A $215m equity raise was launched to support the restart of Paladin’s ‘globally significant’ Langer Heinrich Mine in Namibia.
$215m placement plus a share purchase plan to raise up to $15m
Offer price of 72 cents (8.9% discount to last traded price)
Represents 11.1% of existing Paladin shares on issue
The placement proceeds will be used for:
Restart capital of $116m
Working capital and fees of $99m
Paladin has already kicked off early works including the mobilisation of key staff and ordering of long lead time capital equipment. The company expects a formal restart project to launch in July 2022.
The Langer Heinrich Project is expected to hit commercial production status in 2024.
Paladin Energy received a uranium sales tender award to supply a North American utility company up to 2.1m lb of uranium over a 6-year period.
Paladin does not consider the tender amount to be material in the context of Langer Heinrich's overall production profile. However, considers the tender a sign of "continuing strong uranium market fundamentals."
The pricing for the tender will be based on an agreed US$ base price per lb plus a range of other considerations.
Earlier this month, Bell Potter released a note describing Paladin as the "largest and most liquid exposure to uranium on the ASX."
The broker held a "Speculative Hold" rating for the stock with a 96 cents target price.
Further upside drivers include resource expansion, extending Langer Heinrich's mine life and/or materially higher uranium prices.
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