CHAMWE KAIRA
Paladin Energy Ltd has forecast uranium production of between 5.1 million and 5.6 million pounds (Mlb) of uranium oxide (U₃O₈) from its Langer Heinrich Mine (LHM) in the Erongo Region during the 2027 financial year, following the successful completion of the mine’s operational ramp-up.
The mine is one of the world’s significant uranium projects and resumed commercial production in 2024 after being placed on care and maintenance in 2018 due to weak uranium prices.
The company said mining and processing ramp-up activities at Langer Heinrich were completed safely during the June 2026 quarter, establishing a foundation for sustained production and uranium deliveries to its global customer base.
For FY2027, Paladin expects uranium sales from Langer Heinrich to range between 4.8 Mlb and 5.3 Mlb of U₃O₈, with production costs forecast at between US$44 and US$48 per pound.
The company said higher production levels would be supported by the completion of the mining ramp-up process and increased availability of primary mined ore.
“Mining and plant optimisation will continue throughout FY2027,” Paladin said, adding that production would vary between quarters due to planned maintenance activities scheduled for the September and December 2026 quarters.
Production is expected to be lower during the first half of FY2027 because of the maintenance shutdowns, while higher output is anticipated in the second half as higher-grade ore is supplied to the processing plant.
Paladin said the depletion of the previously mined MG3 stockpile during FY2026 means all ore processed in FY2027 will be sourced directly from the mine, resulting in longer haul distances compared with the previous financial year.
The company said it would continue removing overburden and waste material to access future mining areas, while prioritising medium- and high-grade ore for processing.
Lower-grade material will be stockpiled for future use to improve operational flexibility over the life of the mine.
Paladin expects capital expenditure at Langer Heinrich to reach between US$29 million and US$35 million in FY2027.
Key capital projects include the design and construction of tailings storage facilities, process improvement studies, infill drilling activities and completion of selected capital exploration activities deferred from FY2026.
The company expects to supply customers in the United States, Europe and Asia during FY2027, with sales volumes also reflecting efforts to repay part of its outstanding uranium product loan balance.
As at 30 June 2026, Paladin had 400 000 pounds of U₃O₈ in outstanding uranium product loans.
Under different uranium spot price scenarios, Paladin estimates an average realised price of US$51 per pound if uranium trades at US$40 per pound, rising to US$72 per pound at a spot price of US$80 per pound.
At higher market levels, the forecast average realised price increases to US$83 per pound at a uranium spot price of US$100 per pound, US$93 per pound at US$120 per pound, and US$103 per pound at US$140 per pound.
