Paladin Energy spent approximately US$11 million building low-grade uranium ore stockpiles at its Langer Heinrich mine in Namibia during the September 2026 quarter, setting aside material for processing during a later phase of the operation.
The expenditure, disclosed in the company’s quarterly results presentation released on 14 October, forms part of the investment being made in the mine as Paladin continues to develop its open pits and prepare ore for future processing.
The US$11 million was separate from approximately US$67 million spent on production and selling costs and US$15 million allocated to stripping activities and sustaining capital at Langer Heinrich during the three months ended 30 September.
According to the presentation, the mine placed approximately 480,000 tonnes of low-grade ore into stockpiles during the quarter, compared with 920,000 tonnes in the preceding quarter.
The material is being retained for processing during a later stockpile phase rather than being immediately fed through the uranium processing plant.
Langer Heinrich mined a total of 7.73 million tonnes of material during the quarter, up from 7.45 million tonnes in the June quarter. This included 5.89 million tonnes of waste and 1.84 million tonnes of ore.
Mining activities remained focused on developing the J pit, where work is progressing towards the main orebody while topsoil and waste are removed to provide access to primary uranium-bearing material.
Paladin said ore characteristics associated with the mining sequence affected processing performance during the quarter, with recovery declining to 85% from 90% in the preceding three months.
The processing plant treated 1.17 million tonnes of ore, compared with 1.19 million tonnes previously, while uranium production fell from 1.23 million pounds to 1 million pounds.
The company expects improvements in ore grade and metallurgical recovery as mining advances into the lower southern benches of the J pit, which it anticipates will support higher production and lower costs per pound over the remainder of the 2027 financial year.
Production costs increased to US$61.60 per pound during the September quarter, compared with US$51.60 per pound in the June quarter.
Despite the lower output, Paladin maintained its full-year production guidance of between 5.1 million and 5.6 million pounds of uranium oxide, with sales expected to range between 4.8 million and 5.3 million pounds.
The company also expects production costs to average between US$44 and US$48 per pound for the financial year.
Langer Heinrich sold 1.16 million pounds of uranium during the September quarter at an average realised price of US$79.40 per pound, compared with 1.35 million pounds at US$70.60 per pound in the preceding quarter.
The stronger selling price reflected higher uranium prices and a greater proportion of sales linked to market-related pricing arrangements.
Paladin’s quarterly cash-flow statement also showed approximately US$19 million spent on its Patterson Lake South project and group exploration activities, alongside the expenditure at Langer Heinrich.
The company ended September with US$209 million in cash and investments and an undrawn US$70 million revolving credit facility.
Paladin owns 75% of Langer Heinrich, with the mine representing its operating uranium production asset in Namibia.
The low-grade stockpile expenditure highlights an additional component of the mine’s operating cash requirements beyond immediate uranium production, as material mined today is retained for processing in a later phase of the operation.
