The Paladin Energy Ltd (ASX: PDN) share price has been trickling downwards recently.
Based on its current price of 78 cents, Paladin shares have dropped by 15.76% in a month. Within that time, the Aussie miner has given a number of updates on its uranium operations to shareholders.
Want to know what’s going on? Let’s dive in…
Here’s the latest on the Paladin share price
Last Friday, Paladin was one of the three most highly traded ASX 200 shares. The day before that, the company released its latest investor presentation.
In it, the company reported a cash position of US$38 million (as of 31 December 2021) with no corporate debt. The miner says this will allow it to extend its marketing potential.
Paladin was most concerned with updating investors on its West African uranium project — the Langer Heinrich Mine (LHM) in Namibia.
Plans are now in place to recommence operations at LHM — “a globally significant, long-life operation” — after pressing pause in 2018 due to low uranium prices.
There is no set date as yet for recommencing. The miner is looking for self-funded options to commence early works this year.
Comment from management
According to Paladin, uranium already accounts for 20% of electricity generation in the US and 25% in the European Union.
With demand growing for the “reliable baseload power source”, Paladin is passionately aiming to maximise the value of its 75% stake in LHM, and to process and export its explorations.
It has already signed an offtake agreement with CNNC Overseas Uranium Holdings Limited (a subsidiary of China National Nuclear Corporation) for 25% of its future production, and is looking for more customers.
Commenting on its December quarterly activities, Paladin CEO Ian Purdy said:
The Restart Plan Update is the conclusion of an extensive work stream that has reinforced our confidence in Langer Heinrich as a low-risk, robust, long-life operation.
We continue to engage with global nuclear energy utilities to secure long term contracts to underpin the restart of Langer Heinrich and ensure the project, when restarted, will deliver significant economic benefit to all of our stakeholders.
The improving structural outlook for uranium markets and the transition towards the decarbonisation of global electricity generation provides the platform for an exciting period ahead for Paladin and I look forward to updating you on our progress.
Paladin share price snapshot
The Paladin share price grew from 24 cents to 88 cents in 2021. That 266% increase made it one of the best performing ASX uranium shares of 2021.
The company has a market capitalisation of $1.98 billion and 2.68 billion shares on issue.
The post Why has the Paladin Energy (ASX:PDN) share price tumbled 15% in a month? appeared first on The Motley Fool Australia.
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Motley Fool contributor Alice de Bruin has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
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