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Paladin Ramp-Up Done, FY27 Guidance Misses Analyst Views
The uranium miner guided FY27 production of 4.1-5.2M lbs, the low end 15% below consensus. The Langer Heinrich ramp-up is complete, but the pace of throughput gains remains the open question for the stock.
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Paladin Energy completed the ramp-up of its Langer Heinrich uranium mine in Namibia during the June quarter, ending a two-year restart effort. CEO Paul Hemburrow told analysts on a Monday call that the company produced 515,000 pounds of triuranium octoxide in the quarter and 1.23 million pounds for the full fiscal year. The plant has hit its nameplate throughput rate of 3.7 million tonnes per year for sustained periods, COO Scott Barber said on the call.
The FY27 guidance came in below what sell-side models had expected. Paladin guided production of 4.1 million to 5.2 million pounds. The lower end of that range is roughly 15% below the consensus forecast of 4.9 million pounds, according to a poll of five analysts. Hemburrow said the range reflects uncertainty about the pace of plant throughput improvement rather than any ore-grade problem.