Q1 2025 Paladin Energy Ltd Earnings Call

It will be a presentation, followed by a question and answer session.

Operator: are in a listen-only mode. There will be a presentation followed by a question and answer session. If you wish to ask a question you will need to press the star key followed by the number one on your telephone keypad.

If you wish to ask a question you will need to press the star key followed by the number one on your telephone keypad.

Speaker Change: I would now like to hand, the conference over to Mr. Ian Petty CEO. Please go ahead.

Operator: I would now like to hand the conference over to Mr Ian Purdy, CEO. Please go ahead.

Thank you everyone for joining <unk> third quarter conference call with me today, Paul <unk>, our Chief operating officer, and <unk> <unk>, Our Chief Financial Officer, and Alex Slide back here, our Chief commercial officer.

Ian Purdy: Thank you everyone for joining our third quarter conference call. With me today are Paul Hembrough, our Chief Operating Officer, Anna Sudlow, our Chief Financial Officer, and Alex Ryback, our Chief Commercial Officer. I want to start by acknowledging the challenges we faced during the quarter, in particular the significant rain event in Namibia and the current volatility and uncertainty across the global equity market. Despite these challenges, today's reports show strong progress in both Namibia and Canada across a wide range of activities, demonstrating that we are fully committed to delivering strong results. You're all aware of the significant weather event which impacted the Langer Heinrich mine in March.

Speaker Change: I wanted to start by acknowledging the challenges we faced during the quarter in particular, the significant rain event in Namibia, and the current volatility and uncertainty across the global equity markets.

Speaker Change: Despite these challenges today's reports show strong progress in both maybe Youre in Canada across a wide range of activities demonstrating that we are fully committed to delivering strong results.

Speaker Change: You are all aware of the significant weather event, which impacted the Langer Heinrich mine in March Paul will take you through the great recovery work, which has been completed but I wanted to take this opportunity to call out the team at Langer Heinrich.

Ian Purdy: Paul will take you through the great recovery work which has been completed, but I wanted to take this opportunity to call out the team at Langer Heinrich. I was in Namibia with the team as they were recovering from the flooding. Their response and SWIFT Safe Recovery Program is a credit to them all, but what is even more remarkable is that a proportion of our employees and their families were personally impacted by the floods, yet came to work prioritising the recovery of the mine despite what was going on at home. In Canada, we've seen some important steps forward in delivering value from the PLS project, including two mutual benefit agreements signed with First Nations during the quarter.

Speaker Change: Maybe with the team as they were recovering from the flooding.

Speaker Change: <unk> response, and Swift safe recovery program is a credit to the mall, but what is even more remarkable is that a proportion of our employees and their families with personally impacted by the floods came to work prioritizing the recovery of the mine despite what.

Speaker Change: What's going on at home.

Speaker Change: In Canada, we've seen some important steps forward in delivering value from the Pls project, including two mutual benefit agreements signed with first nations during the quarter.

Speaker Change: You will also have noticed in the quarterly that the practical integration of our pellet and efficient teams is largely complete so we can fully focus on delivering results for our shareholders.

Ian Purdy: You will also have noticed in the quarterly that the practical integration of our Paladin and Fission teams is largely complete so we can fully focus on delivering results for our shareholders.

Speaker Change: Thanks again for attending our call I'll now hand over the pole to run you through the operational highlights for the quarter.

Ian Purdy: Thanks again for attending our call.

Ian Purdy: I'll now hand over to Paul to run you through the operational highlights for the quarter.

Ron: Thank you Ian and good morning, everyone.

Paul Hembrough: Thank you Ian, and good morning everyone. I'm pleased to have the opportunity today to talk through Paladin's quarterly results and in particular the operational highlights. Paladin recorded a wide range of achievements during the quarter, including the highest Langer-Parnwick mine quarterly production to date as part of the ongoing operational ramp-up. Sales for the quarter were £872,000 at an average realised price of £69.90 per pound. We commenced initial mining activities which I'll go through in more detail shortly. In Canada we were granted an exemption by the Canadian government from the non-resident ownership policy for PLS and we also signed mutual benefits agreements with two First Nations groups as Ian mentioned.

Ian Petty: I'm pleased to have the opportunity to talk through <unk> quarterly results and in particular the operational highlights.

Ian Petty: <unk> recorded a wide range of achievements during the quarter, including the highest laying out on a mine quarterly production to date as part of the ongoing operational ramp up.

Ian Petty: For the quarter were 872000 pounds at an average realized price of $60 90 per pound.

Ian Petty: We commenced initial mining activities, which I'll go through in more detail shortly.

Ian Petty: In Canada, we were granted an exemption by the Canadian government from the non resident ownership policy for Pls and we also signed.

Ian Petty: Mutual benefits agreements with two first nations groups as in mentioned.

Ian Petty: Finally, unrestricted cash and short term investments of $127 8 million as at 31 March 2025, with Undrawn debt facilities of USD 50 million.

Paul Hembrough: Finally unrestricted cash and short-term investments of $127.8 million as at 31 March 2025 with undrawn debt facilities of US$50 million and first scheduled term loan repayments were completed.

Ian Petty: This scheduled 10 line repayments were completed.

Ian Petty: More specifically in Namibia.

Paul Hembrough: More specifically in Namibia, I'd like to give you an update from Lange Heinrich. Langer Heinrich produced 745,000 pounds of uranium during the quarter, which is a 17% increase on the previous quarter's production and brings total production to over 2 million pounds in the financial year to date. This result is despite the 1 in 50 year rain event that hit Longa Heinrich and surrounding areas and I'm very proud of the team's effort. There's nothing more important than the safety of our people and I'm pleased to report that there were no injuries during the flooding event and none during the recovery effort.

Ian Petty: But to give you an update from Langer Heinrich.

Ian Petty: <unk> produced 745000 pounds of uranium during the quarter, which is a 17% increase on the previous quarter's production and brings total production to over 2 million pounds in the financial year to date.

Ian Petty: This result is despite the 150 year, Ryan events that hit longer Heinrich and surrounding areas and I'm very proud of the team's efforts.

Ian Petty: There's nothing more important than the fact that our people and I'm pleased to report that there were no injuries during the flooding event and none during the recovery efforts.

Ian Petty: For the quarter, there were no significant safety events or reportable environmental incidents.

Paul Hembrough: For the quarter, there were no significant safety events or reportable environmental incidents. You will be aware that the rain caused a range of disruptions including suspension of operations, saturation of the existing stockpiles and impacts on the processing plant chemistry. Local access roads and civil infrastructure were also damaged by the widespread rainfall and as Ian mentioned earlier the communities and their employees were impacted. We intended to accelerate mining by opening the G3A segment of the GPIT, which had historically been partially mined. Flooding in the G3A has caused a delay to the start of the mining rampart.

Ian Petty: You'll be aware that the rain caused a range of disruptions, including suspension of operations saturation of the existing stockpiles and impacts on the processing plant chemistry.

Speaker Change: Local access rides in civil infrastructure will also damaged by the widespread rainfall and as Ian mentioned earlier, the <unk> and their employees.

Ian Petty: Were impacted.

Ian Petty: We intended to accelerate mining in the <unk> segment of the J P, which had historically been partially mined flooding in the G. III has caused the delay to the start of the mining ramp up <unk>.

Ian Petty: <unk>, which is an adjacent pit with less historical development was not flooded and was chosen as an alternative to commence mining the.

Paul Hembrough: G2A, which is an adjacent pit with less historical development, was not flooded and was chosen as our alternative pit to commence mining. The G pit will ultimately become one single open pit. All approvals for mining activities are in place, the haul roads and infrastructure between the GPIT and the ROM have been resurfaced and is now fully operational. We've managed to mobilise a significant amount of equipment to site and we have started recruitment of operators and commenced their training. The equipment that we have on site includes three 6015 Caterpillar excavators, 18 Komatsu 785 rear dump trucks, four Sandvik DI605 blast hole drill rigs and a range of ancillary equipment.

Ian Petty: <unk> will ultimately become one single open pit.

Ian Petty: Full approval for mining activities are in place.

Ian Petty: The whole roads and infrastructure between the JP and the ramp has been refurbished and is now fully operational.

Ian Petty: We've managed to mobilize a significant amount of equipment to start we have started recruitment of arthritis and commenced their training.

Ian Petty: The equipment that we have on site includes 360 15, Caterpillar excavators <unk> commenced a 705 ridge dump trucks.

<unk>.

Ian Petty: 605 blast hole drill rigs.

Ian Petty: And a range of ancillary equipment.

Ian Petty: This of course is in addition to our existing fleet that we have on the stockpile managing the right clients.

Paul Hembrough: This of course is in addition to our existing fleet that we have on the stockpile managing the REIT client. With our drill and blast equipment mobilised to site, we managed to blast G2A pit in April and have commenced hauling material to the ROM and the crushers. This was our first blast in nearly a decade and was successfully and safely executed. It's a very, it's a fantastic milestone for the company and I'm really pleased about the efforts that the team made to make this happen.

Ian Petty: Without drilling blast equipment my velocity thought we managed to blast <unk> IP in April and have commenced wholly material to the wrong and the crushes.

Ian Petty: This was our first loss in nearly a decade and was successfully and safely executed.

Ian Petty: This is a very.

Ian Petty: It's a fantastic milestone for the company and.

Ian Petty: And I'm really pleased that the.

Ian Petty: The team made to make this happen.

