Paladin Energy's response to ASX inquiry

Paladin Energy (ASX:PDN), a leading Australian uranium producer, has responded to an inquiry from the Australian Securities Exchange (ASX) regarding fluctuations in its share price. The inquiry was prompted by a notable drop in PDN's share price and increased trading volumes after the release of their September 2024 Quarterly Report.

Paladin Energy's strategic outlook

Paladin Energy has addressed various operational updates and challenges at its Langer Heinrich Mine (LHM) that have recently influenced its market performance. The company is actively working on process improvements and addressing variability in ore grades and water recovery issues. Although these operational factors have caused some fluctuations in production, Paladin has emphasized that they are routine and not expected to materially impact its securities. The company attributes the recent share price volatility to its planned acquisition of Fission Uranium Corp. and increased short-selling activity within the uranium sector. Looking ahead, Paladin remains confident in achieving its production target of 6 million pounds of uranium by the end of 2025, underscoring its resilience and strategic focus in the global uranium market.

Paladin Energy's executive commentary

Paladin began implementing operational and process design improvements at LHM during its ramp-up phase. These improvements are a part of routine activities to optimize the production process. The company does not consider these improvements to have a material effect on the price or value of its securities. The company experienced variability in the grade of stockpiled ore processed, resulting in a lower feed grade than anticipated for the quarter. They believe this variability is not expected to materially affect the company's securities. The delay was due to unavailable spare parts, but the circuit was commissioned by July 2024. This delay did not significantly impact production. Lower than anticipated water recovery from tailings storage necessitated adjustments to the plant's water balance, affecting recoveries. Paladin is optimizing its deposition strategy and believes this issue does not materially impact securities. Flow variability was identified due to minor constraints in the CCD circuit. Debottlenecking projects are underway to address this. The company does not expect this to have a material impact. A planned shutdown for further improvements and maintenance is scheduled for November 2024. Such shutdowns are routine and were accounted for in production guidance. Paladin attributes recent share price volatility to its proposed acquisition of Fission Uranium Corp. and increased short-selling in the sector. Despite challenges, Paladin expects to meet its production target of 6 million pounds of uranium by the end of CY2025. Paladin confirms compliance with ASX Listing Rules and that the responses were authorized by its Board.