**Paladin Energy (MCAP: $3.6B) is acquiring Fission Uranium** for $1.1B, or $1.30/share, reflecting a 30% premium over FCU’s last closing price. This acquisition is consistent with our earlier prediction that majors would pursue M&A to secure long-term supply. Given that Russia contributes to 35% of global enriched uranium production, we believe the uranium supply chain remains highly vulnerable.
FCU is advancing a high-grade uranium project in the Athabasca Basin, hosting 130 Mlbs in resources. A recent feasibility study revealed an AT-NPV8% of $1.6B, using US$75/lbs uranium. PDN is paying 60% of the AT-NPV8%, or $7.4/lb, in line with the sector average.
[https://www.researchfrc.com/content/analyst-ideas/post/107/ma-in-uranium-graphite-junior-soars-nvidias-short-lived-top-spot](https://www.researchfrc.com/content/analyst-ideas/post/107/ma-in-uranium-graphite-junior-soars-nvidias-short-lived-top-spot)
Source: ExplorerOver1148