Paladin Energy updates Patterson Lake South project development, financial outlook

Paladin Energy Ltd (ASX:PDN TSX:PDN, OTCQX:PALAF) announced an update on its Patterson Lake South (PLS) Project, following a detailed technical review as part of ongoing Front-End Engineering and Design (FEED) work. The project, which hosts the Triple R uranium deposit, was acquired by Paladin through its acquisition of Fission Uranium Corp. The updated projections include unchanged life of mine (LOM) production of 90.9Mlb U3O8 and average annual production of 9.1Mlb U3O8.

The review also updated financial estimates, with average LOM cash operating costs at $11.7/lb U3O8 and all-in sustaining costs (AISC) at $15.2/lb U3O8. Pre-production capital costs are now estimated at $1,226 million. The project's Net Present Value (NPV) (8% real discount rate, post-tax) is estimated at $1,325 million (at $90/lb U3O8), with the first uranium production targeted for 2031. Paul Hemburrow, incoming Paladin managing director and chief executive, highlighted the review's confirmation of the PLS Project's technical robustness and the significant progress achieved since its acquisition.