Ian Petty: Also in the media, we are maintaining our focus on the community and are supporting various LIFO initiatives, including dining in ambulance to local hospital, providing equipment to support the place and keeping our people sites in our community and the provision of Iot equipment, enabling upskilling of school children and job seekers.

Paul Hembrough: Also in Namibia we're maintaining our focus on the community and are supporting various local initiatives including donating an ambulance to the local hospital, providing equipment to support the police and keeping our people safe in our community and the provision of IT equipment enabling upskilling of school children and job seekers.

Ian Petty: I'll just provide a quick overview of progress at pellet in Canada.

Paul Hembrough: I'll just provide a quick overview of progress at Paladin Canada. We've had a range of achievements post-acquisition of Fish and Uranium Corp that have enhanced the future of the PLS project. Notably, we signed those two Mutual Benefit Agreements in February with the Buffalo River Dean Nation and the Clearwater River Dean Nation. in order that the development of a PLS project delivers shared economic and social benefits to the local community. Additionally, Paladin was granted an exemption from Canada's non-resident ownership policy for PLS by the Canadian Minister for Energy and Natural Resources in May. Winter drilling programs at both PLS and Michelin projects have progressed well over the quarter and those results will be used to inform and guide our future drilling activities at both locations.

Ian Petty: We've had a range of achievements post acquisition of efficient uranium co op that have enhanced the feature of the Pls project, notably we saw a nice mutual beneficial benefit agreements in theory with the Buffalo River de nation in the Clearwater River de nation.

Ian Petty: In order the development of a tailored project deliver shared economic and social benefits to the local community.

Ian Petty: Additionally, pellet <unk> was granted an exemption from Ken does nonresident ownership policy for Pls by the Canadian Minister for energy and natural resources in March.

Ian Petty: Winter drilling program that both Pls Michelin projects have progressed well out of the quarter and those results will be used to inform and guide our future drilling activities at both locations.

Ian Petty: I've had the opportunity to spend some time in Saskatchewan and initial and projects and I've been really impressed by the team with nice projects and particularly their commitment to achieving results over the winter period.

Paul Hembrough: I've had the opportunity to spend some time in Saskatchewan and at the Michelin project and I've been really impressed by the team working on those projects and particularly their commitment to achieving results over the winter period.

Ian Petty: Okay.

Ian Petty: So in summary, and just to recap what we face serious challenges at Longhorn Rick you made really good progress on recovering the operation we've maintained high overall recovery rates.

Paul Hembrough: So in summary, and just to recap, while we faced serious challenges at Lungaheinrick, we made really good progress on recovering the operation. We've maintained high overall recovery rates. and mobilising equipment to site. We've got our first blast away and are looking forward to getting on with mining this quarter.

Ian Petty: And mobilizing equipment to thought we could.

Ian Petty: First blast, Hawaii and are looking forward to getting on with mining this quarter in Canada.

Ian Petty: We continue to progress.

Paul Hembrough: In Canada... We continue to progress environmental approvals at PLS and preparation for the exploration programs at both Michelin and PLS.

Ian Petty: Mental approvals of Pls and preparation for the exploration programs at both Michelin and Pls.

Ian Petty: I'll hand back to Ian.

Ian Purdy: And I'll now hand back to Ian. Thanks, Ian. Thanks, Paul. As you've heard, we've made really good progress despite some challenges in the quarter. We look forward to continuing the ramp up with the introduction of mining at Langer Heinrich and we also look forward to progressing the approvals processes at PLS.

Ian Petty: Thanks, Paul.

Ian Petty: As you've heard we've made really good progress. Despite some challenges in the quarter, we look forward to continuing the ramp up with the introduction of mining at Langer Heinrich and we're also look forward to progressing the approvals processes that Pls I would now like to open the floor to questions.

Operator: I'd now like to open the floor to questions. Thank you. If you wish to ask a question, please press star 1 on your telephone and wait for your name to be announced. If you wish to cancel your request, please press star 2. If you're on a speakerphone, please pick up the handset to ask your questions.

Ian Petty: If you wish to ask a question. Please press star one on your telephone and what's your name to be announced.

If you wish to cancel your request please press star two.

Ian Petty: If you're on a speakerphone please pick up the handset to ask your question.

Ian Petty: Your first question comes from Alistair Rankin from RBC capital markets. Please go ahead.

Alistair Rankin: Your first question comes from Alistair Rankin from RBC Capital Markets, please go ahead.

Alistair Rankin: Good morning.

Alistair Rankin: Poland, Alex Congrats on the strong results despite the tough conditions.

Alistair Rankin: Good morning, Ian, Anna, Paul, and Alex. Just my first question around... What's your timeline or rough timeline you've got for blending that material?

Speaker Change: My first question around <unk>.

Speaker Change: What's your timeline of rough timeline.

Speaker Change: Lending that material with the existing stockpile material in the processing circuit.

Nelson: Yeah. Thanks for the question Nelson.

Speaker Change: We bought the debt piece.

Paul Hembrough: Thanks for the question Alistair. We blasted that pitch in April and we've started mobilizing that material through to the crushers and to the ROM. Early indications are positive and so we are continuing to develop our blend strategy. What's important about the blend strategy is that we have quite a bit of wet material on the stockpile. The mine material brings us coarse dry material and the impact that we are expecting to see is improved settling particularly through the CCDs which should drive an uplift in our throughput. So that process has started. We'll continue to optimize that blend strategy in the current quarter.

Speaker Change: In April and we started mobilizing that material through to the crushes and to the wrong.

Speaker Change: Early indications are positive and so.

Speaker Change: We are continuing to develop our blending strategy.

Speaker Change: What's important about the blend and strategies that we have some quite a bit of wet material on the stockpile. The mine material brings us cause drawing material and the impact that we are expecting to see is improved steadily and particularly through the safety days, which should drive an uplift in our throughput. So that process has started and will continue.

Speaker Change: To optimize that Glen strategy in the current quarter.

Speaker Change: Okay, that's clear just a little bit more on the JV.

Alistair Rankin: That's clear.

Alistair Rankin: Just a little bit more on the J-PIT. Looking at the technical report, tons of high-grade material at 819 ppm. With that in mind, what kind of upside to the grade are you targeting?

Speaker Change: Looking at the feasibility.

Speaker Change: Technical report that was put out in June last year is around <unk> thousand.

Speaker Change: Tons of high grade material that norm chain ABM.

With that in mind, what kind of upside to the gravity targeting from Wendy about materials.

Speaker Change: All of our material.

Speaker Change: Yes, most of the long term plan remains unchanged and the loss of mine.

Paul Hembrough: Alistair, the long-term plan remains unchanged and the loss of mine grade we expect to be consistent with our previous mine plan. So in any pit that we have at Lungah Heinrich, there's a range of grades and GPIT of course is no different. So there is a proportion of which is classified as high grade, the vast majority is a medium grade and of course there's low grade material. So what we're trying to do is optimise our mine plan to give us a consistent feed grade and optimise the cost of loading and hauling that material to the crushers.

Speaker Change: The bride we.

Speaker Change: We expect to be consistent with our.

Speaker Change: Previous.

Speaker Change: <unk> plan.

Speaker Change: So in any pit that we have that long of Heinrich there's a range of.

Speaker Change: Grades and.

Speaker Change: And James that of course is no different so there is a proportion of which is.

Speaker Change: Classified as high grade.

Speaker Change: The vast majority is as a medium grade and of course this lower grade material.

Speaker Change: So what we're trying to do is optimize them mine plan to give us a consistent feed grade.

Speaker Change: And optimize the cost of lighting and holding that material to the crusher.

Speaker Change: So what we anticipate is over the life of mine is to maintain that target.

Alistair Rankin: So what we anticipate is over the life of mine is to maintain that target grade as we reported earlier. Okay, that's clear.

Speaker Change: <unk> cried as we reported earlier.

Speaker Change: Okay, that's great I'll jump back in the queue.

Alistair Rankin: I'll jump in. Thank you.

Speaker Change: Thank you. Your next question comes from Kamran Taylor from Bank of America. Please go ahead.

Cameron Taylor: Your next question comes from Cameron Taylor from Bank of America. Please go ahead. Yeah, good morning all. Thanks for the strong results, as Alistair mentioned. Just on the mining of the G pits, I just remember reading in the technical report, sort of, H and J pits were the higher grade. and they were looking to be mined first. Why are we mining the G pits? Is it a cost issue? Is there any sort of strategy there as to why we've targeted those pits or you've targeted those pits?

Kamran Taylor: Hey, good morning, all thanks for the strong results and as I also mentioned just on the mining of the pits.

Just remember writing in the technical report sort of H and J pits with the high grade.

Kamran Taylor: And I was looking to be mined.

Kamran Taylor: Why are we mining the pits is it a cost issue is there any sort of strategy.

Why we've targeted those pits or you've targeted those pits.

Ken: Thanks, Ken.

Paul Hembrough: Yeah, thanks Cam. If you recall our original plan was to commence mining in July and what we've done is made a pretty earnest attempt at bringing that mining forward. In order to accelerate mining what we've targeted is the G pits mostly for the reason that there has been some work done in the G pits previously. G3A which was the flooded pit had already actually been blasted and if not for the flooding we potentially could have been load and hauling out of that pretty quickly. G2A is adjacent and we are modifying the sequence mostly because it gives us that ability to accelerate the ramp up prior to July.

Ken: As you recall, our original plan was to commence mining in July and what we've done is.

Ken: <unk> made a pretty earnest attempt at bringing that mining forward in order to accelerate mining what we've targeted is.

