Paladin's TSX listing in jeopardy
Embattled Australian miner Paladin's Namibia Stock Exchange (NSX) listing could be in jeopardy if it is forced to delist from the Toronto Stock Exchange (TSX), according to local bourse chief Tiaan Bazuin.
According to Mining Weekly, Paladin's financial woes have drawn the attention of the Canadian bourse and could lead to a delisting.
Asked for comment, Bazuin said: “If they are forced to delist from the TSX, they would automatically delist from the NSX as well. A company cannot retain their secondary listing if their primary listing is cancelled.”
The TSX has given Paladin Energy 90 days to comply with all the requirements for continued listing, including its financial solvency, Mining Weekly reported last week.
If the company cannot demonstrate that it meets the bourse's requirements before August 14, the company's securities will be delisted 30 days later.
Paladin told shareholders on Friday that the company would work with the TSX to demonstrate that it satisfied the requirements for continued listing, but warned that there was no assurance that it would be able to achieve compliance with the continued listing requirements within the required time frame.
The company meanwhile also held a meeting with the holders of its US$274 million convertible bonds, due in April this year, with the bond holders agreeing to defer the final maturity date and interest payment due until the end of September this year.
Market speculation pointed to uncertainty regarding Paladin's future at the beginning of the year.
Analysts believed at the time Paladin could be a bankruptcy casualty of the uranium price downturn that has ravaged the industry for several years now.
In 2016, spot prices fell 37% from US$34.70 per pound to US$18.50 per pound on November 14, according to independent market consultant UX Consulting, before turning somewhat positive again to trade at US$20.25 per pound as on January 2. This is still a far cry from the lofty all-time high of US$136 per pound hit in 2007.
The difficult market has forced Paladin to put its Kayelekera mine, in Malawi, on care and maintenance, while forcing it find options to fund its upcoming debt repayments, which includes a US$212 million payment due at the end of April, after delays in the divestment of a 24% interest in the Langer Heinrich mine in Namibia.
The stake selling, along with the sale of a 75% interest in the Manyingee project in Australia, is expected to net some US$205 million.
OGONE TLHAGE
According to Mining Weekly, Paladin's financial woes have drawn the attention of the Canadian bourse and could lead to a delisting.
Asked for comment, Bazuin said: “If they are forced to delist from the TSX, they would automatically delist from the NSX as well. A company cannot retain their secondary listing if their primary listing is cancelled.”
The TSX has given Paladin Energy 90 days to comply with all the requirements for continued listing, including its financial solvency, Mining Weekly reported last week.
If the company cannot demonstrate that it meets the bourse's requirements before August 14, the company's securities will be delisted 30 days later.
Paladin told shareholders on Friday that the company would work with the TSX to demonstrate that it satisfied the requirements for continued listing, but warned that there was no assurance that it would be able to achieve compliance with the continued listing requirements within the required time frame.
The company meanwhile also held a meeting with the holders of its US$274 million convertible bonds, due in April this year, with the bond holders agreeing to defer the final maturity date and interest payment due until the end of September this year.
Market speculation pointed to uncertainty regarding Paladin's future at the beginning of the year.
Analysts believed at the time Paladin could be a bankruptcy casualty of the uranium price downturn that has ravaged the industry for several years now.
In 2016, spot prices fell 37% from US$34.70 per pound to US$18.50 per pound on November 14, according to independent market consultant UX Consulting, before turning somewhat positive again to trade at US$20.25 per pound as on January 2. This is still a far cry from the lofty all-time high of US$136 per pound hit in 2007.
The difficult market has forced Paladin to put its Kayelekera mine, in Malawi, on care and maintenance, while forcing it find options to fund its upcoming debt repayments, which includes a US$212 million payment due at the end of April, after delays in the divestment of a 24% interest in the Langer Heinrich mine in Namibia.
The stake selling, along with the sale of a 75% interest in the Manyingee project in Australia, is expected to net some US$205 million.
OGONE TLHAGE
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