Pal­adin share surge

1¢ in 2003, $8+ in 2006

Townsville Bulletin - - Business -

URA­NIUM miner Pal­adin Re­sources Ltd has pro­vided share­hold­ers with a late Christ­mas present af­ter its shares yes­ter­day surged over $8.

The stock peaked at an all-time in­tra­day high of $8.29 be­fore pulling back to close at $8.26, cap­i­tal­is­ing the com­pany at about $4.1 bil­lion.

Pal­adin re­cently com­mis­sioned its $120 mil­lion flag­shipLanger Heinrich mine in Namibia and is ex­pected to make the first shipment of ura­nium ox­ide con­cen­trates at the end of March.

The com­pany’s strong run has also been partly fu­elled by an in­creas­ing ura­nium spot price that has surged over $US30 dur­ing the course of the year and i s cur­rently fetch­ing $US72 per pound.

While in­vestors pile into Pal­adin, bro­ker­age UBS is tak­ing a cau­tious approach to the new ura­nium miner.

‘‘While we think the out­look for both ura­nium prices and the com­pany it­self re­mains strong, we are tak­ing a more cau­tious view un­til we see demon­stra­tion of pro- duc­tion out of Langer Heinrich,’’ UBS said in a client note.

‘‘We be­lieve op­er­a­tional risks will re­main un­til demon­strated oth­er­wise.’’

Langer Heinrich is ex­pected to ram­pup to a rate of 2.6 mil­lion pounds per an­num over a 12 month pe­riod, be­fore ex­pand­ing to pro­duce about 3.7 mil­lion pounds an­nu­ally.

Pal­adin picked up Langer Heinrich for $15,000 in 2002 when the com­pany had only about $50,000 in its cof­fers.

The ura­nium miner plans to in­crease its pro­duc­tion profile to 7.5 mil­lion pounds per an­num by late 2008 af­ter it brings its sec­ond project, Kayelek­era, in Malawi, on­line.

Pal­adin also holds a swag of as­sets in Aus­tralia.

In 2003, Pal­adin shares were trad­ing at about one cent.

FLAG­SHIP . . . Langer Heinrich mine

Newspapers in English

Newspapers from Australia

© PressReader. All rights reserved.