The piece “Paladin struggles with US$480million debt” featured below was initially published in Malawi’s Mining & Trade Review Issue Number 29 2015 that is circulating this September 2015.
The full edition is available for download here. This monthly publication is edited by Marcel Chimwala.
The publication announced its rebranding this month, moving from the Mining Review to the Mining & Trade Review
The decision to rebrand has come about in response to some of our readers from other economic sectors in addition to mining who want to be incorporated as stakeholders.
Paladin struggles with US$480million debt
…As John Borshoff quits as CEO
By Staff Reporter
Paladin Energy, which owns the Kayelekera Mine in Karonga, is struggling with US$480-million debt which it accumulated in developing Kayelekera and Langer Heinrich Project in Namibia.
Australian media reported that the firm, which is listed on both Australian and Canadian Stock Exchanges, is heavily indebted as it is feeling the pinch of the falling uranium price.
Paladin has seen its CEO and Managing Director, John Borshoff, resigning as the uranium miner struggles to recover from the debt crisis.
Heavily indebted after building Langer Heinrich and then the Kayelekera mine in Malawi, Paladin has struggled with the falling uranium price. Early last year it mothballed Kayelekera. Borshoff’s persistent rallying cry that a turn in the uranium price is around the corner has failed to materialize,
reported the West Australian.
Dubbed Australia’s biggest uranium bull, Borshoff, 70, has been Managing Director and CEO of Paladin since 1993.
According to the West Australian, Borshoff built Paladin from an unheralded gold explorer into a uranium producer worth as much as $4.2 billion in early 2007, as it prepared for first production from the Langer Heinrich mine in Namibia.
Its shares peaked at $10.80 that year to value Mr. Borshoff’s Paladin stake at more than $200 million.
However, the global financial crisis and then the Fukushima nuclear disaster in 2011 put a semi-permanent crimp on the uranium price resulting in the current troubles.