Hi Wayword,You have cited on several occasions now that the...

Hi Wayword,

You have cited on several occasions now that the Paladin team has the 'proven life-time experience' necessary to deliver the true potential of the uranium resources Summit holds, but as yet you still haven't explained your reasoning as to why this is the case. I'm not saying I necessarily disagree, but if you're going to keep stating this as though it were fact, I'm certainly curious to know why you think/feel that way. Personally I don't think producing 10 tonnes of ore from a recently opened mine in a third world country makes them overly qualified. This is the first mine Paladin has ever operated, and whilst I am sure things will go well for them, at present they are still at heart a uranium explorer. In several months time, perhaps a bit longer when production is more fully establish should they be referenced as a fully fledged producer.

With regards to Paladin's future cash flow potential, of this there can be no doubt. I do believe that presently Paladin is one of the best (if not the best) positioned company to take advantage of Uranium spot prices, as Summit is still at a minimum 3 years away from having a mine in production. That being said though, there is nothing stopping them from doing the same capital raising that Paladin did. Any company that floats on the exchange with the word "uranium" in becomes immediately oversubscribed in the current climate. A company like Summit that has proven large reserves and wants to actually turn that into production will find -zero- problems raising cash.

You also seem to imply that Summit's rise to the $5.12 mark has been solely on speculation and supported by the "very large takeover premium". Let us not forget that in the two short months alone before the takeover offer was announced, Summits price had climbed about 23%. The takeover certainly gave it a boost, but even without it, Summit's price would have reached that level in a couple of months (at most). The updated JORC, pending reversal of Labour uranium policy and then a favaourable legal outcome on the JV project have all but guaranteed that. With this history of growth in mind, it is easy to see why shareholders haven't 'jumped at the chance' to sell out for a price they will end up reaching in a short time anyway.

(On a side note; Paladin has never reached +$11 share price as you mentioned)

Speaking of hype, Paladin's own share price has benefited *substantially* from market hype surrounding Uranium and most if not all analysts agree its expensive on any pricing model. Paladin no doubt has a huge appreciation for the size and potential of the uranium resources Summit holds and has seized the opportunity to use its inflated stock to try and grab Summit. It's a smart move on PDN's part, because there is no way Paladin can afford to pay for Summit in cash.

As far as Summit shareholders worrying about some foreign company stepping in with "unknown credentials", Paladin's only credential(s) so far are starting up a new mine in a high-risk third world country which has so far achieved negligible production - yet it is US who are swept up in "hopes and dreams"?

Just some thoughts.