Paladin Energy Surges with Record Uranium Output and A$300M Capital Raise
Paladin Energy reports a record uranium production quarter at its Langer Heinrich Mine alongside a robust engineering review of its Patterson Lake South Project, supported by a successful A$300 million equity raise.
- Record quarterly uranium production of 1.07 million pounds at Langer Heinrich Mine
- Engineering review confirms technical robustness and de-risks Patterson Lake South Project
- Completed fully underwritten A$300 million equity raising in September 2025
- Strong cash position with US$269.4 million and undrawn US$50 million credit facility
- Ongoing community investments and improved safety performance
Langer Heinrich Mine Delivers Record Production
Paladin Energy’s September 2025 quarterly update highlights a significant milestone with the Langer Heinrich Mine (LHM) in Namibia achieving record uranium production since its restart. The mine produced over 1.06 million pounds of uranium oxide, a 63% increase in total material mined compared to the previous quarter, underscoring the successful ramp-up of operations.
Mining activities focused on waste stripping in the G-pit area to enable future ore access, with preparatory works progressing for the G3A pit. While the delivery of the remaining mining fleet is scheduled for late 2025, the company expects higher ore production in the second half of FY2026. Processing plant throughput remained steady, with an 86% recovery rate and consistent feed grade, supporting operational stability.
Robust Development Outlook for Patterson Lake South Project
In Canada, Paladin completed a detailed engineering review of its Patterson Lake South (PLS) Project, confirming the technical robustness of the project and effectively de-risking its development and operational phases. This review builds on the 2023 feasibility study and supports ongoing permitting activities, including environmental impact assessments and engagement with Indigenous Nations and regulators.
The company continues to advance the PLS Project towards a final investment decision, with expectations for design improvements and regulatory approvals to facilitate development. This progress is critical as Paladin positions itself to expand its uranium production footprint beyond Namibia.
Financial Strength Bolstered by Equity Raising
Paladin successfully completed a fully underwritten A$300 million equity raising in September 2025, significantly strengthening its balance sheet. At quarter-end, the company reported cash and investments of US$269.4 million and maintained an undrawn US$50 million revolving credit facility, providing ample liquidity to support ongoing operations and project development.
The equity raise proceeds are intended to fund the continued ramp-up at LHM, advance the PLS Project, and support general corporate purposes. Scheduled debt repayments also continued, reducing outstanding term loan balances and improving financial flexibility.
Operational and Community Highlights
Paladin’s safety performance showed positive trends, with a Total Recordable Injury Frequency Rate (TRIFR) of 3.2 per million hours worked, better than the company’s target. The company also maintained a strong focus on environmental compliance, recording no serious incidents during the quarter.
Community investments remained a priority, with donations including a 4x4 ambulance to a Namibian hospital, quad bikes to local police, and the launch of a Youth Entrepreneurial Development Initiative aimed at supporting local businesses through equipment and training.
Contract Coverage and Market Position
Paladin now holds 14 uranium sales agreements with tier-one global customers across the US, Europe, and Asia, including a life-of-mine contract with China National Nuclear Corporation (CNNC). Approximately 85% of the LHM ore reserve is exposed to market-related prices or remains uncontracted, positioning the company to benefit from uranium price upside while maintaining a balance of fixed and base-escalated contracts.
Despite a shipping delay impacting sales volumes this quarter, the company ended with a strong finished product inventory of 1.8 million pounds, ready to meet customer demand in upcoming periods.
Bottom Line?
With record production and a strengthened balance sheet, Paladin Energy is poised for growth, but execution on PLS permitting and market conditions will be key to sustaining momentum.
Questions in the middle?
- How will uranium market price fluctuations impact Paladin’s profitability given its contract mix?
- What is the timeline and likelihood for final investment decision and permitting approvals at Patterson Lake South?
- How will the delivery and commissioning of the remaining mining fleet affect production ramp-up at Langer Heinrich Mine?