Langer Heinrich production expectations outlined

Paladin Energy has made public its FY2025 guidance for production expectations at its Langer Heinrich Mine, which recently resumed operations.

The mine re-commenced commercial production on 30 March 2024, following the successful completion of its restart project.

Production ramp-up and product inventory build-up were recent goals, ahead of the first customer shipment in July 2024. The mine will be operationally ramped up during the financial year, with ore feed to the plant sourced from previously mined stockpiled ore, Paladin said.

Production levels are expected to be higher in the second half of the year. Mining activities are expected to re-commence in FY2026, ahead of achieving nameplate production of 6Mlb p.a. by the end of CY2026, the Australian stock exchange-listed company told investors.

Specifically, Paladin expects Langer Heinrich to produce between four million and four and a half million pounds of U3O8 in the 2025 financial year and to sell between 3.8 million and 4.1 million pounds of uranium, with a production cost ranging from US$28 to US$31 per pound.

Paladin plans a capital expenditure of US$26 million for the financial year.

Langer Heinrich has to process between four and four and a half wet metric tonnes of ore, with a feed grade ranging from 470 to 510 parts per million, aiming for a plant recovery rate between 85% and 90%.

Based on Paladin's current contract book, the expected realised uranium price is based on spot price assumptions and a forecast US inflation rate of 3% per annum.