Paladin Energy Ltd - PALAF stock
Company Profile[edit]
Paladin Energy Limited (OTC: PALAF, ASX: PDN)) is an Australia-based Uranium exploration and mining company. Incorporated in 1993, the company develops and explores uranium deposits in Australia, Canada, and Africa. The company possesses a portfolio of uranium exploration and development property across the globe. It hugely focuses on the Langer Heinrich mine, its flagship project located in the Namib Desert. Paladin’s operations are conducted via three significant divisions: Exploration, Namibia, and Australia. The exploration division develops exploration and evaluation projects in Australia and Canada. The Namibia segment engages in the production and sale of uranium extracted from the facility located in Namibia. The Australia division oversees administration, corporate, sales and marketing, and treasury operations.[1] The firm has 100% interest in the Manyingee Project in Western Australia, which comprises two exploration licenses and three mining licenses; 100% interest in the Mount Isa project in Queensland, composing six mineral development licenses; and the Carley Bore project in western Australia, consisting of two contiguous exploration permits with granted retention status. It also holds a 70% interest in the Michelin project in Labrador. The company was known as Paladin Resources Ltd before changing its name in November 2007 to Paladin Energy Limited in November 2007. Paladin’s stocks are listed on ASX under the PDN symbol and on the OTCQX market under the PALAF ticker symbol. The company is headquartered in Perth, Australia.[2]
Corporate Business Overview[edit]
Paladin’s operations are inclined to the world's dream of achieving a green economy by producing a significant raw material used to manufacture nuclear power, a sustainable source of low-carbon electricity. The independent uranium company currently focuses on restarting production at its globally significant Langer Heinrich Mine, with actual activity expected come Q1 CY2024. The Langer Heinrich Mine is internationally recognized for its magnificent track record spanning over ten years of continuous premium uranium production.[3] The iconic tier-one asset has generated over 40 million pounds of U3O8 in the last decade and has the potential for further production approximated at 76 million pounds. The company paused production on the asset in 2018 due to eroded uranium prices. The property was discovered in 1973. In August 2002, Paladin acquired Langer Heinrich Uranium Ltd and all its assets from Aztec Resources Ltd. The company conducted a thorough study on the asset, which was summed up in mid-2020. Survey results uncovered significant uranium presence that can be extracted for 17 years at approximately 6 Mlb U3O8 annually over seven years.[4]
Exploration Projects[edit]
Michelin-Canada. Through Aurora Energy Ltd, its subsidiary, Paladin, owns a 65% interest in 52,250 hectares of mineral licenses within the Central Mineral Belt of Labrador. Paladin’s claims on the Michelin project coincide with approximately 127.7Mlb of Mineral Resources distributed across six deposits.
Manyingee-Australia. The company has 100% interest in the project. It holds two exploration licenses covering 76,520 ha and three mining licenses. It consists of 41 Mlb across two deposits. The company has invested $17.9M in the exploration and testing of the asset. The firm believes the project can be extracted in four years through in-situ recovery (ISR) uranium mining operation.
Mount Isa-Australia. The project contains 148.3 Mlb, with 115.7 Mlb across Odin, Skal, and Valhalla deposits. Paladin has six mining licenses on the property. It is the largest uranium asset in Queensland, with a potential of 5-7Mlbpa uranium.[5]
Uranium Marketing[edit]
Paladin successfully closed three uranium offtake agreements in Q3 2022 to supply uranium to central industry counterparties in the US and Europe. The company received Namibian Ministry of Mines and Energy (MME) clearance for two of the three deals and continues to push for approvals for the remaining agreements by the authority. The company is set to supply CNNC with approximately 3.4Mlb of U3O8 in 2024 and 2025 under revolutionary market rates. The firm continues engaging top-tier industry participants in the quest for more pre-production offtake agreements.[6]
Critical Corporate Information[edit]
In July 2022, the company decided to restart production in the e Langer Heinrich Mine (LHM). The project restart expenditure was estimated at $118 million, split across refurbishments, repairs, and debottlenecking activities. With robust backing from shareholders, the company consequently entered a A$215 million institutional placement and a Share Purchase Plan in the 2022 financial year. The company had US$163 million of unrestricted cash and zeroed debt as of September 30, 2022. The company has processes and systems established with diligent governance and reporting framework.[7]
Leadership[edit]
Senior Management[edit]
Ian Purdy BCom FCA FAICD, CEO
- Has experience spanning three decades in both Australian and international natural resource firms
- During tenures of his CEO and CFO roles in private and listed companies, Mr. Purdy maximized shareholder value via management and optimization activities, executing strategic business operations, and asset sales.
