Paladin Energy Finalizes Langer Heinrich Mine Ramp-Up and Secures CNSC Sufficiency for Patterson Lake South Project

Namibia’s Langer Heinrich Mine Achieves Full Operational Capacity After Ramp-Up Completion

Paladin Energy’s wholly owned Langer Heinrich Mine in Namibia reached full mining and processing operations in Q4 FY2026, marking a key operational milestone. The complete mining fleet is now in place to support production targets for the upcoming financial year. The quarter saw 7.45 million tonnes of material mined, a 21% increase from the previous quarter and the highest quarterly mining volume since the mine’s restart.

Mining efforts focused on waste stripping and stockpiling lower-grade ore to access higher-grade mineralisation for processing. The mining sequence adhered to planned operational activities to ensure efficiency and meet future production goals. With the full mining fleet operational, Paladin has established the necessary infrastructure and logistics to sustain steady throughput into FY2027, signifying the successful conclusion of a critical ramp-up phase.

FY2026 Uranium Production Surpasses Upper Guidance Range

The Langer Heinrich Mine produced 4.82 million pounds of uranium oxide for FY2026, exceeding the upper guidance range of 4.5 to 4.8 million pounds. In Q4 alone, production reached 1.23 million pounds with a consistent recovery rate of 90%, supported by stable processing plant performance. Crusher throughput was 1.19 million tonnes at an average ore grade of 488 ppm, highlighting the plant’s operational stability during the transition to full mining fleet capacity.

This production outcome reflects effective ramp-up execution and operational continuity despite transitional challenges. The processing plant’s consistent performance throughout the year provided a solid foundation for mining operations, with each quarter contributing to the strong full-year result. Delivering production above guidance demonstrates enhanced operational control and confirms that technical and logistical systems are functioning optimally post-restart.

Production Costs Positioned at Lower End of FY2026 Guidance

The full-year cost of production was US$43.3 per pound of uranium oxide, placing Paladin at the lower end of its FY2026 guidance range of US$44 to US$48 per pound. Q4 production costs increased to US$51.6 per pound due to factors such as the transition to full mining operations, depletion of the MG3 stockpile, and processing of lower-grade ore from the J pit. These cost fluctuations are typical during ramp-up phases where operational transitions and stockpile sequencing impact unit costs.

The overall FY2026 cost performance reflects operational efficiencies achieved in the first three quarters that offset higher Q4 costs. This demonstrates Paladin’s capability to manage production economics effectively during ramp-up. The cost base provides a solid foundation for projecting FY2027 operational economics, though quarterly variations will depend on mining sequencing, ore grade, and processing plant utilisation.

Uranium Sales Exceed Guidance with Stable Realised Prices

FY2026 sales totaled 4.35 million pounds of uranium oxide, surpassing the upper sales guidance of 4.2 million pounds. In Q4, Paladin sold 1.35 million pounds at an average realised price of US$70.6 per pound. The full-year average realised price was US$70.0 per pound, reflecting the company’s contract portfolio and timing of customer deliveries. Quarterly sales volumes and prices naturally vary due to contract terms, payment schedules, delivery nominations, and shipping logistics.

As of 30 June 2026, Paladin held 400,000 pounds of uranium oxide outstanding under product loan facilities, down from 450,000 pounds the previous quarter. These facilities provide flexibility in managing sales logistics and ensuring timely customer deliveries. The company reported no supply disruptions linked to Middle East conflicts during the quarter, with management actively monitoring inventory and inbound shipments to maintain operational continuity.

CNSC Grants Sufficiency Status for Patterson Lake South Construction Licence Application

Paladin’s Patterson Lake South project in Canada reached a significant regulatory milestone as the Canadian Nuclear Safety Commission formally determined the Construction Licence application to be sufficient. This status confirms the application’s completeness and technical adequacy, allowing it to proceed to the detailed regulatory assessment phase under Uranium Mines and Mills Regulations. This reduces permitting risks and establishes a clear regulatory pathway toward development approval.

