Shares of uranium mine Paladin Energy (ASX:PDN) fell today after the company announced a reduction in production forecasts for fiscal 2025 for its Langer Heinrich mine in Namibia. The forecast was revised to 3.0–3.6 million pounds (Mlb) of uranium, down from the 4.0–4.5 Mlb previously forecast. This change reflects lower-than-expected production results for October 2024 due to operational challenges, including water supply disruptions and variability in mineral feed quality.
October production reached 186,667 pounds of uranium. According to the company, the reduction in production volumes was caused by intermittent water supply from NamWater. The company expects a two-week shutdown in November to implement upgrades, including refilling water storage facilities, to mitigate future supply disruptions.
CEO Ian Purdy commented: “The operational variability we have experienced highlights the importance of optimizing our infrastructure. We are focused on improving plant productivity and recovery rates to achieve our long-term production goals.”
Paladin expects production to improve in the second half of fiscal 2025 as process upgrades and improvements are implemented. The company remains confident of achieving an annual production rate of 6 Mlb by the end of the 2025 calendar year.
Shares are trading 24.17% lower at $7.34.