Australian news, and some related international items

Paladin uranium miner struggles with continued losses and share price falls

Paladin chief slashes his pay, SMH, Peter Ker,November 1, 2011 PALADIN Energy boss John Borshoff has taken the knife to his $2.5 million salary, in the latest chapter of a miserable year for the struggling uranium miner.

Barely 10 months after enjoying a 5 per cent pay rise, Mr Borshoff has agreed to reduce his pay by 25 per cent as part of a drive to reduce administration costs at the Africa-focused company. The pay cut coincided with a lacklustre quarterly report from Paladin, which has earned a reputation for over-promising and under-delivering. ……… mine production targets were missed by 15 per cent over the past three months, while the company’s forecasts for the uranium price also proved too optimistic.

But the cut to Mr Borshoff’s pay was the stand-out item in the report, and comes after much agitation from investors who have watched the share price plummet since the Japanese nuclear disaster in March.  Mr Borshoff’s remuneration package was worth $2.522 million in the year to June 2011, up from $1.9 million the year before.

That increase to his remuneration, which included a 5 per cent rise in fixed pay, came in a year when Paladin made an increased trading loss of $US82.3 million.   The company sought to justify Mr Borshoff’s remuneration by describing him as a ”recognised global authority” on nuclear power, whose expertise was in ”extremely limited supply” around the world….

Paladin shares fell 6.5¢ to $1.50 yesterday. The stock was fetching $5 in March before the Fukushima nuclear disaster damaged investor confidence in the uranium sector….

November 1, 2011 - Posted by | AUSTRALIA - NATIONAL, business, uranium

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