How Will Paladin’s Langer Heinrich Mine Reach Full Production by FY2027?
Paladin Energy outlines FY2026 operational ramp-up and financial guidance for its Langer Heinrich Mine, projecting increased uranium production and steady cost control ahead of full-scale operations in FY2027.
- FY2026 uranium production guidance set at 4.0–4.4 million pounds
- Cost of production forecast between US$44 and US$48 per pound
- Capital and exploration expenditure budgeted at US$26–32 million
- Mining fleet expansion and transition to primary ore processing underway
- Realised uranium price sensitivities provided based on spot price assumptions
Operational Ramp-Up Underway
Paladin Energy has provided detailed guidance for the 2026 financial year concerning its flagship Langer Heinrich Mine in Namibia. The company anticipates a continued ramp-up in mining operations, transitioning from processing stockpiled medium-grade ore to increasing volumes of primary mined ore. This shift is expected to culminate in full mining and processing plant operations by FY2027, marking a significant milestone for the asset.
Production and Cost Outlook
For FY2026, Paladin projects uranium oxide (U3O8) production between 4.0 and 4.4 million pounds, with sales slightly lower at 3.8 to 4.2 million pounds. The cost of production is forecast to remain competitive, ranging from US$44 to US$48 per pound. These figures reflect ongoing operational efficiencies and the company's focus on optimising medium and high-grade ore delivery to the processing plant.
Capital Investment and Mining Fleet Expansion
Capital and exploration expenditures are budgeted between US$26 million and US$32 million, supporting critical activities such as tailings storage facility preparation, resin replacement, and exploration drilling. The mining fleet is currently operating at approximately 49% capacity, with additional equipment scheduled for delivery and commissioning in the latter half of FY2026. This expansion is key to increasing primary ore feed and sustaining production growth.
Market Position and Sales Strategy
Paladin plans to continue uranium deliveries to customers across the US, Europe, and Asia, while actively seeking new contracts with high-quality counterparties. The company has provided a sensitivity analysis of realised uranium prices under various spot price scenarios, illustrating a forecast realised price range from US$54 to US$94 per pound depending on market conditions. This transparency offers investors insight into potential revenue outcomes amid fluctuating uranium prices.
Looking Ahead
With the operational ramp-up expected to complete by the end of FY2026, Paladin is positioning Langer Heinrich for a robust return to full-scale production in FY2027. The company intends to update guidance next year, providing further clarity on production, costs, and market dynamics as the mine transitions fully to primary ore processing.
Bottom Line?
Paladin’s FY2026 guidance sets the stage for Langer Heinrich’s full operational revival, but execution risks and market volatility remain key watchpoints.
Questions in the middle?
- How smoothly will the commissioning of the remaining mining fleet proceed in the second half of FY2026?
- What impact will fluctuating uranium spot prices have on Paladin’s realised revenue and contract negotiations?
- Can Paladin sustain cost efficiencies while scaling up primary ore processing and mining activities?