Langer Heinrich MINE FY2026 Guidance
Level 11, 197 St Georges Terrace, Perth WA
PO Box 8062
Cloisters Square PO WA 6850
+61 8 9423 8100
paladinenergy.com.au
PALADIN ENERGY LTD
ABN 47 061 681 098
ASX:PDN, TSX:PDN
OTCQX: PALAF
ASX Announcement
22 July 2025
LANGER HEINRICH MINE FY2026 GUIDANCE
PERTH, Australia - Paladin Energy Ltd (ASX:PDN, TSX:PDN, OTCQX:PALAF) ( Paladin or the
Company) provides FY2026 guidance for the Langer Heinrich Mine (LHM) along with realised uranium
price sensitivities based on the Company’s uranium sales contract portfolio.
The LHM will continue its operational ramp-up during FY2026 with the ramp-up of mining operations
over the course of the year, as the LHM continues the ongoing transition from the processing of
stockpiled medium grade ore to the processing of primary mined ore.
The operational ramp-up of the LHM is expected to be completed by the end of FY2026 with full
mining and processing plant operations planned for FY2027. The Company intends to provide annual
guidance for FY2027 in July 2026.
LHM FY2026 Guidance
Guidance (100%1)2
FY2026
U3O8 Produced Mlb 4.0 - 4.4
U3O8 Sold3 Mlb 3.8 - 4.2
Cost of Production4 US$/lb 44 - 48
Capital & Exploration Expenditure5 US$M 26 - 32
Mining
The LHM commenced FY2026 with an estimated 2.2Mt of stockpiled medium grade ore and
approximately 49% of its planned mining fleet capacity in operations. The remaining mining fleet is
scheduled for delivery in late 2025 and is expected to be commissioned and in service during the second
half of FY2026.
Mining operations for FY2026 are expected to be concentrated in the G-pit area with minor mining
activity planned for the F and J pits late in the financial year.
The Company is expecting lower levels of primary mined ore feed during the first half of the financial
year, as the mining operations focus on waste removal across the G-pit area to allow for higher levels
of mined ore production during the second half of the financial year. The LHM mine plan has been
optimised to deliver medium and high-grade ore to the processing plant with lower grade ore to be
stockpiled for future processing.
Processing
Quarterly production volumes are expected to vary during FY2026, primarily due to access to primary
mined ore feed to the processing plant in the first half of FY2026. Production is expected to be higher in
the second half of FY2026 with a higher level of primary ore feed available to blend with the medium-
grade stockpiled material.
The improvements in processing plant performance achieved during FY2025 are expected to be
sustained in FY2026. The production guidance provided is based on considered plant availability and
utilisation assumptions and includes allowances for expected water supply disruptions, estimated
planned and unplanned maintenance activities, and general plant disruptions based on historical
performance.
Sales
During FY2026, Paladin is expecting to continue to deliver uranium to its global customers in the US,
Europe and Asia and will continue to look for opportunities to layer in new contracts with high quality
counterparties.
Sales volumes, cash receipts and realised pricing are expected to vary quarter on quarter due to the
timing of shipments, individual contract terms and prevailing spot prices.
Based on Paladin’s contract book as at 1 July 2025, the forecast realised uranium price sensitivities for
FY2026 under a range of spot price assumptions are as follows:
Realised Price Sensitivity
FY2026
Spot Price Assumption (US$/lb) Forecast Realised Price (US$/lb) 6
40 54
60 62
80 71
100 79
120 87
140 94
This announcement has been authorised for release by the Board of Directors of Paladin Energy Ltd.