Following this determination, Paladin signed an Administrative Protocol with the CNSC setting a regulatory timeline targeting completion of hearings by the end of 2027. This agreement initiates formal regulatory processes and defines the route to securing the construction licence. FY2026 development and permitting expenditures for Patterson Lake South totaled US$19.2 million, reflecting progress in regulatory submissions, engineering, and Indigenous agreements.

New High-Grade Uranium Discovery Near Patterson Lake South Enhances Project Potential

During winter drilling in Canada’s Athabasca Basin, Paladin discovered a new high-grade uranium mineralisation zone named the Atlas discovery. Located 3.5 kilometres south of the Patterson Lake South Triple R deposit and 4.5 kilometres southwest of the Saloon East area, Atlas lies on the Saloon Trend, which parallels the Triple R deposit, indicating a promising mineralised corridor across Paladin’s landholdings.

This discovery highlights ongoing exploration potential within Paladin’s portfolio and could expand the development scope of Patterson Lake South. Exploration expenditures at Patterson Lake South for FY2026 amounted to US$7.2 million. The Atlas find strengthens the company’s strategic asset base in the Athabasca region and may offer future development opportunities beyond the current project. Additionally, 20,608 metres of drilling were completed at Langer Heinrich during the quarter.

Capital and Exploration Spending Aligns with Full-Year Budget

Paladin’s total capital and exploration expenditure for FY2026 was approximately US$26.5 million, including US$12.1 million spent in Q4. Capital investment at Langer Heinrich for the year was US$12.1 million, supporting ramp-up and resource drilling. Development and permitting costs at Patterson Lake South totaled US$19.2 million, reflecting advancement of the construction licence application and related activities.

The company’s FY2026 capital and exploration guidance was US$15 to US$17 million, though this figure was not disclosed in the announcement. The expenditure profile corresponds with the timing of regulatory filings, engineering studies, and drilling programs executed throughout the year. Spending allocation demonstrates a balanced approach to sustaining Langer Heinrich operations while progressing Patterson Lake South and exploration initiatives in Canada.

Strong Health and Safety Performance Maintained During Ramp-Up

Paladin recorded a total recordable injury frequency rate of 3.2 per million hours worked on a 12-month rolling basis during the reporting period. This safety performance reflects disciplined operational management across both the Langer Heinrich Mine and Canadian development and exploration activities. The ramp-up phase, involving scaling up the mining fleet, was conducted while upholding stringent health and safety protocols.

Maintaining safety standards during this significant operational transition underscores the effectiveness of Paladin’s management systems and workforce practices. This achievement provides confidence in the company’s operational stability as it moves into steady-state production at Langer Heinrich.

Robust Financial Position Supports Growth and Development Plans

As of 30 June 2026, Paladin held US$265 million in cash and short-term investments, providing a strong liquidity base for ongoing operations and project development. The company also had access to an undrawn US$70 million revolving credit facility, offering additional financial flexibility. Combined liquidity of approximately US$335 million enables Paladin to fund operational capital, advance Patterson Lake South, and pursue strategic opportunities.

This financial strength reflects positive cash flow generation from Langer Heinrich during ramp-up alongside progress on Patterson Lake South’s regulatory milestones. The available resources support the company’s ability to complete regulatory hearings by end-2027 without near-term external financing, securing a solid foundation for the multi-year development timeline in Canada while sustaining Namibian operations.

Uranium Market Dynamics and Industry Outlook

Paladin operates in a global uranium market marked by supply constraints and rising demand driven by nuclear power generation and advanced reactor development. The company’s FY2026 average realised uranium price of US$70.0 per pound reflects current spot market conditions and contract portfolio composition. Variations in quarterly sales and pricing result from contract structures, delivery schedules, and market factors.

Completion of Langer Heinrich’s ramp-up establishes Paladin as a key uranium supplier amid limited production capacity worldwide. Progress on Patterson Lake South aligns with industry expectations for expanded uranium supply. Paladin’s dual-asset strategy—maintaining production from an established mine while developing a greenfield resource in a premier uranium district—positions it to meet medium- and long-term uranium demand growth. Market factors such as nuclear plant operations, contract management, and physical supply dynamics will continue to influence pricing and sales opportunities.