Paladin Energy has declared that it has inked a series of term uranium sales deals with three US customers for the Langer Heinrich Stage 3 expansion’s output.
With these sales deals, Paladin Energy will further expand its footprint in the US nuclear market. The new deals demand a total production of over 2.8 Mlb U3O8 with supplies starting in 2012 and continuing through to 2016. Contractual pricing provisions include both escalated and fixed methods ranging between low and mid $60s per pound of U3O8.
Paladin Energy has recently been discussing with numerous parties related to new sales deals and anticipates signing more term deals in the upcoming months. The Langer Heinrich Stage 3 expansion is nearing completion with staged ramp-up and installation moving ahead well. The Stage 3 expansion will escalate annual output to 5.2 Mlb U3O8 from 3.7 Mlb U3O8.
According to John Borshoff, Managing Director and Chief Executive Officer at Paladin Energy, the company had always said that nuclear fuel buyers persist in realizing the necessity to receive uranium deliveries through the medium and long term in spite of the price instability and apparent uranium market volatilities due to events in Japan. Signing of these deals at prices well above the existing spot price by the company further encourages this message, he added.
Borshoff further said that these deals are in line with Paladin Energy’s long-term uranium contracting strategy for developing a risk-administered portfolio of term sales deals including different delivery price methods such as defined prices and market price exposure during the time of supply.
Source: http://www.paladinenergy.com.au