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Paladin Energy Ltd (AU:PDN)
ASX:PDN

Paladin Energy Ltd (PDN) AI Stock Analysis

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AU

Paladin Energy Ltd

(Sydney:PDN)

45Neutral
Paladin Energy Ltd's overall stock score reflects significant financial challenges, particularly in revenue generation and cash flow management. While the earnings call highlighted positive operational progress and strategic acquisitions, the technical indicators suggest weak market momentum. The negative P/E ratio remains a concern for valuation, although operational achievements in production and recovery rates offer some optimism for future performance.

Paladin Energy Ltd (PDN) vs. S&P 500 (SPY)

Paladin Energy Ltd Business Overview & Revenue Model

Company DescriptionPaladin Energy Ltd (PDN) is an Australian-based uranium production company that operates in the mining and energy sectors. It is primarily focused on the exploration, development, and operation of uranium mines, with its flagship project being the Langer Heinrich Mine in Namibia. The company aims to supply the global nuclear power industry with uranium, contributing to clean energy solutions worldwide.
How the Company Makes MoneyPaladin Energy Ltd makes money through the extraction and sale of uranium, which is primarily used as fuel for nuclear power plants. The company's revenue model revolves around mining uranium ore, processing it into uranium oxide concentrate, and selling it to utility companies and other entities involved in nuclear energy production. Key revenue streams include long-term supply contracts with energy companies, spot market sales, and strategic partnerships with other mining and energy firms. Factors contributing to its earnings include uranium market prices, production efficiency, and the operational status of its mining projects.

Paladin Energy Ltd Financial Statement Overview

Summary
Paladin Energy Ltd is facing significant financial challenges characterized by a lack of revenue generation, persistent net losses, and cash flow difficulties. While the balance sheet shows some positive aspects in terms of equity, the negative trends in cash flow and income suggest that the company needs to address its operational inefficiencies and improve its financial performance to ensure long-term sustainability.
Income Statement
―
Paladin Energy Ltd shows significant challenges in its income statement with no revenues in recent years and consistent negative gross profits. The company has experienced substantial net losses, although there is a notable improvement in net income for 2024. The absence of revenue hinders the calculation of key profitability metrics like gross and net profit margins.
Balance Sheet
40
The balance sheet reveals a reasonably strong equity position with stockholders' equity consistently exceeding total debt, reflected in a moderate debt-to-equity ratio. However, the company has experienced a decline in cash reserves over recent years and a consistent increase in debt levels, which may present liquidity concerns if not managed effectively.
Cash Flow
―
The cash flow statement indicates ongoing negative free cash flow, highlighting cash outflows surpassing inflows, especially due to negative operating cash flow. Although capital expenditures are relatively low, the company's cash burn rate remains concerning, with a substantial negative operating cash flow to net income ratio, indicating inefficient cash management.
Breakdown
Jun 2024Jun 2023Jun 2022Jun 2021Jun 2020
Income StatementTotal Revenue
0.000.006.48M4.00M0.00
Gross Profit
-14.72M-9.15M-25.66M-24.61M-36.07M
EBIT
-36.29M-12.23M-37.27M-36.25M-20.91M
EBITDA
119.83M-14.55M-11.60M-10.46M202.00K
Net Income Common Stockholders
81.84M-10.57M-36.88M-58.96M-79.87M
Balance SheetCash, Cash Equivalents and Short-Term Investments
48.86M126.64M258.95M42.17M34.24M
Total Assets
621.78M473.05M699.48M481.07M364.40M
Total Debt
167.35M90.49M115.60M92.68M237.25M
Net Debt
118.49M-36.15M-143.35M50.51M203.01M
Total Liabilities
223.97M137.96M178.26M152.45M271.40M
Stockholders Equity
471.79M407.57M600.64M377.25M153.39M
Cash FlowFree Cash Flow
-65.42M-12.02M-11.00M-66.29M-12.77M
Operating Cash Flow
-48.12M-9.38M-9.37M-64.79M-11.48M
Investing Cash Flow
-94.65M-35.79M16.49M-2.96M-307.00K
Financing Cash Flow
65.92M85.00K217.04M58.94M19.72M

Paladin Energy Ltd Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price6.53
Price Trends
50DMA
5.79
Positive
100DMA
7.00
Negative
200DMA
8.48
Negative
Market Momentum
MACD
0.23
Negative
RSI
63.55
Neutral
STOCH
91.85
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:PDN, the sentiment is Neutral. The current price of 6.53 is above the 20-day moving average (MA) of 5.26, above the 50-day MA of 5.79, and below the 200-day MA of 8.48, indicating a neutral trend. The MACD of 0.23 indicates Negative momentum. The RSI at 63.55 is Neutral, neither overbought nor oversold. The STOCH value of 91.85 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for AU:PDN.

