Paladin Energy Upgrades Uranium Reserves

Paladin Energy (ASX:PDN)(TSX:PDN) has announced a doubling of its uranium reserves to 134 million pounds at its Langer Heinrich mine in Namibia.

The flagship project for the company has seen an impressive reserve upgrade because mining was carried out across the full extent of the deposit.

This provides support to Paladin Energy's plan to expand to Phase 4 of the project which involves 10 million pounds per year production. The reserve upgrade was appreciated by investors in Canada and Australia. Paladin Energy retains a secondary listing outside Australia in Canada and has recorded a net loss of $63.12 million in the 2010 financial year.

The capital position of Paladin Energy has also caught the attention of investors as besides the reserve upgrade the company also has a tranche of convertible bonds which are due to mature next year. The company will also see several institutional investors showing interest in it as per analysts in Australia.

Paladin Energy owns several mines in Australia and also owns the Kayelekera project in Malawi which recently went into commercial production. It is seen as a company with tangible assets and intangible value of great strategic importance.