There was a $US133 million write-down on the value of Kayelekera mine.
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 even though Paladin revealed improved revenue and production for the six months to December 31.
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.
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That impairment was largely due to slumping uranium prices following the Fukushima nuclear disaster, the first in a series of events that have created a year to forget for Paladin shareholders.
The company reeled off a list of positive news, including record production of 3 million pounds of uranium oxide.
The company also reported strong sales, with revenue close to 50 per cent stronger than for the same period last year, at $US173.4 million.
Despite those positives, 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.
Mr Borshoff said the uranium sector was starting to steady as the impact of Fukushima began to fade, but he warned that the uranium price could continue to be volatile for some time yet.
Paladin executives, including Mr Borshoff, will front investors tomorrow morning.