"Given the commercially sensitive and confidential nature of the company's ongoing discussions with potential customers, the company will not be providing guidance on the hurdle price required to support a decision to restart the Langer Heinrich mine," Paladin said today.
"The company notes that the current spot pricing (circa $34 per pound) and term pricing (about $39/lb), as reported by market commentator TradeTech, would not deliver the economic returns required for the company to restart the Langer Heinrich mine."
The company also said securing term contracts remains "key" to rebooting Langer Heinrich.
Meanwhile, Paladin currently has about $35 million cash and a forecast spend over the next 12 months of "less than" $10 million.
It also has $145 million of debt repayable in January 2023.
Langer Heinrich as an estimated 17-year mine life ahead of it, with peak production expectations being 5.9 million pounds per annum for seven years.
Life-of-mine cash costs are put at $27/lb.
Langer Heinrich began operations in 2007 and produced over 43Mlb of U3O8 before being transitioned into care and maintenance in August 2018 due to the sustained low uranium price.
Paladin's 25% partner at Langer Heinrich is CNNC Overseas Uranium Holdings, a subsidiary of China National Nuclear Corporation (CNNC) - with offtake rights to 25% of the production.
Shares in Paladin were up 12% to A10.5c in early trade, capitalising the company at $213 million.
At its peak in 2007 when the uranium price went past US$100/lb the stock traded at levels around A$10
