The Paladin Energy Ltd (ASX: PDN) share price is marching higher in early trade, up 3.6%.
The ASX uranium share closed yesterday trading for 62 cents and is currently trading for 64 cents per share.
This comes after the release of Paladin's quarterly results for the three months ending 30 June.
Paladin share price gains on uranium project restart
- Paladin reported it will return its Langer Heinrich Mine, located in Namibia, to production; first volumes are targeted for Q1 2024
- Total project capital expenditure of US$118 million on a 100% project basis, an increase from previous guidance of US$87 million
- Paladin received AU$215 million proceeds (before costs) from its AU$200 million fully underwritten institutional placement and AU$15 million share purchase plan
- The company held unrestricted cash of US$177 million as at 30 June
What else happened during the quarter?
Paladin Energy announced that it had decided to restart production at the Langer Heinrich Mine based on strong uranium market fundamentals. It also reported continuing progress on its uranium marketing activities including the execution of a binding contract for uranium.
The ASX energy share said increased costs over the quarter were largely attributable to inflationary pressures across its project supply chain driving up prices, along with brought forward power and water infrastructure works and increased owners team costs.
During the three-month period, Paladin also increased its ownership in the advanced exploration Michelin Project, located in Canada to 70% from 65%.
What did management say?
Commenting on the quarter gone by, Paladin Energy CEO, Ian Purdy said:
The decision to restart production at the Langer Heinrich Mine is a significant milestone for the company, our shareholders and the community in Swakopmund, Namibia. The response to our restart decision from our customers, shareholders, local community members and the Namibian government has been exceptionally positive and reflects the significance of the Langer Heinrich Mine to a range of stakeholders.
What's next?
Looking ahead, Paladin Energy forecasts a non-project FY2023 cash expenditure guidance of US$14.7 million.
"With the strength of the company's existing uranium sales offtakes combined with our strong balance sheet we are well positioned to deliver production from Langer Heinrich and generate sustainable value creation," Purdy said.
Paladin Energy share price snapshot
Despite a strong retrace in 2022, the Paladin Energy share price is up 27% over the past 12 months. That compares to a 9% loss posted by the All Ordinaries Index (ASX: XAO) over that same time.
