Antinuclear

Investors are wary, as Australian miner Paladin sells uranium at way below cost of producing it

Paladin Energy Ltd revenues soar 79% but shares sink Motley Fool By Mike King – January 19, 2015 Uranium miner Paladin Energy Ltd (ASX: PDN) has announced sales of US$69.9 million in the December quarter, a rise of 79% over the previous quarter.

But despite the news, shares are down 2.8% at 35 cents at lunchtime.

So why are investors selling out of a stock reporting such strong growth?

The problem is that Paladin sold 1.9 million pounds of uranium in the quarter, at an average price of US$36.58 per pound. That last figure is the issue – that price is well below what it costs Paladin to produce the uranium, and there are no signs that the price is…[members only] http://www.fool.com.au/2015/01/19/paladin-energy-ltd-revenues-soar-79-but-shares-sink/

January 20, 2015 - Posted by Christina Macpherson | AUSTRALIA - NATIONAL, business, uranium