U.S. Markets closed

Paladin Energy Ltd: 30 June 2011 Annual Report

PERTH, WESTERN AUSTRALIA--(Marketwire - Aug. 31, 2011) - Paladin Energy Ltd ("Paladin" or "the Company") (TSX:PDN - News; ASX:PDN - News) announces the release of its Annual Report incorporating the financial statements for the year ended 30 June 2011. The Annual Report is appended to this News Release.Proven production growth and transitioning into an optimisation phasePaladin has delivered consistent growth in production over the past five years as it established the Company as an independent, global leader in the uranium industry. This production growth is set to continue with the completion of the Langer Heinrich Stage 3 expansion and finalisation of the Kayelekera Mine debottlenecking that will take Paladin to an installed annual production capacity of 8.5Mlb of U3O8.To view the Graph associated with this press release, visit the following link:http://media3.marketwire.com/docs/paladin_five_year_production.pdf.This rapid growth in the period 2005-2010 required a high level of capital investment and resourcing to plan, execute and deliver the projects. During this period costs have been disproportionate to the concurrent production levels as new expansion capacity was installed. The staging of development projects means that, with the imminent completion of the Stage 3 expansion, the Company will move into a phase where there is a natural break in project construction and costs will become much more synchronised with production output. This will complete the high investment and working capital requirements of the past five years. Paladin will use this window to consolidate and undertake essential cost and production optimisation measures across all of its operations.Paladin has continued to receive inquiries from a range of parties interested in securing sales contracts or equity participation at a project level. The Company is currently evaluating partially monetising some of its non-producing assets through the introduction of strategic minority partners. Paladin believes this will better demonstrate the significant value of these projects and increase cash resources.As part of this transition from rapid growth to optimisation, Paladin has embarked on a company-wide initiative to reduce costs. Discretionary exploration programmes will be reduced and corporate overheads will be reviewed with targeted reduction objectives.Final 2011 Year Results(References to 2011 and 2010 below refer to the equivalent twelve months ended 30 June 2011 and 2010 respectively.)

-- Safety and Sustainability:
-- Kayelekera long term injury frequency rate (LTIFR) down from 6.8 in
2010 to 0.6 in 2011.
-- Langer Heinrich LTIFR down from 1.5 in 2010 to 0.8 in 2011.
-- Established Sustainability Committee reporting directly to the
Paladin Board.

-- Production:
-- Increased U3O8 production by 32% from 4.3Mlb in 2010 to 5.7Mlb
in 2011.

-- Langer Heinrich Mine:
-- Production increased 5% to 3.5Mlb in 2011 from 3.3Mlb in 2010.
-- Stage 3 expansion is near completion with commissioning and staged
ramp-up progressing well. Stage 3 will increase annual production
from 3.7Mlb U3O8 to 5.2Mlb U3O8.
-- Commissioning of the Stage 3 expansion front end in May showed
immediate results enabling the plant to produce at 82% of Stage 3
nameplate production in June 2011.
-- Feasibility Study for Stage 4 expansion targeting annual production
of 10Mlb is well advanced in regards to process design and
capability estimation. The study is set to be completed in the
December 2011 quarter.

-- Kayelekera Mine:
-- Production increased 126% from 1Mlb in 2010 to 2.2Mlb in 2011.
-- Plant operating time continued to improve with consecutive records
for uptime set in May and June 2011.
-- Further plant debottlenecking by increasing leach launder capacity
completed in August 2011.
-- Bankers' completion test postponed until after the planned
maintenance shutdown completed at the end of August 2011.

-- Sales:
-- Total sales volume for 2011 of 4.8Mlb U3O8 was a 29% increase
compared to 2010. The average realised uranium sales price for 2011
was US$55/lb U3O8.
-- Revenue from sales of uranium of US$266.8M was a 32% increase when
compared to 2010.

-- Cost of Sales (C1):
-- Langer Heinrich Mine cost of sales (C1) for 2011 increased slightly
to US$28/lb from US$26/lb in 2010, due to an 8% appreciation of the
Namibian Dollar.
-- Kayelekera Mine cost of sales (C1) for 2011 was US$50/lb. Costs were
higher due to lower volumes during the production ramp-up phase.
With the completion of the current plant upgrade, production volumes
are expected to increase further with a proportionate reduction in

-- Cash Flow:
-- Positive cash flow of US$83.7M generated by the Langer Heinrich and
Kayelekera operations for 2011 before US$104.2M investment in
working capital, mainly comprising inventory to fill the stock
pipeline to the convertor needed to support higher production and
sales levels.
-- Finished goods stock levels at 30 June 2011 were higher than usual
because of the additional inventory held to satisfy the in excess of
1Mlb of customer deliveries completed in July 2011.

