Paladin revenue drops sharply as Namibia mine shuts down

19th October 2018 By: Esmarie Iannucci - Creamer Media Senior Deputy Editor: Australasia

PERTH (miningweekly.com) – ASX- and TSX-listed Paladin Energy has reported $6.6-million in revenue for the quarter ended December, from the sale of 267 423 lb of uranium oxide (U3O8).

The quarterly sales results compared with the $23.6-million in revenue generated from the sale of 1.14-million pounds of U3O8 in the previous quarter, and followed on from Paladin’s decision to place its Langer Heinrich mine, in Namibia, on care and maintenance.

Paladin on Friday said that the plant cleanout at Langer Heinrich was completed in early August, and operations have now been successfully transitioned into care and maintenance.

The primary focus at the Namibian mine will be to maintain plant infrastructure and complete an operational review to assess process optimisation, cost reduction, production capacity and life-of-mine alternatives to allow for a restart of operations, when justified.

Paladin is expecting the uranium market to normalise over the next few years, in the absence of any external shocks, with the company previously telling shareholders that curtailments by major producers in Canada and Kazakhstan could serve to accelerate the anticipated market correction.

Meanwhile, in August, Paladin announced an off-market takeover offer for all the shares in junior uranium explorer Summit Resources, offering one new Paladin share for every one Summit share held. After receiving the required acceptances, the company will now exercise its right to acquire the remaining shares in Summit.