Paladin Energy Ltd (ASX:PDN, TSX:PDN, OTCQX:PALAF) (“Paladin” or the “Company”) provides FY2027 guidance
for the Langer Heinrich Mine (LHM) along with forecast average realised uranium price sensitivities based on the
Company’s uranium sales contract portfolio.
Ramp-up of mining and processing operations at LHM was completed safely and successfully during the June 2026
quarter, marking a significant milestone for Paladin. Sustained operational improvements through the ramp-up phase
have established the foundation for reliable production and delivery of uranium to Paladin’s global customer base.
LHM FY2027 Guidance (100%)1,2 FY2027
U3O8 produced3 Mlb 5.1 – 5.6
U3O8 sold4 Mlb 4.8 – 5.3
Cost of production5 US$/lb 44 – 48
Capital expenditure6 US$M 29 – 35
Production and Costs
LHM production is expected to range between 5.1Mlb and 5.6Mlb U3O8 in FY2027, supported by the completion of
the mining ramp-up and increased availability of primary mined ore.
Production volumes are expected to vary quarter to quarter during the financial year. Planned maintenance
shutdowns in the September and December 2026 quarters are expected to impact production in the first half. Higher
production is expected in the second half of FY2027 as higher-grade ore feed to the processing plant increases.
Mining and plant optimisation will continue throughout FY2027.
Cost of production is expected to be between US$44/lb and US$48/lb, trending towards the upper end of the guidance
range in the first half of FY2027 due to lower anticipated production and additional costs associated with planned
maintenance during the period. As result of the depletion of the previously mined MG3 stockpile in FY2026, all ore
processed in FY2027 will be sourced from the mine, at longer haul distances than in FY2026.
During the current mining phase, removal of overburden and waste to provide access to future mining areas will be
ongoing. Medium and high-grade ore will be delivered to the processing plant, while lower-grade material is stockpiled
for future processing. This approach supports improved grade outcomes and provides enhanced operational flexibility
over the life of mine.
The Company will continue to report actual costs on a quarterly basis associated with capitalised stripping incurred
in the removal of overburden & waste7 and building low-grade ore stockpiles
8
. These costs are not included in the
cost of production.
Level 11, 197 St Georges Terrace, Perth WA 6000 | PO Box 8062, Cloisters Square PO WA 6850
Tel: +61 8 9423 8100 | ABN: 47061681098
paladinenergy.com
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22 July 2026
Capital Expenditure
LHM capital expenditure is expected to be between US$29M and US$35M for FY2027. Key expenditure items include
tailings storage facilities’ design and construction, process improvement studies and infill drilling. FY2027 capital
expenditure will also include the completion of selected capital exploration activities deferred from FY2026.
Sales and Realised Prices
LHM contract book continues to provide leverage to a strengthening uranium market environment.
During FY2027, Paladin expects to continue to deliver uranium to its global customers in the US, Europe and Asia
with sales volume expected to range from 4.8Mlb to 5.3Mlb U3O8, reflecting the intention to repay part of the current
uranium product loan balance over the period.
Consistent with uranium industry practice, Paladin maintains access to short-term uranium product loan and swap
facilities to support operational and delivery flexibility. As at 30 June 2026, the Company had 400,000lb U3O8 of
outstanding uranium product loans.
4
Sales volumes, cash receipts and realised pricing are expected to vary quarter on quarter due to the timing of
customer delivery nominations, contract pricing mix, individual contract terms, shipping schedules and prevailing spot
prices.
Based on Paladin’s contract book as at 1 July 2026, the forecast average realised uranium price sensitivities for
FY2027 under a range of uranium spot price assumptions are as follows:
Average Realised Price Sensitivity FY2027
Uranium Spot Price Assumption (US$/lb) Forecast Average Realised Price (US$/lb)9,10
40 51
60 61
80 72
100 83
120 93
140 103
FY2027 guidance is based on current operating conditions and assumptions and may be impacted by disruptions
arising from current geopolitical events. Paladin is closely monitoring the potential impact of these events.
This announcement has been authorised for release by the Board of Directors of Paladin Energy Ltd.
Contacts
Investor Relations
Paula Raffo
T: +61 8 9423 8100
E: paula.raffo@paladinenergy.com.au
Media
Anthony Hasluck
T: +61 438 522 194
E: anthony.hasluck@paladinenergy.com.au
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22 July 2026
Notes
1 Paladin has a 75% interest in the LHM
2 USD/NAD FX assumption: 16.5
3 Production is based on considered plant availability and utilisation assumptions and includes allowances for expected
normal operational disruptions, estimated planned and unplanned maintenance activities, and general plant disruptions
based on historical performance
4 The current uranium product loan arrangements allow Paladin to borrow up to 450,000lb U3O8, with repayment in kind
upon delivery. As at 30 June 2026, the Company had outstanding loans of 400,000lb U3O8, with 200,000lb U3O8 scheduled
for repayment in Q1 FY2027, and the remaining 200,000lb U3O8 due in Q3 FY2027. Under the loan facilities, certain standby
and loan fees are payable. These loan facilities are expected to either be renewed, replaced or repaid within the next twelve
months.