Ken: The J P mostly for the reason that.

Ken: There has been some work done in the J P. As previously.

Ken: <unk> III, which was the flooded pit had already actually been blasted.

Ken: And if not for the flooding, we potentially could have been.

Ken: Yeah.

Ken: And holding out of that pretty quickly.

Ken: <unk> is adjacent and.

Ken: We are modifying the sequence.

Ken: Mostly because it gives us that ability too.

Ken: To accelerate the ramp up process at July the alternative pathway from July onwards would be.

Paul Hembrough: The alternative pathway from July onwards would be stripping and clearing topsoil, preparing our blast pads, blasting, overburden removal. So this was a really good way that we could accelerate the mining program.

Ken: Stripping and clearing top soil.

Ken: Preparing.

Ken: Plus had blasting.

Ken: Overburden removal. So this was a really good way that we could accelerate that.

Ken: Mining program.

Ken: Okay. That's helpful. Thank you and sort of.

Cameron Taylor: Okay, that's helpful. Thank you.

Ken: When do we start.

Cameron Taylor: And when do we start the plant back up again? What kind of run rate are we at at the moment in terms of production? Has the recovery been as quick as you'd expected, given the amount of rain? And had that guidance of 3 to 3.6 million pounds still been in play, would that be achievable by the end of this financial year?

Speaker Change: The plant back up again, what kind of runway run rate are we at.

Ken: At the moment in terms of production.

Speaker Change: Okay.

Speaker Change: And the recovery bin quicker as quick as you'd expected given the amount of rain and.

Speaker Change: Had that.

Speaker Change: Guidance of three to $3 6 million pounds still then imply would that be achievable by the end of this financial year.

Speaker Change: Thanks, Ken in terms of the plant.

Paul Hembrough: Thanks Ken. In terms of the plant, you know, from the rain event we saw a disruption at the plant and there has been some disruption carryover into early April. The plant is now fully recovered. We've got a little bit of work to do to, you know, to deliver an uplift and overall recovery, but for the quarter, you know, that was sustained within our target levels. My expectation is that, you know, is that we, you know, maintain this momentum into the current quarter. So, yeah, I'm feeling, you know, the results early April, you know, I expect those to carry on into the quarter and, you know, I expect an uplift in this quarter compared to the last.

Speaker Change: From the rain event, we saw a disruption at the plant and there has been some disruption carry over into early April. The plant is now fully recovered, but a little bit of work to do to.

Speaker Change: To deliver an uplift in overall recovery, but for the quarter now that was sustained at within our target levels My expectation is that.

Speaker Change: Is that we.

Speaker Change: Maintaining this momentum into the current.

Speaker Change: The current quarter.

Speaker Change: So, yes, I'm feeling the results.

Speaker Change: Early April.

Speaker Change: I said to carry on.

Speaker Change: Into the quarter.

Speaker Change: And I.

Speaker Change: I expect an uplift in this quarter compared to the last.

Speaker Change: So an uplift in quarter on quarter. Okay. That's helpful and just maybe one last one I can squeeze in given the amount of Ryan you've had.

Cameron Taylor: So an uplift in quarter-on-quarter, okay, that's helpful.

Cameron Taylor: And just maybe one last one I can squeeze in.

Cameron Taylor: Given the amount of rain you've had, you know, obviously unprecedented, you know, one in however many thousand years, but have you made any improvements to prevent, you know, this flooding to occur again, and mainly on the haul roads and access roads? Is there anything you can improve there to make sure that...

Speaker Change: Let's say unprecedented.

Many thousand years.

Speaker Change: Have you made any improvements.

Speaker Change: To prevent this flooding to occur again, and mainly on the haul roads and access rights is there anything you can improve that to make sure that no.

Speaker Change: Further rain events less disruptive.

Yes, Thanks, Kim in fact, what we actually did price thing was did I.

Paul Hembrough: Yeah, thanks, Cam. In fact, what we actually did prior to opening was did a hydrology study across the whole site, and we had already put in place a significant amount of bunding across the site. We put in place floodways. And what actually happened during the rain event was we were able to direct the vast amount of water into the tailings facility and also into JPIT. At the eastern end of the mine, where the JPIT is, we had some inflows from the south that were more than we had expected in that study. So what we do know, though, is that our flood mitigations largely worked and did direct the water flows where we wanted them.

Speaker Change: Hydrology study across the whole side, and we had already put in place significant amount of bonding across the site.

Speaker Change: We put in place floodway.

Speaker Change: And what actually happened during the rain event was we were able to direct the vast amount of water into the tailings facility and also into the into J P. At the eighth and enter them on with the <unk>.

Speaker Change: We had some inflows from the south.

Speaker Change: That were more than we had expected in that study.

Speaker Change: What we do know that.

Speaker Change: Is that a flood mitigation loss.

Speaker Change: Largely worked.

Speaker Change: And did direct a waterflood, where we wanted them.

Speaker Change: There's probably a bit more work and some learnings from this flood of them, particularly at the eastern end of the pit around the particularly around those J pits so that.

Paul Hembrough: There's probably a bit more work and some learnings from this flood event, particularly at the eastern end of the pit, particularly around those JPITs. So that work has already commenced as part of the recovery efforts to refurbish the road network and the bunding at that end of the plain.

Speaker Change: That work has already commenced as part of the recovery efforts to refurbish the right network and the bonding at that end of the plant.

Speaker Change: Okay. Thank you I'll pass it on.

Cameron Taylor: Okay, thank you.

Cameron Taylor: I'll pass it on. Thank you.

Speaker Change: Thank you. Your next question comes from James <unk> from CGS <unk>. Please go ahead.

James Bullen: Your next question comes from James Bullen from CGS. Please go ahead. Good morning all, just a quick question, so operations are back to normal, you've commenced mining, what is holding you back from reissuing guidance here?

Speaker Change: Good morning, all.

Speaker Change: Just a quick question.

Operations back to normal.

Speaker Change: We've commenced mining what is holding you back from reissuing guidance here.

Speaker Change: So I'll answer that one.

James Bullen: James I'll answer that one. So there's nothing holding us back from issuing guidance. But what we want to do, given our issues this year with our guidance, when we issue guidance we want to be 100% sure that we can achieve or exceed that guidance obviously because that's always the ultimate objective. So what we're doing this year, as we've said, we are looking to provide guidance at the end of August. There's several factors that will be completed by the end of August. Firstly, we would have gone through our full zero-based budgeting process, which is a comprehensive process that corporates do every year that results in an internal view of what we think the results may be.

Speaker Change: So.

Speaker Change: There is nothing holding us back from issuing guidance, but what we wanted to do given given.

Speaker Change: No issues this year with our guidance.

Speaker Change: When we issue guidance, we wanted to be 100% sure that we can achieve or exceed that guidance, obviously, because thats always the ultimate objective.

Speaker Change: What we're doing.

Speaker Change: This year as we've said we are looking to provide guidance at the end of August. There's several factors that will be completed by the end of August Firstly, we would've gone through a full zero based budgeting process, which is a comprehensive process that corporates to every year that result.

Speaker Change: <unk> in <unk>.

Speaker Change: An internal view of what we think the results might be but that process has commenced and will run for the next couple of months and so corporates. Two secondly, we are still in ramp up James Lewis I know the markets came for us to move on from ramp up but it's a two year ramp up rod.

Ian Purdy: That process has commenced and will run for the next couple of months, as all corporates do. Secondly, we're still in ramp-up, James. I know the market's keen for us to move on from ramp-up, but it's a two-year ramp-up, right? So the new element that we've just introduced to our operation is mining feed. Now, we want to see the results of the mining feed for several months and get a real handle on our mining productivity, our mining costs, and the impact not only on the grade, but on the throughput, as Paul said, that we're expecting. Now, that process will run over the next few months, and I'm really pleased that the team has started introducing mining feed already.

Speaker Change: So the new element that we've just introduced our operation is mining side now we want to see the results of the mining phase for several months and get a real handle on our mining productivity, our mining costs and the impact not only on the great but on the throughput as Paul said that we're expecting.

But that process will run over the next few months and I'm really pleased that the team has started introducing mining fleet already now you bring that.

Speaker Change: That track record and you bring the budgeting process.

James Bullen: Now, you bring that track record and you bring the budgeting process and you look at August, and we'll have some really good numbers to share with the market. Also, let's not forget, we've got a fantastic project in Canada called the PLS Project, where we're looking at our timelines, we're looking at our priorities in terms of approvals and moving that project forward, and we've got a fair chunk of work underway on that as well. So we feel really confident that late August we'll come to the market with some fantastic numbers that we can stand behind, but most importantly, James, we'll have some empirical track record that supports our ramp-up assumptions going forward.

Speaker Change: You look at August and we'll have some really good numbers to share with the market also let's not forget we've got a fantastic project in Canada called the <unk> project.

Speaker Change: We're looking at our time lines, we're looking at our priorities in terms of approvals and moving that project forward and we've got a fair chunk of work under way on that as well. So we feel really confident that light August will come to the market with some fantastic numbers that we can stand behind but most importantly, James.

Speaker Change: We'll have some empirical track record that's.

Speaker Change: Supports our ramp up assumptions going forward.

Speaker Change: That's super helpful and obviously, there has been a little bit of conjecture in the market post the rain events.

James Bullen: Thanks Dan, that's super helpful. And obviously there has been a little bit of conjecture in the market, post the rain event, about your ability to deliver into all of your contracts and whether you'd be able to do that without tapping into the spot market. How are you feeling about how you're positioned, given how quickly you've bounced back here in terms of production?

