Paladin Energy Ltd
TSX : PDN
ASX : PDN

Paladin Energy Ltd

May 14, 2009 07:40 ET

Paladin Energy Ltd: Financial Report for the Quarter Ending 31 March 2009

PERTH, WESTERN AUSTRALIA--(Marketwire - May 14, 2009) - Paladin Energy Ltd ("Paladin" or "the Company") (TSX:PDN)(ASX:PDN) announces the release of its Financial Report for the quarter ending 31 March 2009. The Financial Report is appended to this News Release.

Projects:

- Production of 685,874lb of U3O8 for the quarter at the Langer Heinrich Uranium Project in Namibia (up 40% from same period last year) and has exceeded nameplate design production for the third consecutive full quarter. Production for the nine months was 2,010,410lb.

- Langer Heinrich Stage II production expansion to 3.7Mlb per annum is undergoing commissioning and finalising construction. Production ramp should be completed in the June 2009 quarter and nameplate design throughput is expected from July 2009. Expenditure to 31 March 2009 was US$35M. The Stage III expansion proposal is to be presented for Board approval in June 2009.

- Sales of Langer Heinrich uranium concentrate for the quarter of 453,000lb U3O8 averaging US$54/lb. Sales of Langer Heinrich uranium concentrate for the nine months of 1,576,000lb U3O8 averaging US$56/lb.

- Kayelekera Uranium Project (3.3Mlb per annum) officially opened - construction remains on track with commissioning commenced in January 2009 and production ramp-up commenced in April. Expect to reach full nameplate production in January 2010.

- Focus on exploration and evaluation of Australian projects continued, in particular the Mount Isa Uranium Joint Venture and Isa North Uranium Project in Queensland, and the Bigryli Uranium Joint Venture in Northern Territory. Total exploration and evaluation expenditure was US$8.2M.

Corporate:

- Profit and Loss



3mths to 9mths to
31 March 09 31 March 09
US$M US$M
Gross Profit 10.8 39.2
Impairment Expenses - (779.8)
Exploration and Evaluation Expenses (1.8) (8.2)
Finance Costs (6.9) (24.3)
Corporate and Other (6.4) (25.4)
----- -------
Loss before Income Tax (4.3) (798.5)
Income Tax (Expense)/Benefit (2.6) 220.2
----- -------
Net Loss after Tax (before minority interests) (6.9) (578.3)
----- -------


- Gross profit for the six months up by US$24.9M year on year reflecting improved operating performance at Langer Heinrich Uranium Project.

- Strong balance sheet at 31 March 2009 with US$148.8M in cash invested with Australian banks with a minimum AA Standard & Poor's credit rating.

- Net cash inflow from operating activities for the half year of US$1.9M.

- Kayelekera Project Financing facility in place and management expects drawdown will occur late May 2009. Delays in satisfying the remaining conditions precedent for drawdown are procedural with no material items outstanding. With the project close to completion and to date fully equity funded, the majority of the first drawdown will be used to replenish the cash balance of the Company.

- Paladin completed its off-market takeover of Fusion Resources Limited.

- Paladin invested US$0.3M in NGM Resources Limited to allow it to work on its Niger uranium concessions.

Conference Call and Investor Update scheduled for 22:00 Perth / 10:00 Toronto Tuesday 19 May 2009. Details are included in a separate news release.

These results may be found shortly with the Company's other documents filed on Sedar (http://www.sedar.com) or through the Company's website (http://www.paladinenergy.com.au). The documents filed comprise the Financial Report for the Quarter ending 31 March 2009, including the Report to Shareholders, Management Discussion and Analysis, Financial Report and Certifications.

To view the "Financial Report for the Quarter Ending 31 March 2009", please click on the following link:
http://media3.marketwire.com/docs/paladin.pdf

A.C.N. 061 681 098

Contact Information