Paladin Energy is now focusing on production ramp up and building a finished product inventory at the Langer Heinrich Mine ahead of shipping uranium to customers.
The company announced that operations had started at the Namibian mine with the commercial uranium production on March 30, 2024.
As part of the transition to production, Paladin’s chief operating officer, Paul Hemburrow has assumed responsibility for all Langer Heinrich Mine activities.
According to Paladin, the commencement of production was within the capital cost estimate of N$2,9 billion (US$125 million).
An activity and cashflow report for the quarter ended March 31, 2024, says the focus was now on production ramp-up and building a finished product inventory, ahead of shipments to customers.
During the quarter Paladin executed a N$2.9 billion (US$150 million) syndicated debt facility, of which N$478 million (US$25 million) has been drawn down during March.
As at March 31, 2024, Paladin held cash and cash equivalents of N$955 million (US$50 million), excluding restricted cash of N$55.4 million (US$2.9 million).
The US$150 million debt facility was drawn down during the quarter with US$125 million of remaining debt capacity.
The company’s net cash expenditure for the quarter was N$571 million (US$29.9 million).
Paladin says the establishment of the debt facility during the quarter marked the successful completion of an international syndication process.
Independent technical, and environmental experts visited the Langer Heinrich Mine site for corporate due diligence.
Nedbank Limited, through its Corporate and Investment Banking division and Macquarie Bank Limited established the debt facility.
Since the project restart in July 2022, Paladin had focused on the repair and refurbishment and debottlenecking of the existing LHM plant which was placed into care and maintenance in 2018.
The remaining project restart activities are focused on closing out completion tasks and contractor demobilisation.
Paladin says it will provide guidance on key 2025 Langer Heinrich Mine operational parameters in July 2024.
The company has seven offtake agreements executed with top-tier counterparties in the US, Europe and China.
These contracts range in type and duration and provide base-escalated, fixed-price and market-related pricing mechanisms. Paladin says it continues to engage with top-tier industry counterparties, via RFP processes and off-market discussions.
Paladin CEO Ian Purdy said after a period of nearly six years of care and maintenance, returning the Langer Heinrich Mine to commercial production was an important milestone for Paladin. Purdy thanked staff and contractors for their hard work and acknowledged the Namibian government and Erongo communities for their continued support.
“We remain focused on the ramp up of production and delivering our first shipment to our international customers. With a strong uranium price outlook, a world-class long-life asset, and a strong balance sheet, Paladin remains well positioned to generate strong returns for our stakeholders,” Purdy said.
