Paladin shares sink as it cuts uranium output

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 expects to produce between 3 million and 3.6 million pounds of uranium from Langer Heinrich in the 2025 financial year, compared with its previous forecast of 4 million to 4.5 million pounds.Paladin cited weaker-than-expected performance in October (186,667 pounds) 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 AUD $2.89 billion (USD $1.89 billion).According to the miner, a planned shut-down, which will allow for various improvement and operational upgrades to be implemented at the LHM, is scheduled for the second half of November 2024 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 abuffer against potential future water supply disruptions, particularly during the Namibian summerwhen water demand is expected to peak.“The company remains confident that, by the end of 2025, Langer Heinrich will achieve a production run rate of 6 million pounds per year,” Paladin said in a statement.A 50+ year historyLanger Heinrich was discovered in 1973 and Paladin Energy took over the asset in August 2002, kicking off production in 2007 with an initial capacity of 2.7 million pounds of uranium oxide per year. This capacity was later expanded to 3.7 million pounds in 2009 and 5.2 million pounds 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 return Langer Heinrich to production. First production was achieved on 30 March 2024.Weiter zum vollständigen Artikel bei Mining.com Weiter zum vollständigen Artikel bei Mining.com