Patterson Lake South (PLS) / Triple R Feasibility Study: C$1.20B NPV, 27% IRR
Paladin Energy Ltd.'s Patterson Lake South (PLS) / Triple R in Canada, Saskatchewan (Athabasca Basin) has a Feasibility Study outlining an after-tax NPV of C$1.20B, an after-tax IRR of 27%, and initial capital of C$1.16B.
Paladin Energy Ltd.'s Patterson Lake South (PLS) / Triple R has reported Feasibility Study results for the uranium (u3o8), with gold by-product project in Canada, Saskatchewan (Athabasca Basin). The study headlines an after-tax net present value of C$1.20B at a 8% discount rate. It reflects Paladin Energy Ltd.'s (PDN.TO) latest disclosed economics for the asset.
Economics. The after-tax NPV is C$1.20B using a 8% discount rate. After-tax IRR is 27%. Initial capital expenditure is estimated at C$1.16B, with life-of-mine sustaining capital of C$384M. Economics are based on Uranium US$50/lb U3O8 (Mineral Resource cut-off); Uranium US$65/lb U3O8 (Ore Reserve cut-off).
Production and mine plan. The project envisions an underground (longhole stoping and drift-and-fill) operation. Average head grade is 1.41% U3O8. Metallurgical recovery averages 97%.
Resources and ownership. The company holds a 100% interest in the project. Royalties and streams: No material agreements on the PLS mineral claims..
These figures are extracted from Paladin Energy Ltd.'s technical disclosures and reflect the most recent Feasibility Study on file. Compare this project against other developers and producers in our project economics database, and always verify the numbers against the original technical report before making any investment decision.
Reserves & Resources
| Category | Tonnage | Grade | Contained |
|---|---|---|---|
| Probable - R780E Zone | 2.6 Mt | 1.46% U3O8 | 84.8 Mlb U3O8 |
| Probable - R00E Zone | 0.1 Mt | 1.24% U3O8 | 1.5 Mlb U3O8 |
| Probable - R840W Zone | 0.3 Mt | 1.04% U3O8 | 7.4 Mlb U3O8 |
| Total - Probable Ore Reserves | 3.0 Mt | 1.41% U3O8 | 93.7 Mlb U3O8 |
| Category | Tonnage | Grade | Contained |
|---|---|---|---|
| Indicated - Triple R | 2.9 Mt | 1.88% U3O8, 0.59 g/t Au | 118.8 Mlb U3O8, 54.4 Koz Au |
| Inferred - Triple R | 0.4 Mt | 1.19% U3O8, 0.46 g/t Au | 10.9 Mlb U3O8, 6.1 Koz Au |
| Total | 3.3 Mt | 1.80% U3O8, 0.57 g/t Au | 129.7 Mlb U3O8, 60.5 Koz Au |
Our Analysis
- IRR after-tax
- 27%
higher than 41% of 332 projects we track
- NPV after-tax
- C$1.20B
higher than 74% of 430 projects we track
- Initial capex
- C$1.16B
97% of NPV
costlier than 84% of 429 projects we track
- Discount rate
- 8%
- Study price assumption
- Uranium US$50/lb U3O8 (Mineral Resource cut-off); Uranium US$65/lb U3O8 (Ore Reserve cut-off)
A 27% after-tax IRR places this project in the lower half of the 332 tracked peers, ranking above only 41% of them. That is not an outlier in either direction, but it is a meaningful signal: the return clears the ~15% project-finance hurdle with room to spare, yet offers no premium for the execution risk a C$1.16B build carries. The NPV of C$1.20B ranks far better, above 74% of 430 tracked projects, which suggests the asset's size is respectable even if its rate of return is merely adequate. For an investor, this is a project that should fund itself on paper, but the margin between the IRR and the financing threshold is thin enough that cost overruns or schedule slips could erode the appeal quickly.
The feasibility study is the key reason to trust these numbers. At a plus or minus 15% band, this is build-ready estimating, not a scoping-level aspiration, so the 27% IRR and C$1.20B NPV carry far more weight than a PEA would. The capital intensity, at 97% of NPV, is the constraint that matters most: initial capex of C$1.16B against a project value of C$1.20B leaves little buffer, and while this is one of two projects in the company's tracked portfolio, a build of this size still demands disciplined financing. The Athabasca Basin jurisdiction is a quality signal in itself, a mining-friendly region with established infrastructure and regulatory clarity, which de-risks the permitting side of the equation.
The study's uranium price assumptions, US$50/lb for the resource cut-off and US$65/lb for the reserve cut-off, are the swing factor in the sensitivity. The gap between the two levels shows how much of the reserve case depends on the higher price holding through the construction and early production window; if it softens toward the resource cut-off, the already-modest IRR compresses further. The single question that decides whether this works is whether the company can finance a C$1.16B build without diluting away the value the NPV represents, because at 97% capital intensity, there is no room for the market to absorb a poorly structured raise.
Our take, benchmarked against the project economics in the Mining Stocks database. Figures are estimates drawn from company technical reports — not investment advice; always verify against the source filing.