Paladin Energy Ltd Peers Comparison

Overall Rating
UnderperformOutperform
Sector (56)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
AUBXB
75
Outperform
$28.77B22.9626.45%2.82%3.86%―
AUILU
73
Outperform
$1.72B7.5910.39%1.93%-9.35%-32.77%
56
Neutral
$6.91B3.46-4.86%5.95%0.08%-49.21%
AUS32
54
Neutral
£12.77B55.78-3.53%3.79%-19.74%―
AUMIN
48
Neutral
AU$4.07B50.78-33.95%4.54%2.22%-411.10%
AUPDN
45
Neutral
$2.43B28.42-1.76%――-119.85%
AUERA
34
Underperform
$608.09M―
――88.27%
* Energy Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:PDN
Paladin Energy Ltd
6.53
-10.01
-60.52%
AU:ILU
Iluka Resources Limited
4.11
-3.45
-45.62%
AU:S32
South32
2.82
-0.72
-20.38%
AU:MIN
Mineral Resources Limited
20.74
-56.38
-73.11%
AU:ERA
Energy Resources of Australia Class A
0.01
>-0.01
-28.57%
AU:BXB
Brambles
21.16
7.28
52.39%

Paladin Energy Ltd Earnings Call Summary

Earnings Call Date:Feb 25, 2025
(Q2-2025)
|
% Change Since: -10.43%|
Next Earnings Date:Aug 22, 2025
Earnings Call Sentiment Positive
The earnings call was largely positive, with significant achievements such as record production volumes, improved recovery rates, and a successful acquisition. However, there were some challenges, including water supply disruptions and variability in stockpile ore grades. The company's progress in both production and strategic acquisitions outweighed the challenges discussed.
Q2-2025 Updates
Positive Updates
Record Production Volume
December 2024 recorded the highest monthly production volume since the restart of commercial production in March 2024.
Improvement in Recovery Rates
Recovery rates improved from 69% in Q1 to 88% in Q2, sustained throughout the quarter.
Successful Acquisition of Fission Uranium
Acquisition of Fission Uranium Corporation was completed on December 24, and the company was listed on the Toronto Stock Exchange on December 27.
Strong Safety Performance
TRIFR sits at 4.1 per million hours worked, under the target of 5.
Successful Execution of November Shutdown
The shutdown in November was executed on time, contributing to operational improvements.
Positive Cash Flow
The operation was cash positive for the first half of the year, benefiting from low-cost stockpile processing.
New Contract Signed
A new offtake agreement was signed, bringing the total to 11 contracts.
Negative Updates
Water Supply Disruptions
Minor disruptions due to sulfur blooms affecting the NAM Water supply occurred in January.
Variability in Stockpile Ore Grade
There is ongoing variability in the grade of stockpile ore, impacting the consistency of processing.
Challenges in Mining Phase Transition
Efforts to bring mining forward from the planned July start date are ongoing, with several logistical challenges to address.
Company Guidance
During the Paladin Energy quarterly results call on January 21, 2025, the company provided robust guidance, highlighting several key metrics. The company reported a production volume of 639,000 pounds for the quarter, despite a planned shutdown in November, and achieved a December production milestone of 308,000 pounds. The guidance for the fiscal year 2025 remains on track with a target range of 3 million to 3.6 million pounds. A significant improvement in recovery rates was noted, increasing from 69% in the first quarter to 88% in the second quarter. The total recordable injury frequency rate (TRIFR) was reported at 4.1 per million hours worked, under the target of 5. Additionally, the successful acquisition of Fission Uranium Corporation was completed, marking a strategic milestone for the company.

Paladin Energy Ltd Corporate Events

JPMorgan Increases Stake in Paladin Energy, Signaling Confidence in Uranium Sector
May 1, 2025

JPMorgan Chase & Co. and its affiliates have increased their voting power in Paladin Energy Ltd from 6.32% to 7.35%, indicating a growing interest in the company’s operations. This change in substantial holding could impact Paladin Energy’s market dynamics and influence its strategic decisions, reflecting JPMorgan’s confidence in the company’s potential growth and stability.

