Paladin Energy reported a strong half-year performance with uranium sales revenue climbing to US$138.3 million, driven by ramp-up at its Namibian mine and significant progress on Canadian development projects.
- Uranium sales revenue increased 79% to US$138.3 million
- Langer Heinrich Mine production ramp-up boosts output and gross profit
- A$400 million equity raise supports Patterson Lake South development
- Debt facility restructured, improving liquidity and reducing drawn debt
- New executive appointments strengthen operational leadership
Robust Revenue Growth Amid Production Ramp-Up
Paladin Energy Ltd has delivered a marked improvement in its financial results for the six months ended 31 December 2025, reporting uranium sales revenue of US$138.3 million, a 79% increase compared to the prior corresponding period. This surge was primarily driven by the ongoing ramp-up of production at the Langer Heinrich Mine (LHM) in Namibia, where mining and processing volumes increased significantly.
The LHM, in which Paladin holds a 75% interest, produced 2.30 million pounds of uranium oxide concentrate during the period, with an average recovery rate of 89%. Sales volumes reached 1.96 million pounds at an average realised price of US$70.5 per pound. These operational gains translated into a gross profit of US$26.0 million, a substantial improvement from the US$0.9 million recorded in the prior period.
Strategic Capital Raising and Debt Restructure
To underpin its growth ambitions, Paladin successfully completed a fully underwritten equity raising and a Share Purchase Plan (SPP), collectively raising approximately A$400 million. The capital injection is earmarked to advance the Patterson Lake South (PLS) Project in Canada towards a final investment decision and to support the continued ramp-up at LHM.
Complementing the equity raise, Paladin restructured its syndicated debt facility, reducing the overall debt capacity from US$150 million to US$110 million. The restructure included a US$40 million amortising term loan and an undrawn US$70 million revolving credit facility, enhancing the company's liquidity and financial flexibility. At period end, Paladin held US$278.4 million in unrestricted cash and short-term investments, positioning it well to manage operational and development expenditures.
Progress on Canadian Development and Exploration
Paladin continued to advance its Canadian portfolio, with the PLS Project in Saskatchewan progressing through permitting and environmental impact assessments. The company remains engaged with Indigenous Nations and regulatory bodies, anticipating timely decisions on the Environmental Impact Statement. Preparations for the winter drilling program commenced, focusing on resource conversion and exploration extensions.
Additionally, the Michelin Project in Newfoundland and Labrador completed a summer drilling campaign, testing nine targets and trialling drone-based radiometric surveys, which are expected to enhance future exploration efficiency.
Operational and Leadership Enhancements
Operationally, Paladin reported a Total Recordable Injury Frequency of 2.9 per million hours worked, with no serious environmental or radiation incidents during the period, reflecting a strong safety and compliance culture.
The company also bolstered its leadership team with the formal appointment of Paul Hemburrow as Managing Director and CEO, alongside the addition of Dale Huffman as President of Paladin Canada and Scott Barber as Chief Operating Officer. These appointments aim to support Paladin’s expanding operations and strategic objectives across multiple jurisdictions.
Financial Position and Outlook
Despite a net loss after tax of US$6.6 million, Paladin’s financial position strengthened significantly, supported by increased cash flows and capital management initiatives. The company remains compliant with all debt covenants and continues to manage foreign exchange and interest rate risks prudently.
Looking ahead, Paladin’s focus will be on sustaining production momentum at LHM, advancing the PLS Project towards development milestones, and maintaining disciplined financial management to navigate market and operational challenges.
Bottom Line?
Paladin’s strengthened balance sheet and operational progress set the stage for potential value creation as uranium market dynamics evolve.
Questions in the middle?
- How will uranium price fluctuations impact Paladin’s profitability in the coming quarters?
- What is the anticipated timeline for final investment decisions and production commencement at the PLS Project?
- How might ongoing shareholder litigation affect Paladin’s financial and operational outlook?