For further information contact:
Investor Relations
Head Office
Paula Raffo
Paladin Investor Relations
T: +61 8 9423 8100
Canada
Bob Hemmerling
Paladin Investor Relations
T: +1 250-868-8140
Media
Head Office
Anthony Hasluck
Paladin Corporate Affairs
T: +61 438 522 194
Canada
Ian Hamilton, Partner
FGS Longview
T: +1 905-399-6591
Notes:
1. Paladin has a 75% interest in the LHM
2. USD/NAD FX assumption: 18.0
3. Existing uranium loans of 450,000lbs are assumed to be extended or replaced with similar
arrangements during FY2026
4. Includes mining, stockpile rehandling, processing, site maintenance, and mine-level administrative
costs, excluding costs such as cost of ore stockpiled, depreciation and amortisation, general and
administration costs, royalties, exploration expenses, sustaining capital and the impacts of any
inventory impairments or impairment reversals. Cost of Production is a Non-IFRS Measure. See
“Non-IFRS Measures” below for more information
5. Capital and Exploration expenditure includes ongoing TSF preparation work, NIMCIX resin
replacement and infill and exploration drilling
6. Key assumptions:
a. The sensitivity analysis is based on the midpoint of the forecasted sales volume range (4.0Mlb)
b. The forecast realised price assumes that the uranium spot price remains constant for the
duration of the financial year
c. Deliveries based on commitments under contracts include the Company’s estimate of the
expected deliveries and takes into account the flexibility provided under existing contract terms
d. To reflect escalation mechanisms contained in existing contracts, a forecast US inflation rate
of 3% p.a. has been assumed in relation to escalation clauses under existing contracts
Forward-looking statements
This document contains certain “forward-looking statements” within the meaning of Australian
securities laws and “forward-looking information” within the meaning of Canadian securities laws
(collectively referred to in this document as forward-looking statements). All statements in this
document, other than statements of historical or present facts, are forward-looking statements and
generally may be identified by the use of forward-looking words such as “anticipate”, “expect”, “likely”,
“propose”, “will”, “intend”, “should”, “could”, “may”, “believe”, “forecast”, “estimate”, “target”, “outlook”,
“guidance” and other similar expressions. These forward-looking statements include, but are not
limited to, statements about Paladin’s expectations for FY2026.
Forward-looking statements involve subjective judgment and analysis and are subject to significant
uncertainties, risks and contingencies including those risk factors associated with the mining industry,
many of which are outside the control of, change without notice, and may be unknown to Paladin.
These risks and uncertainties include but are not limited to liabilities inherent in mine development and
production, geological, mining and processing technical problems, the inability to obtain any additional
mine licenses, permits and other regulatory approvals required in connection with mining and third
party processing operations, competition for amongst other things, capital, acquisition of reserves,
undeveloped lands and skilled personnel, incorrect assessments of the value of acquisitions, changes
in commodity prices and exchange rates, currency and interest fluctuations, various events which
could disrupt operations and/or the transportation of mineral products, including labour stoppages and
severe weather conditions, the demand for and availability of transportation services, the ability to
secure adequate financing and management's ability to anticipate and manage the foregoing factors
and risks. Readers are also referred to the risks and uncertainties referred to at pages 24 to 30
inclusive of Paladin’s Management’s Discussion and Analysis released to ASX on 13 May 2025.
Although at the date of this document, Paladin believes the expectations expressed in such forward-
looking statements are based on reasonable assumptions, such statements are not guarantees of
future performance and actual results or developments may differ materially from the expectations
expressed in such forward-looking statements due to a range of factors including (without limitation)
fluctuations in commodity prices and exchange rates, exploitation and exploration successes,
permitting and development issues, political risks including the impact of political instability on
economic activity and uranium supply and demand, Indigenous Nations engagement, climate risk,
operating hazards, natural disasters, severe storms and other adverse weather conditions, shortages
of skilled labour and construction materials, equipment and supplies, regulatory concerns, continued
availability of capital and financing and general economic, market or business conditions and risk
factors associated with the uranium industry generally. There can be no assurance that forward-
looking statements will prove to be accurate.
Readers should not place undue reliance on forward-looking statements, and should rely on their own
independent enquiries, investigations and advice regarding information contained in this document.