- He has vast capital market knowledge and experience backed by a good record of delivering institutional funding needs.
Anna Sudlow B.Com, CPA, MBA, AICD, Chief Financial Officer
- She is an esteemed CFO with over 20 years of expertise in the energy and resources industry
- Joined the company in July 2019
- She has specialized in corporate finance and funding, commercial management, and investor relations.
- Ms. Sudlow previously held the CFO role at Transborders Energy since 2017
- Holds an MBA and a Bachelor of Commerce from the University of WA and a Graduate Certificate in Applied Finance from the Securities Institute of Australia
- She is also a CPA and a graduate of the AICD
Other members of the team include Paul Hemburrow, Chief Operating Officer; Jeremy Ryan, Company Secretary, Joha; Johan General Manager - Langer Heinrich, Gary; Garyr, Principal Uranium Marketing Consultant, Jess; Jess Senior Vice President – Exploration, and Alexander Rybak, Senior Vice President – Marketing & Business Development.[8]
Sustainability[edit]
The company focuses on generating value for its shareholders through sustainable development. It is committed to providing clean, affordable, safe, and reliable energy to facilitate the global energy transition to an emission-free sustainable future. Paladin recognizes and supports resolutions of COP26 and the Glasgow Climate Pact regarding climate change, equality, and human rights.
Environment. The company protects the environment and strives to minimize the impact of its operations through continuous sustainability practice adjustments. It determined to set realistic targets for its carbon footprint reduction and environmental impact. It is also focused on implementing strategies to reduce Scope 1 and Scope 2 emission levels.
Social. Paladin values and respects all stakeholders and provides a healthy and safe environment for everyone associated with the company. It also engages local communities, listening to their concerns and contributing to their social empowerment. The firm is committed to maximizing local and regional employment opportunities for the local communities.
Governance. The company observes high ethical standards and significant integrity in its business operations. It is committed to full compliance with applicable laws and regulations. It adheres to reporting and requirements per the Modern Slavery Act 2018 (Cth).[9]
- ↑ Paladin Energy Limited Details – CNBC News. Accessed on February 27, 2023.
- ↑ PALAF Company Profile –Seeking Alpha. Accessed on February 27, 2023.
- ↑ Paladin Energy Quarterly Activities Report for the period ending December 31, 2022 - About Paladin, Page 5 - ASX Announcement. January 19, 2023.
- ↑ Paladin Energy website – Home. Accessed on February 28, 2023.
- ↑ Global Exploration and Development Assets – Paladin Energy website. Read on February 28, 2023.
- ↑ Paladin Energy Quarterly Activities Report for the period ending December 31, 2022 – Uranium Marketing, Page 3 - ASX Announcement. January 19, 2023.
- ↑ Paladin Energy Sustainable Report 2022 - Business Resilience, Page 20 – Paladin Website. Retrieved on February 28, 2023.
- ↑ Paladin Energy Leadership - Board of Directors – Paladin website. Accessed on February 28, 2023.
- ↑ Paladin Energy Sustainable Report 2022 – ESG Goals, pages 4 & 5 – Paladin Website. Retrieved on February 28, 2023.
OTC Symbol: PALAF | OTC Tier: OTCQX International
