Shares of Paladin Energy (ASX, TSX: PDN) declined on Wednesday after delivering an underwhelming uranium production guidance for the 2026 financial year despite reporting its best operating quarter.
The Australian miner, which operates the Langer Heinrich mine in Namibia, has set a production guidance of 4 million to 4.4 million lb. U₃O₈ for the 2026 fiscal year, similar to the initial guidance set last year. The production costs are pegged at $44 to $48/lb., higher than the $40 average cost realized in fiscal 2025
Paladin produced 993,843 lb. of uranium oxides (U₃O₈) in the three months to June 30, representing a one-third rise over the third quarter and its best operating performance in fiscal 2025. This brings its annual production to just over 3 million lb.
Shares in Paladin Energy fell 8.9% on Wednesday in Toronto to close at C$6.62 apiece for a market capitalization of C$2.95 billion. They’re traded in a 52-week range of C$3.34 to C$8.55.
Law suits
After declaring commercial production at Langer Heinrich in March 2024, the company had initially forecast production of between 4 million to 4.5 million lb. U₃O₈ for the fiscal year. However, it revised down the target to 3.6 million lb. in late 2024, and then scrapped the guidance entirely as severe weather conditions impacted its operations.
Paladin has since been hit with class action lawsuits over its uranium forecasts.
Despite the production rise in the fourth quarter, the company realized the lowest price for its yellowcake of all quarters at $55.6 per lb., versus the yearly average of $65.70 and $69.90 the previous quarter.
The new guidance, according to Paladin’s management, reflects unexpected increases in mining-related expenditures, alongside variability in ore grades from stockpiled material at Langer Heinrich, especially during the first half of the year.
A report by the West Australian also pointed to the heavy short interest in the company’s ASX-listed shares, with short sellers controlling about 17% of the shares.
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