Australian uranium miners jubilant at Japan’s election results
Producers bullish on Japanese demand The Age, December 18, 2012 Paddy Manning Greg Hall, managing director of junior Toro Energy, said Japan had been spending an additional $US100 million a day on extra coal, oil and gas, which represented a ”very, very high cost”.
After the weekend’s election, he said the country now had the political will to restart its reactors. A new independent safety
authority would be in place by April and Japan’s nuclear power capacity would be restored through 2013-15……..
Paladin Energy chief John Borshoff predicted Germany, too, would eventually return to the nuclear power fold. ”Germany can’t survive on a no-nuclear basis with all the countries…. Mr Borshoff said it was impossible for Japan to do without 27 per cent of its electricity-generating capacity.
”We’ve been working on the basis the nuclear programs will resume in some modified form. Germany have set
an irreversible path but I believe in eight-10 years they’ll be back on the drawing board.”
UBS resources analyst Glyn Lawcock welcomed the Japanese news saying it had been a ”torrid” 18 months for uranium markets since the closure of the Fukushima Daiichi reactor after last year’s Japanese earthquake and tsunami.
ERA shuts down its open cut Ranger uranium mine
Open cut operations cease at Ranger uranium mine, Australian Mining 11 December, 2012 Cole Latimer Energy Resources of Australia’s Ranger uranium mine has finally stopped open cut mining, after three decades of operation.
It comes as the mine further explores its underground Ranger 3 Deeps project after receiving approvals for a prefeasibility study earlier this year.
ERA is now backfilling its Three Deeps pit after it extracted the last of the ore from Pit 3 in the last week of November, several weeks ahead of schedule, the company says….
BHP gives up on uranium: Olympic Dam may mine copper only
BHP is now looking at less capital-intensive options for the mine, focusing on copper.
BHP shuts uranium arm; nuclear-fuel prospects dim
http://www.marketwatch.com/story/bhp-shuts-uranium-arm-nuclear-fuel-prospects-dim-2012-12-06 By Robb M. Stewart MELBOURNE, 6 Dec 12, –BHP Billiton Ltd. BHP +0.19% has shut its uranium division, responsible for its Olympic Dam copper-and-uranium mine, in a reflection of dimmed prospects for the nuclear fuel.
The South Australia mine has been folded into its base metals division, the company said in a statement Thursday. Continue reading
Toro Energy gives Dr Vanessa Guthrie the poisoned uranium chalice
It looks as if Toro Energy, with its planned uranium mine Wiluna, Western Australia might be following an Australian tradition – of giving “the poisoned chalice” to a woman.
Australia’s had quite a history of giving women impossible jobs – I’m thinking mainly here of some State Premiers – Carmel Lawrence, Joan Kirner, Kristina Keneally. But it can happen in industry, too.
At Toro Energy, Dr Vanessa Guthrie, with a background in environmental sustainability, joins nuclear enthusiast Dr Erica Smyth. Smyth has been advocating nuclear power for Australia, nuclear powered desalination plants, and she presided over Toro’s propaganda campaign, with Doug Boreham preaching low level radiation as beneficial to health.
“There are serious flaws in the state assessment process and the studies Toro provided to the State Government. The project is a long way from being approved and the company faces serious financing constraints.
“Under new mine closure guidelines Toro has to find 100% of the mine closure costs in order to get approval to mine. So Toro needs $150 million to close a mine even before it has raised the $300 million to open it. The combination of a uranium price in free-fall and rising mine costs make this project increasingly unviable.” – Mia Pepper
Toro Energy’s uranium mining push comes as proven miners, including BHP Billiton and Cameco, defer or get out of planned uranium projects in WA. – Christina Macpherson
Women lead in ASX first, The Age, Peter Ker, December 5, 2012 THE branding is positively male, but the executive ranks of Toro Energy are about to take on a feminine look. In what is believed to be a unique set of circumstances in Australia, Toro will soon have women occupying both the chief executive and chairman roles, after announcing the departure of long-serving chief executive Greg Hall on Tuesday.
