Shares in Paladin Energy Limited (ASX:PDN, TSE:PDN) gained yesterday as the uranium producer’s investors applauded Japan’s latest election result.
Japan's conservative opposition, the Liberal Democratic Party, secured power over the weekend fuelling hopes the nation’s nuclear reactors may be switched back on.
CEO John Borshoff predicted a change of government would see the reactors start coming back to work in the fleet next year when speaking at Paladin’s Annual General Meeting (AGM) a few weeks ago.
The price of uranium took a hit after Japan’s earthquake, tsunami and consequent Fukushima nuclear crisis early 2011.
Paladin Energy flagged plans to cut costs last month by between $US60 million and $US80 to manage costs in the face of pricing headwinds.
Shares in Paladin Energy gained 8.4 per cent on Monday while Rio Tinto Limited
(ASX:RIO) controlled uranium producer Energy Resources of Australia Limited
(ASX:ERA) gained 5 per cent.
Paladin Energy booked a net loss of $197 million in the 2012 financial year.
