Latest Research

Paladin Energy (PDN) - Plan B - Risks Remain High

Paladin Energy Logo

Paladin Energy (PDN) announced an alternate balance sheet restructure which includes selling its remaining 75% interest in the Langer Heinrich Mine (LHM) to China National Nuclear Corporation (CNNC). The key differentiators to the previous restructure are; no debt for equity to repay CB holders and the repayment of Électricité de France’s (EdF) ~US$273m security held over PDN’s assets. As a result, the Company would emerge as a uranium developer with a long tern sales contract (LTSC) with EdF valued anywhere between US$140-210m and ~US$188m in Convertible Bonds (maturing 2022). PDN aims to negotiate the LTSC “to remain on foot on terms acceptable to EDF”. If successful, we believe the LTSC could be monetised to repay the majority of the residual CBs. PDN also announced financials for the nine months to March 31 2017 with revenue of US$69m, underlying EBITDA of US$5m and a net attributable loss of US$84m (vs US$122m, US$16m and US$39m respectively for the corresponding period in 2016). Cash at March 31 was US$22m. Sell maintained with a $0.06 target price.

To access our review of Paladin Energy please log in under the Client Area Log In at the bottom of this page.

Argonaut’s Client Area allows you to view delayed share prices, access Argonaut’s wealth of Research as well as create custom portfolios and set up company watch lists.

If you would like to access our research please contact us to create an account.

Perth:
This email address is being protected from spambots. You need JavaScript enabled to view it.
+61 8 9224 6888

Hong Kong:
This email address is being protected from spambots. You need JavaScript enabled to view it.
+852 3557 4888

 



Google+