Australia’s Paladin Energy (ASX: PDN) is expected to produce 8 -8.5 million pounds this financial year, and expects a supply shortage post 2013-2014. However, the company suggests that the price would need to double or triple from here to between US$80/lb to US$120/lb to incentivise new production. That would certainly help Paladin, which has average costs of US$45/lb. No wonder the company has flagged a potential sale of 15-20% of one of its two African mines, as it tries to cut its debts from US$673 million.
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