PDN +6.66%: completed the ramp-up of the Langer Heinrich uranium mine during FY26, with production reaching the upper end of revised guidance and sales accelerating strongly through the June quarter.
Fourth-quarter highlights:
- Uranium production of 1.23Mlb.
- Uranium sales of 1.35Mlb.
- Production costs of US$51.60/lb.
- Capital and exploration expenditure of US$12.1 million, below guidance of US$15–17 million.
- Unrestricted cash and investments of US$265 million at quarter-end.
For FY26, Langer Heinrich produced 4.82Mlb of uranium and sold 4.35Mlb, a good result and ahead of prior guidance.
They also released FY27 guidance.
- Uranium production of 5.1–5.6Mlb – which is a shade light on the ~5.8Mlb we were expecting, but we get the sense that PDN now guides more conservatively
- Uranium sales of 4.8–5.3Mlb.
- Production costs of US$44–48/lb.
- Capital expenditure of US$29–35 million.
Production is expected to be weighted towards the second half, with planned maintenance shutdowns affecting the September and December quarters. Costs are also expected to track towards the top end of guidance during the first half before improving as higher-grade ore is introduced and plant optimisation continues.
Paladin also progressed the Patterson Lake South project in Canada, receiving acknowledgement of regulatory sufficiency and agreeing an administrative protocol with the Canadian Nuclear Safety Commission. The current timetable targets completion of construction licence hearings by the end of calendar 2027. All in all, a solid update from PDN.
MM remains long & bullish PDN
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