Australian news, and some related international items

Huge write-down in value of Paladin’s Kayelekera uranium mine

uranium-oreKayelekera value cut over weak spot prices THE DAILY TIMES , 17 MAY 2013  THOM KHANJE Australian-uranium miner, Paladin Energy, has slashed a further US$45 million from the value of its Kayelekera Mine in Karonga as poor spot prices of uranium continue to negatively affect its earnings from the mine.

Following the write-down, the mine is now valued at only USid=”mce_marker”40.8 million, down from over US$200 million nine months ago.

graph-downwardIn its financial report for nine months to March 31 released this week, Paladin blamed continued poor uranium prices for the losses.

The spot uranium price, which has been in the doldrums since the 2011 Fukishima nuclear disaster, went down to a three-year low of US$40.75 a pound by the beginning of this week.

Paladin has since reported an overall net loss of US$247.7 million for the nine months, a sharp drop from the USid=”mce_marker”37.7 million net loss for the similar previous period…….

The falling uranium price and reduced production levels at both the Kayelekera and Langer Heinrich Mine in Namibia during the first quarter of 2013 compared to the previous three months, have also led to a fall in Paladin’s stock market value…..

May 20, 2013 - Posted by | AUSTRALIA - NATIONAL, business, uranium

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