JPMorgan Chase is reshuffling its uranium portfolio with the addition of a substantial stake in Paladin Energy (ASX:PDN) and ceasing to be a major investor in Lotus Resources (ASX:LOT).
The American investment bank has taken a 5.25% stake in Paladin Energy, which like Lotus is focused on uranium production in Africa.
JPMorgan is the largest bank in the US and the world’s largest by market capitalisation in 2023. The company’s market capitalisation is currently US$634.30 billion ($961.34 billion).
The investment bank now holds 15.72 million in Paladin shares.
Paladin is ramping up production at the Langer Heinrich Mine in Namibia, producing 640,000 pounds of uranium in the September quarter – up from 520,000 pounds in the previous quarter.
CEO Ian Purdy says while production in the second quarter of the ramp up encountered some process recovery and efficiency challenges, the onsite team have commenced the implementation of operational and process design improvements, which delivered improved performance towards the end of the quarter.
“Our global clean-energy customers have commenced receiving and processing our product, with Paladin now delivering on its mission to resource a carbon-free future,” he says.
Paladin, which has a market capitalisation of $3.05 billion, is also in the process of acquiring Canada’s Fission Uranium (TSX:FCU). In early October the suitor obtained a final order from the Supreme Court of British Columbia approving the tie-up.
However, the company says there is still some uncertainty around the transaction due to the requirement to obtain Investment Canada Act clearance.
On 2 October, Paladin received a notice from the Minister of Innovation, Science and Industry ordering a national security review of the arrangement.
Paladin says it continues to engage with the minister but in light of the review there can be no certainty that the company will obtain ICA clearance in a timely manner, which would prevent the deal from going ahead.
In mid-September, the company revealed moves by a Chinese backer of Fission to block the takeover.
CGN Mining Company – a subsidiary of China General Nuclear Power – holds a disclosed interest of 11.26% in Fission and is against the deal.
At the end of the September quarter, Paladin had US$55 million in cash and US$55 million in undrawn debt facilities as well as US$95 million in debt.
Write to Angela East at Mining.com.au
Images: Paladin Energy
