Paladin Energy has been famous amidst controversy over the Kayelekela Uranium Mine in Karonga, especially circulating news that the energy company had sold the mine to a Chinese firm, without government’s knowledge. In 2017, Paladin filed for insolvency, citing failure to pay a debt of USSD277 million. Recent news implies that the company is in its worst state as a confidential report stated that the company did possess a “moderate to high” financial risk.

In February 2019, a consulting firm had showcased apprehension related to the financial stature of the company, based on the $423 million contract to deliver services to Manus island refugees in New Guinea. The contract, however, cannot run on the company’s tumbling cash reserves, while on the surface, the company is refusing that it is amidst bad debts. An official of the Home Affairs also said that there were no identified significant issues with the company’s finances. However, the $423 million contract at Manus Islands was a lowered rate, as the inital contract offered the company 35 times its 2016 annual revenue.

Connecting the dots, financial experts have concluded that the lowered offer says the company’s inconsistent financial position and limited cash reserves would ideally not be enough to cover the working capital requisites of the contract. The collision of information by Home Affairs and findings of the contract, have raised brows.

Meanwhile figures show that as of 18th June 2019, the company’s stock stood at A$0.125, which was down by 3.84% compared to its last close. The market cap of the company is at  227.77 million. In the past year, the company has generated a negative return of 25.71%. Rumors are circulating that the company may be up for sale