Paladin directors make $35m paper profit

Paladin Energy Ltd managing director John Borshoff has made an instant paper profit of almost $19 million and chairman Rick Crabb almost $16.5 million, after they exercised share options in the uranium miner today.

Mr Borshoff exercised 3.7 million Paladin options at $1 per share, and Mr Crabb exercised 3.25 million options at the same price, as the company's share price reached $6.06.

The big difference between the exercise price and the current market price provided an instant paper profit to the directors.

Mr Borshoff now holds 21.6 million shares valued at $130 million and Mr Crabb holds 12 million shares worth $72 million, based on today's share price.

The men join a number of directors who have recently pocketed tidy Christmas bonuses from the exercise of share options. This includes Bannerman Resources Ltd non-executive director Nathan McMahon, who made an instant paper profit of $18 million from the exercise of 4.7 million Bannerman Resources options at $0.10 each, well ahead of their February 2009 expiry date.

Talisman Mining Ltd managing director Steven Elliott also made an instant paper profit, making $4 million yesterday after exercising 4.9 million options at $0.25, while realising $1 million cash through the off-market sale of 2.7 million shares at $0.67.

Consolidated Minerals Ltd managing director Rod Baxter has also made an instant paper profit in the past month of $3 million when he exercised one million options, which were due to expire in two years' time, at $1.94 per share.

The Consolidated Minerals share price was up to $4.83 on the exercise day, 3 December 2007.

Mr Baxter disposed his entire stake two weeks later and realised $5 million cash, as part of the takeover of the diversified miner by Ukrainian company, Palmary.

West Perth-based Heron Resources Ltd's share price was up to $1.23 this month when its executive director Ian Buchhorn made an instant paper profit of $2 million through the exercise of 3 million options at $0.24 per share.