ASX- and TSX-listed uranium producer Paladin Energy reports that its Langer Heinrich uranium mine (LHM), in Namibia, produced one-million pounds of triuranium octoxide (U₃O₈) for the quarter ended September 30, compared with the 1.23-million pounds of U₃O₈ produced in the quarter ended June 30.

The lower production reflected the maintenance shutdown and processing plant recovery at LHM.

Sales volumes, meanwhile, reached 1.16-million pounds of U₃O₈ at an average realised price of $79.40/lb for the September quarter, compared with the 1.35-million pounds of U₃O₈ sold in the prior quarter, reflecting increasing uranium prices and a higher proportion of market-related sales during the quarter.

Meanwhile, Paladin says it has signed a mutual benefits agreement with the Birch Narrows Dene First Nation government, in Canada, in respect of the Patterson Lake South project, located in the Athabasca Basin region of Saskatchewan.

Exploration drilling has been completed for this project, which has resulted in the successful extended mineralisation at the Atlas and Saloon East discoveries and beyond the current R1515W mineral resource at the Triple R deposit.

Further, Paladin has signed an administrative protocol with the Canadian Nuclear Safety Commission targeting the completion of hearings for the Patterson Lake project’s construction licence application at the end of the 2027 calendar year.

“The quarter has seen steady implementation of our plans in Namibia and Canada. At Langer Heinrich, we achieved strong realised prices reflecting the contract book’s leverage to increasing uranium prices.

“[However], the quarter was impacted by the shutdown and the pit transition, with feed grade, plant performance and in-circuit inventory improving during September,” says Paladin Energy MD and CEO Paul Hemburrow.

However, he also notes that mining activities have continued to progress, with 7.73-million tonnes of total material mined during this quarter, exceeding the prior quarter’s volumes, with all mining activity focused on the J pit, and progressing the development towards the main orebody while stripping topsoil and waste to open up access to the primary uranium ore.

As at September 30, the company held cash and investments of $209-million and an undrawn $70-million revolving credit facility.

Paladin has reconfirmed its 2027 financial year targets to produce 5.1-million to 5.6-million pounds of U₃O₈ at a cost of $44/lb to $48/lb.

The company also anticipates stronger mining output during the latter half of the 2027 financial year, driven by an influx of higher-grade ore into its processing facility.

“We expect production to increase in the second half of the 2027 financial year and we remain on track to deliver our 2027 financial year guidance,” Hemburrow says.

While these projects reflect current operational states and baseline expectations, Paladin notes that ongoing geopolitical tensions could introduce some disruptions, and it is closely monitoring the potential impact of these events.