Paladin Energy widens H1 loss on low uranium price
TORONTO (miningweekly.com) – TSX- and ASX-listed Paladin Energy has widened its loss for the six months ended December 31, as a softer uranium price prevailed.
Perth, Australia-based Paladin reported a net loss of $255-million, which was 32% more than the $193.5-million loss recorded in the same period a year earlier.
Revenue derived from the sale of 4.44-million pounds of uranium oxide (U3O8) declined 12% to $171.4-million, compared with $195.5-million a year earlier.
The average realised uranium sales price for the six months was $38.4/lb.
Paladin said that its cost savings and optimisation initiatives for the 2014 and 2015 financial years, were expected to improve unit costs for Langer Heinrich, in Namibia, and Kayelekera, in Malawi.
“In a period when the uranium price is at an eight-year low all options are being reviewed to ensure the company’s sustainability and extend and preserve cash levels,” the company said.
As at December 31, Paladin had $99.4-million cash in the bank.
Earlier this month, Paladin suspended production at its Kayelekera mine, saying the operation was a severe drain on the company’s finances in the sustained low uranium-price environment.
Paladin blamed the continued depressed price for U3O8, which had been severely negatively impacted since March 2011 following the nuclear reactor damage caused by the Fukushima earthquake and tsunami, in Japan, as one of the main reasons for its decision.
During this period, the spot uranium price has more than halved from $72.63/lb before the Fukushima disaster struck, to a current price of about $35.50/lb.
Canadian uranium producer Cameco has abandoned its production target of 36-million pounds of uranium by 2018, as a result of the unexpected continued uranium market uncertainty.
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