Paladin shares surge on refinancing news
PERTH (miningweekly.com) – ASX-listed uranium miner Paladin Energy has successfully refinanced the finance facilities for its two African mines – Langer Heinrich and Kayelekera – reducing the repayments on these from $53.8-million a year to $18.3-million a year for 2014.
In 2015, the repayments under the new facility would be reduced by a further $23.7-million.
Shares in Paladin surged 13% on Friday to change hands at A$0.56 a share.
MD and CEO John Borshoff reported that the terms and conditions for the Langer Heinrich facility were largely unchanged from the existing project finance agreement, except for an increased amount, the extension of the term, and a reduction in principal repayments from $23.8-million a year to $18.3-million a year.
In addition, Paladin has secured a $20-million working capital facility to provide additional flexibility.
Borshoff noted that the Kayelekera project finance facility, which currently stood at $48.1-million, would be repaid in full immediately; however, the facility and existing security arrangements would remain in place to support a $10-million performance bond.
“Overall, this rationalisation in the project financing reduces the company’s debt position and provides the benefit of substantially reduced repayments over the next three years, conserving operational cash flow,” said Borshoff.
“This successful refinancing is another important step in Paladin’s rigorous assessment of options to strengthen the business, both operationally and at a corporate level.”
He added that completing the refinancing during a period of depressed uranium prices and difficult market conditions was a testament to the operational capabilities of Paladin’s mines, specifically Langer Heinrich.
“The project has continued to deliver superior production results at the same time as ongoing optimisation work has continued to reduce production costs,” Borshoff said.
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