ASX-listed African uranium producer Paladin Energy is looking to bring in partners to speed up work on its global portfolio of development projects.
ASX-LISTED African uranium producer Paladin Energy is looking to bring in partners to speed up work on its global portfolio of development projects.
The Perth-based group revealed in an investor briefing yesterday that it had eight ''genuine inquiries'' from potential joint-venture partners and it was a ''reasonable aim'' to have something finalised by the end of the calendar year.
But the prospect of big-spending joint-venture partners picking up the pace on the development of Paladin's uranium deposits beyond its present two African mines failed to excite the market.
Shares in the company weakened 3.5? to $1.99, continuing the slide from the $5 a share that Paladin commanded before investor confidence in uranium stocks was undermined by the partial meltdown at Japan's Fukushima nuclear power plant in March.
Paladin managing director John Borshoff told the investor briefing that introducing joint-venture partners to fund new developments would achieve growth in a much less costly manner. ''This program of monetising some of our non-producing projects with third-party engagement for minority interest[s] was always on our agenda,'' he said.
''We are positioned to make Paladin a partner of choice and this is reflected in the interest and the intensity of discussions we are having.''
Mr Borshoff said that while uranium prices had weakened following Fukushima, the future of the global nuclear power industry was assured. The effect of Fukushima on demand would be minimal, he said.
Demand for uranium would be driven by nuclear programs in China, Korea, India, Russia and the Middle East.
Mr Borshoff said Japan itself would take a ''pragmatic approach'' and return to nuclear to reduce its ''vulnerability and risky exposure'' to energy supplies.
Paladin's executive general manager of marketing, Dustin Garrow, tipped in the briefing that uranium prices were set to rise. ''Over the last three or four weeks, we've started to see a noticeable increase in interest in the term market, both in formal requests as well as off-market inquiries,'' Mr Garrow said.
Frequently Asked Questions about this Article…
What is Paladin Energy's plan to speed up development of its global projects?
Paladin plans to bring in joint-venture partners to help fund and accelerate work on its global portfolio. Management says the program will monetise some non-producing projects by selling minority interests to third parties rather than funding all developments themselves.
How much partner interest has Paladin received and when could deals be finalised?
At an investor briefing Paladin said it had received eight 'genuine inquiries' from potential joint-venture partners and described it as a reasonable aim to have something finalised by the end of the calendar year.
How would joint ventures affect Paladin's development costs and growth?
Bringing in joint-venture partners would allow Paladin to fund new developments in a much less costly way, letting partners shoulder a portion of the spending while Paladin retains minority interests and accelerates growth.
How did the market react to Paladin's partner strategy news and what happened to the share price?
The market reaction was muted: Paladin shares weakened about 3.5% to $1.99, extending a slide from around $5 a share that followed the loss of investor confidence after the Fukushima nuclear accident.
What effect did the Fukushima accident have on Paladin and uranium stocks?
The partial meltdown at Japan's Fukushima nuclear plant undermined investor confidence in uranium stocks and led to weaker uranium prices, contributing to Paladin's share price decline from earlier levels.
What is Paladin management's outlook on long-term uranium demand?
Paladin's management says the long-term future of the global nuclear power industry is assured and that Fukushima's effect on demand will be minimal. They expect demand to be driven by nuclear programs in China, Korea, India, Russia and the Middle East.
Will Japan return to nuclear power and how does that affect uranium demand?
According to Paladin's managing director John Borshoff, Japan is likely to take a 'pragmatic approach' and return to nuclear power to reduce energy vulnerability, which supports the case for ongoing uranium demand.
What did Paladin's marketing chief say about the uranium price outlook and market interest?
Paladin's executive general manager of marketing, Dustin Garrow, said uranium prices appear set to rise. Over the prior three to four weeks he had noticed a noticeable increase in interest in the term market, including both formal requests and off-market inquiries.
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