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UPDATE 1-Paladin Energy uranium output more than doubles

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By Gowri Jayakumar

Australia-based Paladin Energy Ltd (PDN.AX) (PDN.TO) said uranium production more than doubled in the latest quarter, and forecast output of 7 million pounds for 2011.

The Africa-focused uranium miner also said it had signed a contract with an Asian utility to deliver about 1.5 million pounds of triuranium octoxide (U3O8) between 2011 and 2015.

For the quarter ended June 30, overall production rose to 1.4 million pounds of U3O8, from a year ago, Paladin said.

For the full year, overall production rose 60 percent to 4.3 million pounds, it said.

Paladin said it expects to produce 7 million pounds of U3O8 at its Langer Heinrich and Kayelekera mines in 2011.

Sales for the quarter were 855,000 pounds U3O8 generating revenue of $49.1 million.

The miner said construction of the Stage 3 expansion at Langer Heinrich is scheduled to complete by the end of 2010, expanding production to 5.2 million pounds from 3.7 million pounds per year.

About six months of ramp-production can be expected as Stage 3 is tied in, it added.

Paladin said it expects consistent design production levels of 275,000 pounds per month at Kayelekera mines, for the coming quarters.

Drilling at the newly discovered Odin Prospect is planned to continue throughout July and August, with a maiden resource expected to be announced in the December quarter, the miner said.

Shares of Paladin closed at C$3.30 Friday on the Toronto Stock Exchange.