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Paladin Energy (ASX:PDN) has dropped -8.2% on Wednesday after releasing its September quarterly as costs went up, uranium produced and sold dropped, and CapEx all increased in Q1FY27 vs Q4FY26.
While the average realised price climbed some US$9/lb, that wasn’t enough to offset investors’ concerns around the other metrics, with the cost of production jumping US$10/lb in Q1FY27 vs Q4FY26 – in other words, making meaningless the jump in realised price.
As part of the increase in average realised price, Paladin noted on Wednesday that was due to both higher uranium prices on the global market and “a higher proportion of market-related sales.”
Paladin sold 1.35Mlb of U3O8 in Q4FY26 versus 1.16Mlb in the first quarter of FY27. That said, the company reported cash and investments of US$209M a/a Sept 30 (~A$300M) and “an undrawn US$70M” credit facility.
The company on Wednesday re-affirmed FY2027 guidance for the Langer Heinrich Mine even despite production being hit by a planned shutdown and pit transition.
The company expects production to increase in 2HFY27. But it appears that for many investors, that’s not good enough right now. Of concern to some investors on the HotCopper forums was also that the company burned through US$50M of cash in the last three months.
Within Canada we have seen progress across a range of activities with the highlight being the signing of the MBA with Birch Narrows Dene Nation, representing our third agreement of this type with Indigenous Nations. The Administrative Protocol with the CNSC provides further reassurance regarding our pathway to a Construction Licence for the PLS Project, while exploration drilling continues to build confidence about the prospectivity of our landholdings at the Project.
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