5 Cost of Production is a Non-IFRS Measure. See “Non-IFRS financial information” for more information
6 Capital Expenditure does not include capitalised stripping costs or costs associated with building low grade stockpiles
7 During mining, stripping costs may be incurred removing overburden or waste to provide access to future mining areas.
As this improves access to future ore, costs are capitalised and amortised on a units-of production basis
8 Low-grade ore stockpiled represents the cost of mining and stockpiling low grade material to be processed during the
later stockpile phase and is capitalised into inventory under IFRS. This is expected to be classified as non-current inventory
until that phase. These costs are not included in the Cost of Production
9 Average Realised Price is a Non-IFRS Measure. See “Non-IFRS financial information” for more information
10 Key assumptions:
a. The sensitivity analysis is based on the midpoint of the forecasted sales volume range (5.05Mlb)
b. The forecast Average Realised Price assumes that the uranium spot price remains constant for the duration of the
financial year
c. Deliveries based on commitments under contracts include the Company’s estimate of the expected deliveries and
takes into account the flexibility provided under existing contract terms
d. To reflect escalation mechanisms contained in existing contracts, a forecast US inflation rate of 2.5% p.a. has
been assumed in relation to escalation clauses under existing contracts
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22 July 2026
Forward-looking statements
This document contains certain “forward-looking statements” within the meaning of Australian securities laws and “forwardlooking information” within the meaning of Canadian securities laws (collectively referred to in this document as forwardlooking statements). All statements in this document, other than statements of historical or present facts, are forwardlooking statements and generally may be identified by the use of forward-looking words such as “anticipate”, “expect”,
“likely”, “propose”, “will”, “intend”, “should”, “could”, “may”, “believe”, “forecast”, “estimate”, “target”, “outlook”, “guidance”
and other similar expressions.
Forward-looking statements involve subjective judgment and analysis and are subject to significant uncertainties, risks and
contingencies including those risk factors associated with the mining industry, many of which are outside the control of,
change without notice, and may be unknown to Paladin. These risks and uncertainties include but are not limited to liabilities
inherent in mine development and production, geological, mining and processing technical problems, the inability to obtain
any additional mine licences, permits and other regulatory approvals required in connection with mining and third party
processing operations, competition for amongst other things, capital, acquisition of reserves, undeveloped lands and skilled
personnel, incorrect assessments of the value of acquisitions, changes in commodity prices and exchange rates, currency
and interest fluctuations, various events which could disrupt operations and/or the transportation of mineral products,
including labour stoppages and severe weather conditions, rising energy costs, inflationary pressures, the demand for and
availability of transportation services, the ability to secure adequate financing and management’s ability to anticipate and
manage the foregoing factors and risks. Readers are also referred to the risks and uncertainties referred to in the
Company’s 2025 Annual Report and Paladin’s Management Discussion and Analysis for the year ended 30 June 2025,
each released on 28 August 2025 and in the Company’s Annual Information Form for the year ended 30 June 2025 released
on 15 September 2025.
Although at the date of this announcement Paladin believes the expectations expressed in such forward-looking statements
are based on reasonable assumptions, such statements are not guarantees of future performance. Actual results or
developments may differ materially from the expectations expressed in such forward-looking statements due to a range of
factors including (without limitation) fluctuations in commodity prices and exchange rates, exploitation and exploration
successes, environmental, permitting and development issues, geopolitical events and political risks (including armed
conflict or escalation of hostilities in the Middle East), and the impact of such events on global security conditions, economic
activity, trade flows, energy markets, sanctions regimes, and uranium supply and demand, First Nation engagement,
climate risk, operating hazards, natural disasters, severe storms and other adverse weather conditions, shortages of skilled
labour and construction materials, equipment and supplies, energy costs, inflation, regulatory concerns, continued
availability of capital and financing and general economic, market or business conditions and risk factors associated with
the uranium industry generally, and other factors. There can be no assurance that forward-looking statements will prove to
be accurate.
Readers should not place undue reliance on forward-looking statements, and should rely on their own independent
enquiries, investigations and advice regarding information contained in this document. Any reliance by a reader on the
information contained in this document is wholly at the reader’s own risk. Recipients are cautioned against placing undue
reliance on such projections without conducting their own due diligence with appropriate professional support. The forwardlooking statements in this document relate only to events or information as of the date on which the statements are made.
