contractors
  • DoE's Nuclear Energy plans to award one or more contracts to produce HALEU from domestic uranium enrichment capabilities
  • The HALEU enrichment contract has a maximum duration of 10 years and the government assures each contractor will have a minimum order value of US$2 million to be fulfilled over the term of the contract
Cameco – one of the world's largest uranium companies – rallied 4.7% overnight.
 
For those following my latest super investment long term saga, I had decided to have a parcel of uranium.
Initially wanted urnm ETF..but Australian Super fund did not allow that so I did a 50/50 split between pdn and Boe parcels.
Looking at the prices today, I was impressed.
Only 10k but impressive percentage...you need that to cover for less glamorous results elsewhere....
 
And this was a week ago...
 
Production has started at the Langer Heinrich mine with the first ore feed into the processing plant late January.
The restart project is now nearing completion last reports were 93% complete.
The company states the first commercial production is due end of March with the possibility due to lower contractor productivity in the new year period it could mean early the next quarter.
Capital costs to restart will now cost an extra US$7 an outlay up to 125million just over 6%.
Also PDN has executed a US$125 debt facility to grow progress growth options
The company still holds US$61.6 cash at the end of December.
Things are looking good for PDN with the uranium price still over 100 million mark.
Today the price is down to $1.30.5 from a high point yesterday of $1.46, over the past 6 months there have been a few minor corrections in its rise so not unduly worried.
 
I'm kicking myself a bit for not entering PDN earlier in the piece. Probably because of being hurt some years ago with Uranium stocks. The price action today is either some aggressive profit taking or something to delay production. That drop today leaves a gap. Will it continue or be covered as PDN continues up? The RSI shows it was over bought.

February is usually a slack month for materials. It may give me a chance to enter without the green envy monster crawing too much in my belly. I do believe that the gods have been unfair to allow the posters on this thread to have had such indecent gains with PDN when I have missed out.

gg


 
  • Paladin Energy proposes ten-for-one share consolidation to better reflect the company’s position as an ASX 200 company and provide greater appeal to international investors
 
Dona Ferentes said:
  • Paladin Energy proposes ten-for-one share consolidation to better reflect the company’s position as an ASX 200 company and provide greater appeal to international investors
Click to expand...
Does their rationale for the share consolidation ring true?
Or is there something more at play such as a future capital raise in anticipation of expansion and mine development in Australia?
 
martaart077 said:
Does their rationale for the share consolidation ring true?
Or is there something more at play such as a future capital raise in anticipation of expansion and mine development in Australia?
Click to expand...
Just sold half of my super fund PDN portfolio on Friday...now, will that consolidation really improve the SP..outside the consolidation factor?
Pdn was not exactly a 2c stock?
 
qldfrog said:
Just sold half of my super fund PDN portfolio on Friday...now, will that consolidation really improve the SP..outside the consolidation factor?
Pdn was not exactly a 2c stock?
Click to expand...
Agree, I sold out a while ago, uranium is a bit like nickel a roller coaster ride IMO.
 
sptrawler said:
Agree, I sold out a while ago, uranium is a bit like nickel a roller coaster ride IMO.
Click to expand...

The uranium rise was unsustainable. Hopefully some consolidation for a while. But, the fundamentals are a bit different to nickel. Not sure how supply can be ramped up quickly to support tripling of the nuclear power output in the next 20 years. There's a few old mines coming back on over the next 2 years but it's only a few million pounds. Maybe Kazatomprom and Comenco could cover it.
 
Yes Sean I agree and I think uranium long term is a winner, unless fusion gets up, but that seems a long way off, if ever.
What I meant by it is a bit like nickel, it is driven a lot by market sentiment and being such a minor mineral the price swings are the nature of it, whereas with bulk commodities like iron ore the demand is constant and heavy so less volatile.
I will be waiting for a down swing and jump back in again, I personally just think it is a get in, getout and get back in again for the next few years, until the debate on nuclear energy is settled down completely and the miners start paying a dividend.
 
Recent average of PDN shares being traded daily I estimate at around 30 million a day.
I would actually welcome the consolidation which would reduce shares on issue from almost 3 billion down to just under 300 million.
A share trading around $12 is much more appealing to attract new capital and with the current uranium price where it is a large discount to gain some capital will probably not be necessary.
Seeing I purchased PDN a while ago a small amount of dilution I don’t see as being negative.
Obviously I see a future for PDN however nothing is guaranteed.
 
someone's view (Market Index )
.

Paladin Energy Ltd (ASX: PDN)​


Paladin's short term trend has realigned with its long term uptrend​

There was a resounding show of excess demand in the PDN chart today in the form of a long and full-bodied white candle. The close on the high of the trading session at 1.32 confirms excess demand was working in the system right up until the closing bell.

This generally implies unmet excess demand in the system, and which could continue to impact prices in the next session.

The short term trend has re-established to the upside, realigning with the long term uptrend. Price action is back to rising peaks and rising troughs. Each suggests accumulation and buy the dip activity.

The previous historical supply zone of 1.26-1.27 now moves to demand, and only historical supply at 1.46 stands in the way of new all time highs
 
Last edited:
About to get a 10 bagger on PDN overnight. Not really.

PDN has consolidated the number of issued shares 10:1 and the effect happens overnight for trading tomorrow or Friday.

My charting platform has already done it and I did get a shock seeing PDN at 15.30.
 

Take the 10 bagger, Pete. As good as over the past couple of years.
 
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