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Paladin Energy Ltd: Financial Report for the Quarter Ending 30 September 2009

^{Published on 2009-11-12 04:32:21 - Market Wire}
 

PERTH, WESTERN AUSTRALIA--(Marketwire - Nov. 12, 2009) - Paladin Energy Ltd ("Paladin" or "the Company") (TSX:PDN)(ASX:PDN) announces the release of its Financial Report for the quarter ending 30 September 2009.

HIGHLIGHTS

Quarter Ending 30 September 2009

- Total production of 744,188lb for the quarter. The Langer Heinrich Mine produced 654,516lb as it transitioned to Stage 2 nameplate production (650,554lb for quarter to 30 September 2008). The Kayelekera Mine, which was hampered by slower than expected ramp-up produced 89,672lb.

- Stage 2 production levels at Langer Heinrich Mine are now almost being realised with October production of 276,757lb (90% of Stage 2 nameplate design).

- Cost of sales for three months to 30 September 2009 of US$26/lb is lower than in the three months to 30 September 2008 of US$27/lb reflecting improved operating performance at the Langer Heinrich Mine.

- Stage 3 expansion approved to further expand Langer Heinrich Mine production to 5.2Mlbpa with expected completion date set for the December quarter 2010.

- Uranium oxide sales for the quarter from Stage 1 of Langer Heinrich Mine 703,000lb U3O8 (2008: 878,000lb) averaging US$54/lb (2008: US$58/lb).

- Financial Year 2010 guidance revised to a range of 5.6Mlb to 6.1Mlb due to slower production ramp-up at Langer Heinrich Mine and Kayelekera Mine.

- Major new production expansion plans for Africa (increasing from 8.5Mlb pa to 13.8Mlb pa) to clearly establish Paladin as a Tier 1 producer. Stage 4 Langer Heinrich Mine expansion targeting 10Mlb pa (includes 1Mlb heap leach) with nameplate production planned by mid 2014. Kayelekera Mine optimisation to 3.8Mlb pa planned for late 2012.

Corporate:

- Profit and Loss

 3mths to 3mths to
 30 Sept 09 30 Sept 08
 US$M US$M
Revenue 38.6 52.4
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Gross Profit 14.9 22.0
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Exploration and Evaluation Expenses (5.1) (3.6)
Corporate and Other (8.6) (10.1)
Finance Costs (5.2) (9.2)
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Loss before Income Tax (4.0) (0.9)
Income Tax Expense (16.0) (4.2)
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Net Loss after Tax (before minority interests) (20.0) (5.1)
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