Antinuclear

Hurt by Low Uranium Prices, Paladin Targets Asset Sale WSJ, By Ross Kelly 16 Oct 13 SYDNEY–Paladin Energy Ltd. (PDN.AU) was once among the boldest predators in the uranium industry, buying up deposits of the nuclear fuel in countries as diverse as Niger and Canada to feed a boom in global demand for non-fossil fuels.

Now, the Australian company has turned seller to ease investor concerns over its debt pile, as it racks up losses due largely to the sharp fall in uranium prices since an earthquake triggered an atomic crisis in Japan in early 2011……

It has already cut its exploration budget in half and slashed executive pay by 10% to ease pressure on its balance sheet, but this hasn’t arrested a fall in its share price to near-decade lows.

In August, Paladin said it needed the spot uranium price to average US$42.50 a pound over the coming year or it would run out of cash by the end of September next year without additional cost cuts. That price goal is well below current levels of US$35.25 a pound, near an eight-year low hit last month……

analysts think the sale process could stumble again, given the uncertain outlook for nuclear power.

“Barring a miraculous recovery in the uranium price, the only realistic way to generate enough cash to meet the US$300m convertible maturity in November 2015 is a sale of a stake in Langer Heinrich, which didn’t generate acceptable bids earlier this year,” said Clarke Wilkins, an analyst at Citigroup, who rates Paladin’s stock a sell…..http://online.wsj.com/article/DN-CO-20131016-001298.html