Paladin sell-off stemmed
Paladin Energy (TSE:PDN) gained as much as 12% on Friday on higher than average volumes despite reporting a net loss of $420 million including impairments totaling $335 million for the year.
By the close the uranium miner was trading off its highs at $0.54 on the Toronto stock exchange, still up 8% giving it a market value of $481 million.
The weak results which the company warned the market about are primarily due to a spot uranium price languishing at multi-year lows of $35 a pound and a write-down on the value of its Kayelekera mine in northern Malawi and its Niger exploration portfolio.
Today's upward move is cold comfort for Paladin investors who are still nursing August's 40% decline.
The sell-off started after the Australia-based firm announced it could not find a buyer for a stake in its Langer Heinrich uranium mine in Namibia.
Paladin subsequently announced it is tapping marketsfor $75 million by placing up to 15% of its issued shares with institutions through bookbuilding.
The money raised should see it through to the September quarter of next year "even in the event that the spot uranium price was to remain at the average level of the past 12 months of US$42.50/lb," the company said at the time.