Paladin Energy Provides 2015 Full Year Financial Report

Paladin Energy (TSX:PDN,ASX:PDN) announced its 2015 annual financial report for the year ended June 30, which showed a net loss of $368.8 million. The company also provided outlook for its full year 2016.
Highlights:

Operations

• Langer Heinrich Mine (LHM) produced 5.037Mlb U3O8 for the year ended 30 June 2015, down 13% from 2014.
• C1 cost of production:
• LHM C1 unit cash cost of production for the year ended 30 June 2015 increased by 5% from US$27.71/lb in 2014 to US$29.07/lb in 2015.

Sales and revenue

• Sales revenue of US$198.6M for the year ended 30 June 2015, selling 5.367Mlb U3O8.
• Average realised uranium sales price for the year was US$37.00/lb U3O8 compared to the average TradeTech weekly spot price for the year of US$35.80/lb U3O8.

Corporate

• Progress on recapitalisation during the year:
• Refinancing of US$110M project finance facility in July 2015.
• Completion of sale of a 25% interest in LHM to CNNC Overseas Uranium Holding Limited for US$190M in July 2015.
• Completion of equity capital raising initiatives, introducing a cornerstone strategic investor – HOPU Clean Energy (Singapore) Pte. Ltd. (HOPU), via a 15% placement as well as the completion of a well-supported entitlement offer together raising A$205M in December 2014.
• US$150M 2020 convertible bond issue in March 2015.
• Repurchase of outstanding US$300M convertible bonds due November 2015.
• Impairment of US$180.8M (after tax) recognised for the Queensland exploration assets.

Outlook:

• Cash flow optimisation initiatives being implemented including in addition to those announced on 30 July 2015.
• Forecast to be cash flow neutral3 for FY2016 on an ‘all in’ basis at current spot uranium price and foreign exchange rates.
• Key elements of FY2016 guidance include:
• LHM production 5.0Mlb to 5.4Mlb U3O8.
• Weighted average sales price premium to spot of approximately US$4/lb.
• LHM C1 cash costs in the range of US$25/lb to US$27/lb (i.e., 7-14% lower than FY2015).

Click here to read the full Paladin Energy (TSX:PDN,ASX:PDN) press release.