The technical review of the Patterson Lake South (PLS) uranium project in Canada confirms robust economics – despite higher capital and operating costs. Initial production is now slated for 2031. Uranium company Paladin Energy (WKN 890889) has now published the results as part of ongoing engineering work.
Over the entire life of mine, production of 90.9 million pounds of U₃O₈ is planned, with an average of 9.1 million pounds per year. Cost estimates are rising: Average cash operating costs (LoM) are US$11.70/lb, with total costs at US$15.20/lb. For comparison: The Fission feasibility study (previous owner) from 2023 projected C$13.02/lb U₃O₈.
Paladin Energy Anticipates Rising Capital Costs
The capital expenditure estimate has also been raised: Upfront capital expenditures increase from a previous C$1.15 billion (approximately US$0.84 billion) to US$1.23 billion. Sustaining capital costs are estimated at US$325 million. Based on a uranium price of US$90/lb, Paladin calculates an after-tax Net Present Value (NPV) of US$1.33 billion, an IRR of 28.2%, and a payback period of 2.4 years. The average free cash flow is projected to be US$430 million per year.
According to CEO-Designate Paul Hemburrow, PLS is technically robust and the implementation risk remains minimized – supported by agreements with First Nations and an NROP exemption. The updated schedule accounts for engineering, procurement, construction, and permits; Tetra Tech Canada led the review with support from Mining Plus and Clifton Engineering.
Paladin acquired Patterson Lake South and the high-grade Triple-R deposit in the Athabasca Basin in 2024 through the acquisition of Fission Uranium.
