PALADIN ENERGY ADR (OTCMKTS:PALAY) has been in a strong uptrend ever since hitting an intraday low of $0.1113 late last month. The stock has been in a strong uptrend and has been forming higher highs and higher lows indicative of the strong buying interest. The only cause for concern is the fact that the current uptrend in the stock might be losing momentum at the moment and could head lower in the near term. The stock currently trades above its 50 day moving average. The relative strength index has given a sell signal indicative of the shift of momentum towards the sell side.
PALADIN ENERGY ADR (OTCMKTS:PALAY) announced financial results for recently concluded FY15. The biggest highlight of the quarter was sales revenue of $198.6 million.
Operational Highlights
In terms of production, Langer Heinrich Mine accounted for 1 5.037Mlb U 3 O 8 for the entire year, 13% down from the last year. LHM C1 unit cash cost of production for the year increased to $29.07/lb in 2015 as compared to last year’s $27.71/lb. The management team is optimistic about the growth during the coming months.
Sales And Revenues
PALADIN Energy sold 5.367Mlb U 3 O 8 throughout the year, accounting for a whopping $198.6M revenue. Average realized uranium sales for 2015 was $37.00/lb U 3 O 8, against TradeTech weekly spot price of $35.80/lb U 3 O 8.
Corporate Performance Highlights
It completed an initiative focused on equity capital raising during the year. The cornerstone strategic investor initiative named HOPU Clean Energy Pte. Ltd. was launched via 15% placement. With the help of this initiative as well as an entitled offer, PALADIN raised A$205 million in December 2014. It also issued convertible bonds worth $150 million in March 2015 with five years maturity term. There’s a repurchase transaction of convertible bonds worth $300 million is due in November 2015.
Financial Highlights
Total sales volume for the current year was accounted for 5.367Mlb U3O8, leading the company to make total sales revenue of $198.6M compared to previous year’s $328.8M. This represented a total negative growth of 39% YOY due to adverse market conditions and global volatility.
Gross profit for 2015 was $1.8 million as compared to the loss figure of $65.1 million in 2014. Total impairment for Queensland Exploration Asset was worth $180.8 million. Company’s net cash flow from operating activities was $24.7M after exploration expenditure of $1.6 million and net interest payment of $28.8 million. Cash flow from investing activities was $15.6 million. Total cash in hand and bank in June 2015 was $183.7 million.
