Africa-focused uranium miner Paladin Energy has widened its first half net loss due to the writedown on the value of its mine in Malawi but achieved record production.
Shares in the Perth-based company, which is dual listed on the Australian and Toronto stock exchanges, closed down 10 cents, or 5.56 per cent, at $1.70.
The company on Tuesday reported a net loss for the six months to December 31 of $US120.2 million ($A112.36 million) compared to a net loss of $US21.1 million ($A19.72 million) for the previous corresponding period.
Goldman Sachs said it had expected Paladin to post a net loss of $US119.65 million ($A111.84 million).
Paladin said its net loss was mainly a result of a $US133 million ($A124.32 million) impairment cost associated with the write down of the Kayelekera mine in the September quarter.
The writedown was needed after uranium prices fell worldwide following the Fukushima disaster last year.
The company achieved an average sales price of $US53.06/lb, which was a modest improvement on the average spot price for the December quarter of $US52.50/lb.
"The spot price is beginning to show signs of strengthening as new demand emerges," Paladin said in a statement on Tuesday.
"As the market effects of the Fukushima incident continue to work their way through the overall nuclear/uranium market, price improvement is anticipated throughout the year, although periods of volatility can be expected."
While the Kayelekera mine and the Langer Heinrich mine in Namibia were affected by planned shutdowns, and Kayelekera required unscheduled remediation work, record production was achieved by Paladin during the first half as its mines ramped up.
"The long sought-after production uplift towards nameplate design on both operations is finally being achieved," the miner said.
Production amounted to 3.069 million pounds of uranium oxide, up 8.5 per cent on the same period in 2010/11.
Output at Kayelekera rose to more than 90 per cent of design capacity in the December quarter, representing a 60 per cent increase over the September quarter.
Production at Langer Heinrich, Paladin's first mine, increased to 92 per cent of Stage Three design capacity during the December quarter, up 40 per cent from the prior period.
