Paladin (PDN) shares higher, working towards a restart
PDN +4.32%: the uranium company was out with a first quarter update as they work towards a restart of mining activities at their Langer Heinrich mine in Namibia. The mine has been on care and maintenance since 2018 with a subdued uranium price making it uneconomic. As MM subscribers would know, Uranium has swung back into favour recently with some recovery in spot markets and Paladin is preparing for the restart of the mine provided they land some supply contracts which is becoming more and more likely in a tightening market. They raised $218m during the quarter and sold down an $18m stake in ASX listed peer Lotus Resources (LOT) which has seen them fully repay debt and finish the quarter with $US40m in cash. This provides them with plenty of flexibility in the mine restart as well as the ability to fund continued exploration activities. While PDN remains our preferred pick in the uranium space, the current price is already factoring in a lot of upside.
