Production woes send Paladin's stock lower
Australian uranium producer, Paladin Energy (ASX:PDN), announced that its U3O8 production was 15% lower due to planned shutdowns and unscheduled remediation work.
The company's stock declined 4.15% to $1.50 after Paladin announced on Monday its quarterly report for the three-month period ended September 30, 2011.
The company did have record sales of 2,001,673lb U3O8, which generated revenue of US$102.74M. The average sales price for U3O8 was US$51.33/lb.
The company's Namibian operations, its Langer Heinrich mine, was slowed down by by stage three tie-in shutdowns. The company says that production will increase as new equipment comes on-line.
The Kayelekera Mine in Malawi also had a planned shutdown for a plant upgrade, but there was an unscheduled shutdown for remedial action on an acid and drying plant. Overall, the mine lost six weeks of production.
The company noted that the sport market price for uranium continues to languish post-Fukushima.
"As other producers have also indicated, these low uranium price levels will dramatically impact the supply growth outlook and are therefore considered unsustainable if a viable and vibrant supply industry is to be established to support the growth in global nuclear power now being reaffirmed," said the company in a statement.