The uranium miner announced plans to restart production at the Langer Heinrich mine in Namibia in early 2024 after what will be 6 years of care and maintenance. The restart is now estimated to cost $US118m, up from previous estimates of $US87m, with the company prepared to fund the full project restart if need be with $US177.1m of cash in hand. The project has around a third of production committed already and with the uranium market tightening, we would expect to see further offtake agreements before production kicks off again. We spoke to CEO Ian Purdy & his management team after the announcement yesterday who said they were in advanced discussions with a number of contractors to get the restart underway. They had seen 16% cost inflation in just 3 months so they were on the move to secure prices at these levels. Shares were down yesterday, though largely in line with peers.
MM is bullish and long PDN in the Emerging Companies Portfolio
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