The situation will be formalised on February 8, when Dr Vanessa Guthrie replaces Mr Hall in running the company that is close to developing Australia’s next uranium mine.
Her chairman will be Erica Smyth, who has led the Toro board for more than three years. While it is difficult to be certain, most gender diversity experts believe the change will make Toro the only ASX-listed company to boast the female quinella. Continue reading
Uranium enthusiast Kloppers not top of the pops at BHP
Kloppers hot topic at BHP’s AGM, The Age, November 29, 2012 Peter Ker THE tenure of BHP Billiton chief executive Marius Kloppers is expected to dominate the company’s annual meeting with Australian shareholders in Sydney on Thursday.
Proxy advisers have given the company a clean bill of health while big shareholders are also much happier about the level of consultation with investors than they were a year ago, meaning Mr Kloppers’ future looms as the elephant in the room.
Environmental and social activists have flocked to Sydney ahead of the event, with social media suggesting some have travelled from South America and Papua New Guinea. PNG is home to the Ok Tedi copper mine that BHP handed over more than a decade ago after an environmental controversy.
Speaking in Canberra on Wednesday, PNG Prime Minister Peter O’Neill said BHP was still influencing the fund that now controls Ok Tedi, and urged the company to keep its distance. ”There is no longer a valid reason for it to continue to exercise any control over the board appointments to that fund,” he said…. http://www.theage.com.au/business/kloppers-hot-topic-at-bhps-agm-20121128-2aeaw.html#ixzz2DdqSKbxG
Toro Energy has to work hard to get financing for Wiluna uranium project
Toro pushes back financing on Wiluna ninemsn 29 Nov 12Toro Energy has pushed back financing negotiations for its proposed Wiluna uranium mine in Western Australia, as it waits for the federal government to decide the fate of the project. The move comes a month after WA Environment Minister Bill Marmion granted final environmental approval
for the state’s first uranium mine, in the Mid-West region.
Development can go ahead if Mr Marmion’s federal counterpart, Tony Burke, gives it the nod and the company’s board makes a final decision to proceed.
Managing director Greg Hall said the company anticipated a decision from Mr Burke by the end of the year after the minister delayed his decision by 30 days. “We anticipate it will take longer to secure a financing arrangement and hence it will take longer to make that investment decision in late 2013, Continue reading
In depressing uranium market, Australian uranium companies freeze development
Frozen: Uranium exploration on hold North West Star, Nov. 28, 2012 A GLOBALLY weak uranium mining price had led to a development freeze from Valhalla’s exploration company, but they insist the long-term outlook remain positive.
Paladin Energy, the company which is exploring uranium at the Valhalla deposit 40 kilometres North West of Mount Isa, recorded recent losses and frozen development due to the weak uranium price. In a statement, Paladin Energy said it would require a sustainable uranium price, at or above $81.78 Australian dollars per pound to warrant any further expansion or new mine development.
The current uranium price is $41.75 Australian dollars per pound.
Uranium miner Energy Resources of Australia expects to post a full-year loss of between $135 million and $155 million this year, blaming difficult market conditions for the cuts…..
The long-term outlook may not be so bleak with an independent investment researcher claiming there is promise. Senior independent researcher Claire Aitchison said uranium demand was supported by 63 new reactors under construction, 18 reactors undergoing power capacity upgrades and the anticipation of more Japanese reactors coming back online following the Fukushima incident.
However she warned another disaster on the scale of Fukushima could have a significant impact on the nuclear industry.
No hope for Queensland uranium mining, with no uranium market recovery in sight
Market reality to keep uranium riches in the ground despite lifting of mining ban, Courier Mail, by: Robert Macdonald November 26, 2012 WHEN Premier Campbell Newman unexpectedly announced the end of Queensland’s uranium mining ban in late October, the share prices of selected explorers soared.
It was just a spike. Once investors recovered from their initial glee at the overturning of the 20-year-old roadblock, the reality of a uranium market deeply depressed in the wake of the Fukushima nuclear power station disaster brought them back to Earth…….
