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Langer Heinrich mine not planning job cuts YET

While Namibia’s second uranium miner is on a quest to cut costs, this is by no means an indication that it will or will not trim its labour force according to Langer Heinrich Managing Director Simon Solomoms who responded to queries by the Economist.

He said very strongly “there are no current plans to reduce employment numbers. It is not possible to predict what may happen in the future. That will depend on economic circumstances prevailing at the time. This observation should not be interpreted as suggesting that there might be a reduction in workforce numbers at some stage in the future, nor as a undertaking that there will not [be].”
Over a three-year period, Paladin Energy Ltd, the Australian owner of the Langer Heinrich mine, implemented cost saving initiatives which have reduced its corporate costs by 35% while total unit costs dropped 21% since the financial year 2012. A new Bicarbonate Recovery Plant is expected to decrease cash costs by a further 10% by the financial year 2016, the Aussie miner said in a SENS announcement.
Paladin was also planning further measures to bring overall cash-flow to a break-even level that would be sustainable even if the current low uranium price environment continues. It said in anticipation of a price rise “ Paladin still firmly believes the uranium market is near an inflection point, after which materially higher prices are expected. The cost reduction initiatives outlined, in conjunction with the pending measures, are intended to make Paladin’s cash flow positive during financial year 2016, enhancing shareholder leverage to any future uranium price upturn.”
Said the Aussie miner, “this US$33 million cash cost saving is a key step for Paladin to achieve sustainability in the current low uranium price environment. Paladin expects, as a minimum, to be cash flow neutral by the end of calendar year 2015. The further cost reductions undergoing review in the next three months will be implemented once verified and are aimed at lowering total all-in cash costs to achieve the cash flow neutral position. Alongside the cost reductions, a revised Life of Mine plan for Langer Heinrich is well advanced and Paladin expects its completion to result in further operational improvements.”
“The costs and efficiency gains announced are part of a focussed effort to put Paladin in a sustainable position and preserve shareholder value. Continued cost reduction combined with the positive outlook for uranium and the globally competitive position of our flagship Langer Heinrich project, means Paladin will have greater leverage to an improving uranium market with its established projects,” it said.

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Following reverse listing, public can now acquire shareholding in Paratus Namibia

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20 February 2020, Windhoek, Namibia: Paratus Namibia Holdings (PNH) was founded as Nimbus Infrastructure Limited (“Nimbus”), Namibia’s first Capital Pool Company listed on the Namibian Stock Exchange (“NSX”).

Although targeting an initial capital raising of N$300 million, Nimbus nonetheless managed to secure funding to the value of N$98 million through its CPC listing. With a mandate to invest in ICT infrastructure in sub-Sahara Africa, it concluded management agreements with financial partner Cirrus and technology partner, Paratus Telecommunications (Pty) Ltd (“Paratus Namibia”).

Paratus Namibia Managing Director, Andrew Hall

Its first investment was placed in Paratus Namibia, a fully licensed communications operator in Namibia under regulation of the Communications Regulatory Authority of Namibia (CRAN). Nimbus has since been able to increase its capital asset base to close to N$500 million over the past two years.

In order to streamline further investment and to avoid duplicating potential ICT projects in the market between Nimbus and Paratus Namibia, it was decided to consolidate the operations.

Publishing various circulars to shareholders, Nimbus took up a 100% shareholding stake in Paratus Namibia in 2019 and proceeded to apply to have its name changed to Paratus Namibia Holdings with a consolidated board structure to ensure streamlined operations between the capital holdings and the operational arm of the business.

This transaction was approved by the Competitions Commission as well as CRAN, following all the relevant regulatory approvals as well as the necessary requirements in terms of corporate governance structures.

Paratus Namibia has evolved as a fully comprehensive communications operator in Namibia and operates as the head office of the Paratus Group in Africa. Paratus has established a pan-African footprint with operations in six African countries, being: Angola, Botswana, Mozambique, Namibia, South Africa and Zambia.

The group has achieved many successes over the years of which more recently includes the building of the Trans-Kalahari Fibre (TKF) project, which connects from the West Africa Cable System (WACS) eastward through Namibia to Botswana and onward to Johannesburg. The TKF also extends northward through Zambia to connect to Dar es Salaam in Tanzania, which made Paratus the first operator to connect the west and east coast of Africa under one Autonomous System Number (ASN).

This means that Paratus is now “exporting” internet capacity to landlocked countries such as Zambia, Botswana, the DRC with more countries to be targeted, and through its extensive African network, Paratus is well-positioned to expand the network even further into emerging ICT territories.

PNH as a fully-listed entity on the NSX, is therefore now the 100% shareholder of Paratus Namibia thereby becoming a public company. PNH is ready to invest in the future of the ICT environment in Namibia. The public is therefore invited and welcome to acquire shares in Paratus Namibia Holdings by speaking to a local stockbroker registered with the NSX. The future is bright, and the opportunities are endless.