PERTH, WESTERN AUSTRALIA — (Marketwired) — 11/13/14 — Paladin Energy Ltd („Paladin“ or „the Company“) (TSX: PDN)(ASX: PDN) announces the release of its consolidated Financial Report for the three months ended 30 September 2014. The Financial Report is appended to this News Release.
HIGHLIGHTS
OPERATIONS
SALES AND REVENUE
CORPORATE
(1) C1 cost of production = cost of production excluding product distribution costs, sales royalties and depreciation and amortisation before adjustment for impairment. C1 cost, which is non-IFRS information, is a widely used –industry standard– term.
Results
(References below to 2014 and 2013 are to the equivalent three months ended 30 September 2014 and 2013 respectively).
Paladin continues to move closer to deleveraging the balance sheet. The alternatives being considered look to capitalise on Paladin–s unique position in the global uranium market as a platform to growth, whilst ensuring the maximisation of shareholder value.
Uranium spot price recovery in recent months from a low of US$28/lb to US$42/lb indicates both a tightness in supply and the effects of possible realignment of some supply sources due to negative geopolitical developments. With China as the nuclear growth leader, confirming its strong commitment in the build up of its reactor fleet over the next 30 years combined with supply shortfalls identified in the mid-term, uranium is set for a long period of price strength.
Primary product available for the spot market has declined appreciably essentially due to production cutbacks that occurred during FY2014, which are all now affecting supply into the spot market for FY2015 and beyond. Amongst those factors contributing to production cutbacks and availability of product in the spot market are: Paladin placing KM on care and maintenance; Paladin–s sale of a minority equity stake in Langer Heinrich with its associated off-take arrangement; the sole uranium producer in Uzbekistan (Navoi) realigning previous spot market material into multi-year sales agreements with two major utility buyers, and US ISR producers and Rossing restricting production only to what they need to deliver into long term contracts. Consequently some 10Mlb to 12Mlb of annual production is removed from the market, thus creating a supply squeeze in the prompt spot market.
Also in Japan authorities have cleared the final hurdle for restart of the Sendai 1 & 2 reactors paving the way for a revival of the stalled Japanese nuclear industry. Start-up of the Sendai 1 & 2 reactors will signify confidence in follow-on approvals on those applications accounting for 18 additional reactors located across 12 sites in Japan.
The documents comprising the Financial Report for the three months ended 30 September 2014, including the Management Discussion and Analysis, Financial Statements and Certifications are and will be filed with the Company–s other documents on Sedar (sedar.com) and on the Company–s website (paladinenergy.com.au).
Generally Accepted Accounting Practice
The news release includes non-GAAP performance measures: C1 cost of production, non-cash costs as well as other income and expenses. The Company believes that, in addition to the conventional measures prepared in accordance with GAAP, the Company and certain investors use this information to evaluate the Company–s performance and ability to generate cash flow. The additional information provided herein should not be considered in isolation or as a substitute for measures of performance prepared in accordance with GAAP.
Declaration
The information in this announcement that relates to minerals exploration and mineral resources is based on information compiled by David Princep BSc, FAusIMM (CP) who has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity that he is undertaking to qualify as Competent Person as defined in the 2012 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (JORC Code). Mr Princep is a full-time employee of Paladin Energy Ltd. Mr. Princep consents to the inclusion of the information in this announcement in the form and context in which it appears.
Conference Call
Conference Call and Investor Update is scheduled for 06:30 Perth & Hong Kong, Friday 14 November 2014, 17:30 Toronto and 22:30 London, Thursday 13 November 2014. Details are included in a separate news release dated 11 November 2014.
ACN 061 681 098
Contacts: Paladin Energy Ltd John Borshoff Managing Director/CEO +61-8-9381-4366 or Mobile: +61-419-912-571
Paladin Energy Ltd Craig Barnes Chief Financial Officer +61-8-9381-4366 or Mobile: +61-424-724-416
Paladin Energy Ltd Andrew Mirco Investor Relations Contact (Perth) +61-8-9381-4366 or Mobile: +61-409-087-171
Paladin Energy Ltd Greg Taylor Investor Relations Contact (Toronto) +1-905-337-7673 or Mobile: +1-416-605-5120
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