Speaker Change: Your ability to deliver and to all of your contracts with EPS.

Speaker Change: Tapping into the spot market how are you feeling about how you're positioned given how quickly bounce back here.

Speaker Change: <unk>.

Alex Poland: Alex do you want to answer that one yes. Thanks James.

Alex Ryback: Alex, do you want to answer that one? Yeah. Thanks, James. Look, first of all, we've met all of our delivery obligations to date, and as we said previously, we have a number of mechanisms to manage our future deliveries, so we obviously initially built our contract book with the principle of expect the unexpected, and we've left significant uncommitted volumes in our portfolio. We've also got, currently in our book, significant flex-up and flex-down provisions that we're able to exercise. And lastly, we've got relevant contract protection mechanisms as well to handle such weather events. So we've notified all of our customers of the weather event, our customers have been very supportive and flexible, a number of them have offered to delay deliveries if we need to.

Speaker Change: Look.

Speaker Change: First of all we've met all of our delivery obligations to date.

Speaker Change: And as we said previously we have a number of mechanisms to manage our future deliveries.

Speaker Change: So we obviously initially built our contract book.

Speaker Change: With the principle of expect the unexpected and we've left significant uncommitted volumes in our portfolio.

Speaker Change: We've also got.

Speaker Change: <unk>.

Speaker Change: Currently in our book significant flex up and flex down provisions.

Speaker Change: But we were able to exercise.

Speaker Change: And lastly, we've got relevant contract protection mechanisms as.

Speaker Change: As well.

Speaker Change: To to handle such weather events. So we've notified all of our customers of the weather event.

Speaker Change: Our customers have been very supportive and flexible.

Speaker Change: A number of them have offered to delay deliveries if we need to.

Speaker Change: So we're working very constructively with our customers.

Alex Ryback: So we're working very constructively with our customers and we have a number of levers in our book to manage our future deliveries, James.

Speaker Change: And we have a number of levers in our book to manage our future deliveries James.

James Lewis: That's great thanks, very much Alex.

Shannon Sinha: Thank you very much, Helen. Thank you.

Speaker Change: Thank you. Your next question comes from Shannon Sinha from Morgan Stanley. Please go ahead.

Shannon Sinha: Your next question comes from Shannon Sinha from Morgan Stanley. Please go ahead. Hi Ian, Paul and Alex, congrats on the good quarter. I just wanted to ask around recovery, so they were quite good this quarter as well, what could we expect to see from recoveries when we start processing some more of the saturated ore material? Thanks Shannon. Recovery rates are actually already within our target range of 85 to 90. So like every operation, what we intend to do is to continue to optimise, to seek out some improvement opportunities. But the focus now is actually on optimising that blend strategy.

Shannon Sinha: Hi, ample and Alex.

Speaker Change: Congrats on the good quarter I, just wanted to ask around recovery.

Shannon Sinha: Quite good this quarter as well.

Shannon Sinha: Could we expect to see from recoveries on Wingstop pricing tomorrow under saturated or materials.

Shannon Sinha: Yeah. Thanks Shannon.

Shannon Sinha: Recovery rates.

Speaker Change: Actually already within our target range of 85 to 90.

Shannon Sinha: So.

Shannon Sinha: Like every operation what we intended to do is to continue to optimize to seek out some improvement opportunities.

Shannon Sinha: But the focus now is actually on.

Shannon Sinha: Optimizing that blend strategy.

Shannon Sinha: Getting the efficiency of our mining fleet is processing the stockpile material.

Shannon Sinha: It's getting the efficiency out of our mining fleet, it's processing the stockpile material, but we'll continue to work on those recoveries. But they're well within the range that we expect and it's not our biggest focus right now. Okay but I just wanted to check once you start like processing the saturated oil that's not going to change those recoveries and we won't see lower recoveries. No, no, it's not going to change that. Okay, cool.

And.

Shannon Sinha: But we'll continue to work on nice recoveries.

Shannon Sinha: They are well within the within the range that we expect.

Shannon Sinha: And.

Shannon Sinha: It's not a it's not a.

Shannon Sinha: It's not our biggest focus right now.

Speaker Change: Okay, but I just wanted to check once you start pricing that trade at all.

Shannon Sinha: Change that came about why recoveries commentary.

Shannon Sinha: No, it's not going to change that now okay.

Shannon Sinha: Okay cool.

Shannon Sinha: And then maybe if I just ask one on pls.

Shannon Sinha: And then maybe if I just ask one on PLS, so I saw that you've signed those two agreements there. What other sort of Indigenous Nation agreements need to be signed to progress the project? Yeah, we've got a bit more work to do on there. The two agreements we signed were really, really important for us and I think it's a validation of the recognition and support for the Paladin ownership. Obviously, with the new company coming on board, new ownership structure, the First Nation parties are very keen to understand who we are, what our approach to and what differences will there be under the new ownership structure.

Shannon Sinha: I saw that you find this two agreements there.

Shannon Sinha: I'll, just sort of indigenous nation agreements need to be signed to there.

Shannon Sinha: Progressive project.

Shannon Sinha: We've got a bit more work to do on there.

Shannon Sinha: The two agreements we saw and we are really really important for us.

Shannon Sinha: It is a validation of the recognition and support for the pellet and ownership, obviously with a new company coming onboard new ownership structure.

First nation parties are very keen to understand who we are what our approach to businesses and what what differences will be under the new ownership structure really really pleased that we were able to work with those two parties to highlight the fact that number one pellet and ownership of.

Shannon Sinha: Really, really pleased that we were able to work with those two parties to highlight the fact that number one, Paladin ownership of this asset is actually positive for everyone and positive in terms of bringing the asset forward. Secondly, we are a good owner and a good neighbour and we genuinely endeavour to work with our local communities for sustainable benefits for everyone. We pointed to our track record in Namibia, we introduced ourselves, we met face to face and really importantly, we've got a very strong local fishing team that we are totally supporting. So I think those two signings is a really important acknowledgement and an endorsement of the Paladin positive influence and ownership of that asset.

Shannon Sinha: This asset is actually positive for everyone and positive in terms of bringing the asset forward. Secondly, we are good on her in a good neighbor and we genuinely endeavor to work with our local communities for sustainable benefits for everyone. We pointed to our track record in Namibia, we introduced there.

Shannon Sinha: So we met face to face and really importantly, we've got a very strong local fishing theme that we are totally supporting so I think those two signings as a really important acknowledgment and an endorsement of the Polish pellet and positive influence and ownership of that asset there is other parties.

Shannon Sinha: We're talking to.

Shannon Sinha: There's other parties that we're talking to, Fish and have had a relationship with all parties spanning back, coming close to 20 years and we'll continue to work on getting the other approvals we need. One of the main focuses right now is we're really well advanced on our environmental approval, our provisional environmental approval and we'd like to see that come in in the second half of this year. So things are going really well, we're moving forward and we've got a great team on the ground that's really well connected to the local community.

Shannon Sinha: Efficient and pedal relationship with all parties spending back coming close to 20 years, and we will continue to work on getting other approvals we need one of the main focuses right. Now is we're really well advanced on our environmental approval, where provisional environmental approval and we'd like to see that.

Shannon Sinha: Come in in the second half of this year. So things are going really well, we're moving forward and we've got a great team on the ground, that's really well connected to the local communities.

Perfect. Thanks for that update and I'll pass it on.

Shannon Sinha: Perfect. Thanks for that update.

Shannon Sinha: I'll pass it on. Thank you.

Speaker Change: Thank you. Your next question comes from <unk> <unk> from Bell Potter Securities. Please go ahead.

Regan Burrows: Your next question comes from Regan Burrows from Bell Potter Securities. Please go ahead. Good morning Ian, Alex, Paul and Anna. Thanks for taking my questions.

Speaker Change: Good morning, and Alex Poland, and thanks for taking my questions first question, Alex just on the contract book I mean for FY 2006 can you give us a bit more.

Regan Burrows: First question, perhaps for Alex, just on the contract book. I mean, for FY26, can you give us a bit more guidance as to what is already contracted? Yeah, Regan, we've provided a bit more information in our presentation about a contract book, because I think people wanted to, you know, understand that a little bit better. We recognise that. So, you'll see we have 22, roughly 22 million pounds contracted over 25 to 30. We obviously don't provide a, you know, a year by year breakdown for obvious, commercial reasons. But we do have, you know, disclosed the overall volume of contracts over the next six years.

Speaker Change: Got it.

Speaker Change: <unk> is already contracted.

Speaker Change: Yes.

Speaker Change: <unk> provided a bit more information in our presentation.

Speaker Change: Our contract book, because I think people wanted to understand that a little bit better recognize that so.

Speaker Change: You will see we have 22, roughly 22 million pounds.

Speaker Change: Contracted over 25 to 30.

Speaker Change: Obviously, you don't provide a.

Speaker Change: A year by year breakdown for obvious commercial reasons.

Speaker Change: But we do have.

Speaker Change: Disclose the overall volume of contracts over the next six years.

Speaker Change: And we also disclose pricing related mechanisms as well.

Regan Burrows: And we also disclosed our pricing related mechanisms as well, that is, you know, running at about 60-40 split, market related versus base escalated. So, I think that will give people some information to be able to model our portfolio in a more informed way, Regan.

<unk> running at about 60, 40 split market related versus base escalator. So I think that will give people. Some some information to be able to model lab portfolio.

