The company’s sales revenue was down by 14% to $259.6m during the period from $301m in 2013, driven by a 25% decrease in realized sales price of $37.9/lb. The 16% increase in sales volume has, to some extent, compensated the drop in revenue.
During the three-month period, the firm has reported net loss of $11m, attributed to low uranium prices, while the revenue in the same period declined 17% to $88.6m, due to a 33% slump to $36.8/lb in the average price of uranium.
Paladin claimed that the sales of uranium ore are highly volatile, fluctuating on quarterly basis fueled by the irregular contractual timings and delivery scheduling by utility customers.
The combined production for the nine months ended 31 March 2014 grew 4% to 6.342mlb, while the quarterly production reported 5% increase to 2.089mlb.
The cost of production at Langer Heinrich Mine has reduced by 3% to $29/lb in the March 2014 quarter from US$29.8/lb in the 2013, alongside a 17% drop in production cost at Kayelekera Mine.
Paladin stated that the combined production of over two-million pounds from both the mines, as against the 2.2-million pounds of uranium oxide in the previous quarter.
Kayelekera mine was suspended earlier in February 2014, citing the low uranium prices and the unsustainable cash demand to maintain the loss-making operation.
