By Kumar Tanishk
(Reuters) – Shares of Australia’s Paladin Energy slid on Wednesday to their lowest point in nearly two years after the uranium miner withdrew its production forecast for fiscal 2025, citing operational disruption at its flagship mine in Namibia.
The temporary operational halt at Langer Heinrich Mine (LHM) was caused by a “one-in-fifty-year rainfall event,” the company said.
In early trade, the ASX-listed shares of the miner dropped 9.1% to A$5.81, marking their lowest levels since May 2023 and making them the worst-performing stock in the benchmark index.
The weather conditions in Namibia led to short-term disruptions including transportation difficulties, restricted feed to the crushers and excess surface water limiting safe access to the processing plant, Paladin said.
“We expect Paladin’s strategy to accelerate production in the second half to hold, although its start will undoubtedly be delayed further towards the end of the period,” said George Ross, senior analyst, Argonaut.
The company expects to improve its production levels in the second half of the year.
Due to delays in the anticipated start of mining, Paladin now expects LHM project to fall short of the target production rate of 6 million pounds by the year-end, the miner said.
Paladin holds a 75% stake in LHM, which plays a key role in its uranium production.
Paladin’s revision of its production forecast may decrease revenue over the next few years, Ross said, adding that repair costs at the site will increase, along with a potential debt-related conditions or covenants.
(Reporting by Kumar Tanishk in Bengaluru; Editing by Shreya Biswas and Sherry Jacob-Phillips)
