It is all about timing. After encountering short term challenges, these uranium stocks have evoked interest of the investors.
Boss Energy Limited (ASX: BOE)
Boss Energy Limited (ASX: BOE) has successfully completed an infill drilling campaign at the Gould’s Dam and Jason’s satellite deposits within its Honeymoon Uranium project in South Australia. This drilling, which covered a total of 47 holes for 6,455 meters at Gould’s Dam and 25 holes for 3,074 meters at Jason’s, was aimed at updating the geological and mineralisation models for these deposits. The campaign has yielded strong results, including several high-grade uranium intersections, which will be incorporated into an updated resource model. This resource update will support the expansion of the Honeymoon Mine’s operations and could significantly increase its mine life and production capacity by bringing these satellite deposits into the mining plan.
The results from the infill drilling at Gould’s Dam, particularly in the Beulah area, have been encouraging. Notably, the drilling intersected high-grade uranium mineralisation, including 3.25 meters at 3,873ppm and 6.25 meters at 1,094ppm U3O8. The geological data collected from the Borehole Magnetic Resonance (BMR) and Prompt Fission Neutron (PFN) tools confirm that the mineralisation at Gould’s Dam is likely to be amenable to In-Situ Recovery (ISR) mining. This strengthens the potential for the Gould’s Dam deposit to contribute significantly to Boss Energy's plans to increase the annual production rate and extend the life of the Honeymoon Mine.
The drilling at Jason’s deposit has also provided important data for resource modelling. While the drilling was more limited compared to Gould’s Dam, it still highlighted strong uranium mineralisation, with notable intercepts such as 3.00 meters at 960ppm and 0.75 meters at 2,950ppm U3O8. With the completion of the drilling program, Boss Energy is now focused on integrating these results into the updated resource model, which is expected to be released in early 2025. This will help the company assess the economic viability of these satellite deposits and guide future development, including further drilling and mining lease applications.
Paladin Energy Limited (ASX: PDN)
Paladin Energy has released an update on its Langer Heinrich Mine (LHM) ramp-up, currently in the seventh month of a planned 21-month process. While operational improvements from the LHM Restart Project are evident, October 2024 performance fell short of expectations due to challenges including ore grade variability and water supply disruptions. Despite these headwinds, recovery rates improved to approximately 87%, but uranium production remained below forecast. As a result, Paladin has revised its FY2025 production guidance downward to 3.0–3.6 Mlb, compared to the previous estimate of 4.0–4.5 Mlb. Additionally, the company has withdrawn other FY2025 guidance, citing the need to reassess unit operating costs, uranium sales prices, and capital expenditure plans. Management emphasizes that these adjustments reflect temporary setbacks in the ramp-up phase, with production expected to strengthen in the second half of FY2025 as higher-grade ore is processed and efficiency initiatives take effect.
Paladin is proactively addressing operational challenges through targeted improvements in process design, plant throughput, and water management. A planned two-week shutdown in late November 2024 will focus on critical upgrades, including filling water storage facilities to mitigate future supply risks, optimizing water pipeline capacity in partnership with NamWater, and installing equipment to enhance throughput. These measures aim to stabilize production and support the mine’s long-term performance. The LHM Restart Project has significantly de-risked the processing operations, with improvements yielding better performance towards the end of the quarter. While near-term variability persists, management remains confident in achieving nameplate production and benefiting from favorable uranium market dynamics. Paladin continues to build a strong contract book, signing three additional agreements with tier-one customers during the quarter, reinforcing its positioning in the clean-energy supply chain.
Financially, Paladin remains robust, with unrestricted cash of $55M, $95M in drawn debt, and $55M in undrawn facilities as of September 30, 2024. Additionally, Paladin and Fission Uranium Corp. have filed submissions under the Investment Canada Act (ICA) regarding the proposed acquisition of Fission, which could further enhance the company’s growth profile. Paladin’s proactive approach to resolving operational challenges and delivering on long-term production goals positions it as a key player in the uranium sector. Investors will closely monitor its progress as the ramp-up advances, supported by operational upgrades, robust customer contracts, and a positive uranium price outlook.
Source: Company’s Report
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