Paladin Energy’s (ASX: PDN) share price plunged nearly 30% on Tuesday after the uranium miner revised down its production forecast for the Langer Heinrich mine (LHM) in Namibia.
The company now expects to produce between 3 million and 3.6 million lb. of uranium from Langer Heinrich in the 2025 financial year, compared with its previous forecast of 4 million to 4.5 million lb.
Paladin cited weaker-than-expected performance in October (186,667 lb.) and ongoing challenges in ramping up operations as key factors behind the revised guidance.
Shares of Paladin closed down 28.9% in Australia, leaving the miner with a market capitalization of A$2.89 billion ($1.89bn).
According to the miner, a planned shut-down, which will allow for various improvement and operational upgrades to be implemented at LHM, is scheduled for the second half of November and is expected to run for approximately two weeks.
During the shutdown, the water storage facilities at the mine are expected to be filled and provide a
buffer against potential future water supply disruptions, particularly during the Namibian summer,
when water demand peaks.
“The company remains confident that, by the end of 2025, Langer Heinrich will achieve a production run rate of 6 million lb. per year,” Paladin said in a statement.
Langer Heinrich was first discovered in 1973. Paladin Energy took over the asset in August 2002, kicking off production in 2007 with an initial capacity of 2.7 million lb. of uranium oxide per year.
This capacity was later expanded to 3.7 million lb. in 2009 and 5.2 million lb. in 2012. However, due to a sharp decline in uranium prices in the following years the company axed production in November 2016. Langer Heinrich was placed under full care and maintenance in May 2018.
In 2022, Paladin made the decision to restore Langer Heinrich to production. First production was achieved on March 30, 2024.
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