Paladin Energy maintains guidance despite lower uranium output

Paladin Energy reported a decline in uranium oxide production at its Langer Heinrich mine for the quarter ended September 30, reaching 1.00 million pounds compared to 1.23 million pounds in the previous quarter. The company attributed the decrease to a planned maintenance shutdown and specific ore characteristics during mining sequences. Consequently, reported production costs rose to US$61.6 per pound from US$51.6 in the June quarter.

Despite lower production, the average realized price for uranium rose to US$79.4 per pound, up from US$70.6, driven by higher market prices and more market-related sales. Paladin Energy maintained its FY2027 production guidance of 5.1 million to 5.6 million pounds and its annual production-cost guidance of US$44 to US$48 per pound, noting that higher output is expected in the second half of the year.

Analysts at Bell Potter maintained a buy rating on the company, noting that while production was below estimates, sales volumes exceeded expectations and pricing was strong. Bell Potter issued a trimmed price target of A$13.80.