Paladin posts US$19m loss 12. February 2010 09:32 Ben Larsen
Paladin Energy Limited (PDN) posted a loss of US$19 million for the six months to 31 December 2009, an improvement on the US$475.6 million loss in the previous corresponding period. The result was on the back of a 51.7% increase in revenue to US$101.2 million as a result record uranium oxide production of 1,731,498lb for the six-month period.
The uranium miner reported a profit of US$400,000 for the December quarter alone, compared to a US$470.8 million loss in the pcp.
December quarter production rose from 673,982lb in 2008 to 987,310lb in 2009.
Paladin said total sales volume for the six months reached 1,798,000lb averaging US$56/lb, compared to 1,123,000lb in the pcp. The company also reported record quarterly sales of 1,095,000lb U3O8 in December, which generated US$61.9 million in revenue.
Paladin said it has concluded a new long-term sales contract with a major Asian utility covering the supply of more than 4Mlb U3O8 commencing 2012
?Work is also well advanced on making a trial shipment of uranium directly to China to test and demonstrate the efficiency of logistics from Africa to Chinese conversion facilities,? the company said.
Paladin said Langer Heinrich reached Stage 2 production rates mid quarter, with part November and December production slightly exceeding design parameters.
The company said challenges in Resin In Pulp (RIP) have restricted planned production, but added that steady improvement in performance is evident.
?January is continuing this trend and with the big advances made in resin transfer capacity over the past few weeks a positive step change in production rates can be expected for February and onwards,? Paladin said.
?The installation of the secondary resin cleaning screen by late March is expected to further resolve any remaining resin movement issues. As a consequence, Paladin remains confident of achieving nameplate capacity by the end of the current quarter.?
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Amazing, isn't it? The headline of "Paladin posts $19m loss" says it all. They totally ignore the fact that the gap has closed from over $475m loss - a GAIN of $456m in profitability in real terms.
But, brokers, downrampers, shorters, bot-programmers, and general market manipulators all want to paint the negative picture.
Reminds me of the story about Joh Bjelke-Petersen when he was Premier of Queensland. He was fed up of persistently negative slants on all media reporting, no matter what he did, so one day, at a mining conference at a big hotel down the Gold Coast, he called a press conference. He bemoaned the fact that all publicity was painted in a negative light, no matter how good it might actually be, and he'd had enough. He emphasised that all future publicity must paint the true picture.
Then he said "And for starters, I'll give you something for tomorrow's papers" and walked out of the room, followed by the throng of press reporters and photographers. He walked out of the hotel, across the beach, followed by the throng wondering what he was going to do. He then proceeded to walk out into the ocean - and kept on walking ON TOP OF THE WATER...! Amazing!
He then turned around from about 200 yards offshore, waved at the assembled multitude, and walked back ACROSS THE WATER onto the beach, strode up the sand, and remarked "OK - let's see you put THAT in tomorrow's papers!"
Next day, the Courier Mail came out with a screaming headline:
"Joh Can't Swim"....
Seems like Paladin has the same problem with the media and brokers.
Not with me though. I'm holding tight onto mine - the next report may well see the maiden profit at this rate. Excellent progress.
PDN Price at posting:
$3.48 Sentiment: LT Buy Disclosure: Held
(20min delay)