TORONTO (miningweekly.com) – Uranium producer Paladin Energy has narrowed its net loss in the nine months ended March 31, despite revenue halving on the back of a sharp decline in sales volume and prices.
In the nine months to March 31, the TSX- and ASX-listed miner posted a loss attributable to members of $176.1-million, down from a $286.1-million loss in the previous corresponding period.
The Perth, Western Australia-based company’s results were weighed down by impairments of $327.9-million, mostly the result of a $323.6-million write-down on its Queensland exploration assets.
So far this year, Paladin had booked impairments of $1.7-million, owing to the impairment of the investment in Australian uranium explorer Deep Yellow.
Revenues fell 51% to $125.3-million in the nine-month period, as sales volumes tumbled 47% to 3.6-million pounds of uranium oxide. Total output was down 42% at 3.7-million pounds of uranium, mainly owing to the Kayelekera mine, in Malawi, remaining on care and maintenance, making its last shipments in December.
Paladin, which operated its flagship Langer Heinrich mine, in Namibia, noted that its realised sales prices dropped 8% year-on-year to $34.8/lb.
The miner maintained its previous guidance for full-year uranium output of between 5-million pounds and 5.2-million pounds of uranium oxide in fiscal 2015.