Friday, July 07, 2006

July 7 Uranium Stocks Update: Paladin Resources (TSE:PDN)

Paladin Resources (PDN.TO) has been in the news recently. Let's see what they have done..

(1) appointment of Brenden O'Hara to executive team

Paladin has a stated global expansion strategy, designed to allow the Company and its shareholders to benefit from the unique window of opportunity it has created for itself in the natural uranium supply industry. Mr O'Hara will have responsibility in this area of activity and his extensive business and corporate experience will considerably strengthen this cornerstone of the Company's growth.

How can Mr. O'Hara benefit Paladin? He was lured away by Paladin from the Australian Stock Exchange (ASX) itself, where he came into contact with many of the Western Australian companies listed on the exchange.

(2) first drawdown of $71 million bank finance project

Paladin has in place US$71M bank project finance facilities, consisting of a 7 year Project Finance Facility of US$65M and a Standby Cost Overrun Facility of US$6M.

Langer Heinrich remains on schedule to commence the staged commissioning of the plant on 22 September 2006. Overall, the project is 80% complete and construction is anticipated to be completed within the stated budget of US$92M.

As stated before in previous articles, Paladin is very punctual about its deadlines. No surprises here.

(3) trading halt on ASX

..Company's securities are in a trading halt on the Australian Stock Exchange ("ASX") as the Company has announced it is currently negotiating a potentially material transaction. The trading halt will be lifted following the release of an announcement detailing the transaction, expected to be made before opening of trading on TSX on Monday 10 July, 2006.

Interesting. Paladin's stock on the TSE has been soaring for the past few days. Right now I hesitate to speculate on what the material transaction might be, but I will definitely discuss it once it is made.

Overall, Paladin continues to impress me with their robustness. Their uranium mine is just over two months from producing and the uranium conditions remain very much in their favor.
 

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