CHAMWE KAIRA
Paladin Energy, the owner of the Langer Heinrich uranium mine in the Erongo Region, confirmed this week that it been served with a class action proceeding in the Supreme Court of Victoria in Australia.
The class action alleges that Paladin made misleading representations and contravened its Australian Stock Exchange (ASX) continuous disclosure obligations between 27 June 2024 and 11 November 2024. Paladin said it intends to strongly defend this claim. Paladin is also dual listed on the Namibian Stock Exchange.
“The statement is in order. They have to respond to the allegations in normal course of business and legal process,” said NSX CEO, Tiaan Bazuin in a comment to Observer Money.
According to law firm, Slater and Gordon, Paladin advised the ASX on 27 June 2024 that its Langer Heinrich mine was likely to produce 4.0-4.5 million pounds of uranium concentrate in the 2025, financial year at a cost of US$28 to US$31 per pound. It reaffirmed this guidance to the ASX on 22 July 2024, and reaffirmed the guidance again on 5 August 2024.
However, on 12 November 2024 the company announced that it now expected its Langer Heinrich mine to produce only 3.0-3.6 million pounds of uranium concentrate in the 2025 financial and withdrew all previous 2025 guidance.
It cited disruptions to the mine’s water supply and variability in the quality of its stockpiled ore as reasons for the downgrade. Following the announcement, the price of Paladin shares fell by 22% (US$2.21) over two days, after having already fallen by 15% (US$1.87) on 28 October 2024 when Paladin reported quarterly production results that were below expectations.
The claim alleges that Paladin knew or ought to have known that its June guidance was unreasonably optimistic and there was a material risk it would not be met.
“We allege that the plaintiff and group members paid more for shares in Paladin than would have been the case had the company revealed the true situation and alternatively, that some group members would not have purchased shares at all,” court papers said.
Slater and Gordon, as instructed by the lead plaintiff, Ian Weatherlake on behalf of the Weatherlake Family Trust, commenced a group proceeding (class action) against Paladin Energy on 16 April 2025.
The class action alleges that Paladin made misleading representations and contravened its continuous disclosure obligations as an ASX-listed company between 27 June 2024 and 11 November 2024, breaching relevant provisions of the Corporations Act 2001 and the ASIC Act 2001.
