Q1 2026 Paladin Energy Ltd Earnings Call

Speaker #2: Thank you for standing by, and welcome to the Paladin Energy Ltd. September 2025 Quarterly Results Call. All participants are in a listen-only mode. There will be a presentation followed by a question-and-answer session.

Operator: Thank you for standing by and welcome to the Paladin Energy Ltd. September 2025 Quarterly Results Call. All participants 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. I would now like to hand the conference over to Mr. Paul Hemburrow, CEO. Please go ahead.

Speaker #2: If you wish to ask a question, you will need to press the star key followed by the number 1 on your telephone keypad. I would now like to hand the conference over to Mr. Paul Hembro, CEO.

Speaker #2: Please go ahead.

Speaker #3: Good morning, everyone, and thank you for joining Paladin Energy's September 2025 Quarterly Investor Conference Call. With me today are Anna Szaló, Chief Financial Officer; Alex Rybak, Chief Commercial Officer; and Paola Rafo, our Head of Investor Relations.

Paul Hemburrow: Good morning, everyone, and thank you for joining Paladin Energy Ltd.'s September 2025 Quarterly Investor Conference Call. With me today are Anna Sudlow, Chief Financial Officer; Alex Rybak, Chief Commercial Officer; and Paolo Rappo, our Head of Investor Relations. We had a solid start in the first quarter of the financial year at Langer Heinrich, with mining activities increasing significantly and the overall ramp-up progressing steadily in line with our plan. I'd like to note some highlights achieved at Langer Heinrich during the quarter. Record quarterly production of 1.07 million pounds of uranium, the highest since the mine restart. Total material mined was up 63% from the previous quarter of the mine. Average realized price increased to $67.40 per pound, while unit production costs were $41.60 per pound.

Speaker #3: We had a solid start in Q1 of the financial year at Longer Heinrich, with mining activities increasing significantly and the overall ramp-up progressing steadily in line with our plan.

Speaker #3: I'd like to note some highlights achieved at Longer Heinrich during the quarter: record quarterly production of 1.07 million pounds of uranium, the highest since the mine restart.

Speaker #3: Total material mined was up 63% from the previous quarter of the mine. Average realized price increased to $67.40 per pound, while unit production costs were $41.60 per pound.

Speaker #3: The total recordable injury frequency rate of 3.2 per million hours worked on a 12-month moving average basis is better than the company's safety targets. There were no serious environmental or radiation incidents or breaches of environmental compliance requirements during the period.

Paul Hemburrow: Total recordable injury frequency rate of 3.2 per million hours worked on a 12-month moving average basis, better than the company's safety target. There were no serious environmental or radiation incidents or breaches of environmental compliance requirements during the period. Importantly, for Paladin Energy Ltd.'s future growth, we have made significant progress at the Paterson Lake South project with completion of a comprehensive review during the quarter, confirming robustness of the project and de-risking its development and operation. The strong economics support our unwavering commitment to bring the PLS project into production by early next decade, while continuing to de-risk the development through fees and conducting further exploration to identify future expansion opportunities. An important step moving forward with the development of PLS was the appointment of Dale Huffman as President of Paladin Canada. Dale will be joining the company on the 20th of October.

Speaker #3: Importantly, the Paladin's future growth, we have made significant progress at Paterson Lake South Project, with completion of a comprehensive review during the quarter, confirming the robustness of the project and de-risking its development and operation.

Speaker #3: The strong economic support underscores our unwavering commitment to bring the PLS project into production by early next decade, while continuing to de-risk the development through fees and conducting further explorations to identify future expansion opportunities.

Speaker #3: An important step moving forward is the development of PLS, with the appointment of Dale Huffman as President of Paladin Canada. Dale will be joining the company on October 20.

Speaker #3: Additionally, the team in Canada continues to progress permitting activities with PLS, including the final Environmental Impact Statement. We have also been progressing consultation with Indigenous nations and local communities, while continuing engagement with provincial and federal regulators.

Paul Hemburrow: Additionally, the team in Canada continues to progress permitting activities of PLS, including the final environmental impact statement. We have also been progressing consultation with Indigenous Nations and local communities, while continuing engagement with provincial and federal regulators. As the newly appointed MD and CEO, I was personally pleased to see the strength of investor and market support through our fully underwritten $300 million equity raising completed in September, which provides the balance sheet flexibility to support both the PLS development and the Langer Heinrich ramp-up to full mining and processing plant operations planned for FY 2027. Looking ahead, our focus remains on completing the Langer Heinrich ramp-up by the end of FY 2026 and advancing the development of the PLS project. I'll now open the call to questions.

