I agree with this take Lamb (though my bias to PDN is clearly bearish, albeit not/never short the stock).
Reading that announcement it feels very much like Paladin management have seen an opportunity to re-set expectations given they were looking likely to miss guidance given how the stockpile grades were performing. I remain incredulous they loaded up on debt when their scrip was trading so high - they could have raised the same amount US$150M for something around only 7% dilution. Instead they've put the balance sheet under unnecessary pressure, especially considering LHM is by definition a marginal asset.
PDN Price at posting:
$6.39 Sentiment: None Disclosure: Not Held
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