Wednesday, October 2, 2013

Uranium Miner Paladin Energy To Make Further Cuts

Published on Wednesday October 02 2013 (AEST)  
Paladin Energy will cut more jobs and implement further pay cuts as the price of uranium continues to fall. 

Uranium miner Paladin Energy is cutting more jobs and reducing executive pay and other spending in response to continued falls in the price of the nuclear energy source.

The Perth-based company, which operates two uranium mines in Africa, says it will reduce the number of head office staff in the current financial year, and cut the base salaries of managers by 10 per cent.
Paladin already had made 14 head office staff redundant, in 2012/13, leaving 45 in administration roles.
No number has been given for the latest round of job cuts.

Executive pay was also reduced in 2012/13, with managing Director John Borshoff's remuneration of $2.5 million less than half the amount he received in the previous year.

Paladin made a loss of $US420.9 million in 2012/13, due to massive writedowns on the value of its assets caused by the weak uranium price.

Its corporate and exploration costs are to be reduced by 24 per cent in 2013/14, or $US10.8 million ($A11.53 million).

Discretionary capital expenditure will be cut by $US12.4 million ($A13.23 million) in the next two financial years.

Costs at the Kayelekera mine will be slashed by 22 per cent over the next two financial years, while costs at Langer Heinrich will be reduced by 15 per cent, Paladin said.

The new cost reductions "have now become even more pertinent" the company said on Wednesday, due to "further incremental weakening of the uranium spot price".

But the price falls do not detract from the very strong fundamentals of uranium in the medium and long term, it said.

Paladin is also negotiating the sale of a minority stake in the Langer Heinrich mine.

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