Paladin Energy’s Namibian uranium operations recorded an after-tax profit of US$8.1 million during the three months ended 30 September 2026, up from US$1.8 million in the corresponding period last year, even as the Australian uranium producer reported a group-wide net loss of US$337,000.
The company’s financial statements, released on 5 November 2026, show that revenue from its Langer Heinrich uranium mine increased from US$36 million to US$92.4 million over the same period, while the group’s overall loss narrowed from US$9.9 million in the September 2025 quarter.
The financial results show that Paladin’s Namibian operations remained profitable despite rising production costs, lower quarterly uranium output and expenditure associated with the company’s uranium development and exploration activities elsewhere.
According to the geographical segment disclosures, Namibia generated US$14 million in profit before finance costs and income tax, compared with US$6 million during the corresponding quarter last year.
After accounting for finance costs of US$5.9 million, the Namibian segment recorded a profit before tax of US$8.1 million, compared with US$1.8 million in September 2025.
The company reported no income tax expense against the Namibian segment during either period, leaving after-tax profit at US$8.1 million, an increase of US$6.3 million over the corresponding quarter last year.
Langer Heinrich’s gross profit increased from US$7.9 million to US$14.2 million, although the improvement was accompanied by a substantial rise in production and sales expenditure.
Cost of sales increased from US$28.1 million in September 2025 to US$78.2 million in September 2026, while direct production costs rose from US$44.3 million to US$61.6 million.
Depreciation and amortisation costs reached US$10.5 million during the quarter, compared with US$10.1 million a year earlier, while selling costs increased from US$2.4 million to US$4 million.
The higher expenditure comes as Paladin works to improve uranium grades and processing recoveries at Langer Heinrich, where production declined from 1.23 million pounds in the June 2026 quarter to 1 million pounds during the September quarter.
Despite the decline, the company has maintained its annual production forecast of between 5.1 million and 5.6 million pounds for the financial year ending 30 June 2027.
Paladin expects higher production as mining advances into the lower southern benches of the J Pit, where improved uranium grades and processing recoveries are expected to increase output and reduce unit costs.
Paladin’s financial statements also show that total assets attributed to its Namibian operations reached US$616 million at 30 September 2026, compared with US$538.5 million at the corresponding date last year.
Liabilities attributed to Namibia increased from US$241.9 million to US$282.7 million, while the segment’s net assets rose from US$296.6 million to US$333.3 million.
Langer Heinrich remained Paladin’s only revenue-generating operating segment during the September quarter, with the company’s other operations comprising uranium development and exploration projects in Canada and exploration interests in Australia.
Canada recorded a segment loss after tax of US$2.2 million during the quarter, while Australia’s exploration segment recorded a loss of US$3,000.
Corporate activities accounted for a further US$6.2 million loss after tax, offsetting much of the profit generated by the Namibian operations.
These results left Paladin with a consolidated net loss of US$337,000, compared with a US$9.9 million loss during the corresponding period last year.
The company’s consolidated gross profit nevertheless increased from US$7.9 million to US$14.2 million, reflecting the stronger financial contribution from Langer Heinrich.
Paladin’s financial statements show that the group’s total inventories increased from US$171 million at the end of June 2026 to US$211.3 million at the end of September.
Current inventories increased from US$126.6 million to US$160.5 million, with finished uranium products accounting for US$129 million of the September balance, compared with US$102.3 million three months earlier.
Non-current ore stockpiles at Langer Heinrich, representing material not expected to be processed within the following 12 months, increased from US$44.5 million to US$50.8 million.
The company also reported that uranium product loans and location swaps had a combined carrying value of US$56.2 million at the end of September, compared with US$24.3 million at the end of June.
Paladin had outstanding uranium product loans totalling 400,000 pounds, with 200,000 pounds scheduled for repayment during the third quarter of its 2027 financial year and the remaining 200,000 pounds due during the first quarter of the 2028 financial year.
The company also entered into uranium product location swaps involving 450,000 pounds during the September quarter to meet customer delivery commitments.
These arrangements were closed out in October 2026.
At group level, Paladin’s cash and short-term investments declined from US$265 million at 30 June 2026 to US$208.9 million at the end of September.
The company recorded a net operating cash outflow of US$19.3 million during the quarter, compared with a US$14.1 million inflow in the corresponding period last year.
Payments to suppliers and employees increased from US$59.4 million to US$90.3 million, while cash receipts from customers declined from US$75 million to US$70.6 million.
The group also spent US$7.2 million on property, plant and equipment, US$17.3 million on exploration and evaluation activities and US$8.2 million on capitalised stripping activities during the quarter.
Paladin reduced its syndicated debt facility by US$4 million, leaving US$28 million outstanding at the end of September, while retaining access to an undrawn US$70 million revolving credit facility.
The company’s net cash position, calculated after deducting its debt facility from cash and short-term investments, declined from US$233 million at the end of June to US$180.9 million at the end of September.
Paladin reported that it remained compliant with its financial loan covenants at the end of the quarter.
The financial statements also disclosed capital commitments and purchase obligations of US$57.1 million, of which US$56.5 million falls due within one year.
The September results highlight the contribution of Langer Heinrich to Paladin’s international business, with the Namibian operation generating the group’s entire quarterly revenue and remaining profitable while development, exploration and corporate expenditure contributed to an overall group loss.
