The Paladin Energy Ltd (ASX: PDN) share price is in retreat, down 3%
Paladin closed yesterday at 83 cents per share and is currently trading for 80 cents.
Below we look at the highlights from the ASX uranium explorer and producer's quarterly report for the 3 months ending 31 March.
Image source: Getty Images
What happened during the quarter?
The Paladin Energy share price is dipping after the company updated the market on its ongoing works to restart the Langer Heinrich Mine, which remained on care and maintenance during the quarter.
To that end, Paladin executed a fully underwritten $200 million institutional placement during the past quarter to fund the restart and recommence uranium production at the mine, located in Namibia.
On 31 March the company also announced a share purchase plan intended to raise another $15 million. The share purchase plan closed this past Tuesday, 26 April.
The mine restart project is slated to formally commence in July with early works activities to kick off right away. Paladin expects the mine to return to uranium production in 2024.
On other fronts, the company said it is continuing to progress with its "significant exploration portfolio" in Australia and Canada. It also continues to engage with global nuclear energy utilities.
As at 31 March Paladin Energy held cash of US$38.8 million, not including the proceeds from its institutional placement.
What did management say?
Commenting on the quarter gone by, Paladin Energy's CEO, Ian Purdy said:
With the strength of the company's existing uranium sales offtake with CNNC combined with the recent successful tender award and the continuing strong uranium market fundamentals, Paladin can now confidently work towards a formal commencement of the Langer Heinrich Mine Restart Project.
The extensive workstreams we have conducted reinforce our confidence in Langer Heinrich as a low risk, robust, long-life operation that is poised to take advantage of the improving uranium market conditions and deliver sustainable value creation for all of our stakeholders.
Paladin has an offtake agreement with CNNC Overseas Uranium Holding Limited for up to 25% of the Langer Heinrich future life-of-mine production.
Paladin Energy share price snapshot
The Paladin Energy share price was a strong performer over the past 12 months, gaining 112%. By comparison, the All Ordinaries Index (ASX: XAO) is up 4% over the past year.
