Bad news for Paladin Energy in drastically low uranium price
Paladin cancels uranium mine sale Yahoo 7 Finance, 2 Aug 13 Paladin Energy has scrapped the sale of a stake in its flagship African uranium mine after it failed to attract a high enough bid.
The Australian listed company instead will use a shareholder diluting $88 million capital raising to reduce about $US670 million ($A753.95 million) of debt.Paladin had been negotiating with two nuclear power companies to sell a 15 to 20 per cent stake in its Langer Heinrich mine in Namibia.
In late June, managing director John Borshoff maintained a sale would go ahead.
But the global uranium market is still depressed more than two years since Japan’s Fukushima nuclear disaster, and the spot price is at seven-and-a-half-year lows of about $US35 a pound……….
It said it would wait until prices lifted before going to the market to sell again. A uranium price of at least $US70 a pound was needed, it said.
In other bad news for Paladin, the company said it expected to have to write down the value of assets including its other producing mine, Kayelekera in Malawi, by $US180 million ($A202.55 million).
The capital raising involves the equivalent of 15 per cent of its stock being issued to private institutions.
The company’s shares went into a trading halt on Thursday at $1. http://au.finance.yahoo.com/news/paladin-cancels-uranium-mine-sale-023213073.html
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