Paladin Energy Reports Mixed Cash Flow Results for March 2025 Quarter
Apr 22, 2025

In its latest quarterly cash flow report, Paladin Energy Ltd reported a net cash outflow from operating activities of $17.732 million, despite receiving $25.057 million from customers. The company experienced significant cash outflows in production and staff costs, which impacted its operating cash flow. However, Paladin saw a positive net cash flow from investing activities amounting to $24.287 million, largely due to proceeds from the disposal of investments and the acquisition of Fission Uranium Corp. The company’s financing activities resulted in a net cash outflow of $6.750 million, primarily due to the repayment of borrowings.

Paladin Energy Faces Class Action Lawsuit
Apr 16, 2025

Paladin Energy Ltd has been served with a class action lawsuit in the Supreme Court of Victoria, alleging misleading representations and a breach of continuous disclosure obligations between June and November 2024. The company intends to vigorously defend itself against these claims, as authorized by its Board of Directors.

Paladin Energy Announces Quotation of New Securities on ASX
Apr 11, 2025

Paladin Energy Ltd has announced the application for the quotation of new securities on the Australian Securities Exchange (ASX). This move involves the issuance of 872 ordinary fully paid securities, which are part of an employee incentive scheme. The announcement signifies Paladin Energy’s ongoing efforts to enhance its financial structure and incentivize its workforce, potentially impacting its market position and stakeholder interests positively.

JPMorgan Reduces Stake in Paladin Energy
Mar 28, 2025

JPMorgan Chase & Co. and its affiliates have reduced their voting power in Paladin Energy Ltd from 8.74% to 6.32%, as detailed in a recent notice of change of interests. This adjustment in holdings could impact the company’s shareholder dynamics and influence its market positioning, potentially affecting investor confidence and strategic decisions.

Paladin Energy Issues New Performance Rights to Employees
Mar 28, 2025

Paladin Energy Ltd announced the issuance of 40,000 performance rights under an employee incentive scheme, which are not intended to be quoted on the ASX. This move is part of the company’s strategy to motivate and retain key personnel, potentially impacting its operational efficiency and market competitiveness.

Paladin Energy Announces Change in Substantial Holder Interests
Mar 28, 2025

Paladin Energy Ltd has announced a change in the interests of a substantial holder, State Street Bank and Trust Company, which involves a significant number of ordinary shares. This change in voting power and relevant interests could impact the company’s governance and decision-making processes, potentially influencing its market positioning and stakeholder relations.

FMR LLC Ceases to be Substantial Holder in Paladin Energy
Mar 26, 2025

Paladin Energy Ltd has announced that FMR LLC and its associated entities have ceased to be substantial holders in the company as of March 24, 2025. This change in substantial holding is a result of multiple sales of common stock by FMR LLC, which could impact Paladin Energy’s shareholder structure and market perception.

JPMorgan Increases Stake in Paladin Energy
Mar 26, 2025

JPMorgan Chase & Co. and its affiliates have increased their voting power in Paladin Energy Ltd from 7.47% to 8.74% by acquiring additional ordinary shares. This change in substantial holding indicates a growing interest and confidence in Paladin Energy’s operations and potential, which could have implications for the company’s market positioning and stakeholder interests.

Paladin Energy Substantial Holder Interest Update
Mar 23, 2025

Paladin Energy Ltd has announced a change in the interests of a substantial holder, State Street Bank and Trust Company, in its voting securities. This change reflects the bank’s involvement in securities lending agreements, where it retains a relevant interest despite lending out securities. The announcement highlights the bank’s significant voting power in Paladin Energy, which could influence company decisions and impact stakeholders, particularly in terms of governance and strategic direction.

Bank of America Increases Stake in Paladin Energy
Mar 18, 2025

Paladin Energy Ltd has announced a change in the interests of a substantial holder, Bank of America Corporation and its related entities, which now hold a 7.85% voting power in the company, up from 5.54%. This change reflects a significant increase in the voting shares held by Bank of America, indicating a stronger influence in the company’s decision-making process. The increase in voting power could have implications for Paladin Energy’s strategic direction and governance, potentially affecting its operations and stakeholder interests.

