Paladin Resources Ltd (PDN)

[wzebra33]

Uranium tipped to break $US100

Uranium tipped to break $US100
19th March 2007, 9:45 WST

The spot uranium price — already having risen nearly tenfold during the past four years — is expected to break through the $US100 a pound barrier for the first time as early as this week.

In a case of perfect timing, Paladin Resources on Friday hosted 200 guests at the official opening of the world’s newest uranium mine, Langer Heinrich in Namibia.

Paladin stands to be the biggest Australian beneficiary of the increased uranium price, which has spiked as a supply shortage has coincided with a huge jump in demand.

A spot price of even $US100 a pound would not be particularly helpful to big producers like Energy Resources of Australia and BHP Billiton unless it stayed that high for years, because they locked in long-term contracts when uranium was trading at record lows.

But Paladin has positioned itself to be the world’s fourth-biggest uranium producer by 2010, despite competition from emerging rivals around the globe.

Paladin has already approved development of its next project, the $233 million Kayelekera mine in Malawi.

JAMIE FREED