Paladin Energy posts $40 million loss in September quarter

Perth-based uranium miner Paladin Energy has posted a $40 million September quarter loss despite recording an 11 per cent rise in production at its flagship operation.

The Africa-focused producer made a $US173 million loss in the three months to June.

However the company reaffirmed a production guidance for the 2013/14 financial year to remain at between 8.3 million and 8.7 million pounds off the back of record production and lower operating costs.

Langer Heinrich mine in Namibia produced a record 1.429 million pounds in the September quarter, an 11 per cent rise on the same period last year.

While production at its Kayelekera mine in Malawi was down 9 per cent to 0.615 million pounds due to the extension of a planned shutdown.

The miner said production costs have fallen 12 per cent at Langer Heinrich, with further targets aimed at reducing this to 15 per cent.

While cash costs at Kayelekera have dropped by 20 per cent, with the company aiming for a 22 per cent totat.

Earlier this year the company announced a raft of cost cutting measures would be implemented to combat a stubbornly low uranium price.

Paladin signalled it would slash corporate and exploration costs by $US10.8 million, a 24 per cent reduction.

While capital expenditure will be cut by $US12.4 million over the next two financial years.

"Now that production has reached design levels, sales and production volumes are expected to be comparable on an annualised basis," Paladin said.

Its average realised uranium sales price for the September quarter was US$41.38 per pound, as the spot price continues to trade at eight year lows.

Paladin is looking to sell a stake in the Langer Heinrich mine, with the miner saying it had ''reasonable confidence'' a deal could be reached.

Paladin has five uranium exploration projects operating in Australia.

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