HomeSouthern AfricaImpressive figures emerge from Langer Heinrich Mine Restart Plan

Impressive figures emerge from Langer Heinrich Mine Restart Plan

Since the Langer Heinrich Mine Restart Plan Update in June 2020, Paladin Energy has continued an extensive work stream over the past 15 months to further de-risk restart activities at LHM and provide a low risk, well-defined pathway to production.

Paladin CEO, Ian Purdy said:

“The Restart Plan Update is the conclusion of an extensive work stream aimed at further de-risking the ramp up and operational readiness of the globally significant Langer Heinrich uranium mine. The workstreams reinforce our confidence in Langer Heinrich as a low risk, robust, long-life operation that is poised for a restart to take advantage of the improving uranium market conditions.

“As the world continues to move towards a decarbonised economy, Paladin is in a unique and enviable position of having a robust capital structure with no corporate debt and a project with a low-risk pathway to production with strong economics and importantly a well-known product from our 10 years of prior operation.

“We will continue to position Paladin to be ready to restart operations under the right uranium price environment. The improving structural outlook for uranium markets and Paladin’s opportunity to positively contribute to the decarbonisation of global electricity generation provides the platform for an exciting period ahead for Paladin and I look forward to updating you on our progress.”

Highlights

  • The Restart Plan Update confirms the restart cost estimate of US$81 million and a 17 year mine life supported by ore reserves of 84.8 Mt with an average U3O8 grade of 448 ppm
  • Life of mine production target increased to 77.4 Mlb of U3O8 (previously 76.1 Mlb)
  • Estimated Life of Mine Costs are updated to US$27.40/lb (previously US$26.90/lb), primarily due to increased estimated contract mining rates
  • The Company has confirmed an estimated project execution timeframe of 18 months from project commencement to first production, with full production achieved after a further 15 months
  • The restart work technical programs are now complete and have reinforced Paladin’s confidence in LHM as a robust, competitive long-life operation ready to rapidly restart production in the right uranium price environment
  • Paladin continues to engage with global nuclear energy utilities with the intent of securing uranium offtake contracts with sufficient duration and value to underpin the restart of LHM. The Company notes an increase in market queries from utilities and an increase in long term market pricing
  • Paladin will now focus attention on exploring value enhancement opportunities at Langer Heinrich and across the Company’s broader asset portfolio including:

Concept studies are underway for potential LHM value enhancement opportunities including:

  • vanadium recovery and sales; increased low grade stockpile phase production rate;
  • application of ore sorting technology; mine life extension through lower cut-off grade resource processing; resource expansion; further cost optimisation; and recovery improvements
  1. Considering an optimised LHM project execution plan exploring the possibility to self-fund early works in FY2022 and fast track first production when a decision to restart is made
  2. Establish development and exploration pathways across Paladin’s three large, high grade exploration projects in Canada and Australia
  3. Continue assessing M&A opportunities complementary to our existing global project and exploration portfolio.

With unrestricted cash reserves of US$40.5 million at 30 September 2021, the Company maintains a disciplined and patient approach to restarting the Langer Heinrich Mine and has the financial flexibility to respond rapidly to improving uranium market conditions.

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