Where do you see their price received/lb @brerwallabi ?Bit of a slap on the wrist for Paladin from the ASX.
I still hold they say they remain on the production target.
From Market Matters investment blog
Not Held
ASX : PDN 29/10/2024
Paladin (PDN) – A rocky restart of the Langer Heinrich uranium mine
PDN sold off heavily after releasing their September quarter update. The market punished the stock on lower production/sales volumes, higher costs, and some negative language around the proposed Fission acquisition – in our view the extent of the reaction is unjustified.
Key takeaways from the announcement:
Paladin outlined the specific operational issues at play – primarily relating to inefficient processing of stockpiled ore. These issues look to be largely one-off which shouldn’t persist in the medium-long term. As for Fission, we see the risk of government rejection of the proposal as mostly priced in. We will continue to hold the stock in our Active Growth Portfolio & Emerging Companies Portfolio and the news today does not impact our view substantially, though we will monitor our position from a portfolio weighting perspective.
- Production volume of 640,000lbs vs. 520,000 the prior quarter… the market was looking for a number closer to 800k/lbs
- Higher costs than expected of $41.90/lb, largely due to lower production volumes
- National security review of the Fission acquisition proceeding. Both entities have made submissions thus far, with limited progress – in PDN’s words ‘there is no certainty of approval’
MM remains long and bullish PDN
- At current prices, we see this as an attractive entry point to the evolving nuclear thematic. With remembering less than 2 weeks ago the stock jumped 10%+ on news tech giants were beginning to commit to long term nuclear energy plans to support AI and cloud computing power requirements.
My SL triggered and watch a rocket mounted cat zooming..down..pastCrikey! Smashed 30% with a little buying at the bottom.
Must question management's ability to get this on track.
View attachment 187767
Same here, my stop loss around $9 was zapped past, managed to sell at 7.32 but had a 4.2k loss on shares i bought less than a month ago.BOE fell in sympathy.Ouch did not see this coming, it could be a noticeable dent in this financial year for me, hopefully the worst is over
| Paladin Energy Ltd (PDN) $7.69 |
| PDN bounced +5.5% on Monday, but it remained significantly below its May peak. The Paladin share price has plunged ~48% in the past month due to commissioning issues at the Langer Heinrich Uranium mine. We believe this has been a massive overreaction. PDN’s market capitalisation has fallen by ~$1.5bn in the past month, a massive hit, relative to the value lost implied by the downgrade – circa ~A$60m. The Paladin share price is now lower than when uranium was only US$50/lb; today, it’s over $US80 and headed toward ~$US100, in our opinion. Paladin finished the September quarter with US$55m in cash and US$55m available in undrawn loans. Despite the downgrades, PDN is expected to be free cash flow positive in the December quarter. On last week’s management call, CFO Anna Sudlow confirmed that Paladin does not need additional funding for the completion of recommissioning the mine.
|
|
|
We use cookies and similar technologies for the following purposes:
Do you accept cookies and these technologies?
We use cookies and similar technologies for the following purposes:
Do you accept cookies and these technologies?