KEY POINTS
- Paladin lowers 2025 uranium output forecast to 3–3.6 million pounds.
- Langer Heinrich mine plans two-week operational shutdown for upgrades.
- Company aims for 6 million lb. production rate by 2025’s end.
Shares in Paladin Energy plummeted 28.9 percent on Tuesday after the uranium miner lowered its production forecast for the Langer Heinrich mine (LHM) in Namibia.
The company now projects output of between 3 million and 3.6 million pounds of uranium for the 2025 fiscal year, significantly below its previous estimate of 4 million to 4.5 million pounds.
According to Mining report, Paladin cited lower-than-expected production in October, at just 186,667 pounds, alongside ongoing operational ramp-up challenges as the primary reasons for the revised outlook. The drop left Paladin with a market cap of A$2.89 billion ($1.89 billion) after trading on the Australian stock market.
Planned shutdown and water security measures
In an effort to address operational challenges, Paladin scheduled a two-week shutdown for the second half of November. During this period, various improvement and upgrade initiatives will be implemented at LHM.
Additionally, water storage facilities are to be filled, creating a reserve to guard against potential water shortages, particularly during Namibia’s summer, when water demand peaks.
Despite the setback, Paladin remains optimistic about Langer Heinrich’s long-term potential. “The company is confident that by the end of 2025, Langer Heinrich will reach a production run rate of 6 million lbs. per year,” Paladin stated.
Langer Heinrich’s long journey
Discovered in 1973, the Langer Heinrich mine was acquired by Paladin Energy in 2002, with production beginning in 2007 at an initial capacity of 2.7 million pounds per year.
The mine expanded its capacity to 5.2 million pounds by 2012. However, due to falling uranium prices, Paladin suspended production in 2016 and placed LHM under full care and maintenance in 2018.
Production resumed in March 30, 2024, after Paladin decided to restart operations in 2022.
