The Namibian (Windhoek)

19 February 2013

Namibia: Great Six Months for Langer Heinrich

LANGER Heinrich concluded the last six months of 2012 of a high note, reporting an increase in both production and sales figures, the latest financial results of Paladin Energy have shown.

Production for the six months ended December 31 was just over 2,7 million pounds of uranium oxide, an increase of 33% compared to the same period in 2011. This represents 104% of nameplate design capacity, Paladin Energy said in the company's financials published on its website.

In addition, Langer Heinrich reported a record fourth quarter production of about 1,42 million pounds, an increase of 10% over its third quarter production figures.

The mine's cost of production for the last quarter of 2012 decreased by 7% to US$29,60/lb uranium oxide from US$31,80/lb in the September 2012 quarter, mainly due to the cost benefits of the increased Stage 3 production and the weakening of the Namibian dollar against the U$ dollar, Paladin said.

For the six months ended December 31 2012, Langer Heinrich sold slightly more than 2,83 million pounds of uranium oxide, 17% more than the same period of 2011.

Paladin, whose other uranium interests include the Kayelekera mine in Malawi, reported a gross profit of US$12,5 million of the last six months of 2012 - 54% more that the corresponding period in 2011.

"Following both operations reaching nameplate performance, the sites are now entering a period of optimisation, which will lead to improved process recoveries and reduced unit operating costs," Paladin said.

A net loss after tax of US$193,5 million was recorded for the six months, mainly as a result developments at the Kayelekera mine.

At the end of the December, Paladin had US$104,7 million cash in the bank.

The Australian-based miner enjoys a primary listing on the Australian Securities Exchange (ASX), and has additional listings on the Namibian Stock Exchange, as well as the stock exchanges in Toronto, Munich, Berlin, Stuttgart and Frankfurt.

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