Paladin Energy Ltd Releases Informative Presentation on Uranium Projects
Mar 17, 2025

Paladin Energy Ltd has released a presentation dated 17 March 2025, providing general background information about the company and its operations. The presentation emphasizes that it is not an offer or financial advice and includes forward-looking statements subject to uncertainties. The company outlines its mineral resource and ore reserve estimates, prepared under different international standards, and highlights the associated risks and uncertainties in the mining industry. This announcement, authorized by the Board of Directors, aims to inform stakeholders about Paladin’s current status and future projections without guaranteeing specific outcomes.

Paladin Energy Secures Key Exemption for Canadian Uranium Project
Mar 16, 2025

Paladin Energy Ltd has been granted an exemption from the Non-Resident Ownership Policy in the Uranium Mining Sector by the Canadian Minister for Energy and Natural Resources, allowing the company to maintain its 100% ownership of the Patterson Lake South Project in Canada. This exemption is a significant step for Paladin as it aligns with its strategy to develop major uranium production assets in Canada, contributing to the company’s long-term production strategy and supporting global demand for uranium. The acquisition of Fission Uranium Corp. has further solidified Paladin’s position, with commitments to align with Canada’s national interests and strategic objectives, including the appointment of a Canadian citizen-resident as an independent director.

Bank of America Becomes Substantial Holder in Paladin Energy
Mar 16, 2025

Bank of America Corporation and its related entities have become substantial holders in Paladin Energy Ltd, acquiring a 5.54% voting power through various subsidiaries, including Merrill Lynch and BofA Securities. This acquisition signifies a strategic investment by a major financial institution, potentially impacting Paladin Energy’s market position and signaling confidence in its operations and future prospects.

Paladin Energy’s Strategic Growth and Financial Performance in H2 2024
Feb 26, 2025

Paladin Energy Ltd reported its financial results for the six months ending December 2024, highlighting the recommencement of production at the Langer Heinrich Mine and the completion of its acquisition of Fission Uranium Corp. The company produced 1.3 million pounds of uranium and generated $77.2 million in revenue, positioning itself as a major player in the global uranium market. The acquisition of Fission and the dual-listing on the Toronto Stock Exchange are seen as transformative, enhancing Paladin’s growth prospects and strategic positioning in the industry. The company aims to consolidate its status as a leading uranium producer, with a focus on operational excellence and strategic growth.

Paladin Energy Reports Revenue Surge but Posts Loss for Half-Year 2024
Feb 26, 2025

Paladin Energy Ltd reported a significant increase in revenue from uranium oxide sales, reaching $77.255 million for the half-year ending December 31, 2024, compared to no revenue in the previous period. Despite the revenue growth, the company experienced a loss after tax of $4.57 million, a stark contrast to the $61.408 million profit in the previous year. This financial performance reflects a challenging period for Paladin Energy, impacting its earnings per share and resulting in no dividends being declared.

Paladin Energy Announces Quotation of New Securities on ASX
Feb 19, 2025

Paladin Energy Ltd announced the application for quotation of 50,000 fully paid ordinary securities on the Australian Securities Exchange (ASX). This issuance under an employee incentive scheme indicates the company’s strategic move to enhance employee engagement and potentially improve its operational capabilities. The impact of this announcement may improve Paladin Energy’s market positioning by motivating the workforce and aligning their interests with that of the company, potentially leading to better performance outcomes.

Paladin Energy Secures Agreement with Clearwater River Dene Nation for PLS Project
Feb 13, 2025

Paladin Energy Ltd’s Canadian subsidiary, Fission Uranium Corp, has signed a Mutual Benefits Agreement with the Clearwater River Dene Nation (CRDN) to ensure shared economic and social benefits from the development of the PLS project in the southwestern Athabasca Basin, Saskatchewan. This agreement signifies CRDN’s support for the project and aims to establish meaningful engagement mechanisms with provincial and federal regulators as the project advances towards its permitting and licensing phases.

Paladin Energy Ltd Outlines Company Highlights and Investment Risks
Feb 12, 2025

Paladin Energy Ltd has released a presentation outlining important company information, though it is not intended as an offer or investment advice. The document emphasizes the inherent risks in investing in the mining sector and highlights forward-looking statements which may be subject to various uncertainties and risks beyond the company’s control.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.