Paladin Energy Ltd. Reports Targetted Cost Reductions of US$60M to US$80M Over 2 Years
![Paladin Energy Ltd. Reports Targetted Cost Reductions of US$60M to US$80M Over 2 Years](https://www.minenportal.de/media/goldseiten-news.jpg)
FY2013 Cost reductions:
-- Langer Heinrich Mine ($10M) - Key improvements in mining costs,
discretionary spending and contractor rationalisation resulting in a
7.5% reduction in unit costs.
-- Kayelekera Mine ($10M) - Key improvements in mining costs and
discretionary spending resulting in a 7.5% reduction in unit costs.
-- Exploration - This will be scaled back by 20% ($4M) of budget mainly
through deferring non essential drilling.
-- Inventory management - The Company has revisited its inventory
management policy and explored ways to maximise cash generation
resulting in an expected revenue benefit of $15M for FY2013.
-- Corporate overheads - Targeting a reduction of 10% ($3M).
FY2014 Cost reductions:
-- Langer Heinrich Mine ($10M) - An additional 7.5% reduction in unit costs
is targeted as the operation is fully optimised with continued process
refinement and further reductions in mining costs.
-- Kayelekera Mine ($20M) - An additional 15% reduction in unit costs is
expected by gaining access to grid power supply and completion of the
key production optimisation programmes.
Overall these initiatives represent a significant reduction in operating expenditure. However, these cost reductions and production optimisation efforts do not include the additional benefits anticipated from identified technical innovation which will deliver further operational efficiencies and improved recoveries. The benefits of this technology and other production optimisation improvements will be detailed in the December quarterly report.
After 8 years of concentrated effort developing an emerging uranium mining house with producing mines, a formidable project pipeline and a strong technical and management team, Paladin has established a unique position in the uranium supply sector. The current price environment does not support any expansion strategy or new development. Paladin is of the view it would require a sustainable uranium price at or above US$85/lb to warrant any further expansion or new mine development.
Paladin management and its Board are fully committed to do everything necessary to fully optimise efficiencies as the Company shifts from a predominately development phase into production and maintain a readiness to capitalise with growth when the situation changes.
ACN 061 681 098
Contacts:
In Australia: Paladin Energy Ltd
John Borshoff, Managing Director/CEO
+61 8 9381 4366 or Mobile: +61 419 912 571
john.borshoff@paladinenergy.com.au
In Canada: Paladin Energy Ltd
Greg Taylor, Investor Relations Contact
905 337-7673 or Mobile: 416 605-5120 (Toronto)
greg.taylor@paladinenergy.com.au
www.paladinenergy.com.au