December Production Peaks at 308,604lb U3O8 as Paladin Expands in Canada

Operational Milestone at Langer Heinrich Mine

Paladin Energy Ltd (ASX:PDN) has marked a significant operational milestone with December 2024 delivering the highest monthly uranium production since the Langer Heinrich Mine (LHM) resumed commercial operations in March 2024. The mine produced 308,604 pounds of U3O8, reflecting a substantial improvement in plant recovery rates, which averaged 88% for the quarter.

This surge follows a planned 12-day plant shutdown in November, during which Paladin implemented critical upgrades including enhanced burner technology, pump and pipe improvements, and heat exchange infrastructure refurbishments. These enhancements have not only boosted recovery rates but also stabilized water supply, a key operational challenge at LHM.

Strategic Expansion Through Fission Acquisition

December also saw Paladin complete its acquisition of Fission Uranium Corp, a move that significantly expands Paladin’s Canadian uranium portfolio. The acquisition, finalized on 24 December 2024, brought the world-class Patterson Lake South (PLS) project into Paladin’s fold, positioning the company as one of the largest pure play uranium entities globally.

Paladin’s shares commenced trading on the Toronto Stock Exchange (TSX) on 27 December 2024, complementing its existing ASX listing. This dual listing is expected to broaden Paladin’s investor base and enhance liquidity, particularly in North American capital markets.

Integration and Growth Prospects

The integration of Fission’s operations is progressing according to plan, with the establishment of Paladin Canada as a dedicated business unit overseeing Canadian assets, including the Michelin project. While Fission’s former CEO Ross McElroy resigned post-acquisition, key executives remain committed to advancing exploration and development activities.

Exploration efforts are ramping up with winter drilling programs underway at PLS and preparations ongoing at Michelin. Paladin is leveraging synergies between these projects to optimize resource extension and target evaluation, signaling a robust pipeline for future growth.

Financial and Market Position

Paladin’s financial position remains strong, with US$166 million in unrestricted cash and short-term investments as of 31 December 2024, alongside undrawn debt facilities of US$50 million. The company’s production remains aligned with its FY2025 guidance of 3.0 to 3.6 million pounds of U3O8, underpinning its operational and financial outlook.

Sales volumes and realised prices reflected typical quarterly variability, influenced by contract mix and delivery timing. Paladin continues to build its offtake portfolio, now securing contracts with 11 tier-one global customers covering approximately half of LHM’s life-of-mine production.

Sustainability and Community Engagement

On the sustainability front, Paladin released its 2024 Sustainability Report, aligning Fission’s ESG framework with its own to establish a best-in-class uranium sector reporting standard. The company reported a slight increase in its Total Recordable Injury Frequency Rate but remains committed to health and safety excellence.

Community initiatives at LHM include partnerships supporting youth development, health, and education, reflecting Paladin’s ongoing commitment to social responsibility in its operating regions.