Paladin Energy Ltd
Paladin Energy Ltd
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Australian-based explorer Lotus Resources has followed up its just-completed acquisition of Paladin Energy’s 65% interest in the mothballed Kayelekera uranium mine in Malawi by posting a 31% in mineral resources to 37.5Mlb contained uranium (27.1Mt @ 630ppm U3O8).
The update, including measured/indicated resources of 31.2Mlb, has the potential to extend the life of the mine.
Paladin Energy has flatly denied media reports of an alleged spillage of uranium following record rainfall at its mothballed Kayelekera mine in Malawi.
Paladin acknowledged there was a “relatively minor” release of run-off water from Kayelekera storage ponds on Mar 5, but continuous analysis found it was within World Health Organisation compliance and statutory licence limits.
Australian-based Paladin Energy says it has confirmed its mothballed Langer Heinrich mine as a first mover once the global uranium market recovers based on initial findings of a PFS that is assessing the potential for a low-cost, low-risk restart of the Namibian project.
Low prices led Paladin to shutter the mine in May 2018, and CEO Scott Sullivan says the first stream of the PFS confirmed an estimated cost of $US80M to reopen it producing an initial 5.2Mlbpa after a 12-month development timeline.
Diversified Australian explorer Hylea Metals is targeting a company transformation with its acquisition of a 65% interest in the mothballed Kayelekera uranium project in Malawi from Paladin Energy.
While aiming to continue advancing its Hylea cobalt project in NSW, the company says it will re-engineer Kayelekera’s mining and processing to lower capital and operating costs and bring it back into production.
Paladin Energy’s Langer Heinrich uranium mine in Namibia could be back in operation as early as mid-2021 after a scoping study outlined multiple options for a low-cost restart.
The Australian-based miner shuttered the long-lived mine in May 2018 over sustained low prices, but a 2-stage PFS begins next month to refine a start-up plan and explore process optimisation.
With studies under way into the potential of reopening the suspended Langer Heinrich uranium project in Namibia, Australian-based Paladin Energy posted Dec qtr (Q1) sales of 475,000lb U3O8, up from 267,423lb in the Sept qtr.
Average selling price was $US34.41/lb (Q4FY18: $24.60/lb), generating gross sales revenue of $14.9M.
Paladin says the Langer Heinrich restart PFS is expected in 2019. The Kayelekera mine in Malawi remains on care and maintenance.
Cash and equivalents at Dec 31 were $44.1M ($30.6M).
Paladin Energy has launched a series of studies aimed at identifying a route to reopening its suspended Langer Heinrich uranium project in Namibia, but admits a restart depends on a sustained market recovery.
The Australian-based company placed Langer Heinrich on care & maintenance in Aug 2018 due to low uranium prices.
With its 75%-owned flagship Langer Heinrich Uranium Mine in Namibia on care & maintenance, Paladin Energy has launched an all-share $A7.8M off-market bid for the 17.9% of fellow Western Australian-based uranium explorer Summit Resources it doesn’t already own.
The transition of its 75%-owned Langer Heinrich uranium mine in Namibia to care and maintenance in mid-May has lowered Paladin's June qtr (Q4FY18) production to 354,465lb U3O8 from 670,456t in Q3. C1 cash costs rose to $US34.55/lb (Q3: $29.82).
Total sales were 1,147,835lb at $20.58/lb for gross revenue of $23.6M, a 90% increase.
Paladin expects Sept qtr sales of 250,000-300,000lb U3O8.
Paladin Energy has bowed to the inevitable at its Langer Heinrich uranium mine in Namibia, announcing its closure in the face of stubbornly low prices.
Australian-based Paladin warned a month ago that care & maintenance was a likely outcome for the mine, which has been processing medium-grade stockpiles.
There will be a "run-down" phase of up to 3 months while operations are suspended and cleared of remaining ore.
Paladin says the suspension will preserve the project's value while it awaits a market revival.