Langer Heinrich output drops 19%
The Langer Heinrich uranium mine in Namibia recorded an 19% drop in production in the September quarter, but higher uranium prices helped cushion the impact of lower sales volumes as production costs rose.
The mine produced 1 million pounds of uranium oxide (U₃O₈), down from 1.23 million pounds in the previous quarter, while its average realised selling price rose by 12.5%, from US$70.6 to US$79.4 per pound, according to Paladin’s quarterly report released on 14 October.
Despite stronger prices, production costs increased by about 19%, from US$51.60 to US$61.60 per pound. The company attributed the weaker output to a planned maintenance shutdown, lower processing recoveries and low uranium inventory in the processing plant.
Uranium sales fell from 1.35 million to 1.16 million pounds. However, higher prices limited the decline in estimated sales value to US$3.2 million, from US$95.3 million to US$92.1 million, based on the company’s rounded quarterly figures.
Paladin, which owns 75% of Langer Heinrich, maintained its production guidance of 5.1 million to 5.6 million pounds for the financial year ending in June 2027. It expects output to increase as mining advances into higher-grade sections of the J Pit.
Lower recoveries weigh on output
The decline in production reflected planned maintenance, lower uranium recovery rates and the mining sequence required to access higher-grade ore.
The processing plant treated 1.17 million tonnes of ore during the quarter, down from 1.19 million tonnes in the previous three months. The sharper fall in uranium output points to weaker processing performance rather than a substantial reduction in the volume of ore treated.
The average uranium feed grade remained broadly stable at 486 parts per million, compared with 488 parts per million in the previous quarter. However, the recovery rate fell from 90% to 85%, meaning the plant extracted a smaller proportion of the uranium contained in the ore.
Paladin said ore characteristics associated with the mining sequence contributed to the weaker recoveries, while low uranium inventory in the processing circuit at the start of the quarter also affected production.
The company reported improved processing performance in September as mining progressed in the J Pit, with throughput strengthening towards the end of the quarter.
Managing director and chief executive Paul Hemburrow said the mine remained on track to meet its annual production targets despite the weaker start.
“The quarter was impacted by the shutdown and the pit transition, with feed grade, plant performance and in-circuit inventory improving during September. We expect production to increase in the second half of FY2027 and we remain on track to deliver our FY2027 guidance.”
J Pit development continues
Mining activity increased during the quarter as Paladin continued removing waste to gain access to the main orebody.
Total material mined rose from 7.45 million tonnes to 7.73 million tonnes, while waste removal increased from 5.57 million tonnes to 5.89 million tonnes.
Ore mined edged down from 1.87 million tonnes to 1.84 million tonnes as the mine continued transitioning towards areas expected to yield higher-grade material.
Mining remained concentrated in the J Pit, where work is progressing towards the main orebody. Paladin is removing topsoil and waste to expose the underlying mineralisation, with development expected to continue throughout the financial year as mining advances into the lower southern benches.
Although waste removal does not immediately increase uranium production, it is necessary to expose ore for processing in subsequent quarters.
Paladin expects access to higher-grade ore to improve processing recoveries, support increased production and reduce unit costs as the financial year progresses.
The second half of FY2027 will be critical, with larger quantities of higher-grade ore expected to become available to the processing plant.
