How Did Paladin Energy Achieve a 33% Production Surge at Langer Heinrich?

Operational Breakthrough at Langer Heinrich

Paladin Energy has delivered a standout quarter at its flagship Langer Heinrich Mine (LHM) in Namibia, reporting a 33% increase in uranium production compared to the previous quarter. The mine achieved its highest-ever quarterly crusher throughput, processing 1.17 million tonnes of ore, a record since operations restarted. This operational momentum contributed to a total FY2025 production of just over 3 million pounds of uranium oxide (U3O8), underscoring Paladin’s growing capacity in the uranium sector.

The company’s focus on blending medium-grade stockpiled ore with freshly mined material has enhanced plant stability and recovery rates, which averaged 87% during the quarter. Mining activities concentrated in the G-pit area are progressing steadily, with infrastructure upgrades supporting the transition to deeper ore extraction expected to continue through FY2026.

Strategic Milestones and Leadership Change

On the project development front, Paladin marked a significant regulatory milestone with the formal acceptance of the Final Environmental Impact Statement (EIS) for its Patterson Lake South (PLS) Project in Saskatchewan, Canada. This acceptance by the provincial Ministry of Environment advances the project closer to permitting and potential future production. Complementing this progress, a successful winter drilling campaign at PLS yielded the most significant radioactivity results recorded outside the well-known Triple R deposit, expanding the geological understanding of the Saloon Trend.

In leadership news, Paladin announced the appointment of Paul Hemburrow as Managing Director and CEO, effective 1 September 2025. His arrival signals a new chapter as the company aims to capitalize on its operational gains and exploration successes.

Financial Position and FY2026 Outlook

Paladin closed the quarter with a robust cash position of US$89 million and access to an undrawn US$50 million revolving credit facility, providing financial flexibility to support ongoing operations and exploration. The company also made its second scheduled debt repayment, reducing drawn debt to US$86.5 million.

Looking ahead, Paladin’s FY2026 guidance anticipates continued ramp-up at LHM with production expected between 4.0 and 4.4 million pounds of U3O8. Unit production costs are forecast to rise modestly to between US$44 and US$48 per pound, reflecting increased mining activity and processing of primary ore. The operational ramp-up is expected to complete by FY2027, with full mining and processing capacity realized.

Paladin maintains a strong contract book with 13 uranium sales agreements spanning major global markets including the US, Europe, and Asia. This diversified customer base underpins revenue visibility as the company navigates a uranium market gradually returning to fundamental supply-demand balance.

Safety, Sustainability, and Community Engagement

Safety performance remains a priority, with Paladin exceeding its FY2025 safety targets and recording a total recordable injury frequency rate (TRIFR) of 2.7 per million hours worked, a notable improvement year-on-year. The company also reported no serious environmental or radiation incidents during the quarter.

Community initiatives continued in Namibia, including support for a new breast cancer clinic and development of a cricket hub, reflecting Paladin’s commitment to social responsibility alongside its mining activities.