Paladin sees first uranium production at PLS project in 2031
Paladin Energy Ltd. [PDN-TSX, ASX, PALAF-OTCQX] has released an update on the Patterson Lake South (PLS) uranium project in Saskatchewan following in engineering review that foresees the first production in 2031.
The PLS project hosts Triple R, a shallow, undeveloped high-quality uranium deposit located in the Athabasca Basin. The Engineering Review was conducted as part of the company’s ongoing FEED (front-end engineering and design) work and builds on the technical report titled “Feasibility Study, NI 43-101 Technical report dated January 17, 2023.
The findings of the engineering review included updated estimates for the capital, operating and sustaining costs for the PLS project, as well as the corresponding impact on NPV, internal rate of return, annual post-tax-free cash flow, and expected payback period. The highlights are as follows:
- Unchanged life of mine production of 90.9 million pounds of U308.
- Unchanged average production of 9.1 million pounds of U308.
- Updated average life of mine cash operating costs estimated at US$11.7 per pound of U308.
- Updated average life of mine all-in-sustaining costs estimated at US$15.2 per pound U308.
- Updated FEED stage-one production capital costs estimated at US$1,2 billion.
- Updated net present value (NPV) (8.0% real discount rate, pos-tax) of US$1.32 billion at US$90 per pound of U308.
- Updated first uranium production at the PLS project targeted to occur in 2031.
There was no change to the mineral reserve or mineral resource estimates, or any other material scientific or technical information, disclosed in the 2023 feasibility study as a result of the engineering review.
On Thursday, Paladin shares eased 2.4% or 16 cents to $6.46. The shares trade in a 52-week range of $8.55 and $3.34.
Paladin Energy is a globally significant independent uranium producer with a 75% stake in the Langer Heinrich Mine in Namibia. In late 2024, the company acquired Fission Uranium Corp. in Canada, resulting in a dual listing on both the ASX and TSX. With the integration of Fission’s operations, the company now owns and operates an extensive portfolio of uranium development and exploration assets across Canada, which include the Patterson Lake South (PLS) project in Saskatchewan and the Michelin project in Newfoundland and Labrador. Paladin also owns uranium exploration assets in Australia. Through its Langer Heinrich Mine (LHM), Paladin says it is delivering a reliable uranium supply to major nuclear utilities around the world, positioning itself as a meaningful contributor to baseload energy provisions in multiple countries and contributing to global decarbonization.
The 31,039-hectare PLS project is accessible by road with primary access from all-weather Highway 955, which runs north of the former Cluff Lake mine and passes the NexGen Energy Ltd. [NXE-TSX, NYSE] Arrow deposit located 3.0 kilometres to the east.