Paladin achieves record uranium production

Uranium miner Paladin Energy says it achieved record production in the three months to December but has downgraded its full-year production targets.

Paladin shares rose significantly on the update, up 12.5 cents, or 8.2 per cent, to $1.655 at 1051 AEDT.

The Africa-focused company operates two mines, in Namibia and Malawi.

It said production from both sites totalled 1.82 million pounds in the December quarter, up 47 per cent from 1.24 million pounds in the September quarter.

Paladin said uranium sales in the December quarter were 1.32 million pounds, generating revenue of $US69.9 million ($A67.98 million).

The company cut its guidance for full-year production from 7.4 to 7.9 million pounds to a new range of 7.1 to 7.4 milion pounds, due to unscheduled shutdowns at the Kayelekera plant in Malawi and the alter-than-expected ramp-up of stage 3 at the Langer Heinrish mine in Namibia.

The spot price of uranium was beginning to show signs of strengthening as new demand emerged, Paladin said.

As the impact of the Fukushima incident in Japan continued to work its way through the overall nuclear and uranium market, price improvement was anticipated throughout calender year 2012, it said.