CHAMWE KAIRA
Paladin Energy’s Langer Heinrich Mine in the Erongo Region million pounds of uranium oxide in the quarter ended 30 September 2026, with output affected by a planned maintenance shutdown, mining conditions and low plant inventory levels.
In its quarterly report, Paladin said production was impacted by ore characteristics associated with the mining sequence, resulting in processing plant recovery reaching the bottom end of the target range.
The mine recorded an average recovery rate of 85%, while crusher throughput reached 1.17 million tonnes at an average ore feed grade of 486 parts per million of uranium oxide.
The lower production volumes contributed to an increase in the cost of production to US$61.60 per pound compared with the previous quarter.
However, Paladin said production improved during September as mining advanced in the J Pit and processing plant performance strengthened, with throughput increasing during the month.
Mining activities continued according to plan, with 7.73 million tonnes of total material mined during the quarter, exceeding the previous quarter’s volumes.
All mining activity was concentrated in the J Pit, where work focused on advancing towards the main orebody while removing topsoil and waste to open access to the primary ore.
The company said mining in the lower, southern benches of the J Pit is expected to improve ore grades and metallurgical recovery, supporting higher production and lower production costs during the 2027 financial year.
Paladin reaffirmed its production guidance for the Langer Heinrich Mine for the 2027 financial year, targeting output of between 5.1 million and 5.6 million pounds of uranium oxide at a production cost of US$44 to US$48 per pound.
The company expects production to increase in the second half of the financial year as higher-grade ore is fed into the processing plant.
Despite lower production during the quarter, Langer Heinrich sold 1.16 million pounds of uranium oxide at an average realised price of US$79.40 per pound.
Paladin attributed the realised price to increasing uranium prices and a higher proportion of market-related sales during the period.
The company said quarterly sales volumes and realised prices depend on the mix of contract pricing mechanisms, the timing of deliveries, customer nominations and shipping schedules.
At the end of September, Paladin had 400 000 pounds of uranium oxide outstanding under its uranium product loan facilities, which provide flexibility in sales logistics and help the company meet customer delivery commitments.
The company reported no supply disruptions arising from the conflict in the Middle East during the quarter. It said it continues to monitor operating input stock levels and inbound shipments.
Paladin ended the quarter with US$209 million in cash and investments, alongside an undrawn revolving credit facility of US$70 million.
The company reported a total recordable injury frequency rate of 4.7 per million hours worked on a rolling 12-month basis.
Managing director and chief executive officer Paul Hemburrow said the company continued implementing its plans in Namibia and Canada during the quarter.
“At Langer Heinrich we achieved strong realised prices reflecting the contract book’s leverage to increasing uranium prices,” Hemburrow said.
He said the quarter was affected by the maintenance shutdown and the transition between mining areas, but feed grade, plant performance and in-circuit inventory improved during September.
“We expect production to increase in the second half of FY2027 and we remain on track to deliver our FY2027 guidance,” he said.
