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Uranium favourite Paladin Energy (ASX:PDN) has revealed it expects to produce up to 4.5Mlbs of uranium through FY25.
Production will be from ore extracted at the company’s Langer Heinrich mine in which it holds a 75% interest.
The figures were released in a forward looking guidance projection on Thursday implying sales of between 3.8Mlb – 4.1Mlb of uranium through the looming financial year.
At the same time, the company expects to spend US26M overall with the cost of production between US$28-31 per pound.
Ore feeds are expected to reflect grades of 470-510ppm with plant recoveries at 85-90%.
Uranium prices are currently at US$83/lb after failing to travel back above US$100/lb, highs hit earlier this year
While Kazakh supply disruptions were ultimately responsible for the surge to pre-Fukushima levels, an announcement from Cameco earlier this year – that the Canadian giant will boost production by 25Mlbs – was enough to neutralise bullish sentiment.
Prices still remain historically high in between US$80-90/lb. On the back of all this, Paladin’s one year returns are up over +80%.
PDN shares last traded at $12.40.
