Paladin Energy Limited published the company’s Quarterly Activities Report for the second quarter, ending 31 December 2012. The full report can be accessed here. Amidst
Paladin Energy has 85% ownership of Kayelekera mine with a 15% stake held by the Government of Malawi. The government receives 1.5% royalties on sales for the first 1 to 3 years and thereafter it will receive 3% royalties. In Namibia, Paladin Energy has 100% ownership of Langer Heinrich mine.
The Mining Development Agreement between the Government of Malawi and the company has come under fire in recent weeks, with the president of an opposition party calling for it to be renegotiated this week. Many Malawians feel that they have not benefited from investment in the mining sector or the nation’s mineral wealth.
Below we have summarised the main information from Paladin’s quarterly report.
In this quarter, record sales revenue have been achieved: USD 133.9 million for the quarter, selling 2.78Mlb U3O8 at average price of USD 48.10/lb. This reflects in part the uneven distribution of contracted deliveries through the year. Sales volume in the March 2013 quarter will be closer to quarterly production.
In addition, the company has driven record quarterly and annual production at both the Langer Heinrich and Kayelekera mines in Namibia and Malawi respectively. This saw an increase of 13.6% on the September quarter.
Kayelekera production of 350 tonnes U3O8 is an increase of 20.9% on the previous quarter and is an all-time quarterly record (see table below).
Operating times at Kayelekera were also set a quarterly record (see table below).
The company also notes that there is an increased likelihood of securing low cost grid power to site within the year is progressing well. This is likely to be a result of investment by the Malawian Government and partners in the energy sector, including an energy deal with Mozambique as we blogged earlier this week.
In this quarter there were no long term injuries reported at Kayelekera.
The company continues to explore for other uranium sites. In 2012, the company focussed on exploration drilling east of Kayelekera in the Mpata area. A total of 12 holes for 1,647m were completed. Uranium mineralisation was frequently encountered, however, no mineralisation of economic grade and thickness was intersected. Drilling was halted with the onset of the rains in December. In 2013, the company will concentrate south of Kayelekera in the South Rukuru Basin in the Nthalire area. See the image below for exploration sites.