Paladin Energy's balance sheet pressured despite cost savings

Uranium miner Paladin Energy (PALAF.PK) announces aggressive cost-saving measures at its two mines and head office, with management and board members taking pay cuts and refusing bonuses or salary increases until the uranium market improves.

The cost reductions are needed - in the June quarter, Paladin reported cash costs of $29.40/lb. at its Langer Heinrich mine and $39.20/lb. at its Kayelekera mine vs. uranium spot prices of ~$35/lb. - but RBC Capital says concerns remain over funding.

An asset sale or debt restructure would be positive, the firm says, but an asset sale in particular is likely to be challenging given market conditions.

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