Paladin Energy Limited (ASX:PDN, TSE:PDN) has flagged plans to cut costs by between $US60 million and $US80 million over two years as it faces a weakening uranium spot price.
The uranium producer says it will continue to focus on improving operational efficiency and is expecting this to result in substantial gains within the next years.
Paladin has also advised the opportunity to re-negotiate key mining and consumables contracts has arisen which it expects will pave the way for more cost reductions in the future.
The announcement comes after a cost review which assessed Paladin’s operations including mining operations, corporate and administration overheads, future development, exploration and sales and business development.
Paladin posted a fall in its first quarter production last month when it also announced the review as part of plans to move to a sustained production phase.
Paladin Energy recorded a net loss of $197 million in the 2012 financial year.
