BUZZ-Citi retains confidence in Australia's Paladin Energy despite outlook cut

Reuters
2024-11-13
BUZZ-Citi retains confidence in Australia's Paladin Energy despite outlook cut

** Citi flags caution on Paladin Energy PDN.AX cutting FY25 production guidance as ore variability and NamWater supply disruption raises concerns

** Paladin cuts FY25 production outlook to 3-3.6 mln pounds (mlb) from 4-4.5 mlb

** Brokerage, however, cites confidence in co's potential to achieve 6 mlb run rate by CY25 & bullish outlook on Yellowcake Uranium prices

** Says FY25/26 EBITDA down at 41%/17% due to lower uranium prices and as market shifts on President-elect Trump's potential policies to ease restrictions on Russian uranium supplies

** Citi sees co's underlying net cash at ~$20 mln by FY25 with robust balance sheet

** Maintains "buy" rating at TP A$11.50

** Stock down 30.2% YTD as of the last close

(Reporting by Kumar Tanishk in Bengaluru)

((Tanishk.Kumar@thomsonreuters.com))

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