Langer Heinrich output rises, costs fall
MININGWEEKLY
Despite Australia-based uranium producer Paladin Energy lifting saleable uranium output by 16% in the quarter ended September 30, it missed its sales target by 50 000 pounds of uranium oxide (U3O8), citing a re-timing of sales negatively influencing results.
Total sales for the quarter amounted to 600 000 lbs U3O8, compared with a target of between 650 000 lbs and 750 000 lbs U3O8, at an average selling price of US$25.19 (N$360.22)/lb. This resulted in gross sales revenue of US$15.1 million (N$215.9 million).
Paladin also noted this week that sales volumes were affected by its stockpiling of volumes of uranium since June for a major delivery to client CNNC, as well as other contracts in December.
As a result, Paladin expects higher sales volumes for the December quarter, in the range of 1.4 million pounds U3O8 to 1.6 million pounds of yellowcake. Paladin said it succeeded in pricing most of the December deliveries in a range of US$27/lb to US$28/lb, beating current spot prices, which averaged US$25.33/lb for the September quarter.
The company reported that C1 cash costs at its Langer Heinrich mine (LHM) in Namibia fell nearly 40% to a record low of US$16.45/lb in the September quarter, boosted by strong operating performance and the impact of a US$168.9 million write-down of LHM''s ore stockpiles at the end of June.
Despite mill throughput rising 13% quarter-on-quarter to 949 906 tons, Paladin expects to implement a reduced mining plan in the current quarter.
LHM will reduce mining material movement, combined with processing plant feed coming from stockpiled low- and medium-grade ores.
According to Paladin, the mine plan adjustment has been designed to improve LHM operating cash flows for a period of two to three years.
Paladin stated that plans to sell a 24% interest in LHM for US$175 million and the sale of an interest in the early-stage Australia-based Manyingee project to MGT continue to progress in the documentation stage.
The company said it intended to use funds received from the strategic initiatives, together with existing cash reserves, to fully repay the US$212 million outstanding amount of the convertible bonds due April 2017.
Despite Australia-based uranium producer Paladin Energy lifting saleable uranium output by 16% in the quarter ended September 30, it missed its sales target by 50 000 pounds of uranium oxide (U3O8), citing a re-timing of sales negatively influencing results.
Total sales for the quarter amounted to 600 000 lbs U3O8, compared with a target of between 650 000 lbs and 750 000 lbs U3O8, at an average selling price of US$25.19 (N$360.22)/lb. This resulted in gross sales revenue of US$15.1 million (N$215.9 million).
Paladin also noted this week that sales volumes were affected by its stockpiling of volumes of uranium since June for a major delivery to client CNNC, as well as other contracts in December.
As a result, Paladin expects higher sales volumes for the December quarter, in the range of 1.4 million pounds U3O8 to 1.6 million pounds of yellowcake. Paladin said it succeeded in pricing most of the December deliveries in a range of US$27/lb to US$28/lb, beating current spot prices, which averaged US$25.33/lb for the September quarter.
The company reported that C1 cash costs at its Langer Heinrich mine (LHM) in Namibia fell nearly 40% to a record low of US$16.45/lb in the September quarter, boosted by strong operating performance and the impact of a US$168.9 million write-down of LHM''s ore stockpiles at the end of June.
Despite mill throughput rising 13% quarter-on-quarter to 949 906 tons, Paladin expects to implement a reduced mining plan in the current quarter.
LHM will reduce mining material movement, combined with processing plant feed coming from stockpiled low- and medium-grade ores.
According to Paladin, the mine plan adjustment has been designed to improve LHM operating cash flows for a period of two to three years.
Paladin stated that plans to sell a 24% interest in LHM for US$175 million and the sale of an interest in the early-stage Australia-based Manyingee project to MGT continue to progress in the documentation stage.
The company said it intended to use funds received from the strategic initiatives, together with existing cash reserves, to fully repay the US$212 million outstanding amount of the convertible bonds due April 2017.
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