Speaker #3: As the newly appointed MD and CEO, I am personally pleased to see the strength of investor and market support for our fully underwritten $300 million equity raising completed in September.

Speaker #3: Which provides the balance sheet flexibility to support both the PLS development and the LHM ramp-up to full mining and processing plant operations planned for FY 2027.

Speaker #3: Looking ahead, our focus remains on completing the Longer Heinrich ramp-up by the end of FY 2026 and advancing the development of the PLS project.

Speaker #3: I’ll now open the call to questions.

Speaker #2: Thank you. If you wish to ask a question, please press *1 on your task and wait for your name to be announced. If you wish to cancel your request, please press *2.

Operator: Thank you. If you wish to ask a question, please press star one on your telephone keypad and wait for your name to be announced. If you wish to cancel your request, please press star two. If you're on a speakerphone, please pick up the handset to ask your question. Your first question comes from Raoul Anand from Morgan Stanley. Please go ahead.

Speaker #2: If you're on a speakerphone, please pick up the handset to ask your question. Your first question comes from Raoul Anand from Morgan Stanley. Please go ahead.

Speaker #4: Oh, hi, team. Thanks for the call and good morning. Look, I just wanted to test a bit of the cost base. Really good cost performance, at least for my numbers.

[Analyst 1]: Oh, hi, team. Thanks for the call and good morning. Just wanted to test a bit of the cost base. Really good cost performance, at least for this mine numbers. Just wanted to test how we should think about the fixed-to-variable cost split going forward. Obviously, you step into the main part of the mine next year and wanted to understand what type of cost performance we can expect going forward. That's the first one, and I'll come back with the second. Thanks.

Speaker #4: I just wanted to test how we should think about the fixed cost variable splits going forward. Obviously, you step into the main part of the mine next year and wanted to understand what type of cost performance we can expect going forward.

Speaker #4: That's the first one, and I'll come back with the second. Thanks.

Speaker #5: yeah, look, thanks, thanks for the call, and look, we haven't we haven't guided on on the split, but I think, you can probably assume that that, the fixed variable splits probably you know, 20 to 30 percent fixed, with a remainder variable.

Anna Sudlow: Yeah, thanks. Thanks for the call. We haven't guided on the split, but I think you can probably assume that the fixed-to-variable cost split's probably, you know, 20% to 30% fixed, with the remainder variable. If you look at one of the key costs, the reagents, they're a key contributor to that mix.

Speaker #5: if you look at the one of the key costs being, the reagents, and, you know, there are key contributors to to that mix.

Speaker #4: Got it. Okay. And then, I guess, any sort of clarity into what's going to change in terms of the fixed cost base going into next year?

[Analyst 1]: Got it. Okay. Any sort of clarity into what's going to change in terms of the fixed cost base going into next year? I would think that you probably get a bit more fixed component in your cost base as you kind of ramp up the mine more, as opposed to stockpiles. Is that the right way to think about it, or are you there or thereabouts in terms of your fixed cost base?

Speaker #4: I would think that you probably get a bit more fixed component in your cost base as you kind of ramp up the mine more, as opposed to stockpiles.

Speaker #4: Is that the right way to think about it, or are you there or thereabouts in terms of your fixed cost base?

Speaker #5: I think if you look at next year, you know, we'll be into more mining than we currently are. So I don't see really, you know, and the majority of that mining cost is gonna be a variable cost, right?

Anna Sudlow: I think if you look at next year, we'll be into more mining than we currently are. I don't see really, you know, and the majority of that mining cost is going to be a variable cost, right? I think overall the balance is probably going to remain pretty much as it is.

Speaker #5: So, I think overall the balance is probably going to remain, you know, pretty much as it is.

Speaker #4: Got it. Okay. No, that's very helpful. And look, for the second one, obviously a new uranium sales contract and then also, sales volumes are a bit weaker than us in consensus.

