Paladin Energy Ltd

Langer Heinrich produced 1.29 million pounds of U3O8 in the quarter, up 5% from the prior quarter, with average recovery of 92% and crusher throughput of 1.21 million tonnes at an average ore feed grade of 503 ppm. Sales volume was 1.03 million pounds at an average realized price of $68.30 per pound, and cost of production was $40.30 per pound, helped by use of the remaining MG3 stockpile. Unrestricted cash investments were USD 219.5 million at 31 March, alongside an undrawn USD 70 million revolving credit facility, and quarterly sales revenue included USD 47.3 million expected to be received in the June 2026 quarter. Paladin revised Langer Heinrich FY26 production guidance to 4.5 million to 4.8 million pounds from 4.0 million to 4.4 million pounds; sales guidance remains 3.8 million to 4.2 million pounds, cost of production remains USD 44 to USD 48 per pound, and capital and exploration expenditure guidance was cut to USD 15 million to USD 17 million from USD 26 million to USD 32 million.

Paul Hemburrow emphasized that the company is delivering both operating momentum and project progress, saying Paladin is “building momentum” across production and PLS. He framed the quarter as another step in the Langer Heinrich ramp-up, with mining fleet commissioning complete and the operation moving from G Pit into the next pit. On PLS, he highlighted the EIS approval as a major regulatory milestone and said the company remains focused on consultation, FEED work, and the CNSC license-to-construct pathway.

Anna Sudlow focused on the financial implications of the quarter and the revised outlook. She pointed out that the stronger-quarter production guidance was not matched by lower cost guidance because Langer Heinrich will be fully mining in the final quarter, will no longer benefit from the medium-grade stockpile, and is seeing some cost escalation tied to Middle East conflict. She also said the capex reduction is mainly a timing shift, with some spend deferred into FY27 and some items brought forward, rather than a fundamental change in the program.

Analysts pressed management on whether the Metis Nation - Saskatchewan judicial review could delay PLS FID or the permit-to-construct process, and management said the challenge is against Saskatchewan government approval of the EIS, not a prerequisite to continuing FEED or CNSC work. Questions on water, reagents, diesel, and run rates centered on operational resilience; management said water is fine, key reagents are covered for 3 to 10 months, diesel is a sub-10% to 15% cost item, and production is being guided conservatively because of grade transition and geopolitical uncertainty. On pricing, Alex Rybak said the contract book is stable at 22 million pounds and the company expects more market exposure as volumes open up.