Paladin Energy Projects FY2027 Uranium Output at 5.1–5.6 Million Pounds from Langer Heinrich Mine After Successful Ramp-Up

Mining Ramp-Up Completion Marks Shift to Stable Operations at Langer Heinrich

Paladin Energy announced the successful completion of mining and processing ramp-up at the Langer Heinrich Mine during the June 2026 quarter, marking a pivotal transition from development to sustained commercial production. This achievement establishes a solid operational base expected to support consistent uranium delivery to customers across the U.S., Europe, and Asia.

The operational improvements realized during ramp-up provide a foundation for FY2027 and beyond, enabling cost efficiencies, enhanced plant utilisation, and optimised delivery schedules. This transition signals a move from the variable quarterly results typical of ramping mines to more predictable production patterns, subject to planned maintenance and seasonal factors inherent to the Namibian site.

FY2027 Uranium Production Forecast of 5.1–5.6 Million Pounds Accounts for Maintenance and Ore Grade Enhancements

Paladin projects FY2027 U3O8 production at Langer Heinrich between 5.1 and 5.6 million pounds, supported by ramp-up completion and increased availability of primary ore from the pit. Production is expected to fluctuate quarterly, with planned maintenance shutdowns in September and December 2026 reducing first-half output. Higher production is anticipated in the second half as higher-grade ore processing increases.

Ongoing mining and plant optimisation will continue throughout FY2027. The depletion of the MG3 stockpile during FY2026 means all ore processed in FY2027 will come directly from the mine, involving longer haul distances and impacting costs. The company employs a selective mining strategy, removing overburden and waste to access future mining zones, delivering medium and high-grade ore to the plant, and stockpiling lower-grade material for future processing. This strategy aims to improve grade outcomes and operational flexibility over the mine’s life.

Production Costs Expected Between US$44 and US$48 per Pound, Trending Higher in First Half

Paladin forecasts FY2027 production costs at Langer Heinrich between US$44 and US$48 per pound of U3O8, with costs expected to trend toward the upper range in the first half due to lower production volumes and planned maintenance expenses. Transitioning to processing ore sourced directly from the mine pit, with longer haul distances, also contributes to cost pressures.

The company will report quarterly on capitalised stripping costs related to overburden and waste removal, as well as costs for building low-grade ore stockpiles. These capitalised costs are excluded from production cost metrics, reflecting the long-life mining strategy. Separating these costs provides investors with transparency on operational processing costs versus longer-term mine development expenditures.

FY2027 Capital Expenditure Set at US$29–35 Million Focused on Tailings, Process Enhancements, and Exploration

Capital expenditure at Langer Heinrich is budgeted between US$29 million and US$35 million for FY2027, covering tailings storage facility design and construction, process improvement studies, and infill drilling. Deferred capital exploration activities from FY2026 will also be completed during FY2027, supporting infrastructure, environmental management, and medium-term production plans.

Investment in tailings storage expansion aligns with steady-state production goals. Process improvement and drilling activities aim to optimise recovery and better define ore grade distribution. The deferral of some exploration work from FY2026 reflects a focus on operational readiness during ramp-up, with capital now redirected toward mine definition and value optimisation.

Sales Volumes of 4.8–5.3 Million Pounds Include Scheduled Uranium Loan Repayments

Paladin’s FY2027 uranium sales guidance ranges from 4.8 to 5.3 million pounds U3O8, slightly below production forecasts due to planned repayments of uranium product loans. As of 30 June 2026, 400,000 pounds of loans remain outstanding, with 200,000 pounds scheduled for repayment in Q1 and the remaining 200,000 pounds in Q3 FY2027.

The company maintains access to short-term uranium loan and swap facilities allowing up to 450,000 pounds of U3O8 borrowing, repaid in kind upon delivery. These facilities incur standby and loan fees and are expected to be renewed, replaced, or repaid within the next year. Sales volumes, cash flows, and realised prices will vary quarterly due to delivery timing, contract terms, shipping schedules, and spot price fluctuations.

Average Realised Uranium Price Sensitivity Highlights Contract Portfolio Leverage

Paladin’s FY2027 average realised uranium price forecast, based on the contract portfolio as of 1 July 2026, ranges from US$51 per pound at a US$40 per pound spot price to US$103 per pound at a US$140 per pound spot price. The sensitivity analysis shows realised prices increasing with spot prices, reflecting contracts with price escalation clauses and spot price indexing.

Assumptions include a midpoint sales volume of 5.05 million pounds, constant spot prices through FY2027, contract delivery commitments, and a 2.5% US inflation rate applied to escalation clauses. This framework assists investors in estimating revenue outcomes across uranium market scenarios.

Quarterly Production Fluctuations and Maintenance Schedules Anticipated in FY2027

Paladin cautions that FY2027 production will vary significantly by quarter due to scheduled maintenance shutdowns in September and December 2026, suppressing first-half output. Production is expected to rise in the second half as higher-grade ore feed increases following development completion and transition to efficient mining areas.

The company’s commitment to quarterly reporting means investors should interpret results within the context of full-year guidance and operational factors. Ongoing optimisation may cause temporary production impacts or improvements. Maintenance scheduling balances operational reliability with necessary capital and upkeep to sustain long-term production.

Selective Mining and Ore Stockpiling Strategy Enhances Long-Term Operational Flexibility

Paladin’s mining strategy prioritises selective ore extraction and grade management at Langer Heinrich. Overburden and waste removal continues to access future mining zones, with medium and high-grade ore sent to the plant and lower-grade material stockpiled for later processing. This approach supports improved grade outcomes and operational flexibility over the mine’s lifespan, moving beyond simple first-in-first-out extraction.

Capitalised stripping and stockpile-building costs, excluded from production costs, allow smoothing of expenditures across mining phases and grade management. This transparency provides insight into current operating costs and the full economic cost of uranium production, important in a cyclical uranium market where grade and production timing management adds value.

Geopolitical Risks Highlighted as Potential Challenge to FY2027 Targets

Paladin notes that FY2027 guidance is based on current conditions and may be affected by geopolitical disruptions. The company is monitoring these risks closely, acknowledging uranium mining and marketing’s vulnerability to global trade, shipping, financial markets, and energy policy developments.

While specific geopolitical events were not detailed, investors are advised that guidance may be revised if significant disruptions occur. Given uranium’s strategic role in nuclear power and defense, factors such as shipping interruptions, policy changes, sanctions, or financing issues could impact production, sales, and pricing. Investors should follow quarterly updates for management’s risk assessments, with current disclosures indicating active scenario planning but no expected material disruption at this time.