COMMERCIAL production started at Paladin Energy’s Langer Heinrich uranium mine in Namibia on March 30, the company announced on Tuesday.
Paladin said its focus will now shift to production ramp-up and building a finished product inventory, ahead of shipments to customers. Production guidance will be provided in July.
Shares in the company gained nearly 5% in Sydney taking year-to-date gains to 42%. The company is currently capitalised at A$4.28bn.
“With a return to production, a strong balance sheet and supportive uranium fundamentals, Paladin is exceptionally well positioned to generate sustainable returns for all our stakeholders,” said Ian Purdy, CEO of Paladin Energy. “Achieving first production at the Langer Heinrich Mine is an important milestone for Paladin,” he added.
Paladin gave the green light to the restart of its Langer Heinrich mine in Namibia in 2022, about six years after a plummeting uranium oxide price forced it to close. Now, however, uranium prices are surging. They hit their highest level in more than 16 years during January and although the price has taken a breather, analysts think the fuel could become a long-term bet for investors.
“The global trend towards nuclear power suggests uranium is in a long-term bull market,” online publication Barron’s cited Montréal-based broker PGM Global as saying in a research note last month.
According to the World Nuclear Association, global uranium demand is forecast to reach 83,840 tons in 2030, from 65,650t now, while supply falls 50%. A doubling in the development pipeline is needed to avoid a major supply deficit, the association said.
