The Paladin Energy Ltd (ASX: PDN) share price is off to the races today.

Shares in the ASX uranium explorer and producer closed yesterday at 62 cents and are currently trading for 66.5 cents, up 7.26% in morning trade.

So, what’s moving the Paladin Energy share price higher?

What did the uranium producer report?

Paladin closed lower yesterday amid the wider market selloff. But it looks like investors may be snapping up shares today based on yesterday’s report that the company is returning its Langer Heinrich Mine, located in Namibia, to production.

Management said the decision to restart the mine was supported by strong uranium market fundamentals. The Paladin Energy share price could be getting a lift from their expectations the mine will begin producing in the March quarter of 2024.

Paladin has appointed the ADP Group to provide engineering, procurement, and construction management services, and reported that mobilisation of the project workforce is “well advanced”.

Citing inflationary pressure across its project supply chain, Paladin said the total project capital expenditure has increased to US$118 million, up from, previous guidance of US$87 million.

Paladin will provide 100% of the project funding, saying it will source priority loans if required. These will be repaid in priority to all outstanding shareholder loans. The company said it had US$177 million in unrestricted cash as at 30 June 2022, leaving it “well positioned” to deliver its first production from the Langer Heinrich Mine, along with funding its ongoing uranium exploration and marketing activities

Its non-project 2023 financial year cash expenditure guidance is US$14.7 million.

Commenting on the mine restart, Paladin CEO Ian Purdy said:

With the strength of the company’s uranium offtakes and the continuing strong uranium market fundamentals, Paladin has made the decision to return the globally significant Langer Heinrich Uranium Mine to production…

The Langer Heinrich Mine remains a low risk, robust, long-life operation that is poised to take advantage of the improving uranium market conditions and deliver sustainable value creation for all our stakeholders.

Paladin Energy share price snapshot

Although struggling in 2022, the Paladin Energy share price remains up 52% over the past 12 months. That compares to the 8% loss posted by the All Ordinaries Index (ASX: XAO) over that same period.

The post What is driving the Paladin Energy share price 7% higher today? appeared first on The Motley Fool Australia.

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Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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