Uranium miner Paladin Energy at nearly 2-year low after production outlook withdrawal
Shares of Australia's Paladin Energy slid on Wednesday to their lowest point in nearly two years after the uranium miner withdrew its production forecast for fiscal 2025, citing operational disruption at its flagship mine in Namibia.
The temporary operational halt at Langer Heinrich Mine (LHM) was caused by a "one-in-fifty-year rainfall event," the company said.
In early trade, the ASX-listed shares of the miner dropped 9.1% to A$5.81, marking their lowest levels since May 2023 and making them the worst-performing stock in the benchmark index.
The weather conditions in Namibia led to short-term disruptions including transportation difficulties, restricted feed to the crushers and excess surface water limiting safe access to the processing plant, Paladin said.
"We expect Paladin's strategy to accelerate production in the second half to hold, although its start will undoubtedly be delayed further towards the end of the period," said George Ross, senior analyst, Argonaut.
The company expects to improve its production levels in the second half of the year.
Due to delays in the anticipated start of mining, Paladin now expects LHM project to fall short of the target production rate of six-million pounds by the year-end, the miner said.
Paladin holds a 75% stake in LHM, which plays a key role in its uranium production.
Paladin's revision of its production forecast may decrease revenue over the next few years, Ross said, adding that repair costs at the site will increase, along with a potential debt-related conditions or covenants.
Comments
Projects
Latest Multimedia
Latest News
Showroom
Rooted in the hearts of South Africans, combining technology and a quest for perfection to bring you a battery of peerless standing. Willard...
VISIT SHOWROOM
Immersive Technologies is the world's largest, proven and tested supplier of simulator training solutions to the global resources industry.
VISIT SHOWROOM
Press Office
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation
