01/09/2009 - 14:46

Write-downs sink Paladin's profit

01/09/2009 - 14:46

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Uranium producer Paladin Energy has posted a $US480 million loss for the year to June 30 on the back of large impairment expenses but remains positive about its current operations and growth opportunities.

Write-downs sink Paladin's profit

Uranium producer Paladin Energy has posted a $US480 million loss for the year to June 30 on the back of large impairment expenses but remains positive about its current operations and growth opportunities.

Impairment expenses comprised $US753.8 million for its Mount Isa assets and $US26 million for its investment in Deep Yellow, and impairment of inventories of $US3.7 million.

The company said in electing to impair the Mount Isa assets, it was not wavering in its belief in a highly positive uranium outlook and remains resolutely committed to the development of the Mount Isa assets.

Paladin said this if further evidenced by the recent acquisition of Fusion Resources.

The company's revenue from continuing operations increased 13 per cent to $US114.8 million in 2009 as a result of increased sales of uranium of US$111.8 million, up from $US93.8 million the previous year as total production reached 2.74 million pounds.

Paladin also sunk $US12.2 million into exploration to aggressively advance organic growth opportunities in Australia, in particular the Mount Isa Uranium Joint Venture and Isa North Uranium Project in Queensland, as well as the Angela Uranium Joint Venture in the Northern Territory.

 

 

 

Announcement below:

 

Final 2009 Year Results
 Revenue from ordinary activities up 13 % to US$114.8M
 Gross Profit up 36% to US$48.4M on higher uranium oxide sales from Langer Heinrich and reduced costs.
- Cost of sales decreased in 2009 to US$26/lb U3O8 from US$40/lb U3O8 in 2008 as Langer Heinrich transitioned to full Stage I production.
 Net loss before tax and impairments down 32% to US$29.9M.
 Impairment expense of US$783.5M.
- Comprising US$753.8M for the Mount Isa assets and US$26.0M for investment in Deep Yellow recognised in the December 2008 quarter and impairment of inventories of US$3.7M in the September 2008 quarter.
 Net loss after tax US$576.4M (before minority interests) and US$480.2M (after minority interests).
 Total production of 2.74Mlb for the year ended 30 June 2009.
 Cash at bank of US$133.8M as at 21 August 2009.
 Kayelekera in Malawi has successfully commissioned. Design capacity of 3.3Mlbpa is targeted for early 2010
with commercial production being achieved during the September 2009 quarter.
 Stage II commissioning at Langer Heinrich commenced, increasing design capacity to 3.7Mlbpa. New plant
design production anticipated during the September quarter. Stage III approved to further expand Langer Heinrich production to 5.2Mlbpa with expected completion in late 2010.
 Uranium oxide sales for the year increased from Langer Heinrich to 2,021,000lb U3O8 (2008: 1,411,000lb) averaging US$55/lb (2008: US$66/lb).
 Total exploration and evaluation expenditures of US$12.2M to aggressively advance organic growth opportunities in Australia, in particular the Mount Isa Uranium Joint Venture and Isa North Uranium Project in Queensland, as well as the Angela Uranium Joint Venture in the Northern Territory.
 To support future growth initiatives, Paladin is investing up to US$2.0M in NGM Resources Limited (NGMASX)
securing up to 19.9% and has increased its stake in Deep Yellow Limited (DYL-ASX) from 14.3% to 19.6% through the investment of US$11.1M.

STANDING BY BUSINESS. TRUSTED BY BUSINESS.

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