Perth-based Paladin Energy (ASX:PDN) announced an upgrade to its full-year production guidance for the Langer Heinrich Mine following a strong performance throughout the first nine months of the 2026 financial year.
Driven by the mobilisation of its mining fleet and improved ore recovery rates, the company now expects to produce between 4.5 million and 4.8 million pounds of uranium oxide, up from the previously forecast range of 4.0 to 4.4 million pounds.
The latest operational update reveals that the LHM facility has already produced 3.59 million pounds year-to-date, with third-quarter output reaching 1.29 million pounds—the highest quarterly result of the year so far.
While production targets have climbed, Paladin’s sales guidance remains steady at 3.8 to 4.2 million pounds, with 3 million pounds already sold at an average realised price of US$69.8 per pound.
In a strategic shift, the company has substantially reduced its anticipated capital and exploration expenditure for FY26.
The budget has been slashed from an initial range of US$26M–US$32M to just US$15M–US$17M, citing a reprioritisation and deferral of specific projects.
Despite the cuts, the cost of production remains stable at approximately US$44–US$48 per pound.
Management noted that while the transition to full mining operations is progressing ahead of schedule, they remain cautious.