Paladin boss extending his pay cut and his contract
Paladin Energy boss John Borshoff has extended his self-imposed pay cut and revealed plans to continue at the helm of the nation's biggest uranium pure-play beyond the end of his contract in November.
The expiry of Mr Borshoff's contract later this year 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 25 per cent 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 process will 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.
After rising by more than 10 per cent over the past two trading days, Paladin shares lost 1¢ on Tuesday to close at 93.5¢.