Fission Uranium Corp. announced that Paladin Energy Ltd. (PALAF – Free Report) completed the previously announced acquisition of all issued and outstanding shares of Fission Uranium. The merger establishes a world-class uranium producer with a diversified presence across leading uranium mining jurisdictions of Canada, Namibia and Australia.
Former Fission Uranium shareholders now hold roughly 24% of the Paladin’s issued and outstanding shares.
Details on FCUUF-Paladin Merger
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, the company 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 makes 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 inked the deal with the Australian miner Paladin in June 2024. The latter acquired FCUUF’s outstanding shares for an implied total equity value of C$1.14 billion ($0.79 billion).
Benefits of Fission Uranium-Paladin Deal
The merger creates a company with a pro-forma market capitalization of $3.5 billion. It is 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. The combined company has a solid portfolio of exploration, development and production assets, as well as a substantially increased international capital market exposure.
This move helps 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.
FCUUF Stock Price Performance
Shares of Fission Uranium have lost 38.4% in the past year compared with the industry’s 0.2% decline.
Image Source: Zacks Investment Research
Fission Uranium’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) and CF Industries Inc. (CF – Free Report) . CRS sports a Zacks Rank #1 (Strong Buy) at present and CF carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Carpenter Technology has an average trailing four-quarter earnings surprise of 14.1%. The Zacks Consensus Estimate for CRS’s fiscal 2025 earnings is pegged at $6.61 per share. Its shares skyrocketed 144.2% in the last year.
CF Industries has an average trailing four-quarter earnings surprise of 10.3%. The Zacks Consensus Estimate for CF’s 2024 earnings is pegged at $6.32 per share. CF shares gained 8.8% in the last year.
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