Today we are taking more exposure to Uranium through a position in Paladin Energy Ltd (PDN).
PDN holds a 75% interest in the globally significant Langer Heinrich mine in Namibia. The other 25% is owned by China National Nuclear Corporation (CNNC).
Unlike other uranium operations that are in the exploration or building phases to bring new uranium production online the Langer Heinrich mine has previously been in production. The mine previously produced over 43 million pounds of U308 over a 10-year period. In 2018 with the uranium price falling in the wake of the Fukushima nuclear accident the mine was placed on care and maintenance.
PDN started work to bring the mine out of care and maintenance in 2022. The first production is due in Q1 2024 with an estimated mine life of 17 years that will produce 77Mlb of U308.
Bringing an old mine back online carries a much lower risk than bringing greenfield projects online as they know the resource in the ground and how the processing plant operates.
With uranium prices continuing to move higher PDN is bringing production online at the right time to benefit from higher prices.
TRADE ACTION
Number of shares: 3,000
Entry: Buy up to $1.04
Stop Loss: $0.875
Target: No Target
