Paladin Energy reports a strong production ramp-up at its Langer Heinrich Mine and confirms robust progress on the Patterson Lake South project, supported by a strengthened balance sheet and a positive uranium market outlook.
- Langer Heinrich Mine production hits 2.3Mlb U3O8 year-to-date, targeting upper guidance range
- Patterson Lake South project engineering review confirms development viability
- US$278.4M cash and investments post equity raising and debt restructuring
- Winter drilling program underway at Patterson Lake South
- Uranium market outlook buoyed by rising nuclear energy demand and supply deficits
Langer Heinrich Mine Production Momentum
Paladin Energy Ltd has reported a significant ramp-up in production at its flagship Langer Heinrich Mine (LHM) in Namibia during the December 2025 quarter. The mine produced 1.23 million pounds of uranium oxide (U3O8) in the quarter, marking a 16% increase over the previous period and bringing the year-to-date production to 2.3 million pounds. This strong operational performance is underpinned by an improved ore feed grade averaging 524ppm and a robust plant recovery rate of 91%. The company expects full-year production to trend towards the upper end of its guidance range of 4.0 to 4.4 million pounds, with full mining and processing operations planned for fiscal year 2027.
Advancing the Patterson Lake South Project
Meanwhile, Paladin’s Patterson Lake South (PLS) project in Canada’s Athabasca Basin continues to progress with a comprehensive engineering review confirming the project's robustness and de-risking its development. The review highlighted design improvements, enhanced site logistics, and updated capital and operating cost estimates, with pre-production capital costs forecast at US$1.23 billion and operating cash costs at US$11.7 per pound of U3O8 over the life of mine. The project targets first uranium production in 2031, reflecting ongoing engineering, procurement, construction, and regulatory timelines. A winter drilling program commenced in January 2026, focusing on resource conversion and regional exploration, signaling Paladin’s commitment to expanding and refining the resource base.
Financial Strength and Market Position
Paladin’s financial position remains solid following a successful equity raising and the restructuring of its syndicated debt facility. The company closed the quarter with US$278.4 million in cash and investments and an undrawn US$70 million revolving credit facility, providing ample capital to support ongoing development activities and operational ramp-up. The average realised uranium price during the quarter was US$71.8 per pound, reflecting a strengthening market environment and a high-quality contract book. Cost of production at LHM was maintained at a competitive US$39.7 per pound, underscoring operational efficiency.
Positive Uranium Market Dynamics
The broader uranium market outlook remains favourable, driven by increasing global nuclear energy demand amid energy security concerns and decarbonisation efforts. With over 70 reactors under construction worldwide and commitments from multiple countries to expand nuclear capacity, demand fundamentals are strengthening. Utilities are actively securing uranium supply from politically stable jurisdictions like Namibia and Canada, where Paladin operates. The market continues to face a structural supply deficit due to underinvestment, positioning Paladin well to capitalise on rising prices and contract opportunities.
Leadership and Safety
Paladin has also bolstered its leadership team with the appointments of Dale Huffman as President of Paladin Canada and Scott Barber as Chief Operating Officer, reflecting a strategic focus on operational excellence and project delivery. Safety performance remains strong, with a low Total Recordable Injury Frequency rate and no serious environmental or radiation incidents reported during the quarter.
Bottom Line?
With production ramping up and development milestones advancing, Paladin Energy is poised to leverage a tightening uranium market, though regulatory and operational risks remain key watchpoints.
Questions in the middle?
- How will regulatory approvals and permitting timelines impact the PLS project’s production schedule?
- What are the implications of fluctuating uranium prices on Paladin’s contract renewals and profitability?
- Can Paladin sustain its operational ramp-up at Langer Heinrich while managing costs amid market volatility?