Paladin Energy (ASX:PDN) targets production of 4.0-4.5Mlb of U3O8 in FY25

Highlights

• Paladin Energy is an independent uranium producer with portfolio of uranium exploration and development assets in Australia and Canada
• During the latest quarter, production increased at the LHM to 517,595lb of U₃O₈
• Mirae Asset Global Investments (USA) LLC has the maximum stake in the firm with a shareholding of nearly 7.19%

Paladin Energy Ltd (ASX:PDN) is an Australia-based independent uranium producer with a 75% stake in Langer Heinrich Mine (LHM), Namibia.

In the first half of the financial year 2024 (1HFY24), no operating income was recorded by PDN, while net profit after tax reached USD 61.408 million. The NPAT from continuing operations represents the reversal of an impairment charge of the current LHM ore stockpiles, which resulted in gain of USD 92.2 million. The company highlighted that around 45% of the original impaired stockpiles were processed before the LHM went into care and maintenance.

During the quarter ended 30 June 2024, production ramped up at the LHM with 517,595lb of U₃O₈ produced till 30 June 2024. The production ramp up comes after reaching commercial production in March 2024.

On 12 July 2024, the company completed its first customer shipment, and under the terms of the customer offtake agreement, advancet of USD 24.8 million was received..

A definitive agreement was inked between Paladin and Fission Uranium Corp on 24 June 2024, under which Paladin will acquire all the issued and outstanding shares of Fission.

The quarter ended with a cash balance of USD 48.9 million with undrawn debt facilities of USD 80 million.

Top 10 shareholders of PDN

The top 10 shareholders of PDN have around 45.48% shareholding in the firm, while the top four have 22.69% of the shareholding. Mirae Asset Global Investments (USA) LLC has the highest stake in the firm with a shareholding of nearly 7.19%.

Outlook

In FY25, the company expects production to ramp up at LHM and anticipates production of 4.0-4.5Mlb of U3O8 and sales of 3.8-4.1Mlb. The expected range of cost of production is USD 28-31/lb. 

The company announced that the proposed acquisition of Fission will establish a leading clean energy entity and strengthen its diversified presence across key uranium mining regions in Australia, Namibia, and Canada. The transaction is anticipated to boost scale and global profile of PDN with a TSX listing.

Share performance of PDN

PDN shares closed 5.86% lower at AUD 10.13 apiece on 28 August 2024. Over the past one year, PDN’s share price increased by 21.32%, while in the last three months, it has dropped by 35.68%.

52-week high of PDN is AUD 17.98, recorded on 22 May 2024, while 52-week low is AUD 8.10, recorded on 30 August 2023.

PDN Daily Technical Chart, Source: REFINITIV

Note 1: Past performance is neither an Indicator nor a guarantee of future performance.

Note 2: The reference date for all price data, and currency, is 28 August 2024. The reference data in this report has been partly sourced from REFINITIV.

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