Paladin Energy (PDN) Q3 2025 earnings summary

Executive summary

• Langer Heinrich Mine (LHM) achieved record quarterly production of 745,484lb U3O8, up 17% sequentially, despite a significant weather event in Namibia causing operational disruptions and infrastructure damage.

• Rapid recovery efforts restored operations safely, with no injuries or major environmental incidents, and mining commenced in the G2A pit as an alternative to the flooded G3A pit.

• Integration of Fission Uranium Corp. is complete, enhancing the Patterson Lake South (PLS) Project in Canada, which secured exemption from the Non-Resident Ownership Policy and signed Mutual Benefits Agreements with two First Nations.

• Initial mining activities at LHM included the first blast in nearly a decade and ore fed to the processing plant.

Financial highlights

• Quarterly sales were 872,435lb U3O8 at an average realized price of US$69.9/lb, exceeding production due to contract delivery timing.

• Unrestricted cash and short-term investments stood at US$127.8M as of 31 March 2025, with an undrawn US$50M debt facility.

• Cost of production at LHM was US$40.6/lb for the quarter, down from US$42.3/lb previously.

• First scheduled term loan repayment of US$6.75M was completed during the quarter.

• Net cashflow from operating activities was negative US$18M, reflecting advanced customer payments and debt repayment.

Outlook and guidance

• Guidance will be provided at the end of August after zero-based budgeting and several months of mining ramp-up.

• LHM ramp-up continues with focus on optimizing blend strategy and mining productivity; quarter-on-quarter improvement in production and throughput expected.

• PLS Project is advancing through environmental approvals, drilling programs, and further Indigenous agreements.

• No direct operational or sales impact from recent US tariffs or global economic uncertainty observed.