Paladin Energy flags further job cuts

Paladin Energy is set to slash its costs by $US23 million over the 2014 financial year and suspend all non-essential exploration activity as it looks to stem losses from a weakening uranium price.

Paladin said today that it would make further staff cuts at its Kayelekera mine in Malawi and slash board and management base salaries by 10 per cent, following a comprehensive review of its activities.

The company will aim to reduce cash costs at its flagship Langer Heinrich mine in Namibia by 15 per cent over two years and at Kayelekera by around 22 per cent over the same period.

Paladin managing director John Borshoff, who had his pay packet halved to $2.5 million in the 2012/13 financial year after the uranium miner doubled its full year loss, said the cuts would ensure the company was well-placed to capitalise on eventual gains in the uranium spot price.

"Reviewing and implementing far reaching rationalisation and optimisation strategies have now become even more pertinent with the further incremental weakening of the uranium spot price although, in Paladin's opinion, this price decrease does not detract from the very strong fundamentals of this commodity in the mid to long term," Mr Borshoff said.

"Paladin management and its board are fully committed to doing everything necessary to fully optimise operations and achieve cost reduction whilst maintaining a readiness to capitalise when the uranium price strengthens."

Mr Borshoff said Paladin would push ahead with plans for a partial sale of its Langer Heinrich mine and would pursue joint venture partners for its undeveloped advance stage assets. 

Paladin attempted to sell a stake of 15 to 20 per cent of the mine in late July but failed to attract a satisfactory bid.

Paladin shares were up 7.2 per cent on the back of the announcement at 51 cents at 9:20AM WST.