Paladin Resources: A Bet on Western Australia’s Uranium Mines

Let me start by saying this is a long-shot investment. It’s contingent on an election, and we all know how fickle the voting population can be.

With that out of the way, I’d like you to take a look at Western Australia (the state, not the geographical area, although they’re both basically the same.). State elections are coming up, and the polls are giving  hope to the Liberal Party. I don’t pretend to understand Australian politics, but it looks like the Liberal Party in Australia is more like the Republican Party (small government, low taxes) here in the States. Go figure.

The current party in office (the Labor Party) saw the words "radioactive metal" and flinched itself into a ban on all uranium mining, to the detriment of the state economy. Nearly 40% of the world’s known uranium reserves are in Australia, but very little of that is accessible to miners because of the "eeek! radioactive!" bans in various places across the country.

Even after 60 years of human experience with the mining of radioactive metals, the Labor Party refuses to consider lifting its ban. But the Liberal Party is open to discussions on the subject. And if the party can keep gaining in popularity, we could see a lift on the uranium mining ban in Western Australia in coming months (on the chance that the Labor Party doesn’t have to form one of those coalition governments with other parties to take office… I don’t get it, either.).

While digging around for a profit opportunity on this event, I found Paladin Resources (PALAF.PK). The company holds partial ownership in three uranium mines in other Australian states [one with Cameco (CCJ), the world's largest publicly traded uranium miner], 100% of two African uranium mines (in Malawi and Namibia) and 100% of two uranium mines in Western Australia that the government won’t let it work.

If I’m doing my math right, Paladin’s Mayingee and Oobagooma Western Australian mines represent about 27% of the company’s reserves. Together the mines have about 46 million pounds of uranium, according to Paladin’s last look at them. That’s a nice boost in production, without a lot of the time and expense that usually goes into opening a new mine.

So now would be the time to discover an interest in Australian state politics. If the Liberal Party gets into office, watch for a change in the uranium policy and consider a buy on Paladin Resources to catch the new Western Australia uranium boom.

Disclosure: none

Comments

[Diegojames]

The guys from AUSTRALIA think FOSTER'S BEER is safe and Uranium is dangerous...go figure....
Thanks for Paladin tip I am long Cameco

DIEGO

[titans]

I've owned the stock for almost 3 years now & the writer of this story could not be any more on the bulls eye.Not only does WA need to kick Mr. Carpenter out of office (govt's lack of action caused huge gas explosion there 2 months ago which crippled the state), Queensland needs to change their no uranium mining as well.Paladin Resources has operations there as well when they bought Summit Resources last Spring for 1 billion dollars.The partnership with Cameco is in the northern territory.The demand/supply situation for uranium reserves is in huge favor for the miners.Something like 85% of the uranium coming out of the ground is generated by only eight companies--and one of those companies is Paladin Resources.By far the company with the highest growth potential out of the 8 companies is Paladin Resources.Once these ridiculous uranium mining bans are lifted in WA & Queensland (possibly shortly), uranium companies who have production now & in the near future will benefit greatly, and Paladin Resources is one of a very select few............

[titans]

Company's name has been changed to : Paladin Energy !!!

[paulk8756]

Fascinating post.

I didn't know there was another political subdivision besides the U.S. that was so backward in the exploration and production of domestic energy.

You learn something new every day.

[M33]

Both Australian Federal or State Labour or Liberals are not opposed to uranium mining, other then WA and Queensland State Labour parties, yet they are supporting dirty coal 100%, it's time to kick them both out.
and let Paladin produce uranium for clean energy around the world.

[titans]

The big election is happening Sept. 6th in Australia.The Liberal party is gaining ground quickly in WA where that puppet master Carpenter is now in control.He's the guy who's wrapped around the coal industries dirty fingers or for a better phrase: they have him in their back pocket.If the Liberal party wins, Carpenter's out & FINALLY uranium mining will happen in WA.....Uranium mining stocks will explode (Paladin Energy) and our enviroment will start to use a MUCH BETTER burning energy source for the atmosphere and use less dirty coal.......THE LIBERAL PARTY HAS TO WIN THE ELECTION ON SEPT. 6TH IN WA...................