Paladin Energy CEO, Ian Purdy said has said after a period of nearly six years of care and maintenance, returning the Langer Heinrich Mine (LHM) in the Erongo Region to commercial production was an important milestone for the company.
Purdy said Paladin remains focused on the ramp up of production and delivering of its first shipment to its international customers.
“With a strong uranium price outlook, a world-class long-life asset, and a strong balance sheet, Paladin remains well positioned to generate strong returns for our stakeholders.”
Commercial uranium concentrate production and drumming were achieved at the Langer Heinrich Mine (LHM) on 30 March 2024, on schedule and within the capital cost estimate of US$125 million.
Purdy said operational focus at the LHM has now shifted to production ramp-up and building a finished product inventory, ahead of shipments to customers.
Paladin executed a US$150 million syndicated debt facility to provide capital flexibility as the Company recommences operations at the LHM and progresses its growth options.
The restart project commenced in July 2022 has focused on the repair and refurbishment and debottlenecking of the existing LHM plant which was placed into care and maintenance in 2018.
The upgrades will include NamWater and NamPower infrastructure. The remaining restart project activities are now focused on closing out completion tasks and contractor demobilization, the company said.
Paladin has a geographically diverse offtake book, with seven offtake agreements executed with toptier counterparties in the US, Europe and China.
The company also has flexible shipping arrangements and early payment terms with its largest customer, providing significant delivery flexibility and improved cash flow during the ramp-up of operations at the LHM.
Paladin has executed commercial agreements with all three western conversion facilities and has secured the necessary shipping arrangements ahead of the company’s first shipment.
During the first quarter of this year, Paladin executed a US$150 million syndicated debt facility (Debt Facility), of which US$25M has been drawn down during March.
The establishment of the debt facility during the quarter marked the successful completion of an international syndication process, including LHM site visits by independent technical and environmental experts and corporate due diligence by financier teams.
As at 31 March 2024, Paladin held cash and cash equivalents of US$50 million (excluding restricted cash of US$2.9 million). The US$150M Debt Facility was drawn down during the quarter with US$125 million of remaining debt capacity. The company’s net cash expenditure for the quarter was US$29.9 million.
