Paladin’s Debt Restructure and Legal Risks Shadow Uranium Production Gains

Robust Production Growth at Langer Heinrich Mine

Paladin Energy has reported a notable 16% increase in uranium production during the second quarter of fiscal 2026, reaching 1.23 million pounds of U3O8. This uplift was primarily driven by a higher ore feed grade at the Langer Heinrich Mine (LHM) in Namibia, reflecting an increased proportion of mined ore processed through the plant. The mine’s operational ramp-up remains firmly on track, with full mining and processing operations expected by the end of FY2026 and into FY2027.

The company’s production performance in the first half of FY2026 has been strong enough to push full-year guidance towards the upper end of its forecast range of 4.0 to 4.4 million pounds. This signals a confident outlook for Paladin’s flagship asset as it continues to capitalise on favourable uranium market conditions.

Sales and Pricing Strengthen Financial Position

Alongside production gains, Paladin sold 1.43 million pounds of uranium during the quarter at an average realised price of US$71.8 per pound. This pricing reflects the quality of the company’s contract book and a strengthening uranium market. The cost of production per pound improved to US$39.7, benefiting from higher volumes and operational efficiencies.

Financially, Paladin has fortified its balance sheet through a successful Share Purchase Plan (SPP) that raised A$100 million and a strategic restructure of its syndicated debt facility, reducing overall debt capacity from US$150 million to US$110 million. At quarter-end, the company held US$278.4 million in cash and investments, alongside an undrawn US$70 million revolving credit facility, providing ample liquidity to support ongoing operations and growth initiatives.

Advancing Canadian Projects and Leadership

Exploration efforts are gaining momentum in Canada, with the winter drilling program at the Patterson Lake South (PLS) Project mobilised and underway. This program aims to expand the resource base and underpin long-term production planning. Meanwhile, permitting activities continue with active engagement among Indigenous Nations, local communities, and regulators, reflecting Paladin’s commitment to responsible development.

Leadership enhancements include the appointment of Dale Huffman as President of Paladin Canada and Scott Barber as Chief Operating Officer, bringing extensive industry experience to guide the company’s global production and development activities. These changes underscore Paladin’s strategic focus on operational excellence and growth.

Operational and Environmental Discipline Maintained

Safety and environmental compliance remain priorities, with the company reporting an average Total Recordable Injury Frequency (TRIF) of 2.9 per million hours worked and no significant environmental or radiation incidents during the quarter. This steady performance supports Paladin’s reputation as a responsible uranium producer.

Despite ongoing shareholder class action litigation, Paladin maintains its stance of compliance and intends to vigorously defend against the claims, which currently do not affect operational momentum.