Paladin Energy Ltd plans to sell shares to institutions after the conclusion of talks to sell a stake in the company's Langer Heinrich mine located in Namibia. The planned sale was mentioned after seeing the low prices for nuclear fuel. Paladin plans to sell its stock to institutional investors targeting at least 15% of the company's issued equity capital to strengthen company funding. Paladin currently has a market value of AUD837 million or an estimated US$746 million. The 10% stake in the Langer Heinrich mine was valued at US$111 million.
Analyst at Phillip Capital Ltd, Andrew Shearer said, "This leaves a question mark over their balance sheet. The decision to terminate the asset sale is contrary to the company's guidance that the process was continuing well and heading toward a conclusion."
Paladin's cash position plummeted to US$78.1 million as of June 30, comparing this with the US$112.9 million that was reported at the end of the previous quarter. Paladin planned on using the proceeds from the sale to reduce the company's debt and to bolster its balance sheet.
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