PDN 1.50% 67.5¢ paladin energy ltd

there's nickel...and there's uranium

  1. 24,765 Posts.
    I remember the days of big uranium finds by Pancontinental and Queensland Mines.
    Uranium exploration seems to have ended. In view of the shortage developing, are there many uranium stocks for investors to purchase? If not, the available stocks could go through the roof.

    From Paladin's recently released quarterly report.

    "Uranium market facing severe supply shortage in the mid to long term - unprecedented situation
    - spot price rising, US$15.50/lbU3O8 at 26 January 2004 (up 27% from previous quarter)

    During this quarter written opinion strengthened within the general nuclear fuel market arena that shortages in uranium supply post 2004 will occur and it is becoming apparent that upward price adjustments in long term sales contracts will be required to redress a funda-mental supply/demand anomaly that has emerged.

    The hefty 27% price hike during the past 4 months with suppliers still unwilling to sell product at the current spot price of US$15.50/lb U3O8 reflects the fact that the product still remains undervalued.

    A key development contributing further to the supply shortfall is the announcement this quarter that the Russians have rescinded key international long term contracts to supply secondary uranium to the US and European markets because of increased domestic needs to fuel their own growing nuclear programmes.

    This, combined with the need for additional uranium due both to improving efficiencies of existing nuclear reactors worldwide and new plant construction, all contribute to stretching the supply shortfall.

    The US Information Administration for instance recently released data showing that unfilled uranium fuel requirements for US nuclear utilities in 2006 alone amounted to over 40M lb U3O8 (and thereafter this shortfall escalates to 55M lb U3O8 in 2012).

    This is in the context of an overall annual global uranium requirement of approximately 175M lb U3O8 most of which will need to come from mine production. This anticipated looming shortage, with little additional mine production coming on line in the foreseeable future to offset it, is awakening what has been a complacent buyer market, taking it into unprecedented territory. All this is predicted to maintain strong upward pressure on the uranium price in the mid to long term.

    Since 1997, Paladin has been gradually accumulating its uranium portfolio obtained mostly during a period of downturn in the uranium market and now has ownership of a geographically diversified group of quality projects. Paladin now finds itself in a unique situation within a worldwide context as there are no other junior uranium companies so well equipped to benefit from this buoyant market situation with a bankable feasibility study due to commence on one of its prime projects.

    from QUARTERLY REPORT FOR PERIOD ENDING - 31 December 2003

    Don't rely on this. Do your own research.
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