[Analyst 1]: Got it. Okay. That's very helpful. For the second one, obviously, a new uranium sales contract and also, sales volumes, a bit weaker than us in consensus. Obviously, there's a bit of variability in terms of how you achieve those. Is there any further color you can provide as to how the analyst community in general can kind of forecast the sales a bit better and maybe a bit of an update on that new contract and how you're seeing the market? Thanks.

Speaker #4: Obviously, there's a bit of variability in terms of how you achieve those. Is there any further color you can provide as to how the analyst community in general can forecast the sales a bit better? And then maybe a bit of an update on that new contract and how you're seeing the market?

Speaker #4: Thanks.

Speaker #3: And on QI, Alex?

Paul Hemburrow: Hang on. You are Alex?

Speaker #4: Yes, thanks. So, obviously, you know, we've talked about it at length. Our sales are quite lumpy, and they can be anywhere between £200,000 and £500,000 for any particular sale.

Alex Rybak: Yes, thanks. Obviously, you know, we've talked about it at length. Our sales are quite lumpy, and they can be anywhere between $200,000 and $500,000 for any particular sale. In this particular quarter, we had a customer, we had a shipping delay, which meant that a customer delivery got pushed out from the September quarter into the current quarter, and that was the main reason for that lower sales number. However, you would have seen we've built up quite a significant inventory balance of $1.8 million, and all of that is earmarked for customer deliveries. Of that, about $1 million is currently in transit on the water, and in fact, we've received cash for close to half of that $1 million that's in transit already. Uranium does have quite a long working capital cycle, as we've previously discussed.

Speaker #4: In this particular quarter, we had a shipping delay, which meant that a customer delivery got pushed out from the September quarter into the current quarter.

Speaker #4: And that was the main reason for that lower sales number. However, you would have seen that we've built up quite a significant inventory balance of £1.8 million.

Speaker #4: And of that, all of that is earmarked for customer deliveries. And of that, about 1 million pounds is currently in transit on the water.

Speaker #4: and in fact, we've received cash for close to half of that, one million pound that's in transit already. so so your uranium is, does have a quite a long working capital cycle as we've, you know, previously discussed.

Speaker #4: But what it means is that it's a timing issue, and these sales will come through in this quarter. So, in response to your first question regarding the additional sale agreement that we executed in the quarter, it's a relatively small sale agreement but with a very high-quality counterparty, which we've been targeting for quite some time.

Alex Rybak: What it means is that it's a timing issue, and these sales will come through in this quarter. That's sort of on your first question. In terms of the additional sale agreement that we executed in the quarter, a relatively small sale agreement, but with a very high-quality counterparty, which we've been targeting for quite some time. We're very pleased to have secured that offtake agreement. It doesn't materially move our pounds under contract from 24.1 million pounds to 24.5 million pounds under contract to 31 December 2030. Within that amount, obviously, we maintain a market-related price bias, but we also have quite a significant base-escalated projection in our contract book, which is, I think, not unexpected in quite a high volatile environment. We are seeing very strong fundamentals in the pricing at the moment. TradeTech and UxC have increased their term pricing.

Speaker #4: We're very pleased to have secured that off-take agreement. It doesn't materially move our pounds under contract from £24.1 million to £24.5 million under contract through to 31st December 2030.

Speaker #4: And, within that amount, obviously, we maintain a market-related price bias. But we also have quite a significant base escalated protection in our contract book, which is, I think, not unexpected in quite a high, high volatile environment.

Speaker #4: But we are seeing, very strong, very strong, sort of, fundamentals in in the pricing at the moment. The trade tech in New York City have increased their term pricing.

Speaker #4: Spot pricing has strengthened, which is great news for us because our book does remain tilted towards market-related pricing, and we do expect to realize the benefit of that.

Alex Rybak: Spot pricing has strengthened, which is great news for us because our book does remain tilted towards market-related pricing, and we do expect to realize the benefit of that.

Speaker #4: Got it. That's very helpful. Thank you, team. I'll pass it on.

[Analyst 1]: Got it. That's very helpful. Thank you, team. I'll pass it on.

Speaker #2: Thank you. Your next question comes from Alistair Rankin from RBC Capital Markets. Please go ahead.

Operator: Thank you. Your next question comes from Alistair Rankin from RBC Capital Markets. Please go ahead.

Speaker #6: Oh, good morning, Paul, Alex, and Paola. Thanks for the update and for taking my questions. Just the first one: that total material move of 5.27 million tons was really solid, given you've still only got about 50% of the fleet commissioned at the moment.

