Paladin Energy Limited expects to produce 6 million pounds of uranium oxide (U3O8) annually at the Langer Heinrich Mine (LHM) by the end of 2025.
During the company’s annual general meeting, Chief Executive Officer Ian Purdy said the mine, which resumed commercial production in March 2024, has produced 826,346 lbs of U3O8 as of 31 October 2024.
However, Purdy revealed that production to date has fallen below expectations due to ore grade variability in processed stockpiles and disruptions to NamWater’s water supply.
“A planned two-week shutdown is being undertaken to allow for various improvements and operational upgrades, including refilling of water storage facilities,” he said.
He added that measures such as installing additional water recovery equipment, conducting water optimisation studies, and advancing debottlenecking projects are underway to enhance plant throughput.
Paladin is also advancing its exploration activities, focusing primarily on the LHM reserves and resources within ML140 while assessing adjacent areas under ML172.
“A workstream is underway to determine key areas for future exploration and an infill drilling programme, with drilling set to commence in FY2025,” Purdy said.
This comes as revised production guidance for FY2025 is set between 3.0 and 3.6 million pounds of U3O8, reflecting challenges in the ramp-up phase.
Meanwhile, the Paladin has sold 823,064 lbs of U3O8 to global customers as of 31 October 2024, with material shipped to converters in the United States, Canada, France and China.
“LHM material has been accepted by converters, and Paladin is receiving cash payments from customers,” Purdy said.
The CEO highlighted the mine’s world-class offtake contract book with 10 top-tier industry customers.
Paladin Chairman Cliff Lawrenson acknowledged the recent production downgrade but expressed confidence in the company’s progress.
“Our operations are now approximately eight months into a planned 21-month ramp-up period. There is growing confidence across the business that by following our plans and applying our skills, experience, and effort, we will achieve our goal of a full production run rate by the end of the calendar year 2025,” he said.
Lawrenson noted the mine’s safe return to production, completed on schedule and within budget.
“More than 2.5 million hours were worked with no serious injury or environmental incident,” he said, adding that the first customer shipment departed Walvis Bay, Namibia, in July 2024, with ongoing shipments under long-term offtake agreements.
