CHAMWE KAIRA
In terms of liquidity, as at 30 June, Paladin Energy, which owns the Langer Heinrich Mine has disclosed that it held cash and cash equivalents of US$48.9 million (excluding restricted cash of US$4.3 million) and US$70 million had been drawn down from the company’s US$150 million debt facility, the company said in a quarterly activities report for the period ending 30 June.
Subsequent to quarter end, the company received a cash receipt of US$24.8 million representing a partial advance payment under the terms of the customer offtake agreement, in relation to the shipment on 12 July.
The Langer Heinrich Mine restart project was completed on time and within cost forecast, with total project expenditure of US$119.7 million. Final outstanding cash payments included within the total project expenditure will be reflected in the 2025 financial year.
In completing the restart project, over 2.5 million hours were worked with no serious injuries or reportable environmental incidents. The rolling total recordable injury frequency rate (TRIFR) per million hours worked on 30 June 2024 was 4.4, with one lost-time injury during the quarter. There is a significant ongoing focus to drive improvements in safety performance, the company said.
Following the achievement of commercial production at the Langer Heinrich Mine on 30 March, production ramped up with 517 597 pounds of uranium oxide produced to 30 June. In addition to the stated production, metal-in circuit was increased across the plant as part of the initial operations activities.
The first customer shipment, containing 319 229 pounds of U3O8, departed Walvis Bay, Namibia on 12 July.
The Langer Heinrich Mine will be in operational ramp up during the 2025 financial year, with ore feed sourced from previously mined stockpiled ore. Production levels are expected to be higher in the second half of the year.
The report said mining activities are expected to re-commence in the 2026 financial year ahead of achieving nameplate production of six million pounds per annum by the end of 2026.
Langer Heinrich explained to its shareholders that Paladin, which has a 75% interest in the Langer Heinrich Mine that the metrics for the 2025 financial year include the assumption that the US dollar/Namibian dollar exchange will be around 18.
The cost of production includes stockpile re- handling costs, processing costs and site administration costs. The company expects to pay government royalties 3%, export levy 0.25% and production royalty of Australian Dollar (A$0.12) per kg. The company said shipping costs and converter charges are estimated to average US$1.20 per pound.
