Paladin Energy Jumps 7% on Record Uranium Production and $300M Funding Boost

Paladin Energy Rallies on Record Uranium Output and Strengthened Balance Sheet

Paladin Energy (ASX: PDN) caught investors’ attention this morning, with shares jumping 7 percent after the company’s latest quarterly presentation revealed stronger-than-expected production from its flagship Langer Heinrich Mine in Namibia. The mine delivered a record one million pounds of uranium in the first quarter of FY2026, up 67 percent year-on-year, supported by a 63 percent increase in total material mined. Steady processing rates and modest cost growth helped maintain strong margins, while uranium sales of USD 36 million at an average price of USD 67.40 per pound underlined the improving economics.

What stood out most, however, was Paladin Energy’s accelerated ramp-up timeline and strengthened balance sheet. Following a USD 300 million equity raise, the company now holds USD 269 million in cash, positioning it well to reach its FY2026 production targets ahead of schedule. At current uranium prices, this could translate to roughly USD 200 million in annual EBITDA, highlighting how Paladin’s post-restart strategy is starting to pay off.

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Funding Secured, Contracts Locked: Paladin Sets Stage for Long-Term Growth

Paladin recently completed a larger-than-expected capital raise, providing sufficient funding to progress the PLS project through to a final investment decision targeted for late 2026. A recent technical review reaffirmed PLS as a high-grade, long-life uranium asset with strong economics, an estimated 12-year mine life, and low all-in sustaining costs of around US$45 per pound.

Paladin Energy has also strengthened its sales outlook, securing 14 long-term supply contracts that cover approximately 24.5 million pounds of uranium through to 2030, representing more than US$500 million in revenue. Notably, about 85 percent of these contracts are linked to market prices, allowing Paladin to capture potential upside from rising uranium prices while maintaining revenue stability through fixed-price components.

Energy Demand Outlook 

At current uranium prices, the Langer Heinrich Mine (LHM) alone could be worth around US$2.5 billion based on its current mine plan. The operation holds 77.6 million pounds in reserves, supporting over 13 years of production. With most sales tied to spot prices, Paladin is well positioned to benefit from strengthening nuclear power demand, which the International Atomic Energy Agency (IAEA) expects to grow by 50 gigawatts by 2030.

Meanwhile, the World Nuclear Association projects a sustained supply deficit of roughly 20 million pounds of uranium per year through to 2030. If this imbalance continues, tightening supply conditions could place upward pressure on spot prices, reinforcing Paladin’s exposure to a favourable long-term market environment.