Speaker Change: In a more informed way Reagan.

Speaker Change: Okay, and then potentially just following on from that I mean.

Regan Burrows: Okay, and potentially just following on from that, I mean, the initial guidance for FY25, it was roughly sort of at the midpoint, 93% of production, you were going to be selling into the sales contracts. I understand there's probably some flexibility with CNNC in those numbers, but just to try and understand FY26, how much flexibility do you have in the contract book and how does that sort of match against your ramp-up profile now? Yeah, so we do have quite significant amount of flexibility because most of it does come from the CNNC offtake, which is, you know, for 25% of production.

Speaker Change: The initial guidance for FY 'twenty five it was roughly sort of at the midpoint, 93% of production youre going to be selling into the sales contract I understand there's probably some flexibility with sand and say in those numbers, but just trying to understand FY 'twenty six.

Speaker Change: How much flexibility do you have in the contract book and how does that sort of.

Speaker Change: Match against your ramp up profile now.

Speaker Change: Yeah. So we do have quite a significant amount of flexibility because most of it does come from the scene in the offtake, which is.

Speaker Change: For 25% of production so.

Speaker Change: With that.

Regan Burrows: So, you know, with that, you know, as I said, you know, it's one of our mechanisms that allows us to flex deliveries up and down, there's others as well. Obviously, you know, we're in discussions with our customers, we have left uncommitted volumes in our portfolio as well. So with all that, you know, we feel very confident that we can manage our future deliveries. As I said, we had very constructive discussions with our customers. They're very supportive. And, you know, we continue to work with them on future delivery.

Speaker Change: As I said, it's one of our mechanisms that allows us to flex.

Speaker Change: Levers up and downs as others as well obviously, we're in discussions with our customers we have a lift.

Speaker Change: Uncommitted volumes in our portfolio as well.

Speaker Change: So with all that.

Speaker Change: We feel very confident that we can manage our future deliveries as I said, we had very constructive discussions with our customers.

Speaker Change: They are very supportive.

Speaker Change: And.

Speaker Change: We continue to work with them on future deliveries.

Speaker Change: Okay, Thanks, and potentially just one more question on the stockpile.

Regan Burrows: Thanks and potentially just one more question on the stockpile, how much I guess is available for processing currently on a percentage basis and over the next sort of three to six months how does that mix between fresh ore and stockpile or what's the sort of proportion of those two going into the plant? Yeah, thanks Regan. What we'll do is we'll figure that out on what gives us the optimised throughput rates and grades. So, at the moment, you know, we've been, you know, early this quarter we've been mining onto the stockpile, onto the ROM rather, and direct feed to Crusher, and we're working currently on what that blend strategy looks like, and that will determine how long it takes for us to move through the stockpile door.

Speaker Change: How much I guess he's available for processing currently on that.

Speaker Change: Percentage basis and over the next sort of three to six months, how does that mix between fresh ore stockpile.

Speaker Change: Or what's the sort of proportion.

Speaker Change: Sort of going into the plant.

Speaker Change: Yeah. Thanks, Ragan, what we'll do is we'll figure that out.

Speaker Change: What gives us the optimized throughput rates and grade.

Speaker Change: At the moment we've been.

Speaker Change: Italy this quarter, Vince spin mining now onto the stockpile.

Speaker Change: The room, rather than direct fate, the crusher and.

Speaker Change: We're working currently on what that brand strategy looks like and that will determine how long it takes for us to move through the through the stockpiled ore, but fundamentally it's going to be based on throughput.

Regan Burrows: But fundamentally it's going to be based on throughput and grade optimisation. Okay, and I guess no comments on what's, I guess, the portion that's saturated and unable to be used at this point in time, it's too hard to tell, or? You know, what we've typically done is when you draw off that stockpile, we take it onto the fingers and the fingers is where we blend from and we segregate on the basis of both grade and handleability. So as that material presents itself from both the stockpile and the mine, we're in a position then to determine what's that optimum mix of dry stockpile, sticky stockpile and coarse mine material in order to give us that best throughput.

Speaker Change: And great optimization.

Okay, and I guess not to comment on what's I guess, the portion that saturated and unable to be used at this point in time.

Speaker Change: Hard to tell.

Speaker Change: Oh.

Speaker Change: What we've typically done is when.

Speaker Change: When you draw that stockpile, we take it onto the fingers than that.

Speaker Change: The thing is where we where we blend from.

Speaker Change: And we segregate on the basis of both grade and handle ability.

Speaker Change: So as that material presents itself from both the stockpile and the mine where we are in a position then to determine what's the optimum.

Speaker Change: Optimum mix of.

Speaker Change: Dry stockpile sticky.

Speaker Change: Sticky stockpile and cost mined material in order to give us that phase III.

Speaker Change: Time will develop that understanding trial, a range of options and work out what that what that test.

Regan Burrows: So over time we'll develop that understanding, trial a range of options and work out what that best blend strategy is going to be for us moving forward.

Speaker Change: Blend strategy is kind of abate for us moving forward.

Speaker Change: Thanks, Heiko I'll jump back in the queue. Thank you.

Regan Burrows: Thanks. I'll jump back in the queue. Thank you.

Speaker Change: Thank you. Your next question comes from Daniel Ryan from Jefferies. Please go ahead.

Daniel Roden: Your next question comes from Daniel Roden from Jefferies. Please go ahead. Hello, guys. Thanks for taking my question and congrats on the quarter.

Speaker Change: Okay.

Daniel Ryan: Thanks for taking my question and congrats on the quarter I just wanted to get a sense sure.

Daniel Roden: I just wanted to get a sense of, I guess, the, you know, pre the weather events, what was the, I guess, operating rates of production from Langerheim kind of pre all of the disruption? Yeah, look, thanks for the question, Daniel. You know, the first weather event occurred on the 7th and, you know, then we had the subsequent event later in the month on the 19th. It was pretty early days in March, but, you know, we were actually on track for a pretty good month. The results were pretty positive, you know, but it was really only a week.

Speaker Change: I can see.

Speaker Change: Pre the weather event, what was the I guess operating rates of production from Langer Heinrich.

Speaker Change: The disruptions.

Speaker Change: Yes.

Speaker Change: Thanks for the question Daniel.

Speaker Change: The first way to vindicate on the seventh.

Speaker Change: And.

Speaker Change: Then we had this subsequent event later in the month on the 19th it was pretty early days in March but.

Speaker Change: We're actually on track for a pretty good.

Speaker Change: Pretty good months.

Speaker Change: We're pretty positive.

Speaker Change: But it was really only a week.

Speaker Change: <unk>.

The back end or the middle of the month, we struggled with.

Paul Hembrough: At the back end, or the middle of the month, you know, we struggled with challenging conditions, slippery roads, you know, water, surface water around the infrastructure. And at the back end, we started recovering fairly quickly. So it's quite difficult to sort of talk through those run rates. What I can say is, you know, so far this quarter, you know, results are looking relatively strong. So my expectation is we, you know, we'll focus on that blend strategy, optimising our grade, and, you know, we expect that momentum to deliver stronger results this quarter than last.

Speaker Change: Challenging conditions slippery roads.

Speaker Change: Water surface water around infrastructure.

Speaker Change: And its backend we started recovering fairly quickly.

Speaker Change: Got quite difficult too.

Speaker Change: Sort of talk through that is run rate what I can say is so far this.

Speaker Change: This quarter.

Speaker Change: As a result of looking.

Speaker Change: Relatively strong.

Speaker Change: So my expectation is we carry that momentum through this quarter.

Speaker Change: We will focus on that blend blend strategy optimizing.

Speaker Change: Alright.

Speaker Change: And.

Speaker Change: We expect.

Speaker Change: We expect that momentum to deliver strong results this quarter than last.

Okay, Yes.

Speaker Change: I was just trying to get a sense of how well the pension Scott everything.

Daniel Roden: I was just trying to get a sense of how well the plans for SkyCon is for everything to give an indication of how well it could go when everything kind of returns back to normal. I guess, what about the quarter exit rates in? Are you able to give a quantifiable number on what the plans are operating at today? The quarter result is a 17% uplift in overall production, it's a pleasing result. Like I sort of said a little bit earlier that our April results are really focused on getting that mining material in, we're getting plenty of dry coarse material, blend strategy seems to be progressing pretty well.

Speaker Change: Given the indication.

Speaker Change: Well it could go wrong, when everything kind of returns back no.

Speaker Change: Well I guess, what about the quarter exit rate.

Speaker Change: Are you able to predict.

Speaker Change: Yes.

Speaker Change: Funnel number.

Speaker Change: On how what the client is operating.

Speaker Change: The quarter result, as a 17% uplift in <unk>.

Speaker Change: Overall production, it's a placing result.

Speaker Change: Yes.

Speaker Change: <unk> said, it a little bit earlier that.

Speaker Change: April results are really focused on getting that mining material in we're getting plenty of them.

Speaker Change: Plenty of dry course material blend strategy seems to be progressing pretty well, we've got quite a few weeks now.

Paul Hembrough: We've got quite a few weeks now of that material moving through the plants, we know that it takes somewhere around that 50 day mark to process the material. We expect to see some improvements in settling rates in the CCDs, so we've got a little ways to go to make sure that we understand how that material is actually going to operate through the plant. We're currently maintaining our overall recovery rates within the target range, so we've just kind of got to keep working towards uplifting our mining productivity, focus on throughput and optimising the grade as we go through the GPITs.

Speaker Change: Material moving through the plants, we know that it takes.

