Kazakhstan deciding to increase uranium production tax recently is being viewed as a curb to future supply growth.
With the growing AI and data center narratives setting, the demand for power, and in turn nuclear energy, is likely to grow manifold in USA particularly.
According to amendments to the tax legislation, signed by Kazakhstan President, the Mineral Extraction Tax (MET) for natural uranium production will range from 4% to 18% from 2026, depending on volume of production. This represents considerable increase compared to prevalent 6% in 2024 and 9% in 2025. Set to hamper volume production, ASX Uranium Companies are likely to seek advantage.
Among the Top Uranium Stocks are :-
Paladin Energy Limited (ASX: PDN)
Paladin Energy Limited announced on 24 June 2024, that it had entered into a definitive arrangement agreement with Fission Uranium Corp. Under this agreement, Paladin will acquire 100% of the issued and outstanding shares of Fission through a court-approved plan of arrangement under the Canada Business Corporations Act.
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. Notably, the Pre-Feasibility Study (PFS) at the Michelin project is expected to commence in FY25, with completion planned for FY26. Meanwhile, other projects, such as Mt Isa, continue to advance with ongoing exploration activities.
The 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.
During the quarter ending 31 March 2024, Paladin executed a US$150 million syndicated debt facility, of which USD 25 million was drawn down in March. The successful establishment of this debt facility followed an international syndication process, including site visits by independent technical and environmental experts and corporate due diligence by financier teams. Paladin secured the debt facility with two financial institutions.
Having recently commenced production at its highly promising and financially viable Langer Heinrich Mine, the company is now planning to achieve further milestones. A key production ramp-up is anticipated, with short to medium-term plans to increase production capacity at the project. In the long term, the company aims to bring multiple projects to a producing state, underscoring well-defined growth objectives capable of delivering strong capital appreciation to investors.
Deep Yellow Limited (ASX: DYL)
Deep Yellow Limited announced that Ausenco Services Pty Ltd (Ausenco) had been chosen as the preferred contractor for delivering Detailed Engineering and Engineering, Procurement, and Construction Management (EPCM) services for their flagship Tumas Project in Namibia.
The Company’s Mulga Rock Project achieved a significant resource upgrade, increasing the total contained uranium by 26% to 71.2 Mlb U3O8. Critical mineral value, including Rare Earth Oxide, also saw a substantial uplift.
With 86% of Mulga Rock East uranium classified as Measured and Indicated, Deep Yellow displays strong project credibility. Positive resource upgrade results prompt a Definitive Feasibility Study revision starting Q2 CY2024, aiming to integrate Mulga Rock West deposits with East operations for further enhancement.
Deep Yellow Limited's cash position at the end of March 2024 stands at a robust A$155.614M, a significant increase from its December 2023 cash balance of $25.248M.
With nuclear demand expected to surpass supply in the mid-term, it aligns perfectly with DYL's strategic focus on Uranium Mining. Favorable market condition not only underscore the importance of uranium as a reliable energy source but also enhances the potential value of DYL's projects such as the Tumas Project in Namibia and the Mulga Rock Project.
Source: Company's Report, Kazakhstan News
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