Paladin Energy (TSE:PDN) said it completed the ramp-up of its Langer Heinrich uranium mine during the June quarter, capping a fiscal year in which management said the asset moved from a restart project into stable operations.
Chief Executive Officer Paul Hemburrow told analysts that Langer Heinrich produced 1.23 million pounds of U3O8 in the June quarter, bringing fiscal 2026 production to 4.82 million pounds. He said that result was at the upper end of Paladin’s revised production guidance. Sales totaled 1.35 million pounds for the quarter and 4.35 million pounds for the full year, exceeding the top end of guidance.
Langer Heinrich output improves as ramp-up ends
Paladin reported steady operational improvements through the year. Hemburrow said total mined material reached 7.45 million tonnes in the June quarter, the highest quarterly mining rate since the restart, and that the full mining fleet is now operational. Plant recovery averaged 90% in the quarter, which he said demonstrated stable performance at the top end of the company’s recovery targets.
The company achieved an average realized uranium price of $70.60 per pound in the June quarter and $70 per pound for fiscal 2026. Full-year cost of production was $43.30 per pound, better than Paladin’s guidance range of $44 to $48 per pound. Quarterly costs rose to $51.60 per pound, which Hemburrow attributed to mine development work, the transition to full mining activities and mining lower-grade areas in line with the mine plan.
In response to analyst questions, Hemburrow said planned maintenance in the first half of fiscal 2027 is “periodic planned preventative maintenance work,” including wear-and-tear items in the scrubbers and crushing circuit, as well as furnace updates in the final packaging and recovery plant.
Chief Operating Officer Scott Barber said the company is continuing to develop multiple mining fronts in the J-pit. He said the next six months should help stabilize the mill feed as more medium- and high-grade material becomes available, after recent work in upper-level weathered and lower-grade material.
Fiscal 2027 guidance calls for higher production
For fiscal 2027, Paladin guided Langer Heinrich production to 5.1 million to 5.6 million pounds of U3O8 on a 100% basis. Sales are expected to be 4.8 million to 5.3 million pounds. Cost of production is expected to be $44 to $48 per pound, while Langer Heinrich capital expenditure is forecast at $29 million to $35 million.
Management cautioned that production will not be evenly weighted. Hemburrow said first-half production is expected to be lower because of planned maintenance shutdowns and lower grades in the September and December quarters. Output is expected to improve in the second half as higher-grade ore feed increases.
Hemburrow said all ore processed in fiscal 2027 will come from the mine after depletion of the previously mined MG3 stockpile. That will mean longer haul distances than in fiscal 2026, while overburden and waste removal continues to open future mining areas. Medium- and high-grade ore will be processed, while lower-grade material will be stockpiled for future use.
CFO Anna Sudlow said Paladin is not providing forward guidance for capitalized stripping and low-grade stockpiling, but will report actual costs quarterly. She said the company’s fourth-quarter fiscal 2026 outcomes were “not an unreasonable representation going forward.”
Patterson Lake South advances through permitting
Paladin also highlighted progress at Patterson Lake South, the Canadian uranium project it acquired as part of its growth strategy. Hemburrow said the Canadian Nuclear Safety Commission confirmed that the project’s construction license application achieved sufficiency status, meaning it met required completeness and technical standards and can move into formal regulatory assessment.
After quarter-end, Paladin signed an administrative protocol with the CNSC that establishes a targeted pathway aimed at completing the construction license hearing by the end of calendar 2027. Hemburrow said Canadian government officials and the CNSC have shown support for advancing uranium projects efficiently.
Asked about the timeline beyond the hearing, Hemburrow said Paladin would need to consider financing options, develop its contract book and reach a final investment decision. He said first production in 2031 remains “realistic and achievable” if the process proceeds as planned, with construction potentially beginning in 2028.
The company also continued the FEED study and engineering work while engaging with Indigenous partners and local communities. Hemburrow said Paladin executed a binding term sheet with the Birch Narrows Dene Nation as part of the Mutual Benefits Agreement process. He noted that Paladin has completed two MBAs with First Nations groups in the region and is working with the remaining groups.
Atlas discovery adds exploration upside
Hemburrow described the Atlas discovery as a highlight of the quarter. Atlas is a high-grade uranium ore body about 3.5 kilometers south of the Triple R deposit at Patterson Lake South. He said seven of eight exploration holes intersected significant uranium mineralization, confirming a new mineralized system within the broader Saloon Trend.
Atlas remains open along strike and at depth, according to Hemburrow. He said Paladin’s drilling priorities at Patterson Lake South include upgrading the Triple R resource, extension drilling at Triple R and close-proximity exploration targets such as Saloon East and Atlas.
Contract book positioned for stronger uranium market
Paladin ended the quarter with cash and investments of $265 million and an undrawn $70 million revolving credit facility. Sudlow said the balance was all cash other than funds held in term deposits.
The company had 400,000 pounds of U3O8 outstanding in uranium product loans as of June 30, 2026, and expects fiscal 2027 sales to reflect both customer delivery schedules and partial repayment of the loan balance. Management said realized pricing will vary by quarter based on delivery nominations, contract mix, contract terms, shipping schedules and spot prices.
Chief Commercial Officer Alex Rybak said the broader uranium market backdrop is strong, citing U.S. government loan support for utilities, Chinese reactor construction and procurement activity, and India’s growing role. He said utilities are increasingly focused on supply tightness into the 2030s.
Rybak said reported term pricing from UxC was $97 per pound, while Paladin’s discussions with utilities indicated prices “more in the 100 plus dollar range.” He said Paladin continues to use a balanced contracting approach, with utilities showing stronger interest in base-escalated contracts while recognizing that fixed volumes require a premium.
Hemburrow closed the call by saying fiscal 2026 delivery at Langer Heinrich provides a foundation for improvement, while Patterson Lake South remains a focus through permitting, exploration, First Nations engagement and completion of the FEED study.
About Paladin Energy (TSE:PDN)
Paladin Energy Ltd (TSE:PDN) is an Australia-headquartered company engaged in the uranium industry, with activities spanning exploration, development, mining and the sale of uranium concentrate to the global nuclear fuel market. The company focuses on advancing uranium projects through the full project lifecycle, from resource definition and permitting to production and product marketing, aiming to supply U3O8 to utilities and traders that fuel nuclear power generation.
Historically, Paladin’s most prominent assets have included the Langer Heinrich uranium mine in Namibia and the Kayelekera project in Malawi.
