Paladin Energy (ASX/TSX: PDN) has reported it has signed a series of term uranium sales agreements for output from the Langer Heinrich Stage 3 expansion.
The agreements have been signed with three new customers in the United States, increasing Paladin’s significant presence within the U.S. nuclear market.
Production commitments from the new agreements total more than 2.8 million pounds of uranium (U3O8) with deliveries beginning in 2012 and extending through to 2016. Contractual pricing provisions incorporate both fixed and base (escalated) mechanisms ranging from the low- to -mid-$60’s per pound U3O8.
Paladin has recently been engaging with a number of parties in relation to new sales contracts and reasonably expects to enter into further term agreements in the coming months.
The Langer Heinrich Stage 3 expansion is near completion with commissioning and staged ramp-up progressing well.
Langer Heinrich Stage 3 will increase annual output from 3.7 million pounds U3O8 to 5.2 million pounds of U3O8.
Paladin’s managing director John Borshoff said:
“We have consistently stated that nuclear fuel buyers continue to recognise the need to secure uranium supplies for the medium and longer term despite the price volatility and perceived uranium market uncertainties caused by events in Japan. These contracts, signed at prices well in excess of the prevailing spot price, only serve to further support this message.”