The West

Weak uranium price hits Paladin
Weak uranium price hits Paladin

The weak uranium price has hit Perth miner Paladin Energy, with the company reporting a $338 million loss for the year.

Late last night the John Borshoff-run company reported a basic operating loss of $3.4 million - which it blamed on the weak uranium price - compared to its operating profit of $55.9 million last year.

The $338 million book loss came on the back of a $226 million impairment on its Queensland exploration assets, along with smaller impairments at its African mines.

The Kayelekera Mine, which it put on care-and-maintenance in May, was the main culprit in the operating blowout, with the mine reporting basic cash costs - but not all-in costs - of $US42.6 a pound.

The uranium price has been hovering around the $30/lb pound mark for much of the year.

However a light has emerged in the uranium sector with yellowcake jumping from $28/lb last month to 33/lb today, its highest mark since April.

Its Langer Heinrich Mine, which the company sold 25 per cent of in January, decreased its basic costs to $US28.8/lb.

Speaking in its annual report, Mr Borshoff said there was a "substantial divergence" between the industry's "extremely bright, longer-term, outlook" compared to the "severely depressed" current uranium price.

"At a uranium spot price of $US28/lb, there can be no sustainable future."

"Our key findings, when observed and evaluated from a strong supply perspective, are that the true supply-demand situation is obscured by the current short-term market oversupply.

"In the past 18 months, we have achieved some significant milestones which, in themselves, show that the nuclear industry is showing signs that change has to occur very soon to ensure a future."

Earlier this week Mr Borshoff had his contract extended by two years until the end of 2016. He will be paid a base salary of $1.38 million a year.

Paladin shares were up 2 cents to 43 cents just before the close of trade.

The West Australian

Latest News From The West

Popular videos

Follow Us

More from The West