Paladin banks on higher uranium price
Paladin Energy is banking on a continued upswing in the price of uranium from its eight-year low of $US28 a pound earlier this year.
The uranium producer's chairman Rick Crabb told long-suffering shareholders at the company's annual general meeting today the recent upswing in the uranium price to $US43 a pound had provided some welcome relief.
However he conceded that a further uplift in prices was needed to support a globally sustainable supply industry.
Managing director and chief executive John Borshoff attributed the recent uptick in price to the restart of Japan's nuclear power program after the Fukushima disaster in 2011, when a major earthquake and subsequent tsunami damaged a reactor and caused a nuclear crisis.
Mr Borshoff also noted that both China and the US had recently committed to substantially reducing greenhouse emissions, which would increase their reliance on nuclear power.
India, too, had announced it planned to have 25 per cent of its electricity needs coming from nuclear power.
Mr Borshoff said the spot price of uranium was improving as supply tightened and demand rose.
"Long term market demand fundamentals require extraordinary growth in uranium supply," he said.
The company today reiterated full-year production guidance of 5.4-5.8 million pounds.
Paladin also advised it had begun feasibility study into the restart of its Kayelekera mine in Mali after the operation was placed on care and maintenance in February because of the languishing uranium price. The company said at the time it would not look to restart the operation until the uranium price hit $US75 a pound. Paladin's main producing asset remains the Langer Heinrich mine in Namibia.
Shares in Paladin were off half a cent, or 1.28 per cent, to 38.5 cents at 12.15pm.
