Paladin Cuts Uranium Production Forecast, Share Price Declines

Shares of Paladin Energy (ASX:PDN,OTCQX:PALAF) declined this week after the company shared an update on its Langer Heinrich mine and revised its 2025 fiscal year production guidance.

The company now expects the mine to produce 3 million to 3.6 million pounds of U3O8, lower than its earlier prediction of 4 million to 4.5 million pounds. According to Paladin, the drop is the result of lower-than-expected output in October, which was caused by water supply disruptions, as well as continued variability in stockpiled ore.

Production from Langer Heinrich amounted to 186,667 pounds during the month.

Paladin's share price fell as low as AU$6.88 on Tuesday (November 12), the day the news came out.

The company has had a challenging year, with shares falling significantly from their 2024 high of AU$17.80.

In this week's press release, Paladin said it plans to temporarily close Namibia-based Langer Heinrich for two weeks during the second half of November to complete various improvements and operational upgrades.

"During the shutdown, the water storage facilities at (Langer Heinrich) are expected to be filled and provide a buffer against potential future water supply disruptions," the company said. Paladin is also working to install further water recovery equipment, complete water optimisation studies and move forward on debottlenecking projects.

Langer Heinrich generated 640,000 pounds of U3O8 during the latest quarter, up 23.01 percent from the prior quarter.

It is currently about seven months into a planned 21 month ramp-up period, and Paladin notes in Tuesday's statement that it still expects to reach a production run rate of 6 million pounds annually by the end of the 2025 calendar year.

In June, Paladin announced plans to acquire Fission Uranium (TSX:FCU,OTCQX:FCUUF) in a C$1.14 billion deal. However, the transaction is currently under national security review in Canada.

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Securities Disclosure: I, Gabrielle de la Cruz, hold no direct investment interest in any company mentioned in this article.