Paladin Energy has announced that the Langer Heinrich Mine (LHM) generated N$1.4 billion (US$77.2 million) in revenue between July and December 2024.
The mine, which resumed production in March 2024 after a period of care and maintenance, continues to ramp up operations.
During the six months ending December 31, 2024, LHM produced 1.3 million pounds (Mlb) of uranium oxide (U3O8). Paladin Energy allocated US$3 million toward the mine’s restart and paid US$5 million in interest on its debt facility.
Ore feed during this period was sourced from previously mined, medium-grade stockpiles, reducing the stockpile’s value from US$80.4 million to US$57.3 million. However, efforts to access higher-grade ore are underway, including contractor engagement for early mining commencement.
Paladin Energy’s half-year financial report highlighted strong liquidity, with US$165.8 million in unrestricted cash and short-term investments, along with an undrawn US$50 million revolving debt facility. The company has provided a total of US$659.1 million to Langer Heinrich Uranium (LHU), with US$576.2 million from Paladin and its wholly owned subsidiaries and US$82.9 million from CNOL. Repayment of shareholder loans remains contingent on LHU generating sufficient free cash flow.
Production expenditure at the mine totaled US$59.5 million for operations, while exploration expenditure amounted to US$14 million, covering minimum tenement commitments and transaction costs for the Fission project acquisition.
From a safety perspective, Paladin recorded no serious environmental or radiation incidents. However, one lost-time injury (LTI) was reported during the period, with a Total Recordable Injury Frequency Rate (TRIFR) of 4.1 per million hours worked over the past 12 months.
Operating cash flow stood at US$30.5 million, while free cash flow from operations (post-capital expenditure) was US$6.4 million. Unrestricted group cash, cash equivalents, and short-term investments surged by 239% to US$165.8 million.
The company is advancing its planning and recruitment efforts at LHM to support infill drilling in existing mining pits, exploration for resource extension on the existing mining lease (ML140), and target identification in the adjacent lease (ML172).
