Paladin Cancels Uranium Mine Sale, Shares frozen solid at 1 dollar

PLEASE NOTE THAT PALLADIN REGULARLY HARASS OLD LADIES AND CAN STILL AFFORD HEAVY SOLICITORS FEES TO SUE AND HARASS THE OWNER OF THIS BLOG AS WELL AS ANY OTHER LITTLE OLD LADIES IT HAS IN ITS SITES.. DO THE SHAREHOLDERS ENJOY LOSING MONEY TO A COMPANY THAT SPENDS BEFORE THINKING?? 1 DOLLAR AND DROPPING? WHAT DID YOU EXPECT FROM A DEFUNCT INDUSTRY? ARCLIGHT2011/RANT (SORRY IF THIS IS REPOSTED BUT….. 🙂 .. IT FEELS SO GOOD! )

http://australianuraniumquicksearch.blogspot.co.uk/

The company’s shares went into a trading halt on Thursday at $1.00

Published on Friday August 02 2013 (AEST)

Paladin Energy has scrapped the sale of a stake in its flagship African uranium mine after it failed to attract a high enough bid. The Australian-listed company instead will use a shareholder-diluting $88 million capital raising to reduce about $US670 million ($A753.95 million) of debt. Paladin had been negotiating with two nuclear power companies to sell 15-20 per cent in its Langer Heinrich mine in Namibia.

The company’s shares went into a trading halt on Thursday at $1.00

In late June, managing director John Borshoff maintained a sale would go ahead. But the global uranium market is still depressed more than two years since Japan’s Fukushima nuclear disaster and the spot price is at seven-and-a-half-year lows of about $US35 a pound.

Paladin blamed that anaemic price for its failure to get what it believes is the strategic value of the asset and harmed shareholder value.

Based on investment bank UBS’s recent $US1.1 billion valuation of Langer Heinrich, a successful sale would have gained $US165 million-$US220 million. The mine produced 5.3 million pounds, out of Paladin’s 8.26 million pounds, of uranium production in the year to June 30.

The company’s shares went into a trading halt on Thursday at $1.00

“Although, there remains interest in the asset, Paladin believes that the current weakness in the spot uranium price should not overly influence the valuation of a flagship asset such as Langer Heinrich,” it said in a statement on Friday.

It said it would wait until prices lifted before going to the market to sell again. A price of at least $US70 a pound was needed, it said. In other bad news for Paladin, the company said it expected to have to write down the value of assets including its other producing mine, Kayelekera in Malawi, by $US180 million.

The company’s shares went into a trading halt on Thursday at $1.00

The capital raising involves the equivalent of 15 per cent of its stock being issued to private institutions.

The company’s shares went into a trading halt on Thursday at $1.00

August 19, 2013 - Posted by arclight2011part2 | Uncategorized

3 Comments »

Share prices are not the only worry for Paladin: –
Perth-based uranium miner Paladin Energy, came under scrutiny for its tax arrangements in Malawi where it runs a mine in Karonga. A report by the group A report by the group Norwegian Church Aid alleges there are discrepancies between Paladin’s reported tax and its tax paid. It also alleges other payments by Paladin in Malawi are lower than the company reports. http://www.theage.com.au/national/tax-man-takes-scalpel-to-energy-and-resources-firms-20130705-2phat.htm

Meanwhile: – CEO John Borshoff doing very well thank you, despite Paladin’s uranium losses
Paladin boss earnings increase while Kayelekera cut jobs http://www.nyasatimes.com/2013/02/14/paladin-boss-gets-massive-pay-hike-after-malawi-job-cuts/

Comment by Christina MacPherson | August 19, 2013 | Reply
No. Paladin will kill it into 2016-17. All this palarva just part of the cycle of a struggling industry which no doubt fukishima precipitated…but fundamentals of nuclear are still strong. Builds/plan builds on the increase, price still in funk but applied rule is longer it stays down, higher prices will be in future as this price strangles juniors and has large (rio Tinto, etc) opting out of the market – effectively colluding to say “we”ll produce when price is $70pp”.

Strange, strange times but also look at landscape in Japan for example where population now cryin bout price of electricity now that nuclear has gone. They will restart….and as it comes online in orderly fashion I’d suggest will be new cycle for nuclear. Won’t say renaissance – as that will take the leadership of green movement, which is not going to appen in foreseeable future.

Comment by Gavin | January 17, 2014 | Reply
- Palladin certainly are trying to kill something – stories by threatening journalists with litigation(I name no names as we have an agreement with them 🙂 cough )
  
  I think the fundamentals of the nuclear investment are all wrong and have been since the crash of 2008. 200 billion euros in the first weeks for instance and even Norway got in on the game (and they just got out with HUGE losses).
  
  Todays funding of the great MOX bubble as i like to call it comes from a very recession hit tax payer. For instance, In the UK 25 billion was just taken from the national infrastruture budget and replaced with private investment from various sources (6 of the big insurance companies that stands to make a tidy profit on the backs of the tax office (probably a hundred billion return based on PFI infastructur profit margins). Then the tax payer will pay for the losses on the Nuclear research and development budget.
  
  Why losses you might ask? well, for instance the whole of the UK waste investment is going to leeds university who get 8 million pounds sterling to research ways to deal with the UK legacy waste and contamination.
  
  Ignoring the fact that the UK increased the amount of dose and harm allowable 2 years ago, the costs of the legacy are stunning and only 8 million out of a 28 billion budget (Oh yes! and the taxpayer added 3 billion to the pot too) is being spent on research? I am sure various nuclear orientated universities will get a few million but we are taking billions!
  
  Oh i forgot the memorandums of understanding with Vietnam china Russia Kazahkstan etc .. they will need a slice or two i bet!
  
  On who gets a slice of the pie – I wont mention Rolls Royce or any other company as the amount their lawyers will get of this deal will make them look positively poor and I also dont want to give them any more money sueing me but the deals are all over the web and some on nuclear-news too!
  
  On Japan, I think the big electrical generators own the grid and there have been a few large renewable investments blocked because they cant get confirmation for use of the grid nor upgrades to infrastructure (though the Yakusa are doing pretty well there.
  It seems to me even the media are responding to the great nuclear information shutdown and the Japanese are screaming about the restriction on their civil liberties (supported by the USA security infrastructure any way, this year will be good for TEPCO (now privatised with little outside investment except from couple of Japanese Banks who stand to lose their shirts) unless the Japanese turn things around…
  
  on your last point, i think the environmentalists might not reach out to the nuclear lobby.. but some will.. they need chemo after the Hungary release of 2011 (bigger by far than the hit from Fukushima imo
  
  So, there is always chemo and isotope requirements and other techie stuff (as long as the geneticists dont get nuclear funding and find a proper cure for cancer) plus the bomb.. need them forever with fresh plutonium …
  Thinking about, it as the UK has investment in mining, Palladin might get a slice too!
  maybe you are right! they will get bailed out sooner though..
  Thanks for dropping in
  peace
  
  Comment by arclight2011part2 | January 17, 2014 | Reply

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