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Paladin Energy Ltd (ASX:PDN) has revised down its production guidance for the 2025 fiscal year based on challenges it’s experiencing with ramp up at the Langer Heinrich uranium mine (LHM) in Namibia.
Guidance for FY2025 is now between 3.0 and 3.6 million pounds (Mlb), down from previous expectations of between 4.0 and 4.5 Mlb.
This was a reflection of lower-than-expected production results for October, with this coming in at 186,667lb, due to ‘continued variability’ in the stockpiled ore which was processed – leading to a lower-than-expected average feed grade – and disruptions to the water supply from NamWater, which meant less throughput volume of ore tonnes processed through the plant.
The company observed however, that average recoveries for the month had increased 87%.
Paladin has also withdrawn all other guidance in relation to the upcoming fiscal year, observing that unit operating costs would likely be affected by the range of production outcomes which could result at LHM.
As a result, the company plans to reassess the realised price for uranium sales and forecast capital expenditure.
It also told investors that a planned shut-down would go ahead in the second half of November, to enable several improvement and operational upgrades to be implemented at LHM, with this expected to take two weeks.
Paladin shares have slumped on the news, and at 12:34 AEDT, they were trading at $7.30 – a fall of 24.59% since the market opened.
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