Speaker Change: We're around that 50 <unk> to process the material.

Speaker Change: We expect to see some improvements in setting rates and the safety days.

Speaker Change: And it's.

Speaker Change: We've got a little ways to go to make sure that we understand how that material is actually going to operate through the plan.

Speaker Change: We're currently maintaining al.

Speaker Change: Overall recovery rates.

Speaker Change: Within the target range.

Speaker Change: So we just kind of got to keep working towards it.

Speaker Change: Uplifting out mining productivity focus on throughput.

Speaker Change: And opt.

Speaker Change: Optimizing the grade as we go through the <unk>.

Speaker Change: My expectation is we'll maintain that momentum through this quarter.

Paul Hembrough: My expectation is we'll maintain that momentum through this quarter. We'll see what happens at the end of the quarter.

Speaker Change: We'll say, we'll see what happens at the end of the quarter.

Speaker Change: Okay.

Maybe changing tack a little bit.

Speaker Change: One of the issues with delivery of the mining equipment.

Paul Hembrough: One of the issues was delivery of the mining equipment in the March quarter, are you able to comment on how that's progressed to date, like have you got all of the gear on site, are you still waiting on delivery? Yeah, so we've had most of the mining equipment now in the last couple of weeks arrive on site. So the key piece of equipment that we actually have, now the 6015 excavators, you know, they're 150 tonne excavators, Caterpillar, you know, brand new machines, so we had some delays getting those across the border, particularly as a consequence of the Reeboth Bridge issue.

Speaker Change: In the March quarter are you able to comment on how that's progressing.

Speaker Change: All of the gear and saw that you're still waiting on deliveries.

Speaker Change: Yes, so we've had.

Speaker Change: Most of mine equipment now.

Speaker Change: In the last couple of weeks arrive on site.

Speaker Change: The key pieces of equipment that we actually have now the $60 15, excavators and another 150 ton excavators cat.

Speaker Change: Caterpillar.

Speaker Change: The brand new machines.

We had some delays getting now is across.

Speaker Change: Across the board, particularly as a consequence of the re both bridge issue.

Speaker Change: They found their way through Botswana, and then into into Namibia, which is really positive.

Paul Hembrough: They've found their way through Botswana and then into Namibia, which is really positive. We've had 18 Komatsu 785 rear dump trucks delivered, so that gives us sufficient capacity to commence GPIT mining. It's a longer haul, obviously, than stockpile, but not as long as potentially HPIT, so sufficient capacity there. Now, we've got half a dozen new dozers, a couple of Komatsu 275s, a couple of four Caterpillar D8Rs. We have some ancillary equipment, you know, water bows, fuel trucks, service trucks, lighting plants, and we've got the existing 10 Volvo ADT60s that we have on the stockpile reclaim.

Speaker Change: We've had I think seven or eight five rig dump trucks delivered.

Speaker Change: So that gives us sufficient capacity to commence J P mining.

Speaker Change: It's along the whole obviously then stockpiled.

Speaker Change: Not as long as potentially H pits.

Speaker Change: There's sufficient capacity there now we've got half a dozen new dieses couple of commence at $2 75, a couple of for Caterpillar.

Speaker Change: <unk>.

Speaker Change: We have some ancillary equipment.

Speaker Change: Board of Bal seal truck service trucks slotting plants.

Speaker Change: And <unk>.

Speaker Change: <unk> got the existing 10, vulva <unk>, 6% that we have on the stockpile reclaim so we've got sufficient capacity to commence mining.

Paul Hembrough: So we've got sufficient capacity to commence mining, and then in the longer term, later this calendar year, we'll have the additional fleet arrive to ramp up full capacity.

Speaker Change: And then in the longer term later this calendar year.

Speaker Change: Has the additional fleet.

Speaker Change: Arrived to ramp up full capacity.

Speaker Change: Okay Alright.

Speaker Change: It looks like.

Speaker Change: Yes.

Speaker Change: <unk> mentioned.

Speaker Change: Pivoted to the <unk>, but it looks like Chase III.

Daniel Roden: You've mentioned you've pivoted to the G2A pit, but it looks like G3A is progressing its seawatering quite well, so I was trying to get an understanding of when you would be in a position and if you would be in a position to be able to accelerate both pits at the same time, do you have enough sleet to be able to do that, and given that you're not going to be able to feed your saturated stockpiles by themselves, you need to blend those in with the ore, so having the ability to accelerate those I imagine would be quite beneficial for both pits being extracted.

Speaker Change: It's progressing it's de watering quite well.

So it's trying to get an understanding of when you would be in a position. If you would be in a position to be able to ask.

Speaker Change: Accelerating at the same time do you have enough fleets to be able to do that.

Speaker Change: I guess given that you are not going to be advocate phase.

Saturated stockpiles bottoms celgene is to blend.

Speaker Change: So having the ability to accelerate those all I imagined it would be quite beneficial.

Speaker Change: Sure.

Speaker Change: Right.

Speaker Change: Than you expected.

Speaker Change: Yes, you are right Daniel the <unk> pit de watering is largely complete we've got.

Paul Hembrough: Yeah, you're right, Daniel. The G2A pit, dewatering is largely complete. We've got a sort of a fine slurry sitting at the bottom of that. We need to dry that material out, clean it out of the bottom of the pit, and then we'll be in reasonable shape to start mining that pit. I don't really want to anticipate timing of that. So we'll focus on drilling, blasting, more capacity in G2A. But ultimately, at some point, whether it's G2A, G3A, G3B, they eventually combine to form the larger G pit. And our plan is to execute our mining schedule to get G pit fully up and running.

Speaker Change: Sort of a fund flowers sitting at the bottom of that we need to draw that material out.

Speaker Change: Clean it out of the bottom of the pit and then we'll be in reasonable shape to stop mining that pit.

Speaker Change: I don't really want to anticipate the timing of that so we're focused on.

Speaker Change: Drilling blasting more capacity in <unk>, but ultimately at some point whether it's.

Speaker Change: <unk> de <unk>.

Speaker Change: They eventually combine to form the largest GDP and <unk>.

Speaker Change: And our plan is to is to execute.

Speaker Change: Morning, scheduled to get JP, it fully up and running.

Speaker Change: Okay.

And maybe just one last one from me maybe just around sorry, Alex.

Alex Ryback: And maybe just one last one for me, maybe for Alex, are you able to just give us a bit of an update on the Iranian market, how you're seeing things, what's going on at the moment with the US tariffs and changing supply chains, what are you guys seeing from Paladin specifically? Yeah, sure, Daniel. I was actually just in Montreal two weeks ago at the WNFC, meeting with all of our utility customers, the converters, the enrichers. It's a really, really interesting timing and conference from my perspective, given everything that's going on in the industry. You know, on one hand, everybody realizes this shortage of uranium that is here now and is getting larger by the year.

Speaker Change: Are you able to just give us a bit of Allen.

Speaker Change: On the Iranian market, how youre seeing things, obviously, what's going on with you guys.

Speaker Change: Thompson.

Speaker Change: Changing supply chains in August what are you guys seeing from from pellet us perspective.

Speaker Change: Yes sure.

Speaker Change: I was actually just in Montreal, two weeks ago, the WNS say.

Speaker Change: Meeting with all of our utility customers the convert is the enriches.

Speaker Change: It's really.

Speaker Change: Really interesting.

Speaker Change: The timing and conference from my perspective, given everything that's going on in the industry.

Speaker Change: One hand, everybody realizes this shortage of uranium.

Speaker Change: That is here now and is getting larger by the year on the other hand people have been distracted by some serious.

Alex Ryback: On the other hand, people have been distracted by some serious geopolitical movements, conversion and enrichment shortages, and then more recently, the tariffs. So that's been very topical. I think a lot of utilities breathed a sigh of relief when uranium was exempt. A lot of market participants were trying to understand what that, and particularly utilities, because ultimately they're the ones that bear the cost most of the time. And a lot of the utilities were trying to understand what that would mean. But now that that's being clarified and uranium being exempt, again, looking at their procurement strategies.

Speaker Change: Sort of geopolitical movements.

Speaker Change: Conversion and enrichment shortages and then more recently the tariffs.

Speaker Change: So that's.

Speaker Change: Being very topical I think a lot of utilities.

Speaker Change: Breathed a sigh of relief when writing was exempt.

Speaker Change: A lot of market participants were trying to understand what that in particular utilities because ultimately they are the ones that beta that caused most of the time.

Speaker Change: And a lot of the utilities were.

Understand what that would mean, but now that thats.

Speaker Change: <unk> clarify in uranium being exempt.

Speaker Change: Again looking at their procurement strategies in the last two weeks have seen.

Alex Ryback: In the last two weeks, I've seen two RFPs come out of a US and a European utility. Interestingly, with supply starting in 26, which is actually quite unusual because, you know, they have left it, you can see they've left it a little bit late. But, you know, the discussions are ongoing with a lot of our customers. Utilities are contracting as, you know, recent volumes suggest. They're still obviously below replacement level contracting. But, you know, the market is quite healthy. The term price is holding at, you know, at $80 a pound, which again is quite a healthy level from my point of view.

Speaker Change: Two rfps come out of our U S and the European utility.

Speaker Change: Interestingly, we supply starting in 2006, which is actually quite unusual because.

Speaker Change: They have left that you can say that I've left out a little bit light, but the discussions are ongoing with a lot of our customers utilities.

Speaker Change: Our contracting as recent volumes suggests there is still obviously below replacement level contracting but.

