The Paladin Energy Ltd (ASX: PDN) share price is inching ahead on Thursday.
Shares in the uranium producer are up 1.33% to 76 cents following the release of its latest quarterly report. The increase brings its one-year performance to more than 18%, compared to the benchmark’s 9.2%, as shown below.
Sturdy quarterly report nudges Paladin Energy shares
Here’s a high-level review of events for Paladin during the June ending quarter:
- Langer Heinrich mine restart remains on track
- The restart project is at approximately 60% completion
- Independent non-executive director Lesley Adams appointed
- Cash expenditure of US$21.7 million during the quarter
- Cash and cash equivalents of US$126.2 million at the end of the quarter
What happened during the quarter?
The Paladin team continued their work on bringing the Langer Heinrich uranium mine back to life throughout the quarter. Works are still on schedule and on budget for its first production in the first quarter of 2024.
Moving closer to kicking the Namibia site back into action, Paladin successfully ramped personnel to more than 1,000. Critical materials are now on the ground, including delivery of the Hydrosort classifier, structural steel, and prefabricated tanks.
According to the report, Paladin now has six offtake contracts across the US, Europe and China. These contracts vary in terms. However, management maintains it has kept ‘significant upside exposure to strengthening uranium market fundamentals’.
The Paladin Energy share price suffered a swift fall of nearly 20% in late May. The knee-jerk reaction followed word the Namibia Government was possibly toying with the idea of nationalising mines within the country.
Paladin entered a trading halt and responded to these concerns. The release clarified that the Namibia Ministry of Mines and Energy did not intend to introduce legislation to affect Paladin’s ownership of the Langer Heinrich mine.
Management commentary
Paladin CEO Ian Purdy highlighted the further progress made on the Langer Heinrich mine during the quarter, stating:
During the quarter critical plant and equipment was delivered to site, where our on-site project execution team, and over 1,000 contractors, are actively engaged in returning the Langer Heinrich Mine to production.
The project remains on time and on budget with first production targeted for Q1 CY2024. With a strong uranium contract book and a world-class asset in the Langer Heinrich Mine, Paladin remains well-positioned to deliver long-term value for our stakeholders.
What’s next for Paladin Energy shares?
To no surprise, Paladin plans to be head down further progressing the restart project over the next three months.
Works will entail the installation of the dust collection system, installation of the Hydrosort and cyclones, and commencement of the final product recovery building construction — among other activities.
The company held US$126.2 million in cash at the end of the quarter. Importantly, Paladin management has instilled confidence that it may reach its first production without additional capital raises, potentially avoiding further dilution of Paladin Energy shares.
