Antinuclear

Australia’s uranium not looking like a good investment

Uranium Struggles FNArena News – July 13 2010 By Greg Peel “……..Given uranium being “out of favour” in Citi’s eyes, the broker last week downgraded its earnings forecasts for Australia’s two major pure-play uranium producers, Paladin Energy (PDN) and Energy Resources of Australia ((ERA)). Citi suggests the uranium market looks adequately supplied for now.

Paladin copped a 40% earnings forecast reduction in FY11-12 due to lower than expected spot prices and higher than expected costs, leading to a target price reduction from $5.40 to $4.40 (FNArena consensus $4.09). ERA’s cut is only 6-9% in FY11-12 given the offsetting drop in the Aussie dollar, but Citi’s target falls from $23.30 to $15.10 (consensus $16.92).

July 15, 2010 - Posted by Christina Macpherson | AUSTRALIA - NATIONAL, business, uranium | antinuclear, Australia, nuclear costs, uranium