Paladin Energy achieves commercial uranium production at Langer Heinrich
Paladin Energy (ASX: PDN) has commenced uranium concentrate production at the Langer Heinrich Mine (LHM) in Namibia.
Drumming and production at the successfully re-started mine is now being ramped up to help Paladin complete a finished product inventory, ahead of shipments to customers.
“Achieving first production at the Langer Heinrich Mine is an important milestone for Paladin,” chief executive officer Ian Purdy said.
“I would like to thank all our staff and contractors for their hard work and dedication in returning this globally significant uranium mine to production.”
“I would also like to thank the Namibian Government and our local communities in the Erongo region for their continued support.”
“With a return to production, a strong balance sheet and supportive uranium fundamentals, Paladin is exceptionally well positioned to generate sustainable returns for all our stakeholders.”
Paladin will now provide guidance for key FY2025 LHM operational parameters in July 2024.
Ore feed commenced
Production activities commenced with first ore feed into the LHM processing plant in mid-January 2024.
This followed successful commissioning of the beneficiation circuit after more than six years of care and maintenance.
During the first quarter, the company also executed a non-material offtake agreement for the supply of uranium to an industry-leading counterparty in Europe.
Diverse contract portfolio
Paladin now has a geographically diverse offtake book, with seven agreements executed with counterparties in the US, Europe and China.
This has given Paladin approximately 80% of uncapped upside exposure to the uranium spot price through to the end of 2030.
The company also achieved shipping arrangements and early payment terms with its largest customer, providing significant delivery flexibility and improved cash flow during the LHM operational ramp-up.
Strong financial position
Paladin is well-funded for its ongoing activities at LHM after executing a $230 million syndicated debt facility in late January 2024.
The execution of the debt facility with two lending financial institutions – Nedbank and Macquarie Bank – marked the successful completion of an international syndication process that included LHM site visits by independent technical and environmental experts and corporate due diligence by financier teams.