Highlights

• Langer Heinrich produced 1.00 million pounds of U3O8 in the September quarter and sold 1.16 million pounds.

• Paladin kept FY27 guidance at 5.1 to 5.6 million pounds produced, at US$44 to US$48 per pound cost.

• Paladin signed a Mutual Benefits Agreement with Birch Narrows Dene Nation in August 2026, its third with Indigenous Nations.

• Paladin ended the quarter with US$209 million of unrestricted cash and investments and an undrawn US$70 million facility.

Uranium output at Namibia's Langer Heinrich Mine eased in the September 2026 quarter, but Paladin Energy Ltd (ASX:PDN) held its full-year targets and pointed to a stronger second half. The company reported the quarter on 14 October 2026. Shares were trading at A$6.88 on 23 October 2026, down 5.23%.

Production came in at 1.00 million pounds of U3O8 on a 100% basis, down from 1.23 million pounds in the June quarter. Paladin attributed the dip to a planned maintenance shutdown, ore characteristics from the mining sequence and low in-circuit inventory at the start of the period. Recovery was 85%, against 90% previously and at the bottom of the target range.

Lower Output, Higher Realised Price

The mill processed 1.17 million tonnes at a feed grade of 486 ppm. Miners moved 7.73 million tonnes, including 1.84 million tonnes of ore, all from the J pit.

Sales of 1.16 million pounds fell short of the 1.35 million pounds sold in the prior quarter, but the average realised price rose to US$79.4 per pound from US$70.6, helped by higher market-related sales. Cost of production climbed to US$61.6 per pound from US$51.6, which the company linked to the lower output. Finished product inventory was 1.98 million pounds.

For context, the mine produced 4.82 million pounds in FY26 at US$43.3 per pound, and the June quarter report confirmed the ramp-up was complete. Paladin holds 75% of the operation.

Canada: Agreements, Regulation and Drilling

Attention is also on Patterson Lake South in Canada. The Mutual Benefits Agreement with Birch Narrows Dene Nation followed a binding term sheet signed in April 2026. In July 2026, Paladin and the Canadian Nuclear Safety Commission agreed a non-binding Administrative Protocol that targets completion of Construction Licence hearings by the end of calendar 2027. A Front-End Engineering Design update is under way.

Drilling covered 8,465 metres during the quarter. Results extended mineralisation at the Atlas and Saloon East discoveries, and identified a new high-grade zone about 100 metres east of the R1515W resource. Atlas was first reported in the June quarter, when hole PLS26-708B returned 8.0 metres at 1.75% U3O8. Paladin spent US$7.4 million on development and permitting and US$5.0 million on exploration at the project in the September quarter.

At the Michelin Project, the company drilled 4,324 metres across 13 priority targets and flew drone radiometric surveys over 1,882 line-kilometres.

Balance Sheet and Leadership

Unrestricted cash and investments were US$209 million at 30 September 2026, compared with US$265 million at 30 June. The term loan balance was US$28 million, and the US$70 million revolving credit facility remained undrawn.

Second-Half Weighting and Next Steps

Management expects production to rise in the second half of FY27 as mining reaches higher-grade southern benches of the J pit, improving grade and recovery. Chief Executive Paul Hemburrow said the company remains on track to deliver FY27 guidance. Guidance may be affected by geopolitical events, though the Middle East conflict caused no supply disruptions in the quarter.

At Patterson Lake South, the project remains on the path toward a final investment decision, subject to regulatory approvals and Indigenous agreements.