Monday, February 20, 2006

Feb 20 Uranium Stocks Update: Paladin Resources (TSE:PDN)

A week ago February 13th, Paladin announced 2nd quarter results to the end of 2005 and offered up a few insights into what is to come.

Second Quarter Highlights

Operational:
- Construction activity continues on schedule (31% complete) and budget for the Langer
Heinrich Uranium Project, Namibia
- BFS progressed on the Kayelekera Uranium Project, Malawi – including metallurgical work and State Agreement discussions

Financial:
- As at December 31, 2005, the Company had A$94.4 million in cash and cash equivalents,
compared with A$34.9 million at the commencement of the quarter – as a result of the A$77
million placement completed in October 2005
- Mine construction expenditure of A$15.7 million and exploration/evaluation expenditure of
A$0.2 million for the second quarter on the Langer Heinrich Uranium Project
- Exploration and evaluation expenditure of A$0.6 million during the second quarter for the
Kayelekera Uranium Project
- Operating profit for the latest period was A$2.3 million, compared with a loss (including a profit from discontinued operations) of A$1.5 million for the prior period

Analysis: basically, everything is going as planned. They really haven't missed a deadline yet.

Btw, James Dines, basically the pioneer of uranium investing, can be heard speaking during the Vancouver Resource Conference.

http://www.howestreet.com/fbn/mediaplayer.php?fbnId=111

This is what he says about Paladin:

"There's no other investment in the world in my opinion that comes anywhere near uranium. It's recession-proof. Everytime there's a new price, it's up; there is virtually never a pullback and, furthermore, something historic just happened recently. A nuclear facility, desperate for uranium, made an agreement with Paladin to buy uranium in the ground, before it's been even mined, to be delievered in 2009. Now wait a second, that's not all, they also have a floor price, but no ceiling! So it's an unprecendented, incredible demonstration of the coming uranium buying panic."

Read my original Paladin post for more details and analysis
 

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