The current spot price of uranium is less than $US45 ($A43) a pound (454g), which is barely two-thirds of the break-even cost of a modern uranium mine. The long-term price is higher, about $US60 a pound, but still barely profitable.
“I don’t think anything in the world would go ahead at the moment,” Laramide Resources vice president, exploration Peter Mullens said….. Continue reading
Paladin Uranium CEO predicts boom in uranium, especially for Japan
Paladin pins hopes on new Japanese govt, SMH, Kim Christian From: AAP November 22, 2012 URANIUM miner Paladin Energy hopes a new Japanese government will decide to restart the country’s nuclear reactors, as the price of uranium hovers around two-year lows.
Chief executive John Borshoff said that despite the shutdown of nuclear power stations in Japan after the Fukushima nuclear disaster, some reactors were now coming on line.
“We are confident that these will start coming back, working in the fleet in 2013, particularly with the change of government,” Mr Borshoff told the company’s annual general meeting in Perth on Thursday…..
He said that in order to meet worldwide demand, 15 to 30 mines would need to be built this year, an impossible task.
Paladin recently announced it will slash costs by up to $US80 million ($A76.97 million) and cut some staff after putting a freeze on development due to the weak uranium price. The company on Thursday reiterated production guidance for fiscal 2013 of between eight million pounds and 8.5 million pounds.
Shareholders on Thursday approved the company’s 2012 remuneration report, with seven per cent of votes cast against the 2012 report that showed Mr Borshoff earned $3.4 million, up from $2.5 million in 2011.
http://www.heraldsun.com.au/business/breaking-news/paladin-pins-hopes-on-new-japanese-govt/story-e6frf7ko-1226522231616
Uranium market down the drain, but CEOs can laugh to the bank
Borshoff collects some cash as Paladin shares head south November 17, 2012 Christopher Webb THE disposals table was topped this week by a large-scale sale by the managing director of Paladin Energy, where the share price has come under severe pressure recently.
John Borshoff collected $5.6 million from the sale of scrip at 94¢ apiece on Monday. The price has closed lower for each of the last nine days and on Friday lost as much as 8 per cent to 74¢, a level last seen early in 2005. Paladin is a one-time high-flyer that operates two uranium mines in Africa.
Chairman Rick Crabb said Borshoff’s sale was to release funds ”as part of the management of his personal financial affairs”…… http://www.theage.com.au/business/borshoff-collects-some-cash-as-paladin-shares-head-south-20121116-29ho8.html#ixzz2CWgzVyUU
Borshoff, a cut above http://www.theage.com.au/business/borshoff-a-cut-above-20121102-28pkf.html#ixzz2CWg9jYJs November 3, 2012 Peter Ker HE MAY have cut his salary by 25 per cent, but Paladin boss John Borshoff took home much more money in the year to June 30 than the year before.
The fine print of Paladin’s annual report reveals that despite honouring a promise to cut his salary between November 2011 and November 2012 – a promise extended to June 2013 – Mr Borshoff was able to boost his remuneration after a review of annual leave entitlements.
The review focused on annual and long-service leave in a bid to cut Paladin’s liabilities, and Mr Borshoff responded by cashing out 220 days of leave.
The transaction netted Mr Borshoff $1,717,000 and helped increase his remuneration to $3,464,000, well above the $2.26 million of the year before.
Mr Borshoff’s contract with Paladin has one year left, and provides him with three months’ long-service leave for every five years of service. He is entitled to two years of double base salary when he retires or has his employment terminated.
The 52 per cent rise in Mr Borshoff’s pay came in the year workers at the company’s uranium mine in Malawi had calls for a 66 per cent pay rise rejected.
Paladin maintained that Mr Borshoff’s remuneration is warranted, based on his expertise.