-- Funding:
-- Cash of US$117.4M at 30 June 2011 invested with Australian banks
with a minimum AA Standard & Poor's credit rating.
-- Funding agreements signed with lenders for a US$141M Langer Heinrich
Stage 3 project finance loan, to replace existing project loan and
reimburse Stage 3 construction costs. Drawdown on the financing,
which is expected to provide additional cash of approximately
US$100M after repayment of the residual balance of the original
loan, is subject to fulfilment of conditions precedent usual for
this type of facility.

-- Capital Raising:
-- Successful raising of US$300M via the issue of 5 year convertible
bonds expiring November 2015. Existing US$250M convertible bonds
expiring December 2011 were bought back.

-- Acquisition of Aurora and NGM:
-- Acquisition of the Aurora uranium assets in Canada added 83.8Mlb
U3O8 of Measured and Indicated Mineral Resources at a grade of
0.09% and 53.0Mlb U3O8 of Inferred Mineral Resources at a grade
of 0.08%. Aurora represents a major addition to Paladin's project
development pipeline. The Company is awaiting the lifting of the
three year moratorium on uranium mining by the Nunatsiavut
Government which is expected within the next year. The initial focus
on the Aurora project will be to add value through further
exploration and drilling to significantly expand the resource base,
once the moratorium is lifted.
-- Completion of the takeover of NGM Resources Ltd represented a
significant addition to Paladin's portfolio of uranium exploration
projects. This established a presence in Niger, a major
underexplored uranium province. A scout drilling programme was
completed in early July. A follow-up drilling programme is planned.

-- Reserve and Resource Upgrades:
-- Langer Heinrich Mine increased Reserves 104% to 134.1Mlb with a
grade of 550ppm U3O8.
-- Valhalla increased Measured and Indicated Mineral Resources by 5.6%
to 63.4Mlb U3O8 with an additional 12.8Mlb U3O8 Inferred
Mineral Resources.
-- Odin adds an Inferred Mineral Resource of 10.3Mlb U3O8 at a
grade of 0.06%, increasing the Mount Isa projects' inventory.
-- Bikini adds 18% in contained metal for a total Indicated Mineral
Resource of 6.3Mlb and an Inferred Mineral Resource of 7.3Mlb, both
at a grade of 0.05%, further increasing the Mount Isa projects'
-- Angela announced an Inferred Mineral Resource of 30.8Mlb U3O8 at
a grade of 0.13%.

-- Summit Resources Ltd:
-- Paladin settled its dispute with Areva NC (Australia) Pty Ltd
(Areva). The settlement paves the way for Paladin and Areva to work
co-operatively as shareholders of Summit Resources Ltd and provides
Paladin with control of the Mount Isa projects' sales and marketing

-- Profit and Loss

Year Ended Year Ended
30 June 2011 30 June 2010
Revenue 268.9 204.3
Cost of sales (170.9) (131.6)
Royalties and distribution (15.2) (7.4)
-------------- ---------------
Gross profit (before amortisation) 82.8 65.3
Exploration (3.0) (9.4)
Corporate and non-production costs (54.0) (38.6)
-------------- ---------------
Contribution from continuing operations 25.8 17.3
Amortisation and depreciation (36.1) (14.3)
Non-recurring income & expenses (33.3) 0.4
-------------- ---------------
Earnings before interest and tax (43.6) 3.4
Finance costs (61.5) (21.4)
-------------- ---------------
Loss before income tax (105.1) (18.0)
Income tax benefit/(expense) 16.6 (28.5)
-------------- ---------------
Loss after income tax (88.5) (46.5)
Non-controlling interests 6.2 0.9
-------------- ---------------
Net loss after tax - members of parent (82.3) (45.6)
-------------- ---------------

-- Revenue increased to a record US$268.9M for 2011 due to increased
uranium sales volumes and the higher realised uranium sales price.

-- Gross profit before amortisation increased to US$82.8M for 2011 from
US$65.3M for 2010.

-- Contribution from continuing operations before amortisation and non-
recurring items increased to US$25.8M in 2011 from US$17.3M in the
previous year.

-- Corporate and non-production costs for 2011 include non-cash expenses of
US$12.6M as well as costs associated with the Canadian and African
operations of US$10.6M.

