Paladin Energy Limited

Paladin reported Langer Heinrich production of 1.29 million pounds for the quarter, up 5% from the prior quarter, with sales volume of 1.03 million pounds at an average realized price of $68.30 per pound. Crusher throughput was 1.21 million tonnes at 503 ppm ore feed grade, average recovery was 92%, and cost of production was $40.30 per pound. At 31 March, unrestricted cash investments were USD 219.5 million, plus an undrawn USD 70 million revolving credit facility, and quarterly sales revenue included USD 47.3 million expected to be collected in the June 2026 quarter. FY26 guidance for Langer Heinrich production was increased to 4.5 million to 4.8 million pounds from 4.0 million to 4.4 million pounds; sales guidance remained 3.8 million to 4.2 million pounds, cost of production remained USD 44 to USD 48 per pound, and capital and exploration expenditure guidance was reduced to USD 15 million to USD 17 million from USD 26 million to USD 32 million.

Paul Hemburrow said the quarter showed continued momentum at both the mine and the project pipeline, with ramp-up at Langer Heinrich still on track for completion by the end of FY26. He emphasized strong operating performance, the importance of the PLS regulatory milestone, and ongoing engagement with local communities and Indigenous groups. Tone-wise, he was constructive but cautious, repeatedly noting uncertainty tied to Middle East disruptions and the need to keep monitoring security of inputs and logistics.

Anna Sudlow focused on the financial implications of the stronger operating outlook and the revised capital program. She explained the lower capital and exploration spend reflects reprioritization and deferrals, with some amounts shifting into FY2027, while also noting cost escalation pressure from the Middle East conflict and that the next quarter’s production costs should be higher because there will be no reliance on the medium-grade stockpile. She also said diesel is a relatively small part of total production cost, at sub 10% to 15%, though a material increase in diesel prices would still have some impact.

Analysts pressed management on reagent supply, the Metis Nation-Saskatchewan judicial review, water availability at Langer Heinrich, future inventory levels, the production run-rate into FY27, and sensitivity to realized uranium pricing. Management said it has 3 to 10 months of supply of key reagents, that the legal challenge does not stop progress toward the license to construct, and that water is not a major issue with the desal plant in operation and enough supply to get through the planned late-June shutdown. On pricing, Alex Rybak said the current contract book is stable at 22 million pounds under contract, but more uncontracted volume should open upside as the book rolls off.