By Business Reporter
PALADIN Energy has released its quarterly activities report, revealing a sharp quarter-on-quarter drop in revenue from US$23.6 million to US$6.6 million.
The company’s US$6.6 million in revenue came from the sale of 267,423 pounds of triuranium octoxide (U3O8) at an average price of US$24.60 per pound.
The drop in revenue follows Paladin’s May decision to place its Langer Heinrich mine in Namibia on care and maintenance, with the plant having been cleaned out in early August. It is expected to remain in that state until the uranium spot price makes operating the mine economically sustainable.
In the meantime, Paladin intends to explore options for reducing operating costs and extending Langer Heinrich’s productive life and throughput in the future. It will also properly maintain the mine for an eventual restart of operations.
The company’s Kayelekera mine in Malawi is also on care and maintenance, with activities focused on cleaning out and maintaining the water treatment plant ahead of the 2018/2019 wet season.
Paladin’s cash and cash equivalents were down to US$30.6 million during the quarter, a drop of US$19.6 million from the previous quarter. The company expects cash and cash equivalents to grow to approximately US$40 million by the end of the December quarter from uranium sales.
The company kept busy during the September quarter with a takeover offer for Summit Resources in early August; at the time, Paladin already owned 82.08 percent of the uranium exploration company. The deal will bolster Paladin’s presence in Australia.
As of last week, Paladin’s share price was at AU$0.195 on the ASX. Its share price has increased over 300 percent year-to-date.
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