-- Non-recurring expenses includes an impairment of inventory expense of
US$26.4M at Kayelekera due to higher operating costs experienced during
ramp-up and the lower prevailing uranium spot price seen since events in
Japan in March.

-- Increased finance costs for 2011 reflect the cessation of the
capitalisation of costs with the Kayelekera Mine entering commercial
production on 1 July 2010 and US$6.3M related to the early buyback of
the December 2011 convertible bond.

The documents comprising the Annual Report for the year ended 30 June 2011, including the Appendix 4E, Management Discussion and Analysis and Financial Statements are attached and will be filed with the Company's other documents on Sedar (sedar.com) and on the Company's website (paladinenergy.com.au).Conference CallConference Call and Investor Update scheduled for 07:00 Perth & Hong Kong, Friday 2 September 2011.19:00 Toronto, Thursday 1 September 2011 and 24:00 London, Thursday 1 September 2011.Details were included in a separate news release made on 24 August 2011.To view the Annual Report in full, please visit the following link:http://investors.paladinenergy.com.au/phoenix.zhtml?c=176316&p=irol-reportsannual.ACN 061 681 098

  • See Who Will Be Paying More in Taxes Next Year — It Might Be You

    See Who Will Be Paying More in Taxes Next Year — It Might Be You

    President Donald Trump and the GOP’s tax law made big changes to tax requirements. Homeowners and the self-employed are among the biggest losers, a TaxAudit review revealed. Many taxpayers will likely be in for a surprise when they file their tax returns in the spring and discover that Trump’s tax cut isn’t helping them.

  • Politics

    It won't be because of politics, but more wealthy investors see the end of bull market coming

    Investors with at least $1 million invested in a brokerage account aren't making major changes in their portfolios after the midterm elections. The markets suffered another bumpy week in the post-midterm election period, with steep losses suffered by stocks. Several headlines from the past week featured White House officials contradicting each other over trade negotiations with China and the potential implementation of additional tariffs in January.

  • Finance
    Fox Business

    Why hasn't the $1.5 billion Mega Millions winner claimed the prize?

    Three weeks after someone hit the biggest Mega Millions jackpot in history, the winner has still not stepped forward to claim their prize, according to South Carolina lottery officials – and there might be a strategy behind the move. “I’m actually not surprised at all that it’s taking them some time to claim the prize,” Michael A. Silver, a financial advisor at Morgan Stanley, said on Wednesday. The winning ticket, which was sold in a KC Mart in the South Carolina town of Simpsonville, is worth about $1.5 billion in annual installments over three decades, or an $877 million lump-sum cash package.

  • The Good, Bad, and Ugly of Activision Blizzard's 3rd Quarter
    Motley Fool

    The Good, Bad, and Ugly of Activision Blizzard's 3rd Quarter

    It's been a rough month for video game stocks, especially for Activision Blizzard (NASDAQ: ATVI), as the game maker's share price has slumped 34% since the beginning of October. The company's third-quarter earnings report presented a mix of positives and negatives that didn't sit well with market participants. Activision Blizzard exceeded its outlook in Q3 and we remain on track to deliver our previous upwardly revised outlook for the year and double-digit earnings-per-share growth year-over-year. Also, the 14-year old World of Warcraft franchise got an expected jolt of adrenaline following the August launch of the Battle for Azeroth expansion. Blizzard reported that the release set an opening day sales record with more than 3.4 million units sold.

  • Business

    Couple that saved $1 million to quit work in their 30s say this is the hardest part of retirement

    After a decade of saving and investing more than half of their income, Justin and Kaisorn McCurry quit their jobs and retired in their 30s. Now, the Raleigh, North Carolina, couple are living their best lives . The hardest part might be adapting to more alone time and less structure.

  • Best Big Marijuana Stock: Aurora Cannabis, Canopy Growth, or Tilray?
    Motley Fool

    Best Big Marijuana Stock: Aurora Cannabis, Canopy Growth, or Tilray?

    There are distinct categories for Canadian marijuana stocks when it comes to market cap. Most of these stocks have market caps of well under $1 billion. A few are between $1 billion and $5 billion. But only three claim market caps greater than $5 billion

  • A Market Crash Is Inevitable -- Here's What to Do
    Motley Fool

    A Market Crash Is Inevitable -- Here's What to Do

    If you're a stock investor, you probably think about market crashes from time to time, and there's a good chance that you dread them. The reason a stock market crash is virtually inevitable is that so far in our market's history, there have been always been crashes every now and then. You can also see that while the stock market's average annual gain over many decades has approached 10%, that's rarely near the actual return of any particular year.

