How Paladin Energy’s Q2 Surge Sets the Stage for Uranium Growth
Paladin Energy reported a 16% increase in uranium production and a significant rise in sales volumes for the December 2025 quarter, alongside a successful equity raise and debt restructuring that enhance its financial flexibility.
- Uranium production up 16% quarter-on-quarter at Langer Heinrich Mine
- Sales volumes reached 1.43 million pounds with realised price of US$71.8/lb
- Completed A$100 million Share Purchase Plan and syndicated debt facility restructure
- Winter drilling commenced at Patterson Lake South Project in Canada
- Leadership strengthened with new appointments in Canada and global operations
Operational Momentum at Langer Heinrich
Paladin Energy Ltd has delivered a robust operational performance for the three months ended 31 December 2025, with uranium production at its flagship Langer Heinrich Mine (LHM) in Namibia rising 16% to 1.23 million pounds of U3O8. This uplift was driven by an increased proportion of mined ore processed, boosting the ore feed grade to 524ppm and achieving a 91% recovery rate. The mine remains on track to complete its ramp-up phase by the end of FY2026, with full-scale operations anticipated in FY2027.
Sales volumes also surged to 1.43 million pounds, supported by a strong contract book and a favourable uranium pricing environment that saw an average realised price of US$71.8 per pound. The cost of production improved to US$39.7 per pound, benefiting from higher output and operational efficiencies.
Advancing Canadian Assets and Exploration
In Canada, Paladin’s Patterson Lake South (PLS) Project in Saskatchewan saw the mobilisation of six drill rigs to commence a winter drilling program in January 2026. This program aims to expand the resource base and support long-term production planning. The PLS Project, home to the high-grade Triple R deposit, continues to progress through permitting and environmental assessments, with ongoing engagement with Indigenous communities and regulators.
Meanwhile, the Michelin Project in Newfoundland and Labrador completed its summer drilling campaign, with activities now focused on prospectivity reviews and environmental commitments as the site enters winter.
Financial Strength and Capital Management
Paladin’s balance sheet was notably strengthened during the quarter. The company successfully completed a Share Purchase Plan (SPP), raising A$100 million, which was met with strong shareholder support. Additionally, Paladin restructured its syndicated debt facility, reducing the overall debt capacity from US$150 million to US$110 million. This restructure reflects Paladin’s growing maturity as a uranium producer and provides enhanced liquidity and flexibility, with US$278.4 million in cash and investments and an undrawn US$70 million revolving credit facility at quarter-end.
The company remains compliant with all financial covenants and forecasts sufficient funding for its FY2026 commitments through operating cash flows, existing cash reserves, and available credit facilities.
Leadership and Governance
Leadership was bolstered with the appointment of Dale Huffman as President of Paladin Canada in October 2025 and Scott Barber as Chief Operating Officer in January 2026. Both bring extensive experience in uranium mining and operational leadership, positioning Paladin to effectively manage its global production and development activities.
Safety and sustainability remain priorities, with a Total Recordable Injury Frequency of 2.9 per million hours worked and no significant environmental or radiation incidents reported during the quarter.
Legal and Market Considerations
Paladin continues to defend a shareholder class action filed in the Supreme Court of Victoria, with the court having resolved which law firm will conduct the claim. The company denies liability and maintains that it has complied with all disclosure obligations.
Looking ahead, Paladin’s operational progress, strong contract portfolio, and enhanced financial position position it well to capitalise on strengthening uranium market fundamentals, though investors should remain mindful of the inherent risks in mining operations and regulatory environments.
Bottom Line?
Paladin’s Q2 results underscore its transition to a mature uranium producer, but market and regulatory uncertainties remain key watchpoints.
Questions in the middle?
- How will uranium price volatility impact Paladin’s realised prices and profitability in FY2026?
- What is the timeline and likelihood for permitting approvals at the Patterson Lake South Project?
- How might the ongoing shareholder class action affect Paladin’s financial and reputational standing?