Speaker Change: The market is quite healthy to term price is holding at.

Speaker Change: At $80, a pound, which again is quarter healthy level from my point of view.

Speaker Change: Generally speaking I would say the market is quite positive and we expect the market to start returning back to fundamental contracting level of activity.

Alex Ryback: So generally speaking, I see the market is quite positive. And we expect the market to start returning back to, you know, fundamental contracting level of activity. And hopefully the spot prices will reflect that as well.

Speaker Change: Hopefully the spot prices will reflect that as well.

Oh.

Speaker Change: It's just.

Speaker Change: Just letting everyone know, we've still got a phase III questions and were quite short on time.

Ian Purdy: Everyone, it's Ian. Just letting everyone know, we've still got a fair few questions and we're quite short on time. Can I ask everyone just to give us one question and we're very happy to follow up after the call on a one-on-one basis.

Speaker Change: And I ask everyone just to give US one question and we're very happy to follow up after the call on a one on one basis. Thanks very much.

Ian Purdy: Thanks very much. No worries, thanks for having us on. Thanks a lot. Thanks. Thank you.

Speaker Change: Thanks, guys I'll pass it on.

Speaker Change: Sure.

Speaker Change: Thank you. Your next question comes from the line stomach from Jpmorgan. Please go ahead.

Milan Tomic: Your next question comes from Milan Tomic from J.P. Morgan. Please go ahead. Yeah, hi team. Thanks for the call. Just had a question in terms of the production over the next year. Can we still assume that that's tracking broadly in line with what was outlined in the EFS? Just in terms of, I guess, the mill throughput rate. Is that kind of similar to what was outlined in the study? Are we a bit more conservative now with that moving forward? Thanks.

Speaker Change: Yes, Hi, Tim Thanks for the call just had a question in terms of production over the next day, we can we still assume that that's tracking broadly in line with what the.

Speaker Change: What was outlined in the DFS.

Speaker Change: Just in terms of I guess, the mill throughput right.

Speaker Change: Kind of similar to what was outlined in the study or.

Speaker Change: Are we a bit more conservative now with that moving forward.

Thanks for the question, we will actually let us work through the process, we articulated let us do our budget, let us get the mining up and running.

Milan Tomic: Thanks for the question. We will actually, let us work through the process we articulated, let us do our budget, let us get the mining up and running and we're working towards providing that guidance late in August. Cool. Thank you. I'll leave it there. Thank you.

Speaker Change: We are working towards providing that guidance lightly in August.

Speaker Change: Thank you.

Speaker Change: Thank you. Your next question comes from Glenn will come from Darrin Jimmy Please go ahead.

Glyn Lorcock: Your next question comes from Glyn Lorcock from Baron Joey. Please go ahead.

Speaker Change: Hey, good morning.

Speaker Change: Can I just clarify you said in the release today that you still got some issues stabilizing that chemistry.

Glyn Lorcock: Ian, good morning. Can I just clarify, you said in the release today that you've still got some issues stabilising the chemistry, although the processing operations have returned to normal. What does that actually mean? It sounds like recoveries are back to normal, so I just wanted to understand what that is, and then when you say strong results for the June quarter, is that strong production, throughput, recoveries, or all of the above? Thanks.

Speaker Change: Although the processing operations that retention on what does that actually mean, it sounds like recoveries are back to normal.

Speaker Change: I just wanted to understand what that is and then when you say strong results for the June quarter is that strong production throughput recoveries all of the about thanks.

Speaker Change: Okay, Thanks, Glenn and with respect to prices chemistry, what we saw in March during the flooding event with a couple of impacts.

Ian Purdy: Yeah, thanks, Glen. With respect to process chemistry, what we saw in March during the flooding event was a couple of impacts. Specifically, we had some challenges getting access of people to the site. We had challenges getting people into the processing facility. And we had gaps in our feeds to the plant. We had an influx of fresh water into the tailings facility. And what that meant is when we recovered that water back into processed water, we didn't necessarily have all of the reagents that you'd normally recover out of the tailings. When we put that back into the process, it means that we didn't have the right chemistry from the lack of reagents in tailings.

Speaker Change: Specifically, we had some challenges getting access of people to thought we had challenges getting people into the.

Speaker Change: Processing facility.

Speaker Change: And we had gaps in our feed to the plant.

Speaker Change: Had an influx of fresh water into the tailings facility and what that means is when we recover that water back into <unk>.

Speaker Change: Price this quarter, we didn't necessarily have all of the reagents that you'd normally recover out of the tailings when we put that back into the process that means that we.

Speaker Change: Didn't have.

Speaker Change: The right chemistry from the lack of reagents in Thailand.

Speaker Change: And it took us a little bit of time to recover that before a bit of a dip in <unk>.

Ian Purdy: And it took us a little bit of time to recover that. We saw a bit of a dip in overall recoveries as we sought to rebalance. Additionally, we've seen some impacts of that loss of feed move into April as well. So as that sort of slug of no feed moves through the plant, we've had a few challenges rebalancing the circuit. But that now has largely been resolved and we're seeing recovery rates back to normal. With respect to expectations around strong results, I think Ian's probably given a view on guidance and when we'll be releasing that, but my expectation is that will continue to drive productivity in our mine fleet.

Speaker Change: Overall recovery as we sought to rebalance.

Speaker Change: Additionally.

Speaker Change: We've seen some impacts of that loss of state.

Speaker Change: Move into April as well.

Speaker Change: So as that as that sort of a slug of nice safe move through through the plant we've had a few challenges.

Speaker Change: Rebalancing.

Speaker Change: Rebalancing the circuit.

Speaker Change: That now has largely been resolved and we're seeing recovery rights back too.

Speaker Change: Back to normal.

Speaker Change: With respect to expectations on strong results I think.

Speaker Change: And probably given given our view on guidance and when we will be releasing that.

Speaker Change: But.

Speaker Change: My expectation is that we'll continue to drive productivity in our main plate will continue to optimize that blend strategy and.

Glyn Lorcock: We'll continue to optimise that blend strategy and that should deliver us an improvement in throughput rates and improvement in grade, given that grade will become more within our control over the following quarter. Okay, but are you saying we expect the June quarter production then to at least be equal or better than the March quarter? Is that what your expectation is with one third of the way through?

Speaker Change: That should deliver us an improvement in throughput rates and.

Speaker Change: And improvement and Greg given that Greg will become more within our control over the following quarter.

Speaker Change: Okay, but are you, saying, we expect the June quarter production, then to at least be equal or better than the March quarter is that what your expectation is for the one third of the way through.

Speaker Change: Yeah Glenn.

Speaker Change: We're not going to give very specific guidance, but what I can say we're in ramp up so our ultimate objective is a quarter on quarter improvement until you achieve steady state.

Ian Purdy: Yeah Glenn, it's Ian. We're not going to give very specific guidance but what I can say we're in ramp up so our ultimate objective is a quarter-on-quarter improvement until you achieve steady state and that's what we strive for and we're really pleased to have shown that improvement this quarter despite the rain event. So if our ramp up is 100% successful we will aim for quarter-on-quarter improvement and we see that as a strong result. Obviously ramp ups aren't linear, you get unexpected events that you can't predict or control so every quarter we'll focus on quarter-on-quarter improvement, we'll deal with any uncontrollables as best we can and we'll continue to report to the market but that's the framework we're operating under and then by the time we get to August we feel we'll be in a position to provide that annual framework information that obviously the market is looking for.

Speaker Change: That's what we strive for and we're really pleased to have shown that improvement this quarter. Despite the right event.

Speaker Change: So if the ramp up is 100% successful we will aim for quarter on quarter improvement and what do you see that as a strong result.

Speaker Change: Obviously ramp ups on linear you get unexpected events that you can't predict or control.

Speaker Change: Every quarter, we will focus on quarter on quarter improvement, we'll deal with any uncontrollable as best we can and we will continue to report to the market, but that's the framework, we're operating under and then by the time, we get to August we feel we'll be in a position to Bart to provide that annual framework information that obviously.

Speaker Change: The market is looking for.

Speaker Change: No. That's fine I was just trying to clarify the earlier comments, thanks very much.

Glyn Lorcock: No, that's fine. I was just trying to clarify the earlier comments. Thanks very much. Thank you.

Speaker Change: Thank you. Your next question comes from Devin Ryan from UBS. Please go ahead.

Denmarie Singer: Your next question comes from Denmarie Singer from UBS. Please go ahead. G'day guys, thanks for the call and congrats on the result, maybe just on the contract book again, I know you want to be, or you need to be somewhat vague in, I assume calendar year 25 and calendar year 26 volumes. So, can you let me know why that is? You've given us a fair few data points. So, across the life of mine, I think you're close to 50% contracted. You've told us in the past that the earlier years are above that. But, yeah, I don't know whether it's 70% contracted or 75% contracted.

Devin Ryan: Thanks, Paul.

Speaker Change: Congrats on the result, maybe just on the contract book again.

Speaker Change: Yes.

Speaker Change: I know you want to be.

Speaker Change: You need to be.

Speaker Change: Vegan.

Speaker Change: In calendar year 'twenty five for calendar year 'twenty six volumes.

Speaker Change: So can you tell me why that is and you've given us a fair few data points. So across lots of mine I think youre close to 50% contracted you've told us in the past.

Speaker Change: Yes.

Speaker Change: Yes.

Speaker Change: But.

Speaker Change: Yes, I don't know, whether its 70% contracted for 75% contracted it feels like you've got a bunch of get asps as well or ability to flex.