Any reliance by a reader on the information contained in this document is wholly at the reader’s own
risk. The forward-looking statements in this document relate only to events or information as of the
date on which the statements are made. Paladin does not assume any obligation to update or revise
its forward-looking statements, whether as a result of new information, future events or otherwise. No
representation, warranty, guarantee or assurance (express or implied) is made, or will be made, that
any forward-looking statements will be achieved or will prove to be correct. Except for statutory liability
which cannot be excluded, Paladin, its officers, employees and advisers expressly disclaim any
responsibility for the accuracy or completeness of the material contained in this document and exclude
all liability whatsoever (including negligence) for any loss or damage which may be suffered by any
person as a consequence of any information in this document or any error or omission therefrom.
Except as required by law or regulation, Paladin accepts no responsibility to update any person
regarding any inaccuracy, omission or change in information in this document or any other information
made available to a person, nor any obligation to furnish the person with any further information.
Nothing in this document will, under any circumstances, create an implication that there has been no
change in the affairs of Paladin since the date of this document.
To the extent any forward-looking statement in this document constitutes “future-oriented financial
information” or “financial outlooks” within the meaning of Canadian securities laws, such information is
provided to demonstrate Paladin’s internal projections and to help readers understand Paladin’s
expected financial results. Readers are cautioned that this information may not be appropriate for any
other purpose and readers should not place undue reliance on such information. Future-oriented
financial information and financial outlooks, as with forward-looking statements generally, are, without
limitation, based on the assumptions, and subject to the risks and uncertainties, described above.
Non-IFRS measures
Paladin uses certain financial measures that are considered “non-IFRS financial information” within
the meaning of Australian securities laws and/or “non-GAAP financial measures” within the meaning of
Canadian securities laws (collectively referred to in this announcement as Non-IFRS Measures) to
supplement analysis of its financial and operating performance. These Non-IFRS Measures do not
have a standardised meaning prescribed by International Financial Reporting Standards ( IFRS) and
therefore may not be comparable to similar measures presented by other issuers.
The Company believes these measures provide additional insight into its financial results and
operational performance and are useful to investors, securities analysts, and other interested parties
in understanding and evaluating the Company’s historical and future operating performance. However,
they should not be viewed in isolation or as a substitute for information prepared in accordance with
IFRS. Accordingly, readers are cautioned not to place undue reliance on any Non-IFRS Measures.
The Non-IFRS Measure used in this announcement is described below.
Cost of Production
The Cost of Production per pound represents the total production costs divided by pounds of U ₃O₈
produced. The Cost of Production is calculated as the total direct production expenditures incurred
during the period (including mining, stockpile rehandling, processing, site maintenance, and mine-level
administrative costs), excluding costs such as cost of ore stockpiled, depreciation and amortisation,
general and administration costs, royalties, exploration expenses, sustaining capital and the impacts
of any inventory impairments or impairment reversals. This measure helps users assess Paladin’s
operating efficiency.
Cost of Production per lb = Cost of Production ÷ U ₃O₈ Pounds Produced.
Cost of Production is a unit cost measure that indicates the average production cost per pound of
U₃O₈ produced. This is not an IFRS measure but is widely used in the mining industry as a benchmark
of operational efficiency and cost competitiveness. Paladin’s Cost of Production metric is calculated as
the total direct production expenditures as defined above (in US dollars) incurred during the period
divided by the volume of U₃O₈ pounds produced in the same period. Management uses Cost of
Production per pound to track progress of operational performance, to assess profitability at various
uranium price points, and to identify trends in operating costs. It is also a key metric for investors and
analysts to evaluate how efficiently the Company is producing uranium, independent of depreciation
and accounting adjustments.
This measure allows stakeholders to monitor trends in direct production costs and to assess the
Company’s operating breakeven threshold relative to uranium market prices. Investors are cautioned
that our Cost of Production metric may not be comparable with similarly titled “C1 cash cost” metrics of
other uranium producers, as there can be differences in methodology (e.g., treatment of royalties or
certain site costs). Paladin’s Cost of Production figure as defined above, focuses strictly on the on-site
cost to produce uranium concentrate in the current period. All figures are in US$/lb U ₃O₈. We provide
this information in good faith to enhance understanding of our operations; however, the IFRS financial
statements (particularly the cost of sales line in the income statement) should be considered alongside
this metric for a complete picture of our cost structure.