Paladin remains deep in red
Paladin Energy made a loss of $US40 million ($42.8 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 worth 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 in the September quarter, which was less than the operating costs of Paladin's second mine in Malawi, which produced at $US39.30 a pound before finance and administration costs.
Paladin's Langer Heinrich mine in Namibia produced uranium at $US28 a pound, which is 12 per cent cheaper than a year ago.
The solid result at Langer Heinrich might help efforts to offload a stake in the mine, after a sale fell through at the last moment in August.
In a statement, Paladin said it had resumed negotiations with suitors and had "reasonable confidence" a sale could be achieved.
"Paladin will provide an update on the status of negotiations in relation to this transaction by the end of November," the company said.
Paladin chief financial officer Alan Rule told investors on Friday that a sell-down of the stake should not affect any debt covenants.
Managing director John Borshoff and chairman Rick Crabb are facing pressure from dissatisfied shareholders, who are pushing for personnel changes at the top of the company.
Paladin's annual meeting of shareholders will be held next week.