Shares in uranium miner Paladin Energy (ASX:PDN) plummeted today after the company announced a reduction in its FY2025 production guidance for its Langer Heinrich Mine in Namibia. The guidance has been revised to 3.0–3.6 million pounds (Mlb) of uranium, down from the previously projected 4.0–4.5 Mlb. This change reflects lower-than-expected production results for October 2024 due to operational challenges, including water supply disruptions and variability in ore feed grade.
October production reached 186,667 pounds of uranium. According to the company, reduced throughput volumes were caused by intermittent water supply from NamWater. The company plans a two-week shutdown in November to implement upgrades, including filling water storage facilities, to mitigate future supply disruptions.
CEO Ian Purdy commented: “The operational variability we’ve encountered underscores the importance of optimising our infrastructure. We are focused on enhancing plant throughput and recovery rates to achieve our long-term production goals.”
Paladin expects output to improve in the second half of FY2025 as upgrades and process improvements are implemented. The company remains confident of reaching an annual production rate of 6 Mlb by the end of calendar year 2025.
Shares are trading 24.17% lower at $7.34.