Shares of $Paladin Energy Ltd (PDN.AU)$ slid 18.72% to A$9.94, following the release of its quarterly activities report for the period ended 30 September 2024.
In the three months ending September 30th, the Langer Heinrich Mine in Namibia saw a 23% increase in production, reaching 0.64 million pounds (Mlb) of U3O8, compared to 0.52 Mlb in the previous quarter. The sales of U3O8 was 0.62 Mlb and this amount is significantly lower than what would be expected based on current spot uranium prices and is below the cost of production.
Paladin Energy acknowledged that they encountered some short-term operational challenges during the quarter, and these challenges impacted ore feed, recovery rate, and production volumes. And they have commenced the implementation of operational improvements aimed at addressing these issues.
According to the report, a net cash inflow of $24.6 million from financing activities, counterbalanced by cash outflows from operating and investing activities. The company's $45 million borrowing to support liquidity amid development and exploration expenses raised investor concerns, leading to the sharp decline in stock value.
Source: Paladin Energy, Tipranks
