Paladin Energy reports lower uranium output and keeps annual guidance

For the quarter ended Sept. 30, production at Langer Heinrich fell to 1.00 million pounds of uranium oxide, Paladin Energy Ltd ASXPDN TSEPDN OTCMKTSPALAF reported on Tuesday. Reported production cost rose to US$61.6 a pound from US$51.6 in the June 2026 quarter. June-quarter production was 1.23 million pounds, with operating figures covering the entire Namibian mine.

September-quarter sales were 1.16 million pounds, down from 1.35 million in June. The average realised price rose to US$79.4 a pound from US$70.6 over that period, reflecting higher uranium prices and a larger proportion of market-related sales, Paladin said.

Paladin shares ASXPDN fell 7.47 per cent to A$7.43 in Sydney, as of 11:24 a.m. AEDT on Wednesday. The release attributed the production decline to a planned maintenance shutdown and ore characteristics associated with the mining sequence.

Paladin retained FY2027 production guidance of 5.1 million to 5.6 million pounds, with higher output expected in the second half. Its annual production-cost guidance remains US$44 to US$48 a pound. At Sept. 30, it reported US$209 million in cash and investments and an undrawn US$70 million revolving credit facility.

Plant recovery fell to 85 per cent in the September quarter from 90 per cent in June, while low starting inventories within the processing circuit also reduced output. Lower production contributed to the higher unit cost, the company said.

The plant processed 1.17 million tonnes in the September quarter. Paladin said production and throughput improved during September as mining advanced through the J pit, and it expects higher grades and better recovery as operations move into the pit's lower southern benches.

Langer Heinrich's September-quarter capital expenditure was US$6.9 million, compared with US$5.1 million in June. The report separately recorded US$6.3 million of capitalised stripping costs for the same quarter.

Sales timing also depends on customer nominations and shipping schedules, while realised prices vary with the mix of contract pricing mechanisms. At Sept. 30, Paladin had 400,000 pounds outstanding under uranium product loan facilities, which it said support timely customer deliveries.

"We expect production to increase in the second half of FY2027 and we remain on track to deliver our FY2027 guidance," Paladin chief executive Paul Hemburrow said in the release.

Canadian Hearings Target The End Of 2027

In Canada, September-quarter spending on Patterson Lake South development and permitting was US$7.4 million, while exploration spending was US$5.0 million. The report's permitting account says an administrative protocol signed with the Canadian Nuclear Safety Commission in July establishes a non-binding pathway targeting completion of construction-licence hearings at the end of 2027.

Paladin Canada and Birch Narrows Dene Nation signed a mutual benefits agreement in August covering Patterson Lake South's lifespan. Paladin says it confirms the nation's support and consent from development through production, decommissioning and reclamation.

Another Athabasca Basin developer, NexGen Energy Ltd. TSENXE NYSENXE ASXNXG, announced on March 5 that the same commission approved Rook I's environmental assessment and issued a Licence to Prepare Site and Construct. NexGen's release outlined a four-year construction schedule from commencement.

Read more: NexGen Energy says Rook I concrete batch plant arrived ahead of schedule

Its next stated Canadian regulatory milestone is the non-binding target to complete construction-licence hearings at the end of 2027.