PERTH (miningweekly.com) – Uranium miner Paladin Energy has reported a 46% decrease in sales revenue for the six months ended December 31, compared with the previous corresponding period, on the back of a 36% fall in the sales price and a 15% decrease in volumes.

During the interim period, sales volumes reached 2.12-million pounds of uranium oxide (U₃O₈), compared with the 2.49-million pounds produced in the six months to December 2015, with sales revenue reaching $55.2-million for the period under review.

The decline in sales prices and volumes also resulted in a gross loss of $17.7-million for the period under review, compared with a gross profit of $23.7-million in the prior comparable period.

It also resulted in a $22.3-million impairment of inventory, which was partially offset by a 35% decrease in the cost of sales.

Impairments during the period under review included a $16.2-million impairment on the Langer Heinrich mine stockpiles; a $2.9-million impairment on the product-in-circuit at the mine, owing to the write-off of the build-up of solubilised uranium present in the interstitial water; and a $3.2-million impairment of finished goods as a result of the low uranium price.

Underlying earnings before interest, taxes, depreciation and amortisation decreased by $11.3-million to $5.7-million.

Paladin has maintained its production outlook for the coming third quarter of the current financial year, with the Langer Heinrich mine expected to produce between 900 000 lb and one-million pounds U₃O₈, while uranium sales are expected to be between 700 000 lb and 800 000 lb U₃O_8.

However, full-year expectations have been adjusted, with uranium production now expected to reach more than four-million pounds, compared with the previous guidance of between 3.8-million and four-million pounds, while C1 cash costs are expected to reach between $16.50/lb and $18.50/lb, instead of the previously guided $17/lb to $19/lb.