Paladin Energy Ltd
TSX : PDN
ASX : PDN

Paladin Energy Ltd

May 15, 2008 08:38 ET

Paladin Energy Ltd: March 31, 2008 Third Quarter Report

PERTH, WESTERN AUSTRALIA--(Marketwire - May 15, 2008) - Paladin Energy Limited ("Paladin" or the "Company") (TSX:PDN)(ASX:PDN) announces the release of its March 31, 2008 Third Quarter Report.

Projects:

- Production of 490,800 pounds of U3O8 at the Langer Heinrich Uranium Project in Namibia for the March '08 quarter - plus an additional 60,000 pounds of U3O8 loaded in a temporary uranium thickener. Calendar 2008 production guidance maintained

- Work commenced on US$50 million Langer Heinrich Stage II production expansion to 3.7 million pounds per annum - scheduled for mechanical completion at end of calendar 2008. Planning underway on Stage III expansion to 6.0 million pounds per annum

- Sales of Langer Heinrich uranium concentrate for the quarter of 208,000 pounds U3O8 averaging US$66/lb - in line with revised plan to overcome shipping delays. Sales for the nine months of 809,000 pounds U3O8 averaging US$71/lb

- Construction work on schedule and budget at the Kayelekera Uranium Project in Malawi - activities included civil works, cement and foundation preparation, equipment and facility installation, upgrade of public road, and recruitment of operations staff

- Paladin and Cameco JV awarded the Angela Uranium Deposit in Northern Territory

- Focus on exploration and evaluation of Australian projects, in particular the Mount Isa Uranium Joint Venture and Isa North Uranium Project in Queensland, and the Bigryli Uranium Joint Venture in Northern Territory

Corporate:

- Loss after tax for the quarter ending March 31, 2008 of US$8.4 million - consisting of US$7.7 million profit for Langer Heinrich as a consequence of improved performance; US$2.5 million investment in exploration and evaluation expenditure; US$7.0 million finance costs; and US$6.6 million in net corporate costs

- Strong balance sheet at March 31, 2008 with net assets of US$1.4 billion including US$417 million in cash (US$375 million invested in US treasury bonds)

- Issue of US$325 million in Convertible Bonds on March 11, 2008 with a coupon rate of 5%, maturity March 11, 2013 and conversion price of US$6.59 for Company share

- Loss after tax for the nine months ending March 31, 2008 of US$34.2 million - consisting of US$5.8 million profit for Langer Heinrich as a consequence of extended operational ramp up activities in 2007; US$9.1 million investment in exploration and evaluation expenditure; US$20.4 million finance costs; and US$10.5 million in net corporate costs, including foreign exchange losses and share based payments

- Net cash outflow from operating activities for the quarter ending March 31, 2008 of US$22.6 million attributable to the timing of sales invoice receipts

- Credit committee approved offers received for finance totalling US$167 million for the Kayelekera Uranium Project, subject to legal documentation and fulfillment of other conditions precedent usual for this type of funding

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 Third Quarter Report, including the Management Discussion and Analysis, Report to Shareholders, Financial Report and CEO/CFO certifications.

A.C.N. 061 681 098

Contact Information

  • Paladin Energy Limited
    John Borshoff
    Managing Director
    +61-8-9381-4366 or Mobile: +61-419-912-571
    or
    Paladin Energy Limited
    Ron Chamberlain
    Chief Financial Officer
    +61-8-9381-4366 or Mobile: +61-410-421-776
    or
    Paladin Energy Limited
    Greg Taylor
    Investor Relations Contact
    (905) 337-7673 or Mobile: (416) 605-5120 (Toronto)
    Email: greg.taylor@paladinenergy.com.au
    Website: www.paladinenergy.com.au