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FCUUF-Paladin Merger Cleared, Forms Leading Uranium Producer

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Fission Uranium has secured the approval of Canada’s Minister of Innovation, Science and Industry per the Investment Canada Act (ICA) for its pending merger with Paladin Energy Limited. This marks the final step in the Fission Uranium and Paladin merger, which is set to close by early January 2025.

The merger will establish a world-class uranium producer with a diversified presence across leading uranium mining jurisdictions of Canada, Namibia and Australia.

Developments of the Fission Uranium-Paladin Merger

Fission Uranium inked the deal with the Australian miner Paladin in June 2024. FCUUF shareholders voted in favor of the acquisition at the special meeting held on Sept. 9, 2024.

On Sept. 26, Fission Uranium completed the hearing before the Supreme Court of British Columbia regarding the approval of the final order for its acquisition by Paladin. It was approved by the court on Oct. 8.

The closure of the acquisition was subject to the receipt of clearance under the ICA, which now stands cleared.

Per the agreement, Paladin will acquire FCUUF’s outstanding shares for an implied total equity value of C$1.14 billion ($0.79 billion).

FCUUF-Paladin Merger to Create Leading Uranium Producer

Paladin is an independent uranium producer with 75% ownership of the world-class long-life Langer Heinrich Mine located in Namibia. It also owns a portfolio of uranium exploration and development assets in Canada and Australia. Through its Langer Heinrich Mine, it delivers uranium to major nuclear utilities across the world. It has a 17-year estimated mine life and a nameplate annual capacity of 6 million pounds of uranium.

The acquisition of Fission Uranium will make Paladin the 100% owner of the Patterson Lake South uranium property. It is a proposed high-grade uranium mine and mill in Canada’s Athabasca Basin region. The feasibility study for the property projects a 10-year mine life with an annual production of 9.1 million pounds of uranium.

Fission Uranium recently staked four new properties in the Athabasca Basin region of northern Saskatchewan, Typhoon, Corsair, Merlin and Seahawk. Per the company, these projects have the potential for hosting high-grade uranium.

The merger will create a company with a pro forma market capitalization of $3.5 billion. It will be placed among the largest pure-play global uranium companies with a combined mineral resource of 544 million pounds of uranium and ore reserves of 157 million. It will have a solid portfolio of exploration, development and production assets as well as a substantially increased international capital markets exposure.

This move will help the combined company to capitalize on the growing demand for uranium, which is surging due to factors like increasing electricity needs, decarbonization efforts and data center expansion.

Fission Uranium Stock Price Performance

Shares of Fission Uranium have lost 37.4% in the past year compared with the industry's 0.4% decline.

Zacks Investment Research Image Source: Zacks Investment Research

FCCUF’s Zacks Rank & Stocks to Consider

Fission Uranium currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks from the basic materials space are Carpenter Technology Corporation (CRS - Free Report) , New Gold (NGD - Free Report) and Fortuna Mining Corp. (FSM - Free Report) . Each of these stocks presently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Carpenter Technology has an average trailing four-quarter earnings surprise of 14.1%. The Zacks Consensus Estimate for CRS’ fiscal 2025 earnings indicates 42% year-over-year growth. Its shares have gained 140% in the last year.

New Gold has an average trailing four-quarter earnings surprise of 37.50%. The Zacks Consensus Estimate for NGD’s 2024 earnings indicates 17% growth from the prior year. Its shares have gained 64% in the last year.

The Zacks Consensus Estimate for Fortuna Mining’s 2024 bottom line indicates year-over-year growth of 118%. The company has a trailing four-quarter earnings surprise of 53.6%, on average. FSM’s shares gained 9% in the last year.


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