Paladin Energy Ord Shs PALAF

RE: Why the pullback?

[davidy]

The Valhalla takeover did catch me by surprise, but SXR is proceeding with their Honeymoon project in Australia so I wouldn't assume that progress on developing other uranium deposits is not likely. The Valhalla and Skal deposits are, however, in Queensland and the Australian Labour Party were recently returned to office there. The Labour Party is, however, a "Labour" rather than a so-called "Green" party. There is speculation that Trade Unions related to the mining industry may lobby the Labour Party in Queensland to reverse its opposition to U mining. If that occurs, the Valhalla deposit will be developed. When its producing, I don't expect Summit Resources to be a 50% partner with Paladin. IMHO, my speculation only, Paladin will either try to go for outright control or another player will come in. I am comfortable that this could be years away as Paladin has plenty of other irons in the fire. (Summit is on my watch list.) I remain long on Paladin and excited at the development and start-up of the Namibian and Malawian mines. Even though U3O8 spot is at $53.25, I am bullish that we shall see a further significant rise.