Denmarie Singer: It feels like you've got a bunch of get-outs as well or ability to flex. Can you help us understand? You know, what these commitments are better just for this year and see why 2026, please, like some numbers around this would be great. And yeah, I just don't understand why when you've given basically every other data point why we can't have those. Yeah, thanks.

Speaker Change: Yes can you helped.

Speaker Change: I understand.

Speaker Change: What these commitments are just for this year.

Speaker Change: And see why 2026 place like some numbers around this would be great.

Tom: Yes. This is Tom.

Speaker Change: And why.

Speaker Change: What are you, giving basically every other data point and why.

Speaker Change: Yes. Thanks.

Ian Petty: It's Ian here.

Speaker Change: Look good question and a fair question.

Ian Purdy: Yeah, it's Ian here. Look, a good question and a fair question. Let me explain it very clearly. It's commercial sensitivity. The uranium market is a very competitive market. Our customers insist on absolute confidentiality and we're competing against other producers in a market where volumes and pricing availability is a crucial lever in terms of maximizing the outcome of your contract negotiations. So because of that commercial sensitivity, we will not be providing that level of granularity and I note other companies in our position also do not provide that granularity. So unfortunately, it's due to the commercial uranium market.

Speaker Change: Let me explain it very clearly.

Speaker Change: It's commercial sensitivity the uranium market is a very competitive market our customers insist on absolute confidentiality and we're competing against other producers in our market.

Speaker Change: Volumes and pricing availability is the crucial labor labor in terms of maximizing the outcome of your contract negotiations.

Speaker Change: Because of the commercial sensitivity, we will not be providing that level of granularity and.

Speaker Change: Our notes.

Speaker Change: Other companies in our position also do not provide that granularity. So unfortunately is due to the commercial uranium market.

Speaker Change: If we could provide to the market. Obviously, we would we can do to that commercial sensitivity. What we do is we have all the appropriate disclosures.

Ian Purdy: If we could provide it to the market, obviously we would. We can't due to that commercial sensitivity. What we do is we have all the appropriate disclosures and provide the metrics that allow the market to do a reasonable model of our results year on year. Alex has stated that our contract book's in good standing. We've met all deliveries. We're having really constructive conversations with our customers. We've got lots of mechanisms to control unders and overs. We've got a really supportive cohort of customers. You've got the total pounds and I think we're in really good shape.

Speaker Change: Provide the the.

Speaker Change: The metrics that allow the market to do a reasonable model of our results year on year.

Speaker Change: Alex has stated that all contracts booked in good standing with metal deliveries were having really constructive conversations with our customers. We've got lots of mechanisms to control under the <unk>, We've got a really supportive cohort of customers.

Speaker Change: You've got the total pounds.

Speaker Change: And I think we're in really good shape. The next piece of the Jigsaw will be when we provide our August guidance will no doubt provide a realized price that we expect for the year on the various sensitivities again, but at this stage due to those commercial sensitivities, we will not be giving that granular level of detail I'm afraid.

Denmarie Singer: The next piece of the jigsaw will be when we provide our August guidance, we'll no doubt provide a realized price that we expect for the year on the various sensitivities again. But at this stage, due to those commercial sensitivities, we will not be giving that granular level of detail, I'm afraid. Yeah, it's not a granular level, though. It's just one, it's, you know, you've got 12 offtakes. Can you give us a percentage number? Yeah, or a volume like this? You know, I don't think that gives it away too much. And if anything, the more you're contracted, the better it is for, I guess, your negotiations, right?

Speaker Change: Yes, it's not that granular level no. It's just one.

Speaker Change: Yes, you've got 12 off takes.

Speaker Change: Can you give us a percentage number.

Speaker Change: Yes, our volume like this I don't think that it gives a way too much if anything.

Speaker Change: We have contracted the better it is.

Speaker Change: I guess, you're in negotiations or is that not the way to think.

Ian Purdy: Or is that not the way to think about it? It's a very clear answer and we will provide the appropriate corporate guidance in August like we did in the prior year regarding realised price and expected revenue outcomes. So the information we're providing the market is online with our peers and appropriate for this market. So if you give us a chance to work through the budget process, get the mining up and running, we'll provide that corporate guidance later in August. And I think at this stage, the information we've provided is the information that's available to the market.

Speaker Change: Sure.

Speaker Change: It's a very clear answer.

Speaker Change: We will provide the appropriate corporate guidance in August like we did in the prior year regarding realized price and expected revenue outcomes. So the information we are providing the market is in online with Lps and appropriate for this market. So if you if you give us a chance to work through the budget process get the.

Speaker Change: Mining up and running we will provide the corporate guidance later in August.

Speaker Change: And I think at this stage the infamous.

Speaker Change: Information was provided as the information thats available to the market.

Speaker Change: Yes.

Speaker Change: Thanks, and thanks guys.

Denmarie Singer: Yep. Okay, cool. No, thanks. Thanks guys.

Speaker Change: Thank you. Your next question comes from Matt <unk> from Goldman Sachs. Please go ahead.

Denmarie Singer: Thank you.

Matt Hope: Your next question comes from Matt Hope from Audmonet. Please go ahead. Oh yeah, congratulations on the good result. I just wanted to check on the payload capacity. I understand you diverted flood water in there and presumably pumped pit G3A in there. Is there sufficient... Tiling capacity or have you got a new tiling facility? No, Matt, thanks for the question. We've got plenty of tailings capacity and, you know, one of the good things about what we did was, you know, we can recover the vast majority of that water. Now, there wasn't a lot of fines content that travelled in with it, so it didn't really, and it won't have any significant impact on that tailings capacity.

Speaker Change: Yes, congratulations on the results just wanted to check on the firearms capacity understand you devoted floodwater in there and presumably pump Pete G. III is sufficient.

Speaker Change: Finally, some capacity or if you're going to see cell lines, the new tailings facility.

Speaker Change: No.

Speaker Change: Matt. Thanks for the question, we've got plenty of tailings capacity and.

Speaker Change: One of the good things about what we did was we can recover the vast majority of that water that there wasn't a lot of funds content that traveled in with it.

Speaker Change: It didn't really happen.

Speaker Change: Any significant impact on <unk>.

Speaker Change: On that tailings capacity.

Speaker Change: For a mine like this it's absolutely normal to have a continuous process of constructing.

Paul Hembrough: You know, for a mine like this, it's absolutely normal to have a continuous process of, you know, constructing the tailings capacity. Our largest capital project at the moment is a tailings dam. It's in great shape. And we expect that project to be completed in the next... ..or in this current quarter, actually. So we don't have an issue with tailings capacity. Okay, thanks very much.

Speaker Change: Constructing Italians capacity.

Speaker Change: Largest capital project at the moment is a tailings dam, it's in great shape.

Speaker Change: And we expect that project to be completed.

Speaker Change: In the next.

Speaker Change: When this current quarter actually.

Speaker Change: So we don't have an issue with tailings capacity.

Speaker Change: Okay. Thanks very much.

Speaker Change: Thank you. Your next question comes from Bronco, Scott from E&P. Please go ahead.

Branko Skocic: Thank you. Your next question comes from Branko Skocic from E&P. Please go ahead.

Scott Bronco: Good morning, Amy claim unit costs looked attractive considering the weather. So I just wanted to understand I guess, how sustainable the $41 per pound number he's perhaps.

Ian Purdy: Good morning Ian and team. Unit costs looked attractive considering the weather, so I just wanted to understand I guess how sustainable the $41 per pound number is and perhaps more importantly what your view is on all in sustaining costs in the near term please. Yeah sure, thanks for the question. So obviously the cost of production for the for the quarter is is reflective of the higher production volumes. We are as Paul has talked about commencing mining so we would expect some you know increase in costs as we initially ramp up. How that will flow through to you know production cost per pound is ultimately going to depend on what those production volumes are in the quarter.

Speaker Change: Perhaps more importantly, what your view is on the all in sustaining costs near term in place.

Speaker Change: Yes sure. Thanks for the question. So I'll just say the cost of production for the third quarter is.

Speaker Change: Is it the higher production volumes.

Speaker Change: We are as Paul has talked about can maintain mining side, we would expect.

Speaker Change: Increasing cost since we initially ramp up how that will play through.

Speaker Change: Production cost per pound is ultimately going to depend on what those production volumes.

Speaker Change: In the quarter.

Speaker Change: Si we're pretty happy with the cash margin between <unk>.

Anna Sudlow: So it's probably a little early to say. We're pretty happy with the current cash margin between our cost of production and an average realised price. So you know I think we've got a bit of room to move there and we'll wait and see how the quarterly results go.

Speaker Change: Production, and then halfway to realized price.

Speaker Change: I think with a beta run like Darren and we're waiting to see how the quarterly results Sky.

Speaker Change: Okay. Thank you.

Speaker Change: Look thanks, everyone, we're a little bit over time.

Operator: Look, thanks everyone. We're a little bit over time. Thanks very much for your attendance today and if you do have further questions please reach out directly to Paola straight after this call and we'll return all those queries today. So thanks very much and we look forward to reporting next quarter. That does conclude our conference for today. Thank you for participating. You may now disconnect.

Speaker Change: Thanks, very much for your attendance today and if you do have further questions. Please reach out directly to Paula straight. After this call and we will return all those queries today. So thanks very much and we look forward to reporting next quarter.

Speaker Change: That does conclude our conference for today. Thank you for participating you may now disconnect.