Langer Heinrich’s parent company, Australian uranium miner, Paladin, is set to cut capital expenditure up to 27% in the financial year 2015 with further cost cutting initiatives sharply on the horizon, the mining house announced recently.
“For several years now Paladin has been focused on reducing costs, both at its operations and at its corporate head office. Cost reduction remains an ongoing priority for Paladin,” the Australian miner said.
According to Paladin, cost cutting initiatives have helped reduce corporate costs by 35% for the financial years 2012 to 2015 while total unit costs at the Langer Heinrich mine dropped 21% since the financial year 2012.
“The further optimisation of the Bicarbonate Recovery Plant is expected to decrease cash costs by a further 10% in the financial year 2016,” Paladin said.
“Further cost cutting initiatives are ongoing, focussing on both corporate overhead costs and operational aspects, namely mining, process recovery, operator training and continuity of operation, all of which are capable of delivering sustained benefits in the short and medium term. Regardless, safety will not be compromised by these cost cutting initiatives,” Paladin said.
While cost-cutting at Paladin appears to be the order of the day, sales revenue improved dramatically in its current financial year and was the strongest yet, marking a 340% increase over the previous quarter. Said Paladin, “The June quarter has been the strongest quarter of the financial year for Paladin.”
Added Paladin, “it has seen the successful culmination of 12 months´ effort across the Group with important outcomes achieved including the balance sheet recapitalisation and debt rationalisation, introduction of key supportive new shareholders, re-purchasing of the US$300 million 2015 Corporate Bond, further cost reductions at both corporate and operational levels, and implementing innovative and low-cost process optimisation benefits at Langer Heinrich.”
Paladin also fared well in the production stakes and was up 8% from the last quarter while the bicarbonate recovery plant operated smoothly across the quarter with 93.3% utilisation.
Further bicarbonate plant recovery innovation is expected to increase capacity by more than 200% by December 2015 without a need for further capital investment, Paladin said confidently.