Paladin hit by weak uranium price

Perth-based Paladin Energy has been hit by the weak uranium price, reporting a $338 million net loss for the full year.

Much of the loss was attributed to a $242.19 million impairment of its Queensland exploration assets, alongside $43.4 million impairments in inventory at its Langer Heinrich uranium mine due to the low uranium price, and at Kayelekera mine in Malawi, which was put on care and maintenance in February.

“Sales revenue decreased 19 per cent from $436.6 million in 2013 to $315.5 million for the year ended June 30 2014, as a result of spot price reduction causing a 23 per cent decreased in realised sales price, partially offset by a 5 per cent increase in sales volume,” Paladin said in a statement.

“A number of cost reduction initiatives have been completed and, as a result, administration, marketing and non-production costs decreased by 45 per cent year-on-year and total exploration expenditure decreased by 54 per cent.”

The company said its net debt repayments totalled $73.6 million for the financial year.

Paladin sold a 25 per cent interest in its Langer Heinrich operation to CNNC Overseas Uranium Holding for $203.1 million in July.

The company’s share price closed 4.9 per cent higher at 42.5 cents per share.