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PERTH - Budding uranium miner Paladin Resources continued its meteoric rise yesterday, with its shares hitting a record high just short of A$7.
The stock rose to an all-time session high of A$6.98 ($8.06), before pulling back to end at a record A$6.75, up A35c.
Shares in Paladin, which is now capitalised at A$3.4 billion, were fetching A1c in 2003.
The company's recent strong run has been fuelled by a rising uranium price and a recent flood at the Cigar Lake mine in Canada, which is majority owned by the world's largest uranium producer, Cameco Corp.
"Cameco's bad news is a boon for the growing gaggle of juniors that have popped up recently to cash in on uranium's resurrected fortunes," Citigroup analysts said in a client note.
Citigroup said although Cameco was yet to spell out possible start-up delays, the market had quickly formed a view there would be a shortfall in supply.
"Uranium's already rising price lifted sharply to US$60 ($90) a pound ... a clear indication that this is a medium-term supply crisis," Citigroup said.
Paladin is commissioning its flagship US$92 million Langer Heinrich mine in Namibia, which is expected to start up on December 22.
The mine will ramp up to a rate of 2.6 million pounds per annum over a 12 month period, before expanding to produce about 3.7 million pounds annually.
Paladin bought Langer Heinrich for A$15,000 in 2002 when the firm only had about A$50,000 in its treasury.
The uranium hopeful plans to increase its production profile to 7.5 million pounds a year by late 2008 after it brings its second project, Kayalekera in Malawi, online.
- AAP
