Paladin Energy (ASX:PDN) share price up on work towards mine restart

Paladin Energy is working towards restarting its “globally significant” uranium project.

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a group of three miners in hard hats and high visibility vests confer at a rocky mining site.

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The Paladin Energy (ASX:PDN) share price is trading in the green on Monday after the company released its first quarter activities report.

At the time of writing, the company’s shares are 2.16% higher to 94.5 cents.

Paladin working through mine restart activities

During the quarter, Paladin Energy continued to work on the “critical-path elements” for its Langer Heinrich Mine restart plan.

Paladin Energy is looking to finalise key milestones including an updated mineral resource and ore reserve estimate, as well as the optimisation of its open-pit mining schedule.

Other key activities include the preparation of long lead contracts and procurement packages and the development of an operational readiness schedule.

Paladin Energy has continued to engage with global nuclear energy utilities companies with the intent of securing uranium term-price contracts with sufficient duration and value to drive the restart of Langer Heinrich.

The quarterly report advised no corporate debt and a cash position of US$40.5 million as at 30 September.

Management commentary

Paladin CEO Ian Purdy said the company was in a financially strong position to execute its mine restart plan and ride the resurgence in uranium prices.

With a strong balance sheet, a robust and well defined Mine Restart Plan and strong project economics, Paladin is exceptionally well positioned to take advantage of a sustained recovery in global uranium pricing.

With a growing focus on global decarbonisation, nuclear energy will continue to play a key role in low-carbon power generation.

We continue to engage with global nuclear energy utilities to secure long term contracts to underpin the restart of Langer Heinrich and ensure the project, when re-started, will deliver significant economic benefit to all of our shareholders.

Paladin Energy share price

The Paladin Energy share price has ballooned 275% year-to-date on the back of skyrocketing uranium prices.

The uranium sector has surged this year amid its potential role in secure, emission-free power generation.

Uranium prices have been propped up through Sprott Asset Management’s Physical Uranium Trust which started buying uranium off the spot market in mid-August, tightening supply.

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