Borshoff extends his pay cut and his shelf life at Paladin
The expiry of Mr Borshoff's contract will coincide with his 20-year anniversary in charge of Paladin, but he said rumours of his retirement were wide of the mark.
"We will be looking to renew that in the next two to three months," he told BusinessDay.
"The renewal will be by mutual desire and I still feel that I can contribute, and the team is starting to flesh out really well."
Mr Borshoff said he was not simply "holding on" to the job, but had "a few more things to do" once uranium prices recover.
"I think the Fukushima episode is now largely behind us in terms of navel-gazing, those overhangs from Japan will soon go and the price will start edging up, I believe," he said. "Paladin is nicely poised for that, it's a builder, it now has two projects going ... even with a crazy low uranium price at the moment - that doesn't really worry me because every six months of low prices means a huge impact on supply availability.
"Juniors are going to have a hard time getting into the supply side."
Criticism of Mr Borshoff's remuneration package has been fierce over his time in charge of Paladin, prompting him in 2011 to "temporarily" cut his $2 million base salary by 25 per cent.
That cut was later extended to June 30, 2013, and Mr Borshoff revealed on Tuesday that he would now extend the cut again until Christmas at least.
"It's very hard to justify a full salary when the industry is under stress," he said.
"When you're restricting people's pay increases in this austerity period then it's just unspeakable to do anything else."
Paladin's biggest priority at the moment is selling down a stake in its flagship Langer Heinrich mine in Namibia.
The sale is designed to help pay down debt, and Paladin had expected to complete a sell-down by June 30, but was forced to extend the process until late August.
Mr Borshoff said the delay was due to strong interest from bidders, rather than a lack of interest.
"We got a revised bid from another party with less conditions so the board decided to put in a six-week delay, which we are quite comfortable with," he said.
After rising by more than 10 per cent over the past two trading days, Paladin shares fell 1¢ on Tuesday to close at 93.5c.
Frequently Asked Questions about this Article…
John Borshoff extended his self-imposed pay cut because he said it’s hard to justify a full salary while the uranium industry is under stress. He noted many employees are facing restricted pay increases during this austerity period, so he’s kept the 25% reduction (originally applied to his $2 million base salary in 2011) in place and has now extended the cut until at least Christmas.
No. Although his contract expires in November — coinciding with his 20-year anniversary leading Paladin — Borshoff told BusinessDay that retirement rumours are wide of the mark. He said the board will look to renew his contract in the next two to three months and that any renewal will be by mutual desire because he still feels he can contribute.
Borshoff believes the worst of the Fukushima-related overhang is largely behind the market and that uranium prices should start edging up. He said Paladin is well positioned as a builder with two projects underway and that prolonged low prices tend to reduce supply availability, which should eventually support prices.
Paladin’s biggest priority is selling down a stake in its flagship Langer Heinrich mine in Namibia. The sale is specifically designed to help pay down debt. Management originally expected to complete the sell-down by June 30 but extended the process into late August due to revised bids and strong interest from potential buyers.
The sell-down was delayed because the company received revised bids, including one from another party with fewer conditions, so the board allowed a six-week extension. For investors, this suggests there was strong interest in the asset and the board is seeking a cleaner deal to maximise proceeds for debt reduction.
According to the article, Paladin shares rose by more than 10% across the two previous trading days, then fell 1 cent to close at 93.5c on Tuesday. This indicates short-term volatility as the market reacts to company news and broader uranium sentiment.
Borshoff warned that junior companies will have a hard time getting into the supply side while prices are low. He suggested that lower prices over time reduce supply availability, which benefits established builders like Paladin that already have projects underway.
The article suggests a mix of continuity and caution: Borshoff plans to stay on and seek contract renewal, which offers leadership stability, while extending his pay cut and pursuing the Langer Heinrich sell-down to reduce debt demonstrates cost discipline. For everyday investors, that combination can signal management is focused on navigating low-price conditions and strengthening the balance sheet before any potential market recovery.
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