Paladin still working on asset sale

Perth-based Paladin Energy is persisting with negotiations on the sale of a minority stake in its Langer Heinrich uranium mine in Namibia, and has assured shareholders it will give them an update by the end of the month.

“Prominent nuclear industry players are enthusiastic about the project and we can confirm we are talking to a number of bidders,” managing director John Borshoff told the company's annual general meeting today.

In August, a deal to sell the minority interest fell through at the last minute.

"The Paladin board decided to terminate the process after the preferred bidder advised on August 1 said that it wanted to renegotiate terms, including price, at the final stage of the process," chairman Rick Crabb said.

"The board determined it would not be in the best interests of shareholders to continue to negotiate and took the responsible decision that the Company would not sell a part of this asset at a significant discount to Paladin’s underlying value.” 

Mr Borshoff said supply was the real issue facing the industry.

“A reduced supply response capability in the uranium sector is good for Paladin, the consumers – the world’s nuclear utilities – are hoping against hope that somehow the mining industry will commit economic suicide and add new production at a time when returns offered by current prices are negative.

“This will not happen, there will be no expansion considered by our company in the current industry climate,” Mr Borshoff said.

The Australian Shareholders Association expressed concern over Paladin’s share price and did not support the re-election of Mr Crabb as non-executive chairman.

“We are concerned about the health of Paladin shares and returns for shareholders in the future,” ASA representative Len Roy said.

“The ASA does not support the re-election of Mr Crabb as chairman, being that he is chairman of three other companies and should be putting all his effort into Paladin Resources at this time.”

Mr Crabb was re-elected as chairman with a 97 per cent ‘for’ vote, while 83 per cent of shareholders voted for the company’s remuneration report.

Paladin shares were unchanged at 38.5 cents per share, as of 12.45pm, WST.