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Message: Financial Report for the Second Quarter and Half Year Ending 31 December 2008
| February 13, 2009 | |
| Paladin Energy Ltd: Financial Report for the Second Quarter and Half Year Ending 31 December 2008 | |
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PERTH, WESTERN AUSTRALIA--(Marketwire - Feb. 13, 2009) - Paladin Energy Ltd ("Paladin" or "the Company") (TSX:PDN)(ASX:PDN) announces the release of its Financial Report for the Second Quarter and Half Year ending 31 December 2008. The Financial Report is available on the Company's website (www.paladinenergy.com.au) and will be available shortly on SEDAR (www.sedar.com). Projects: - Production of 673,982lb of U3O8 at the Langer Heinrich Uranium Project in Namibia for the quarter. Production for the half year was 1,324,537lb being 50,463lb (4%) under the production target for this period due only to the later than scheduled commissioning of the front end section of Stage II. - Langer Heinrich Stage II production expansion to 3.7Mlb per annum is well advanced. Production ramp up should commence in March and nameplate design throughput should be consistently achievable within first half of 2009. Expenditure to 31 December 2008 was US$29M. Study evaluating the Stage III expansion to 6Mlb/pa is ongoing with the results expected in the March Quarter. - Sales of Langer Heinrich uranium concentrate for the quarter of 245,000lb U3O8 averaging US$54/lb. Sales of Langer Heinrich uranium concentrate for the half year of 1,123,000lb U3O8 averaging US$57/lb. - Kayelekera Uranium Project construction work remained on track with commissioning commencing in January and production ramp-up scheduled later in the March quarter with the Project currently 90% complete. - Valhalla/Skal Uranium Deposits - resource upgrade at Valhalla representing an 18.5% increase in total contained metal and a 46.5% increase in measured and indicated resources. - Focus continued on exploration and evaluation of Mount Isa Uranium Joint Venture and Isa North Uranium Project in Queensland, and the Bigryli Uranium Joint Venture in Northern Territory. Total exploration and evaluation expenditure was US$6.4M. Corporate: - Profit and Loss 3mths to 6mths to
31 Dec 08 31 Dec 08
US$M US$M
Gross Profit 6.4 28.4
Impairment Expenses (779.8) (779.8)
Exploration and Evaluation Expenses (2.8) (6.4)
Finance Costs (8.2) (17.4)
Corporate and Other (8.9) (19.0)
Income Tax Benefit 227.0 222.8
Minority Interests 95.5 95.8
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Net Loss after Tax (before minority interests) (470.8) (475.6)
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- An impairment of US$527.6M (net of Deferred Tax Liability) in the carrying value of the Mount Isa assets. The Paladin Board elected to impair this asset in order to ensure it both retains a transparent and relevant Balance Sheet as well as demonstrating prudence given the impact of the global financial crisis. The written down value of this asset (as yet non-operating) is now not significantly different from the valuation implied by the market capitalisation of Summit Resources Limited which is observable daily. In electing to impair this asset, it is important to note that Paladin is not wavering whatsoever in its belief in a highly positive uranium outlook and remains resolutely committed to the development of the Mount Isa assets. Paladin is maintaining its stated, aggressive exploration and development programme and budgets for Mount Isa and its commitment to both uranium and the Mount Isa region. This is further evidenced by the recent acquisition of Fusion Resources Ltd. Furthermore, assuming a positive feasibility study, Paladin would develop the assets as soon as the Queensland State Government Policy allows it to do so. - Under the accounting standards, the Company was required to write down the carrying value of its investment in listed company Deep Yellow Ltd (ASX:DYL) by US$26M to its market price as at 31 December 2008. This write-down does not in any way reflect the Board's confidence in DYL's resource potential and outlook. - Strong balance sheet at 31 December 2008 with US$192.2M in cash invested with Australian banks with a minimum AA Standard & Poor's credit rating. - Net cash inflow from operating activities for the half year of US$11.1M primarily due to uranium sales receipts. - Paladin is continuing to progress satisfaction of the conditions precedent to facilitate drawdown on the project finance loan for the Kayelekera Project. Delays in satisfying remaining conditions related primarily to the due process of attaining various approvals from Malawi Government agencies for a US$ financing secured against project assets. As this is the first such financing in Malawi, necessary regulations and procedures are required to be drafted and implemented for consistency with international practice. Paladin is anticipating finalising the conditions precedent to first draw down shortly. These results can be found shortly with the Company's other documents filed on Sedar (http://www.sedar.com) or through the Company's website (http://www.paladinenergy.com.au). The documents filed comprise the Financial Report for the Second Quarter and Half Year ending 31 December 2008, including the Report to Shareholders, Management Discussion and Analysis, Directors' Report, Financial Report, Ernst & Young Review Opinion and Certifications. |
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