Paladin Energy Q4 Earnings Call Highlights

Langer Heinrich finished its ramp-up and is now in stable operations, with fiscal 2026 production of 4.82 million pounds of U3O8 and sales of 4.35 million pounds both at or above guidance.

Quarterly plant recovery averaged 90%, and full-year production costs came in below the company’s target range.

Paladin forecast higher fiscal 2027 production of 5.1 million to 5.6 million pounds, but said output will be back-half weighted because of planned maintenance and lower grades early in the year.

The company expects costs of $44 to $48 per pound and capital spending of $29 million to $35 million at Langer Heinrich.

The company’s Patterson Lake South project advanced on permitting, with the construction license application deemed sufficiently complete for formal review and a hearing targeted by the end of 2027.

Paladin also highlighted the Atlas discovery as a potential exploration upside and said it ended the quarter with $265 million in cash and investments plus an undrawn $70 million credit facility.

Paladin Energy said it completed the ramp-up of its Langer Heinrich uranium mine during the June quarter, capping a fiscal year in which management said the asset moved from a restart project into stable operations.

Langer Heinrich produced 1.23 million pounds of U3O8 in the June quarter, bringing fiscal 2026 production to 4.82 million pounds.

That result was at the upper end of Paladin’s revised production guidance.

Sales totaled 1.35 million pounds for the quarter and 4.35 million pounds for the full year, exceeding the top end of guidance.

FY 2026 was about transforming Langer Heinrich from a restart project into a stable operating uranium mine while laying the foundation through the next phase of growth through Patterson Lake South.

Paladin reported steady operational improvements through the year.

Total mined material reached 7.45 million tonnes in the June quarter, the highest quarterly mining rate since the restart, and the full mining fleet is now operational.

Plant recovery averaged 90% in the quarter, which demonstrated stable performance at the top end of the company’s recovery targets.

The company achieved an average realized uranium price of $70.60 per pound in the June quarter and $70 per pound for fiscal 2026.

Full-year cost of production was $43.30 per pound, better than Paladin’s guidance range of $44 to $48 per pound.

Quarterly costs rose to $51.60 per pound, which was attributed to mine development work, the transition to full mining activities and mining lower-grade areas in line with the mine plan.

Planned maintenance in the first half of fiscal 2027 is “periodic planned preventative maintenance work,” including wear-and-tear items in the scrubbers and crushing circuit, as well as furnace updates in the final packaging and recovery plant.

The company is continuing to develop multiple mining fronts in the J-pit.

The next six months should help stabilize the mill feed as more medium- and high-grade material becomes available, after recent work in upper-level weathered and lower-grade material.

For fiscal 2027, Paladin guided Langer Heinrich production to 5.1 million to 5.6 million pounds of U3O8 on a 100% basis.

Sales are expected to be 4.8 million to 5.3 million pounds.

Cost of production is expected to be $44 to $48 per pound , while Langer Heinrich capital expenditure is forecast at $29 million to $35 million.

Management cautioned that production will not be evenly weighted.