Paladin posts reduced loss

Uranium miner Paladin Energy has posted a first half net loss of US$19 million, a significant improvement on the US$475.6 million loss from the same period a year earlier.

Uranium miner Paladin Energy has posted a first half net loss of US$19 million, a significant improvement on the US$475.6 million loss from the same period a year earlier.

The Perth-based company’s improved financial numbers came on the back of a 51.7% increase in revenue to US$101.2 million, which was a result of record uranium production of 1,731,498lb for the six month period.

The December quarter also saw Paladin achieve record sales volumes of 1,095,000lb, which generated US$61.9 million in revenue.

Total sales volume for the half year reached 1,798,000lb averaging US$56/lb, which the company said represents a significant increase over the 1,123,000lb sold in the six months ended 31 December 2008.

In addition to increasing revenue and production, Paladin also announced it had signed a new long term sales contract with a major Asian utility which will commence 2012 and include the supply of more than four million pounds of uranium.

The new deal is “on terms which will capture the expected strengthening market price,” the company said.

The company has experienced a slower than expected ramp up at its Kayelekera mine in Malawi, citing problems with plant capacity.

“The conventional components of the plant are running well and in some cases are exceeding design,” Paladin said.

“But problems with the slow movement of resin from Resin In Pulp (RIP) to elution have restricted plant feed capacity.”

After the strong production and sales results for the half year, Paladin said it finished the period with a cash balance of US$432.6 million.

To keep up to date with Australian Mining, subscribe to our free email newsletters delivered straight to your inbox. Click here.