URANIUM miner Paladin Energy has managed to underwhelm the market yet again, despite the worst aspects of yesterday’s $US120.2 million loss being known for several months.
Investors wiped more than 5 per cent off the value of the stock … The loss was largely due to a $US133 million write-down on the value of Paladin’s Kayelekera mine in Malawi. Paladin revealed the write-down to the market late last year. …
the market was not impressed. Analysts at Goldman Sachs said the result was worse than expected, and by the close of trading 10¢ had been shaved off Paladin’s share price, taking it to $1.70 – dramatically lower than the $5.40 it was fetching less than a year ago.
Some of the negativity appeared to be linked to ballooning expenses, despite chief executive John Borshoff cutting his own pay by 25 per cent and reducing exploration in an effort to rein in costs.
From $US31 a pound in the first half of 2010, Paladin’s costs rose to $US34 a pound in the six months to December 31, and costs at the Kayelekera mine were as high as $US46 a pound in the final quarter of last year.
