Paladin Energy: Financial Report for the Three Months Ending 30 September 2010
PERTH, WESTERN AUSTRALIA -- (Marketwire) -- 11/12/10 -- Paladin Energy Ltd ('Paladin' or 'the Company') (TSX: PDN)(ASX: PDN) announces the release of its Financial Report for the three months ending 30 September 2010. The documents comprising the complete Financial Report for the three months ending 30 September 2010, including the Report to Shareholders, Management Discussion and Analysis, Financial Statements and Certifications, are available on the Company's website (www.paladinenergy.com.au) and will be filed with the Company's other documents on Sedar (www.sedar.com).
SUMMARY
References to 2010 and 2009 refer to the equivalent three months ended 30 September 2010 and 2009 respectively.
-- Total U3O8 production of 1,363,000lb for the September 2010 quarter
compared to 744,000lb for the 30 September 2009 quarter. An 83% increase
over the same period last year.
-- Langer Heinrich Mine:
-- September 2010 quarterly production of 900,000lb U3O8 vs. 654,000lb
U3O8 in 2009. A 38% increase over the same period last year.
-- Stage 3 construction to expand capacity to 5.2Mlb pa is tracking
early 2011 mechanical completion and start-up of commissioning.
-- Reserve increase of 104% to 134.1Mlb, underpinning Stage 4 expansion
studies targeting annual production of 10Mlb pa.
-- Kayelekera Mine is more consistently achieving nameplate design
performance:
-- September 2010 quarterly production of 463,000lb U3O8 vs 90,000lb
U3O8 in 2009. A 414% increase over the same period last year.
-- KM process plant throughput has advanced significantly since mid-
September and this performance has continued through November.
-- A reserve upgrade is expected late in the December quarter.
-- Bankers completion test commenced on 1 November 2010, running for
three months.
-- Langer Heinrich Mine cost of sales (C1) for 2010 remained at US$26/lb
(despite a 7% appreciation of the Rand in the quarter). Kayelekera Mine
cost of sales (C1) decreased from US$59.50/lb in the year ended 30 June
2010 to US$50/lb in the September 2010 quarter, as nameplate was not
achieved for the entire period; although significant improvements have
been recognised since mid-September.
-- Total sales volume for September 2010 of 1,043,000lb U3O8. A 48%
increase compared to the same period in 2009. Langer Heinrich Mine sold
943,000lb and Kayelekera Mine sold 100,000lb. The average realised
uranium sales price for 2010 was US$46.44/lb compared to US$54.48lb for
2009, reflecting the predominance of spot sales in the quarter.
-- Successful acquisition of more than 90% of the issued share capital of
NGM Resources Ltd via an off-market scrip takeover offer. Compulsory
acquisition of all remaining shares is underway. This represents a
significant addition to Paladin's portfolio of uranium exploration
projects and will establish a presence in Niger, a major underexplored
uranium province.
-- A successful global issue of US$300M in convertible bonds announced on
28 October 2010. Proceeds will be used to fund the announced tender of
US$250M December 2011 convertible bonds and fund other growth
opportunities.
-- Expensed exploration of US$5.2M. Resource upgrades during the quarter:
-- Valhalla: Measured and Indicated Resources were increased by 5.6% to
63.4Mlb U3O8 and total Resources were increased from 69.9Mlb to
76.2Mlb U3O8.
-- Paladin has reached an agreement to resolve its dispute with Areva NC
(Australia) Pty Ltd (Areva) as announced on 29 October 2010. The
settlement paves the way for Paladin and Areva to work co-operatively as
shareholders of Summit Resources Ltd and ensures that Paladin controls,
amongst other things, the Mount Isa Project sales and marketing rights.
-- Profit and Loss
----------------------------------------------------------------------------
30 Sept 30 Sept
2010 US$M 2009 US$M
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Revenue from sales of uranium
oxide Up 26% to 48.4 38.3
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Loss after tax attributable to
members Down 58% to 8.2 19.4
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Loss per share (US cents) (1.1) (3.0)
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3 months to 30 3 months to 30
Sept 2010 US$M Sept 2009 US$M
Revenue 49.1 38.6
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Gross profit 10.0 14.9
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Exploration and evaluation expenses (5.2) (5.1)
Corporate and other (16.6) (8.6)
Finance costs (13.1) (5.2)
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Loss before income tax expense (24.9) (4.0)
Income tax benefit/(expense) 15.1 (16.0)
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Loss after income tax (expense)/benefit (9.8) (20.0)
Non-controlling interests 1.6 0.6
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Net loss after tax (8.2) (19.4)
--------------- ------------------
-- Revenue increased US$10.5M as a result of increased sales of uranium.
Total sales volume for the quarter to 30 Sept 2010 was 1,043,000lb U3O8
compared to 703,000lb U3O8 for the comparative period.
-- Corporate costs for 2010 include a non-recurring foreign exchange loss
of US$3M and a non-recurring inventory impairment expense of US$3M due
to lower production values early in the quarter at KM. Increased finance
costs for 2010 reflect the cessation of capitalisation of costs with KM
entering commercial production on 1 July 2010.
-- Net loss after tax for 2010 narrowed to US$8.2M from US$19.4M for 2009.
-- Strong balance sheet at 30 September 2010 with US$275.2M in cash
invested with Australian banks with a minimum AA Standard & Poor's
credit rating.
The documents comprising the Financial Report for the three months ending 30 September 2010, including the Report to Shareholders, Management Discussion and Analysis, Financial Statements and Certifications are attached and will be filed with the Company's other documents on Sedar (sedar.com) and on the Company's website (paladinenergy.com.au).
Conference Call
Conference Call and Investor Update scheduled for 07:00 Perth & Hong Kong, Tuesday 16 November 2010.
18:00 Toronto, Monday 15 November 2010 and 23:00 London, Monday 15 November 2010.
Details were included in a separate news release made on 9 November 2010.
ACN 061 681 098
Contacts:
Paladin Energy Ltd
John Borshoff
Managing Director/CEO
+61-8-9381-4366 or Mobile: +61-419-912-571
john.borshoff@paladinenergy.com.au
Paladin Energy Ltd
Garry Korte
Chief Financial Officer
+61-8-9381-4366
garry.korte@paladinenergy.com.au
Paladin Energy Ltd
Greg Taylor
Investor Relations Contact
+905 337-7673 or Mobile: +416-605-5120 (Toronto)
greg.taylor@paladinenergy.com.au