Paladin drops guidance

Paladin has dropped its 2010 financial guidance by up to 15% following slower production ramp up.

Production is estimated to be lowered from 6.6 million pounds of U3O8 to between 5.6 million pounds and 6.1 million pounds.

It was affected by a slowed ramp up phase at both the Langer Heinrich and Kayelekera uranium mine.

At the Langer Heinrich mine in Namibia, it saw delays due to interruptions from commissioning equipment and plant tie-ins. Added to this was the replacement of equipment at the Kayelekera mine in Malawi.

However, despite lowering forecasts, Paladin has still seen positive results with overall production still up at 744 188 pounds in the September quarter, compared to 727 716 pounds in the June quarter.

For the remained of the current financial year, Paladin expects to produce a further 2.8 million pounds of U3O8, achieving a total production of 3.45 million pounds for the year.

Paladin has also forecast major expansion and development programme at both Langer Heinrich and Kayelekera. This programme is expected to increase production to an annual rate of approximately 13.8 million pounds by mid 2014.

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