Paladin Energy Ltd
Paladin Energy Ltd
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Paladin Energy is looking to raise $US205M from 2 prime asset sales -- 24% of the producing Langer Heinrich Uranium Mine in Nambia and up to 75% of the prospective Manyingee Uranium Project in Western Australia.
Uranium miner Paladin Energy is set to raise $205M from the part sale of 2 of its prime assets, including 24% of the producing Langer Heinrich mine in Namibia. By Mark Mentiplay
Paladin Energy has lifted June 2016 qtr (Q4 2016) revenue from its 75%-owned Langer Heinrich uranium mine in Namibia 205% on the previous qtr to $US63M, despite a fall in production and increased costs.
Langer Heinrich U3O8 production slipped 14% to 1,12Mlbs, with U3O8 drummed down 21% to 1Mlbs on Q3.
Despite a fall in uranium production and rising costs, Paladin has had a good revenue Q4
The need to build inventory for major deliveries in the coming period has reduced gross uranium sales revenue from Paladin's 75%-owned Langer Heinrich mine in Namibia by 68% q-on-q to $US20.6M in the Mar qtr (Q3FY16). After selling 0.6Mlb U3O8 in Q3, Paladin expects Q4 sales to be 1.75-2.1Mlb at average contracted prices of $34-35/lb.
Q3 production was 1.3Mlb U3O8 at record C1 cash cost of $24.13/lb, within its $23-25/lb guidance.
Australian-based Paladin has denied renewed attacks by critics on its Kayelekera uranium mine in northern Malawi, mothballed since May 2014 due to low uranium prices.
Paladin says claims that major storms over the last two months led to water escaping from the Kayelekera tailings dam are untrue. It says there was an overflow of clean water from a rainwater catchment pond, posing no environmental risk, but while levels in the tailings dam rose there is still adequate freeboard that meets its design criteria.
Paladin Energy has lifted uranium production from its 75%-owned Langer Heinrich Mine in Namibia to 1.26Mlb U3O8 in the Dec 2015 qtr (Q2 2016), up 16% on the previous qtr, with C1 cash costs sliding 9% to $US25.38lb at the lower end of $25lb-$27/lb guidance.
Revenue of $64.4M came from sales up to 1.69Mlb from 800,000lb, for a Q2 net loss after tax of $9.5M.
Paladin has eased FY2016 guidance to 5Mlb-5.2Mlb from the previous 5Mlb-5.4Mlb at C1 cash costs down $1/lb to $24lb-$26lb.
Uranium producer Paladin says it remains on track to achieve neutral all-in cash flow after lifting gross Dec qtr (Q2 FY16) sales revenue by 75% to $US64.4M. Total sales were 1.7Mlb U3O8 at $37.90, compared to average spot price of $36.,03/lb.
Langer Heinrich mine in Namibia output rose 16% to 1.3Mlb with higher throughput and recovery, at record low C1 cash cost of $25.38/lb. Following a third party review of processing operations, steps including initiatives to increase plant uptime will be implemented over FY16-17.
Uranium miner Paladin Energy has bought back $US11M of its outstanding 6% convertible bonds due April 2017, which with the Sept 2015 repurchase of $20M bonds, has cut outstanding 2017 bonds from $274M to $243M.
The latest repurchase cost $9.9M as the bonds were bought back at an average price of 90%, resulting in 2M in cash savings to Paladin.
Paladin Energy is expecting a better current qtr after Sept 2015 qtr (Q1 2016) uranium production from its sole-producing, 75%-owned Langer Heinrich Mine in Namibia, fell 19% to 1.08Mlb U3O8 from the previous qtr.