Paladin Energy (ASX:PDN) reported what management described as a “very strong quarter” in its December 2025 quarterly results call, pointing to higher production at its Langer Heinrich mine in Namibia, strong contract-driven sales pricing, continued progress at its Patterson Lake South (PLS) project in Canada, and a strengthened liquidity position following recent financing actions.
Langer Heinrich production and plant performance
CEO Paul Hemburrow said Langer Heinrich produced 1.23 million pounds of U3O8 during the quarter, up 16% from the prior quarter, as the operation continued its ramp-up. He attributed the improvement to higher ore availability, increased grades, and strong plant performance.
Plant throughput was also discussed. Management said refurbishment efforts had addressed prior bottlenecks in crushing and handling coarser material, and that the remaining work is largely related to continued optimization of blend strategy and ensuring consistent feed types as additional material is uncovered from the pits.
Guidance: upper-end production expectations, cost uncertainty with mining ramp-up
Based on first-half performance, Paladin said it continues to expect full-year production to “trend towards the upper end” of its 4.0 million to 4.4 million pound guidance range. While analysts asked whether the company might exceed the top end given recent run-rate performance, management emphasized that FY2026 remains a ramp-up year and said it was “a bit early to call the full year,” particularly as the new mining fleet is commissioned and optimized.
On costs, Paladin reported a cost of production of $39.70 per pound for the quarter, which management said improved as volumes increased. However, executives cautioned that the cost of production is expected to increase next quarter as mining activity expands. In response to questions about unit costs into the second half and FY2027, management said it is maintaining its cost guidance range at this stage.
Several analysts also pressed for more detail on stripping, waste movement, and mining sequencing. Management acknowledged that waste was “a tad lower” and low-grade volumes somewhat higher due to slight differences in sequencing, but said total mined material was “spot on” and that the company would continue to follow the mine plan. Paladin also said the arrival and commissioning of larger trucks would increase stripping and haulage capability, giving the operation more options as it optimizes the plan.
Mining fleet commissioning and operational ramp-up
Paladin said roughly half of its new mining fleet arrived before Christmas, with the remainder expected on site soon. Hemburrow said the company remains on track to complete the ramp-up by the end of FY2026 and transition to full mining operations in FY2027.
Management addressed a question regarding potential delays, stating there had been “no delay” and explaining that Namibia typically has an embargo on moving heavy fleet around Christmas. According to management, the remaining fleet was at Walvis Bay awaiting the lifting of the embargo for transport to site, and commissioning was always planned for the first half of the calendar year.
Executives repeatedly framed the next six months as a period focused on commissioning, recruiting and training, and optimizing the fleet and mine plan to improve consistency and fully prepare for FY2027.
Sales volumes, pricing, and contracting strategy
Paladin reported quarterly sales of 1.43 million pounds at an average realized price of $78.0 per pound. Management said sales volumes and pricing reflect contract delivery schedules and customer nominations, and noted that results can fluctuate between quarters based on which contracts are delivered and shipping timing.
Chief Commercial Officer Alex Rybak said the quarter benefited from a higher mix of deliveries into market-related contracts and from a strengthening uranium price environment. Rybak also said Paladin is seeing strong inquiry from utilities for longer-term supply—extending into the 2030s—which he characterized as a sign that customers are responding to a perceived structural supply-demand deficit.
While Paladin said it remains active in discussions with utility customers, Rybak said the company is “not really in a rush” to contract additional longer-term volumes and described the company as “pretty happy with the way our book looks currently.” He said Paladin would prefer to see higher price levels before pursuing more long-dated contracts, and that the company wants to leave some production uncontracted for what it sees as a potentially stronger future pricing environment.
- Management said inventory levels fluctuate with delivery and shipping timing, and noted inventories decreased from 1.8 to 1.6 (units not specified on the call) during the quarter.
- Rybak said inventories were roughly equivalent to about four months of production and that all inventory is earmarked for customer deliveries rather than held for trading.
Canada: PLS drilling and regulatory engagement
In Canada, Paladin said it continues to advance the PLS project. At Patterson Lake South, the company said winter drilling mobilization was completed and drilling began in January. The program is focused on resource conversion, extension of the Triple R deposit, and regional exploration, which management said supports long-term development opportunities.
Paladin also said it continues “constructive engagement” with regulators and Indigenous partners regarding the environmental impact statement (EIS) and stated it remains confident in a timely outcome.
On the balance sheet, Paladin said that following completion of its share purchase plan and a debt facility restructure, it ended the quarter with $278 million in cash and investments and a fully undrawn $70 million revolving credit facility. Management said the liquidity provides flexibility to advance PLS toward a final investment decision (FID) and support the final phase of the Langer Heinrich ramp-up.
The company also highlighted leadership changes, including the appointment of Dale Huffman as President of Paladin Canada and the commencement of Scott Barber as Chief Operating Officer.
In closing remarks, Hemburrow said the company’s focus is now on achieving consistent performance and reaching “100% of our mining capacity” and “100% of our processing capacity,” positioning the business for what he called “an absolutely stellar FY27.”
About Paladin Energy (ASX:PDN)
Paladin Energy Ltd develops, explores for, owns, and operates uranium mines in Australia, Canada, and Africa. The company operates through Exploration, Namibia, and Australia segments. Its flagship project is the Langer Heinrich mine located in the Namib Desert in Namibia. The company was formerly known as Paladin Resources Ltd and changed its name to Paladin Energy Limited in November 2007. Paladin Energy Ltd was incorporated in 1993 and is headquartered in Perth, Australia.
