Second class action suit looms for Paladin Energy over Langer Heinrich downgrade

Banton Group is considering initiating a class action lawsuit against Paladin Energy for potentially misleading representations relating to production guidance, which would make it the second-class action against Paladin on this claim.

In an announcement to the ASX late on Thursday afternoon, Paladin said it is aware of another class action law firm intending to file proceedings against it in the Supreme Court of Victoria, but this time covering a longer period between 27 June 2024 and 25 March 2025.

Banton Group’s claims are expected to be similar to those alleged by Slater and Gordon, which commenced a class action in the Supreme Court of Victoria on 16 April.

Slater and Gordon alleges that Paladin made misleading representations and contravened its continuous disclosure obligations in statements made between 27 June 2024 and 11 November 2024.

Slater and Gordon alleges that Paladin’s production guidance relating to the Langer Heinrich mine in Namibia was “unreasonably optimistic and there was a material risk it would not be met”.

As noted on Banton Group’s website, Paladin lowered its production guidance on 12 November and withdrew all other guidance. At close of market on that day Paladin’s share price had fallen 29%, representing a $700 million fall in market cap.

The Perth, Australia-based company restarted its main producer, the Langer Heinrich mine in Namibia, in late 2023 after being on care and maintenance since 2018. The first official production guidance was announced on June 27 for the fiscal year 2025 (July 1, 2024, to June 30, 2025), projecting an output of 4 million to 4.5 million lb. of uranium oxide (U₃O₈). This guidance was later revised on Nov. 12 to 3 million to 3.6 million lb. due to operational challenges including variability in stockpiled ore and water supply disruptions.

Then in March Paladin withdrew its 2025 guidance entirely following unseasonal heavy rainfall that disrupted mining operations.

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