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Paladin Energy Rebounds as Japan Restarts Reactors

July 19, 2012 by prospectingjournal · Leave a Comment

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Paladin Energy Inc. (PDN), Australia’s second-largest uranium miner, has been enjoying some much needed time in the green as media speculation suggests it could be targeted for a take over. The company’s stock has fallen almost 80% since the 2011 Fukushima disaster and is trading below book value, at a bargain price. With Japan restarting two reactors, investor sentiment seems to be changing and speculation has arisen that Cameco , Rio Tinto, Uranium One and others could be interested in Paladin. This has caused the rise of stock prices for Paladin. Australian Security Exchange has reported a 9% increase since the start of these new propositions.

Paladin is trying to capitalize on it’s momentum by focusing on creating alliances with larger mining corporations. Last week, Paladin reported that it has interest in completing up to three mutually exclusive mergers and acquisition transactions. Dundee Security analyst David Talbot stated “We believe this will help clean up its balance sheet and improve the stock price, hopefully before anyone takes a run at the stock.” Expect some action from Paladin during late summer and early fall.

Paladin’s smaller Australian exploration projects and Mount Isa project might be up for grabs during the takeover negotiations according to David Talbot. Talbot also states that Paladin Energy will have a top buyer rate with $2.65 for a share in a one year period.