Malawi:Paladin Energy loses $120m at Kayelekera mine in Malawi

The company, dual listed in Australia and Canada, reported a $133-million impairment cost associated with the write down of Kayelekera assets, which it said was considered necessary as uranium prices fell after the Fukushima Daiichi nuclear disaster in Japan last year.

In the first six months of 2010, Paladin booked a $21.1-million loss.

Shares in the uranium miner slumped more than 5% in Sydney on Tuesday, trading at A$1.70 apiece.

However, during the three months to December, Paladin recorded a $3.2-million after-tax profit, compared with the $17.6-million loss in the previous corresponding period, as a result of higher sales volumes and prices, as well as the lower overhead and finance costs.

Uranium sales for the quarter reached more than 1.31-million pounds of uranium oxide (U3O8), generating revenue of some $69.9-million, the miner said. This was a 34% decrease compared with the September quarter sales.

Sales revenue for the six months under review increased by some 50% from $115.8-million in 2010 to $173.4-million during the interim period in 2011, mainly as a result of higher sales volumes, which reached 3.32-million pounds U3O8.

Paladin reported record half-year production of 3.069-million pounds of U3O8, an 8.5% increase from the first half of 2010.

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