Paladin upbeat despite big write-downs

Uranium miner Paladin Energy has significantly extended its interim net loss on the back of a $US527 million ($A804 million) impairment charge to its Mt Isa assets and investment write downs.

For the six months to the end of December 2008, Paladin reported a net loss of $US475.6 million ($A723 million), up from the prior corresponding period's net loss of $US25.8 million.

Paladin said the $US527.6 million impairment charge for the Mt Isa assets was in "order to ensure it both retains a transparent and relevant Balance Sheet as well as demonstrating prudence given the impact of the global financial crisis".

"Paladin is not wavering whatsoever in its belief in a highly positive uranium outlook and remains resolutely committed to the development of the Mount Isa assets," the miner said.

Along with the Mt Isa impairment charge, Paladin said it was also required to write down the carrying value of its investment in Deep Yellow by $US26 million.

"This write-down does not in any way reflect the Board's confidence in DYL's [Deep Yellow] resource potential and outlook," it said.

Revenue over the six months period was up from $US47.7 million to $US66.7 million, as a result of uranium sales of $US64.27 million.

Over the half-year, 1.123 million pounds of uranium oxide was sold at an average price of $US57 per pound.

Gross profit increased significantly from $US6.8 million to $US28.4 million on the back of an improved operating performance from the Langer Heinrich uranium operation in Namibia.

During the reporting period, Langer Heinrich produced 1.32 million pounds of uranium oxide, just 4 per cent shy of its production target for the six months due to the later than scheduled commissioning of stage two of the operation.

Stage two will expand production to 3.7mlbs per annum with ramp up to start in March.

Studies are still continuing into a stage three expansion to 6mlbs per year.

Cash at the end of the period was $US192.2 million.

Shares in Paladin were down five cents to $3.18 at 14:13 AEDT.