Paladin shares sink as it cuts uranium output

A red rear light sits illuminated on rail trucks loaded with rocks containing uranium ore. PALADIN Energy has cut uranium oxide production guidance after running into ramp-up problems at its Langer Heinrich mine in Namibia.

The Sydney-listed firm said on Tuesday it now expected to mine one million to 1.5 million pounds (lbs) less of uranium oxide than planned owing to grade variability of stockpiled ore and water shortages at the site.

A new production forecast of between three million to 3.5m lbs of uranium oxide (compared to four million to 4.5m lbs previously) has been set by the company. All other guidance, including total costs, had been withdrawn, it added. As of October the cost of production was $44/lb compared to a $28 to $31/lb target set out in June .

Shares in Paladin fell heavily following the update, closing down nearly 29% and taking year-to-date losses to just under 32%.“Paladin […]

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