The uranium prices had been surging since 2023. Facing some retracements, it now obviously raises the question whether it is prudent to invest in uranium stocks.
As per major broker Citi, the commodity continues to have good short and long term prospects with focus coming on ASX Uranium Companies.
Demand for power continues to grow worldwide, particularly in US, where nuclear energy trends are encouraging. This is indicating bullishness in uranium in the long term. However, top uranium stocks may keep on consolidating in the short term.
Uranium mining stocks are also being keenly observed because of production issues being faced by major producers in Canada and Kazakhstan and inability of smaller producers to cater to the global demand.
ASX Paladin Energy is inviting growing attention because of important developments in the company.
Paladin Energy Limited (ASX: PDN) announced on 24 June 2024, that it had entered into a definitive arrangement agreement with Fission Uranium Corp. Fission is a natural fit for its portfolio with the shallow high-grade PLS project located in Canada’s Athabasca Basin. The entry of PLS creates a leading Canadian development hub alongside Paladin’s Michelin project, with exploration upside across all Canadian properties.
The Company’s Langer Heinrich Mine (LHM) resumed commercial uranium production on 30 March 2024, meeting the projected schedule and staying within the capital cost estimate of US$125 million.
Recently it provided FY2025 guidance for the Langer Heinrich Mine (LHM). Production ramp-up and product inventory build-up are continuing, before the first customer shipment, that is expected in July 2024. The LHM will be in ramp up for operations during FY2025, with ore feed to the plant sourced from previously mined stockpiled ore. Production levels are expected to be higher in the second half of the year. Mining activities are expected to re-commence in FY2026 ahead of achieving nameplate production of 6Mlb p.a. by the end of CY2026.
Paladin’s acquisition of Fission is poised to significantly expand its operations over the long term by providing a greatly enhanced development pipeline to complement its flagship Langer Heinrich Mine. Multi-asset production is anticipated by 2029.
Besides offering an Attractive growth pipeline, it will expand its global capital markets footprint with increased development funding options underpinned by LHM production and customer book.
Source - Company Reports
Veye Pty Ltd(ABN 58 623 120 865), holds (AFSL No. 523157 ). All information provided by Veye Pty Ltd through its website, reports, and newsletters is general financial product advice only and should not be considered a personal recommendation to buy or sell any asset or security. Before acting on the advice, you should consider whether it’s appropriate to you, in light of your objectives, financial situation, or needs. You should look at the Product Disclosure Statement or other offer document associated with the security or product before making a decision on acquiring the security or product. You can refer to our Terms & Conditions and Financial Services Guide for more information. Any recommendation contained herein may not be suitable for all investors as it does not take into account your personal financial needs or investment objectives. Although Veye takes the utmost care to ensure accuracy of the content and that the information is gathered and processed from reliable resources, we strongly recommend that you seek professional advice from your financial advisor or stockbroker before making any investment decision based on any of our recommendations. All the information we share represents our views on the date of publishing as stocks are subject to real time changes and therefore may change without notice. Please remember that investments can go up and down and past performance is not necessarily indicative of future returns. We request our readers not to interpret our reports as direct recommendations. To the extent permitted by law, Veye Pty Ltd excludes all liability for any loss or damage arising from the use of this website and any information published (including any indirect or consequential loss, any data loss, or data corruption) (as mentioned on the website www.veye.com.au), and confirms that the employees and/or associates of Veye Pty Ltd do not hold positions in any of the financial products covered on the website on the date of publishing this report. Veye Pty Ltd hereby limits its liability, to the extent permitted by law to the resupply of services.