CA - Paladin Energy: A Cash Cow At Current Uranium Prices

2024-06-17 10:30:00 ET

Summary

• Paladin Energy has successfully restarted production at the Langer Heinrich mine, with first shipments expected in July.
• The company anticipates generating positive free cash flow, with the potential for further expansion and growth in its portfolio projects.
• Main risks to the investment thesis include technical issues during the ramp-up phase and fluctuations in the uranium price, which could impact cash flow projections.

Introduction

Paladin Energy ( PALAF ) has a 75% stake in the Langer Heinrich uranium mine in Namibia . After going bankrupt a while ago and seeing the (past-producing) mine being mothballed, the reopening process has been completed, and the mine is now producing uranium again with first shipments expected in July....

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