Paladin Posts $29.5 Million Loss

Paladin Energy (ASX: PDN) has seen its first half net loss grow to $29.5 million as the company revised its production forecast.

The sales revenue increased by 14% in the six months ending December 2010 to $114.7 million but the company made a loss of 4.1 cents a share as compared to a 2.9 cents a share loss in the same period in 2009.

The second largest sole uranium mining company in Australia said that it was expecting to produce just 6 to 6.3 million pounds of uranium oxide for the full year till June 30,2011. This is down from the initial production guidance of 7 million pounds.

The loss was correlated to increase in the financial costs of production and a lowering of the gross margin. The financial costs of the quarter were totaled at $ 20.6 million as compared to $ 5.6 million last year. The net loss for the quarter was $ 21.3 million as compared to $ 0.4 million in the corresponding quarter last year.