Two uranium stocks of potential growth companies are in the news today. Undergoing such developments, these could be considered as among the growing companies to invest in.
Paladin Energy Limited (ASX: PDN)
Paladin Energy Limited (ASX: PDN) has received the final regulatory clearance for its acquisition of Fission Uranium Corp. (TSX: FCU) under the Investment Canada Act. This approval, obtained on December 18, 2024, is the last regulatory hurdle for the court-approved plan of arrangement, and the acquisition is expected to close by early January 2025. Fission shareholders will receive Paladin shares, and following the closure, Paladin’s shares will be listed on the Toronto Stock Exchange, while Fission will be delisted. The merger will create one of the world’s largest pure-play uranium companies, with assets in Namibia and Canada, including the Langer Heinrich Mine and the Patterson Lake South project.
The acquisition is part of Paladin’s strategy to become a global leader in clean energy through a robust uranium production and development portfolio. By combining Paladin’s existing assets with Fission’s high-quality Canadian projects, including the Michelin and Patterson Lake South uranium properties, the merger strengthens Paladin’s position in the uranium market, which is experiencing increased demand due to global decarbonization efforts. This will enhance Paladin's access to international capital markets and further its commitment to sustainable energy and low-carbon solutions.
Regarding the Langer Heinrich Mine, Paladin has successfully restarted operations after a planned shutdown in November 2024, during which maintenance and upgrades were carried out. The mine's production is ramping up, with expectations to reach a run rate of 6 million pounds of uranium per year by the end of 2025. Although the company had experienced problems in the earlier half of the year, including variation in ore grade and shortages of water supply, management has improved on ways for efficiency. Paladin continues optimistic about meeting its revised FY2025 production guidance which is estimated at between 3.0 to 3.6 million pounds of uranium.
Deep Yellow Limited (ASX: DYL)
Deep Yellow Limited (ASX: DYL) announced an update on its Tumas Project on December 19, 2024, stating that the Final Investment Decision (FID) has been delayed until early March 2025. This delay is due to extended timelines for receiving final costings and quotes for equipment and construction, along with further project optimisation. Despite the delay, the company maintains that this will not significantly impact the overall project timeline, which aims for production to commence in late 2026, contingent on sufficient uranium price incentives. Additionally, Deep Yellow is well-funded with A$247 million available as of September 2024 to support the project’s ongoing development.
The Tumas Project has two phases: early works, which involve building infrastructure like roads and water systems, and the execution phase, focused on constructing the processing plant, managed by an EPCM contractor. Key recent developments include securing firm offers for water and power supply from NamWater and NamPower, which have been accepted and are now moving toward final contract execution. An upgraded Ore Reserve Estimate was also released, significantly increasing the project's Life of Mine to over 30 years, up from 22.5 years in the previous feasibility study.
Deep Yellow is closely monitoring uranium prices and will proceed with full-scale construction of the Tumas Project when prices reach levels that justify development. The company believes the predicted increase in uranium supply is overstated and expects rising demand for nuclear power to create a supply gap. With its strong strategy, governance, and experienced team, Deep Yellow is well-positioned to capitalize on higher uranium prices and ensure long-term profitability.
Source: Company Report
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