  • JPMorgan CEO's bold economic prediction for 2019
    Fox Business Videos

    JPMorgan CEO's bold economic prediction for 2019

    UBS Senior Vice President of Investments Jim Lacamp on JPMorgan CEO Jamie Dimon's comments on the economy.

  • CNBC’s Jim Cramer says stock market is in ‘a very serious correction’ — and there’s nowhere to hide

    CNBC’s Jim Cramer says stock market is in ‘a very serious correction’ — and there’s nowhere to hide

    Jim Cramer, CNBC’s “Mad Money” host and a prominent fixture among market commentators, on Monday said the market is enduring “a very serious correction,” underscored by the fact that there are few fundamental reasons for the market’s current downtrend. During CNBC’s “Halftime Report,” Cramer said notable is a slump in shares of so-called FANG names — the highflying quartet of Facebook Inc. (FB) Amazon.com Inc. (AMZN) Netflix Inc. (NFLX)and Google parent Alphabet Inc. (GOOGL)(GOOG) that are among the most influential on Wall Street due to their massive market values and the degree by which investors have piled into those investments for hope of consistent growth. All of those companies are in a corrective phase, defined as a drop of at least 10% from a recent peak, and Netflix and Facebook shares have shed around a third of their values since hitting 52-week peaks.

  • Like Dividends? I Bet You'll Love These 2 Stocks
    Motley Fool

    Like Dividends? I Bet You'll Love These 2 Stocks

    Two that stand out today are ExxonMobil Corporation (NYSE: XOM) and General Mills, Inc. (NYSE: GIS). Exxon is one of the world's largest integrated oil majors, with operations that span the industry from drilling for oil and gas to processing it into refined products and chemicals. This diversification helps to smooth results over time in the volatile oil space, since falling oil prices are generally a net benefit to the company's downstream refining and chemicals businesses.

  • Melania Trump Spent $174,000 on Hotels During a Trip to Canada. She Didn't Stay Overnight

    Melania Trump Spent $174,000 on Hotels During a Trip to Canada. She Didn't Stay Overnight

    During a day trip to Toronto last year, Melania Trump spent about $174,000 in hotel bills, Quartz reported. Trump’s schedule on Sept. 23, 2017, showed that the trip spanned about 12 hours: She arrived in Toronto around noon, met with Canadian prime minister Justin Trudeau around 6:30 p.m., and left just after midnight, Quartz reported.

  • Why Did Berkshire Hathaway Buy JPMorgan Chase Stock?
    Motley Fool

    Why Did Berkshire Hathaway Buy JPMorgan Chase Stock?

    Berkshire Hathaway (NYSE: BRK-A) (NYSE: BRK-B) surprised investors by revealing that it had invested billions of dollars in bank stocks during the third quarter -- including a brand new $4 billion position in JPMorgan Chase (NYSE: JPM). To be perfectly clear, we don't know for sure why Buffett decided to invest in JPMorgan Chase, and it's likely that we'll never get the specifics. As I mentioned, Buffett and his team invested billions in bank stocks during the third quarter.

  • Business

    Barron's Picks And Pans: Apple, Amgen, TreeHouse Foods And More

    This weekend's Barron's looks at some retailers that could be poised to thrive this holiday season. Other featured articles offer where to find bargains in energy stocks and selections from a noted stock picker.

  • 3 Top Driverless Car Stocks to Buy Right Now
    Motley Fool

    3 Top Driverless Car Stocks to Buy Right Now

    The driverless car spending wars are heating up, with both technology companies and automakers committing significant sums to this endeavor, both in internal research and development and by acquiring technology-focused start-ups. With that in mind, we asked three Motley Fool contributors what stocks are poised to truly profit from the driverless car revolution. Read on why Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL), NXP Semiconductors (NASDAQ: NXPI), and NVIDIA (NASDAQ: NVDA) are in pole position.

  • New Tax Brackets for 2019
    The Fiscal Times

    New Tax Brackets for 2019

    The IRS released its inflation adjustments for the 2019 tax year this week, which include new brackets and limits on deductions and exemptions. A few highlights: The standard deduction for single filers in 2019 will be $12,200 (up from $12,000 in 2018

  • 3 "Internet of Things" Stocks to Buy Right Now

    3 "Internet of Things" Stocks to Buy Right Now

    Tech stocks have been volatile lately, but there are a number of new secular trends which investors are looking to remain exposed to in the long-term. Of these, easily the most exciting for certain semiconductor companies, gadget makers, and telecom firms is the Internet of Things. For those that don’t know, the Internet of Things is the growing world of interconnected household and industrial devices.

