Paladin Q1 Output Falls, FY2027 Uranium Guidance Kept

Paladin Energy (ASX:PDN) reported lower September quarter output at Langer Heinrich after a planned maintenance shutdown and weaker plant recovery, and reaffirmed FY2027 guidance on the expectation of higher production in the second half.

Langer Heinrich produced 1.00Mlb U3O8, down from 1.23Mlb in the prior quarter, at a plant recovery of 85% against 90%. Paladin attributes this to the shutdown, ore characteristics associated with the mining sequence and low in-circuit inventory at the start of the quarter. Cost of Production rose to US$61.6/lb from US$51.6/lb. Sales were 1.16Mlb U3O8 at an average realised price of US$79.4/lb, up from US$70.6/lb, which the company links to rising uranium prices and a higher proportion of market-related sales. Total material mined was 7.73Mt, all from the J pit. FY2027 guidance remains production of 5.1 – 5.6Mlb U3O8 at a Cost of Production of US$44 – 48/lb. In Canada, Paladin signed a Mutual Benefits Agreement with Birch Narrows Dene Nation for the Patterson Lake South (PLS) Project and an Administrative Protocol with the Canadian Nuclear Safety Commission targeting completion of Construction Licence hearings at the end of calendar year 2027. Cash and investments were US$209M, with an undrawn US$70M Revolving Credit Facility.

Meeting guidance depends on grade and recovery improving as mining moves into the lower J Pit benches, and the company says geopolitical disruption may affect it. The PLS Project does not yet hold a Construction Licence.