PDN 1.14% 8.7¢ paladin energy ltd

from citigroup this morning

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    Paladin Energy Ltd (PDN.AX): Correction: Rising to its Feet
    Maintain Buy* - We have lowered our Target Price for Paladin Energy to A$7.10/share due to a change in valuation parameters that reduce the NPV, but we retain our Rating of Buy/High Risk (1H). We continue to hold a positive view of the uranium market and Paladin's operations.
    Share market Volatility hits Target - In the period since we set our previous target, Citi Investment Research has increased equity risk premiums due to share market volatility. This increase, combined with a 5¢ rise in the long-term currency forecast to 75¢, and an increase in issued shares reduces our NPV/share for PDN, resulting in a lower Target Price.
    Interim Result - Paladin's interim result was a loss of US$26.5m compared to our forecast US$3.8m loss. The variance was due to lower than expected sales, which should be recouped in future periods, and a below-average realised U3O8 price in the DecQ (US$66/lb), caused by deliveries into a contract with a ceiling price. These are transient issues and we maintain our view that Langer Heinrich's commissioning problems are easing and the operation will begin to hit its stride.
    Kayelekera Construction News Positive - News flow includes Paladin reaching an amicable agreement with organisations in Malawi that initially objected to the mine development; a bank syndicate has approved a total of US$167m in project finance, sufficient for Paladin to complete construction; and the project is on schedule for completion by the end of 2008, with earthworks nearly finished and key equipment being delivered.
    *Correction: No change to rating.

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Mkt cap ! $178.4M
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8.7¢ 8.8¢ 8.7¢ $39.75K 456.8K

Buyers (Bids)

No. Vol. Price($)
9 988618 8.6¢

Sellers (Offers)

Price($) Vol. No.
8.8¢ 62499 5
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