Paladin Energy shares dive on production issues, guidance cut
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More news: Shares in Paladin Energy tanked at market open on the ASX after the uranium producer cut its full-year production guidance and withdrew all other guidance, due to ongoing challenges with the ramp-up of its Langer Heinrich Mine in Namibia.
Paladin shares were down 24.5% to $7.31 by 10:30am AEDT.
Paladin Energy cuts FY25 production guidance
The news: Uranium producer Paladin Energy has slashed its full-year production guidance and withdrawn all other guidance, following lower-than-expected production in October and "ongoing challenges and operational variability" at its Langer Heinrich Mine in Namibia.
The numbers: Paladin revised down its FY25 production guidance from between 4 million and 4.5 million pounds, to 3 million to 3.6 million pounds.
Langer Heinrich's October production of 186,667 pounds was lower than planned due to "continued variability in the stockpiled ore processed" and "disruptions to the supply of water" from local water supplier NamWater.
The miner, which has a 75% interest in Langer Heinrich, said the mine is seven months into a planned 21-month ramp-up period, with the company confident of achieving its target production run rate of six million pounds per year by the end of the calendar year.
The context: Paladin noted that the increased range of potential production outcomes will have a "material impact" on the company's unit operating costs, the realised price for uranium sales, and forecast capital expenditure.
It said that a planned two-week shut-down in the second half of November will allow for improvements and operational upgrades to be be implemented at the mine.
The company said it expects production to be higher in the second half of FY25 as it works through ongoing challenges encountered in ramping up operations at Langer Heinrich.
The source: ASX announcement
