Paladin Falls Short of Projection Guidance, An 'Outperform' Nonetheless - Blackmont

Paladin Energy Ltd. (PALAF.PK) quietly provided its year-end production update on Thursday, after delays at one of its mines in Africa caused the company to fall short of its full-year production guidance by about 260,000 pounds.

The uranium miner's Kayelekera plant in Malawi, southeast Africa, was forced to shut down to implement modifications and tweaking during the commissioning phase. In the fourth quarter (Paladin's fiscal year-end is in June) Kayelekera produced only 35,000 pounds of triuranium octoxide, a common uranium compound, versus the expected 350,000 pounds.

In all, Paladin reported full-year production of 2.7 million pounds of the uranium compound, short of the 3 million pounds expected.

"The entire miss from our estimates can be attributed to downtime at the Kayelekera plant," George Topping, Blackmont analyst, said in a note to clients. "Commissioning mines is a complex process, particularly in Africa."

By the end of June, Kayelekera was back on track and Paladin maintains 2010 guidance of 6.6 million pounds of the uranium material.

Blackmont is more conservative, estimating about 6 million pounds in 2010, but maintains an Outperform rating with a C$5 price target.

Comments

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paladin always sets the bar too high & kills themselves.somebody over there doesn't know what makes the markets happy !!!!! they never heard the quote : UPOD (Under Promise, Over Deliver).they are doing themselves absolutely nothing by trying to reach unatainable goals but hurt their stock price.the uranium sector is in a huge doldrum that will not move for many years.Wall St. took investors money in 2007 & 2008 so there's no need to put money back into this sector anytime soon..No matter what Paladin accomplishes in the next few years, their stock price & all the other uranium companies are going nowhere.THE ONLY COMPANIES WHO'LL DO WELL ARE THE TAKE=OUT TARGETS.BUT THE ONLY WAY TO BECOME A TAKE-OUT TARGET IS TO BEAT ESTIMATES, NOT ALWAYS MISS TARGETS & GIVE EXCUSES !!!!!!! FINALLY, the market wants your company news before the market opens, not during the secession.....this way if it's good news, they'll be the first ones in pushing your stock price up and to rest of the small investors will follow.....HELLO PALADIN, do you have people that understand basics 101 WALL ST. ???

Aug 03 05:46 PM