Companies:

 

Articles:

 
ASX 200

Paladin Energy lowers FY25 guidance for Langer Heinrich uranium mine as operational challenges continue

Go to Colin Hay author's page
By Colin Hay - 
Paladin Energy ASX PDN Langer Heinrich lower guidance
Copied

Paladin Energy (ASX: PDN) has announced a significant reduction in the FY2025 production guidance for its Langer Heinrich Mine (LHM) in Namibia after encountering several issues.

Lower-than-expected production outcomes in October, along with ongoing operational challenges at the uranium mine, have forced Paladin to revise its production forecast range for FY2025 down to between 3.0 and 3.6 million pounds from the previous 4.0 to 4.5Mlb.

Paladin stated that an increased range of potential production issues would materially impact the company’s unit operating costs and the realised price for uranium sales, leading to a reassessment of its forecast capital expenditure.

Production increase later in 2025

The company expects production to increase in the second half of FY2025 as it continues addressing the challenges encountered to date in ramping up operations.

Paladin noted that, with the mine approximately seven months into a planned 21-month ramp-up period, production levels are expected to rise as the overall ramp-up program progresses and as the processing of higher-grade mined ore begins,  as is expected later in the year.

“The company remains confident of achieving a production run rate of 6Mlbpa at the LHM by the end of CY2025.”

The LHM recommenced commercial production on 30 March, following the successful completion of the restart project.

Planned shutdown

The company is planning a shutdown at the mine to allow for various process flow improvements and operational upgrades to be implemented.

The shutdown is scheduled for the second half of November 2024 and is anticipated to last approximately two weeks.

During the shutdown, the water storage facilities at the mine are expected to be filled to provide a buffer against potential future disruptions.

The company is also working on installing additional water recovery equipment, conducting water optimisation studies and undertaking various projects aimed at increasing plant throughput.