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energy|financial|water

Second class action looms for Paladin over 2024 guidance

The Langer Heinrich mine in Namibia

The Langer Heinrich mine in Namibia

30th May 2025

By: Mariaan Webb

Creamer Media Senior Deputy Editor Online

     

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A second class action lawsuit is expected to be filed against Paladin Energy in the Supreme Court of Victoria, the uranium producer said on Thursday.

The potential new proceedings involve similar allegations to an existing class action lodged in April but cover an extended period – from June 27, 2024, to March 25, 2025. Paladin said it would “strongly defend” any such claims, if they are commenced.

The ASX- and TSX-listed company is already facing legal action filed by law firm Slater and Gordon, which alleges Paladin misled investors and breached continuous disclosure obligations related to its flagship Langer Heinrich uranium mine in Namibia.

In June 2024, Paladin forecast production of 4.0-million to 4.5-million pounds of uranium concentrate for the 2025 financial year at a cost of $28/lb to $31/lb. That guidance was reiterated in July and August. However, on November 12, the company slashed its outlook to 3.0-million to 3.6-million pounds and withdrew all prior guidance, citing water supply issues and inconsistent ore quality.

Shares fell 22% in the two days following the downgrade and had already declined 15% in late October after weak quarterly production figures.

The initial class action alleges Paladin knew or should have known the guidance was overly optimistic and that material risks had not been disclosed to investors. The claim covers shareholders who acquired Paladin stock between June 27 and November 11, 2024.

The upcoming second action, led by a different law firm, will extend the timeline of alleged misconduct.

Paladin said the new class action had not yet been filed. The company reiterated that it intended to defend any legal proceedings brought against it.

Edited by Creamer Media Reporter

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