Paladin Energy says it is confident of securing the sale of a stake in its flagship Namibian mine as a fall in uranium prices weighed on its December quarter activities report.
The third anniversary of the Fukushima nuclear accident is looming, meaning the world's uranium producers have endured three years of unprofitably low prices as Japan and much of Europe abandoned nuclear power.
The price has fallen further as Paladin realised an average $US36.67 ($A41.02) a pound during the December quarter, down more than 11 per cent from $US41.38 in the previous quarter.
That is less than half where it was before Fukushima and compares to a record high of $US135 in 2007.
Paladin is looking for a buyer for a minority stake in its Langer Heinrich uranium mine in Namibia to improve its balance sheet, following a $40 million loss in the September quarter.
Managing director John Borshoff said on Wednesday that the company was fielding strong interest from a variety of parties for the stake.
"Paladin has confidence in an outcome which will alleviate shareholder concerns regarding debt," he said, adding that no debt was due until late 2015.
It was among the Australian stock market's 10 worst-performing stocks in the top 200 in 2013, finishing down 54.9 per cent for the year to 46.5 cents.
However investors reacted well on Wednesday with shares jumping 4.5 cents, or 10 per cent, higher at 49.5 cents by 1515 AEDT.
Persistent low uranium prices was causing production cutbacks and deferrals of expansions around the world, Mr Borshoff said.
However there were 71 reactors being built around the world, which was nine more than just before the Fukushima accident.
Industry analysts regard a price of at least $US70 as necessary to support new supply or investment, which could mean a supply shortfall and short-term boost for companies such as Paladin if there is a rebound.
Paladin collected sales revenue of $US101.75 million for the quarter, selling 2.8 million pounds.
Sales in the March quarter are expected to be about 1.8 million pounds with the December quarter boosted by the timing of contracts.
There was record combined production for its Langer Heinrich and Kayelekera mine in Malawi of 2.2 million pounds, up from 2.0 million in the previous quarter.
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