Paladin Energy Limited (ASX: PDN) is an Australian based energy company which is being traded on six stock exchanges around the world including the Australian stock exchange. PDN is engaged in the production of uranium through its assets located in Africa, Australia, and North America.
In Africa, the company is operating in two mines. The Langer Heinrich Mine (LHM) situated in Namibia has a production capacity of 5.0Mlb per annum with total resources and reserves of 123.5Mlb and 86.6Mlb respectively. The Kayelekera Mine (KM) in Malawi has a production capacity of 3.3Mlb U3O8 with total resources and reserves of 31.3Mlb and 14.0Mlb.
In Canada, PDN has a 50% interest in the Michelin Project in Central Mineral Belt (CMB) of Labrador, Canada with an option to increase its ownership to 75%. It is expected to hold a total resource of 127.7Mlb of uranium.
In Queensland, Australia, the company has interests in 3 projects, the Valhalla North Project (VNP), the Isa Uranium Joint Venture (IUJV), and the Mount Isa North Project (MINP), which includes ten deposits containing 148.3Mlb U3O8 of which 76.3Mlb is concentrated in the VNP.
In Western Australia, the company holds 100% interest in the Manyingee Project consisting of 41Mlb U3O8 across two deposits.
PDN also owns 100% of Summit Resources Limited (previously 82.08%) after completing the acquisition on 16 November 2018.
Today, the company has announced the updates over its quarterly activities for the period ending December 2018. For the quarter ending December 2018, PDN reported total sales of 475,000lb U3O8 at an average selling price of US$31.41/lb (vs. average spot price of US$28.57/lb) generating gross sales revenue of US$14.9 million.
The KM achieved 1,640 Lost Time Injury (LTI) free days for ~2.44 million-man hours whereas no LTI was reported at the LHM during the quarter.
PDN is planning to restart the LHM for which it has started with the concept study which will be followed by a pre-feasibility study. It will examine opportunities for improvements and explore the potential of the recovery of vanadium as a by-product. The pre-feasibility study is expected to be completed in 2019. For KM, no water treatment was carried out during the quarter, and it remains on care and maintenance.
As at 31 December 2018, PDN reported cash and cash equivalents of US$44.1million which included restricted cash of US$11.1 million with an increase of US$13.5 million from US$30.6 million at 30 September 2018.
During the December quarter, the company has only undertaken the work required to meet minimum tenement commitments
Looking at Paladin Energy Limited’s stock performance and the return it has posted over the last few months, the stock has generated a negative return of 5.41% during the past three months. It is currently trading at AU$0.170 (as on 17 January 2019, 15:45 AEST) with a plunge of 2.857 % in the price during the day’s performance. The company has ~1.75 billion shares outstanding with the market cap of circa AU$306.61 million. Its 52-week high and low are marked at AU$0.260 and AU$0.105 respectively.
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