This could have huge implications down the road - takeover or M & A. At the very minimum ongoing funding.
Paladin Seeks Acquisition OpportunitiesREBECCA LE MAY September 3, 2009 - 12:59PM Paladin Energy Ltd says it is on the hunt for merger and acquisition opportunities, and expects to ramp up uranium processing at its Kayelekera mine in Malawi by the beginning of calendar 2010.
The mine was commissioned in January, with the three million pound (Mlb) processing plant currently operating at 65 per cent design capacity.
Managing director John Borshoff told the Africa Down Under conference in Perth on Thursday that the miner "expect to get to nameplate production by the beginning of next year".
Mr Borshoff said the $US215 million ($A257.9 million) project had been delivered on time and five per cent over budget.
He said the company aimed to add to uranium reserves at the project through exploration, to extend its 13 year life.
Paladin's $US71 million ($A85.1 milion) stage three expansion of its Langer Heinrich mine in Namibia will lift the annual uranium production rate at the project to 5.2 Mlb in late 2010.
The mine contributed the vast majority of Paladin's total uranium production of 2.738 Mlb in the 12 months to June 30, down from its forecast of 3Mlb due to technical teething problems during commissioning and ramp-up phases at both projects.
Paladin is targeting total output of 6.6 Mlb in 2009/10.
The company continued to assess merger and acquisition (M&A) opportunities, Mr Borshoff told the conference.
"We have Australian projects backing up behind these (African projects) and will continue to look for other projects to acquire," he said.
"Up to 2011, we'll be expanding production at our two operations, we'll be exploring in Niger, looking at M&A opportunities, and we are preparing the Australian projects for final investment decisions in 2012, assuming that Queensland politics allow.
"We have a strong production profile and the market for uranium is very positive."
NGM Price at posting:
16.0¢ Sentiment: LT Buy Disclosure: Held
