[miningmx.com] – SHARES in Paladin Energy were under pressure after the company issued shares at a 30% discount to raise cash after earlier failing to sell part of its stake in its Langer Heinrich mine in Nambia, Bloomberg News said.
Paladin was attempting to sell the mine in order to service debt which was as high as $700m, said Bloomberg News citing a report by JP Morgan Chase. Paladin Energy sold shares for $78m after saying it was unlikely to get the price it wanted for the mine.
As a result, shares in Paladin Energy fell 30% to 70.5 cents in Sydney, the most since April 2000, Bloomberg News said.
“While the raising alleviates immediate balance sheet concerns, the issue appears to have only been pushed out,’ JPMorgan said in an August 2 report. “Unless Paladin can significantly turn around its cash flow, it appears unlikely the company will have enough cash to be able to repay its debt, particularly at current low spot uranium prices.’