Paladin does not assume any obligation to update or revise its forward-looking statements, whether as a result of new
information, future events or otherwise. No representation, warranty, guarantee or assurance (express or implied) is made,
or will be made, that any forward-looking statements will be achieved or will prove to be correct. Except for statutory liability
which cannot be excluded, Paladin, its officers, employees and advisers expreressly disclaim any responsibility for the
accuracy or completeness of the material contained in this document and exclude all liability whatsoever (including
negligence) for any loss or damage which may be suffered by any person as a consequence of any information in this
document or any error or omission therefrom. Except as required by law or regulation, Paladin accepts no responsibility to
update any person regarding any inaccuracy, omission or change in information in this document or any other information
made available to a person, nor any obligation to furnish the person with any further information. Nothing in this document
will, under any circumstances, create an implication that there has been no change in the affairs of Paladin since the date
of this document. To the extent any forward-looking statement in this document constitutes “future-oriented financial
information” or “financial outlooks” within the meaning of Canadian securities laws, such information is provided to
demonstrate Paladin’s internal projections and to help readers understand Paladin’s expected financial results. Readers
are cautioned that this information may not be appropriate for any other purpose and readers should not place undue
reliance on such information. Future-oriented financial information and financial outlooks, as with forward-looking
statements generally, are, without limitation, based on the assumptions, and subject to the risks and uncertainties,
described above.
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Non-IFRS financial information
Paladin uses certain financial measures that are considered “non-IFRS financial information” within the meaning of
Australian securities laws and/or “non-GAAP financial measures” within the meaning of Canadian securities laws
(collectively referred to in this announcement as Non-IFRS Measures) to supplement analysis of its financial results and
operating performance. These Non-IFRS Measures do not have a standardised meaning prescribed by International
Financial Reporting Standards (IFRS) and therefore may not be comparable to similar measures presented by other
issuers.
The Company believes these measures provide additional insight into its financial results and operational performance and
are useful to investors, securities analysts, and other interested parties in understanding and evaluating the Company’s
historical and future operating performance. However, they should not be viewed in isolation or as a substitute for
information prepared in accordance with IFRS. Accordingly, readers are cautioned not to place undue reliance on any NonIFRS Measures.
The Non-IFRS Measures used in this announcement are described below.
Average Realised Price
Average Realised Price (US$/lb U₃O₈) is a Non-IFRS Measure that represents the average revenue received per pound of
uranium sold during a given period. It is calculated by dividing total revenue from U₃O₈ sales (before royalties and after any
applicable discounts) by the total volume of U₃O₈ pounds sold. This measure provides insight into the actual pricing
achieved under the Company’s uranium sales contracts and spot sales during the reporting period, taking into account the
mix of base-escalated, fixed-price and market-related pricing mechanisms within contracts. The Company uses Average
Realised Price to assess revenue performance relative to market prices, contractual pricing structures, and production
costs. It is also a key measure used by investors and analysts to evaluate price exposure, contract performance, and
profitability potential.
It is important to note that Average Realised Price is distinct from both the spot market price and the term market price for
uranium, and it may vary significantly from quarter to quarter based on timing of deliveries, customer contract structures,
and the prevailing market environment.
Revenue from the sale of U3O8 is reported in the Company’s financial statements under IFRS. The Average Realised Price
is derived directly from statutory revenue figures and disclosed sales volumes.
Cost of Production
The Cost of Production is calculated as the total direct production expenditures incurred to produce U3O8 during the period
(including mining, stockpile rehandling, processing, site maintenance, and mine-level administrative costs), excluding costs
such as cost of ore stockpiled, deferred stripping costs, depreciation and amortisation, general and administration costs,
royalties, exploration expenses, sustaining capital and the impacts of any inventory impairments or impairment reversals.
This measure helps users assess Paladin’s operating efficiency.
Cost of Production per pound = Cost of production ÷ U3O8 pounds produced
The Cost of Production per pound is a unit cost measure that indicates the average production cost per pound of U3O8
produced. The Cost of Production per pound is a Non-IFRS Measure that is widely used in the mining industry as a
benchmark of operational efficiency and cost competitiveness. Paladin’s Cost of Production per pound metric is calculated
as the total direct production expenditures as defined above (in US dollars) incurred during the period, divided by the total
volume of U3O8 pounds produced in the same period. Management uses Cost of Production per pound to track progress
of operational performance, to assess profitability at various uranium price points, and to identify trends in operating costs.
It is also a key metric for investors and analysts to evaluate how efficiently the Company is producing uranium, independent
of depreciation and accounting adjustments.
This measure allows stakeholders to monitor trends in direct production costs and to assess the Company’s operating
breakeven threshold relative to uranium market prices. Investors are cautioned that our Cost of Production per pound
metric may not be comparable with similarly titled “C1 cash cost” metrics of other uranium producers, as there can be
differences in methodology (e.g., treatment of royalties or certain site costs). Paladin’s Cost of Production figure as defined
above, focuses strictly on the on-site cost to produce U3O8 in the period. All figures are in US$/lb U3O8. We provide this
information in good faith to enhance understanding of our operations; however, the IFRS financial statements (particularly
the Cost of Sales line in the Consolidated Income Statement) should be considered alongside this metric for a complete
picture of our cost structure.
Source: Paladin Energy