  • Millennials Are Disrupting Thanksgiving With Their Tiny Turkeys

    Millennials Are Disrupting Thanksgiving With Their Tiny Turkeys

    Tiny turkeys will increasingly grace Thanksgiving tables next week, thanks to the millennial generation’s ongoing campaign to remake American gastronomy. “People are starting to understand it’s not natural to grow turkeys up to 30 pounds,” said Ariane Daguin, co-founder and owner of D’Artagnan LLC, a wholesale and e-commerce food company in Union, New Jersey. Bell & Evans is working with a breeder to make tiny turkeys that consumers will eat all year.

  • Cramer: Don't buy shares of Nvidia—the chipmaker is in th...
    CNBC Videos

    Cramer: Don't buy shares of Nvidia—the chipmaker is in th...

    Jim Cramer tells investors to steer clear of Nvidia's stock as it hovers near its 52-week lows.

  • Altria (MO) Stock Sinks As Market Gains: What You Should Know

    Altria (MO) Stock Sinks As Market Gains: What You Should Know

    Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $4.85 billion, up 23.32% from the year-ago period. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability. Research indicates that these estimate revisions are directly correlated with near-term share price momentum.

  • Business

    Where to Find Bargains Among Oil and Natural-Gas Stocks

    Investors have been shaken by concerns that demand for oil and natural gas will weaken as global growth slows and the use of renewable energy sources increases. Energy companies have shown greater financial discipline by reining in capital spending and returning more cash to shareholders. Four of the big integrated energy companies— (BP) (ticker: BP), (CVX) (CVX), (XOM) (XOM), and (RDSA) (RDS.A)—have dividend yields in the 4% to 6% range and can probably cover them from earnings, even if Brent crude, now around $67 a barrel, drops closer to $50.

  • Could Bank of America Corporation Be a Millionaire-Maker Stock?
    Motley Fool

    Could Bank of America Corporation Be a Millionaire-Maker Stock?

    In the aftermath of the global financial crisis, the banking industry was persona non grata with the public, blamed -- and not unfairly so -- for playing a role in causing what would be the worst global recession in 80 years. In the half-decade following America's slow climb out of the depths of the crisis, no other American bank would pay more in fines, lawsuit settlements, or court penalties than Bank of America, which has paid more than $90 billion in damages and fines over the past decade. How bad of a bad actor was BofA?

  • It’s Official: The 2019 Standard Deduction Is Getting Even Larger
    Motley Fool

    It’s Official: The 2019 Standard Deduction Is Getting Even Larger

    The standard deduction nearly doubled in 2018 as part of the Tax Cuts and Jobs Act. Although the personal exemption was eliminated, the combination of the higher standard deduction and the increased Child Tax Credit resulted in significant tax savings for many American families. Well, the IRS just announced its inflation-related adjustments for the 2019 tax year, and the standard deduction is going up a bit more.

  • Business

    How to Play Semiconductors Amid Nvidia's Crash, Cycle Pressure

    Nvidia shares dropped 19% to $164.43 to end the day. "Last quarter [CEO Jensen Huang] said 'we are masters at managing our channel', which turned out not be the case," Bernstein analyst Stacy Rasgon told Real Money. For one, Nvidia's high price to earnings ratio makes it somewhat prohibitive compared to peers like Intel Corp.

  • Business
    Fox Business

    Thinking about retiring? These states don't have an income tax

    Recent studies have found that Americans are becoming increasingly concerned that they will outlive their savings, with more than 30 percent of Americans expecting that they will need more than $1 million in retirement, according to NerdWallet. For those looking to maximize their retirement income by minimizing their taxes, here are the seven states without an individual income tax. Despite its cold climate, Alaska offers some of the best benefits and services to retirees.

  • Watch Closely as IQ Stock Inches Closer to a Buyer/Seller Showdown

    Watch Closely as IQ Stock Inches Closer to a Buyer/Seller Showdown

    The fact that China’s iQiyi (NASDAQ:IQ) is being compared to Netflix (NASDAQ:NFLX) is an accolade in and of itself. Netflix dominates the western hemisphere’s OTTV market. IQ stock, however, has been uncomfortably tough to stick with after its post-IPO peak in June.