South Australian government rolled over for BHP, but Olympic Dam uranium mine still uneconomic
High costs stall Olympic Dam BY: SARAH MARTIN, SA POLITICAL REPORTER : The Australian November 14, 2012 BHP Billiton chief executive Marius Kloppers says the Olympic Dam mine will not be expanded until the high-cost environment in Australia improves, with the resources industry overheated by too much demand.
The South Australian Labor government yesterday granted the miner an extension until October 2016 to its existing indenture agreement for the shelved mine expansion, in line with the project’s environmental approvals….. subscription only http://www.theaustralian.com.au/business/mining-energy/high-costs-stall-olympic-dam/story-e6frg9df-1226516169013
Slash and burn time for Paladin Energy with collapse of the uranium market
Paladin freezes expansion Financial Review 08 NOV 2012 Uranium miner Paladin Energy will slash costs by up to $US80 million ($76.97 million) after putting a freeze on development due to the weak uranium price.
Paladin will cuts costs by between $US60 million and $US80 million in fiscal 2013 and 2014, after undertaking an extensive review of costs and production.
The “optimisation exercise” had now become even more relevant due to the spot price, the company said in a statement on Wednesday. But the company did not reveal whether significant job losses would be forthcoming. Continue reading
Uranium One’s CEO gives “Yes – But” statement on future prospects, following latest loss
Uranium One’s CEO Discusses Q3 2012 Results – Earnings Call Transcript Seeking Alpha November 6, 2012 “…..This upcoming discussion does contain certain forward-looking information with respect to Uranium One’s operations and financial results. Actual future results may differ from expected results for a variety of reasons which are described in the cautionary statements regarding forward-looking information in our press release..
… during the quarter, we did determine that it would not be economical to mine, the South Zarechnoye satellite deposit due to lower uranium prices following the Fukushima incident together with a decrease in the resource base
resulting from recent exploration work.
As a result, we incurred non-cash expenses $79 million by writing down the carrying value of South Zarechnoye. This resulted in a net loss for the quarter of $61.6 million or $0.06 per share…… Uranium One now owns 100% of the Honeymoon mine
Uranium One – posts market loss
Uranium One posts 3Q loss despite production increase 11/5/2012 Stockhouse Editorial Uranium One Inc. (TSX: T.UUU, Stock Forum) announced its third quarter financial results on Monday and said total production rose 23% to 3.1 million pounds from 2.5 million pounds in the year earlier period.
Uranium One is a Toronto-based company with assets in Kazakhstan, the United States and Australia…..
The company posted a net loss of $61.6 million or 6 cents a share in the quarter. That compared to a net profit of $45.8 million or 5 cents a share a year earlier. Revenue in the quarter was $142.6 million, down from $157.7 million in the year ago period.
Down 1% Monday to $2, Uranium One has a market cap of $1.9 billion, based on 957.2 million shares outstanding. The 52-week range is $3.45 and $1.98. http://www.stockhouse.com/natural-resources-news/2012/nov/5/uranium-one-posts-3q-loss-despite-production-incre.aspx#uEqGXOEW55vDjfL4.99
Uranium industry looking more and more like a long term casualty
Blind to a uranium fallout Business Spectator, by Robert Gottliebsen , 2 Nov 2012 I have to keep pinching myself. I see this enormous change ahead for world energy yet people keep acting as though nothing is happening.
The latest long-term casualty looks like being uranium and the already delayed BHP Olympic Dam big pit along with Campbell Newman’s hopes to resume Queensland uranium exports…
.. Last night Dundee Capital Markets cut its near-term uranium price forecast. Given that the uranium price has fallen from $US65 per pound to around $42 this was miserable news for the uranium industry and further fallout from the Fukushima disaster.
But Dundee still forecasts a return to $US65 in the long term. They may be right but as the US becomes a low-cost energy country once again – and one that is slashing its carbon output – and steaming coal prices remain low it’s going to be harder and harder to justify higher uranium prices…..
http://www.businessspectator.com.au/bs.nsf/Article/shale-gas-BHP-Olympic-Dam-Newman-Queensland-uraniu-pd20121102-ZMRF7?opendocument&src=rss
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