Low prices hit Paladin

Paladin Energy made a loss of $US40 million in the September quarter, despite improving the performance of its flagship mine.

Paladin Energy made a loss of $US40 million in the September quarter, despite improving the performance of its flagship mine.

Record uranium production and lower costs at the Langer Heinrich mine in Namibia couldn't prevent the loss, which included $US15 million ($16 million) of write-downs on stockpiles and equity investments.

The results highlight the strain of low uranium prices, which are much weaker now than in the year after the 2011 Fukushima nuclear crisis.

Uranium was fetching an average of $US36 a pound during the September quarter, which is less than the operating costs of Paladin's second mine in Malawi, which produced at $US39.30 a pound during the quarter, before finance and administration costs.

The Langer Heinrich mine produced uranium at $US28 a pound, 12 per cent cheaper than one year ago. The solid result at Langer Heinrich may help efforts to offload a stake in the mine, after a sale fell through in August.

Paladin said it had resumed negotiations with suitors, and had "reasonable confidence" a sale could be achieved.

Paladin's annual meeting will be held next week.

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