Paladin Energy has lowered Langer Heinrich Mine’s 2025 production guidance from 4-5 Mlb to 3-3.6 Mlb.
The company has also withdrawn all other 2025 guidance.
The Langer Heinrich Mine is approximately seven months into a planned 21-month ramp-up period.
The guidance revision comes after the October production was 186,667 lb, which was lower than planned primarily due to continued variability in the stockpiled ore processed, resulting in a lower-than-planned average feed grade for the month.
Paladin Energy also cites disruptions to the water supply from NamWater, which restricted the throughput volume of ore tons processed through the plant.
The company, however, partially offset the challenges experienced with throughput and grade variability during October with an improvement in average recoveries for the month by approximately 87%.
Paladin Energy says the increased range of potential production outcomes will have a material impact on the company’s unit operating costs.
Additionally, it notes that the realised price for uranium sales and forecast capital expenditure will be re-assessed given the Langer Heinrich Mine operational performance to date.
The production for the second half of 2025 could be higher as Paladin Energy continues to work through the challenges encountered in ramping up operations.
A planned shutdown, which will allow for various improvements and operational upgrades, 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 are expected to be filled and provide a buffer against potential future water supply disruptions, particularly during the Namibian summer when water demand is expected to peak and supply disruptions to water sourced from the nearby Swakop River and NamWater are more likely to occur.
NamWater continues to optimise the operation of its base and booster stations, with improvements expected to enable additional pipeline capacity and more reliable water supply to the Langer Heinrich Mine.
In addition to improving process flow at the mine during the plant shutdown, Paladin Energy is installing additional water recovery equipment and undertaking water optimisation studies and various debottlenecking projects to increase plant throughput.
Production levels are expected to increase as the overall ramp-up programme progresses due to the processing of higher-grade mined ore, scheduled to commence in the second half of 2025.
The company remains confident of achieving a production run rate of 6Mlb annually by the end of 2025.