[Analyst 2]: Good morning, Paul, Anna, Alex, and Paolo. Thanks for the update and taking my questions. The first one, that total material moved of 5.27 million tons was really solid, given you've still only got about 50% of the fleet commissioned at the moment. You must be very pleased with the team on that. Is this strong performance giving you a bit of a buffer in terms of the stripping schedule for FY 2026, or were you expecting to hit this level of material moved over this quarter?

Speaker #6: So, you must be very pleased with the team on that. So, is this strong performance giving you a bit of a buffer in terms of the GPIT stripping schedule for FY26?

Speaker #6: Or were you expecting to hit this level of material moved over this quarter?

Speaker #3: Yeah, thanks for the question, Alistair. We are really pleased with the result. We're seeing really good levels of availability and utilization of the 100-ton fleet.

Paul Hemburrow: Yeah, thanks for the question, Alistair. Yeah, look, we are really pleased with the results. We're seeing really good levels of availability and utilization of the 100-ton fleet, and it was in line with our expectations for the quarter, but a very pleasing result.

Speaker #3: And it was in line with our expectations for the quarter, but very pleasing results.

Speaker #6: Okay, that's great. And just also on your primary non-low-grade ore, I just noticed that you had about 430 kilotons mined over this quarter. So, was all of that fed into the processing plant?

[Analyst 2]: Okay. That's great. Just also on your primary non-low-grade ore, I just noticed that you had about 430 kilotons mined over this quarter. Was all of that fed into the processing plant over this quarter, or did some of it go into stockpile?

Speaker #6: Over this quarter, or did some of it go into stockpile?

Speaker #3: Yeah, we do a bit of a re-handle after on the stockpile, and we blend to make sure that we get the best throughput that we possibly can.

Paul Hemburrow: Yeah, we do a bit of a rehandle after on the stockpile, and we blend to make sure that we get the best throughput that we possibly can. There is a bit of stockpile movement, some drawdown of the MG3, and some of the fresh mined ore onto the stockpile.

Speaker #3: So, there is a bit of stockpile movement, with some drawdown of the MG3 and some of the fresh mined ore going onto the stockpile.

Speaker #6: Okay. So, I guess in the next quarter for December, given you're still going to be doing quite a bit of GPIT stripping, do you have a plan to access, you know, a similar volume of primary ore in the next quarter so you can keep those feed grades around where they are?

[Analyst 2]: Okay. I guess in the next quarter for December, given you're still going to be doing quite a bit of heap stripping, do you have a plan to access, you know, a similar volume of primary ore in the next quarter so you can keep those feed rates around where they are?

Speaker #3: Yeah, we haven't guided on a quarter-by-quarter basis, but the expectation that we set when we delivered the guidance was that the first half of this financial year would be in line with what we saw in the last quarter.

Paul Hemburrow: Yeah, look, we haven't guided on a quarter-by-quarter basis, but the expectation that we set when we delivered the guidance that the first half of this financial year would be in line with what we saw in the last quarter. I think that's what we've delivered in this quarter. My expectation is that the results for the remainder of this half will be in line with what we've seen in Q1.

Speaker #3: And I think that's what we've delivered in this quarter. So my expectation is that the result was, you know, that the remainder of this half will be in line with what we've seen in Q1.

Speaker #6: Yep, yep, understood. And then maybe just lastly, could you give me a reminder on the current sequencing for which PITs you're planning to mine?

[Analyst 2]: Yep. Understood. Maybe just lastly, could I just get a reminder on the current sequencing for which pits you're planning to mine? Obviously, you're doing the Jeep pit at the moment. You mentioned that you've done a little bit of work on the F pit, and I think in your guidance for FY 2026, you mentioned the J pit as well. Could you just give us a quick refresher on what the plans are on the sequencing of the pits that you're going to mine?

Speaker #6: So obviously, you're doing the GPIT at the moment. You mentioned that you've done a little bit of work on the FPIT, and I think in your guidance for FY26, you mentioned the JPIT.

Speaker #6: As well, could you just give us a quick refresher on what the plans are for the sequencing of the PITs that you're going to mine?

Speaker #3: Yeah, so most of our work is focused on GNF at the moment, and we may move into the J as well. We've got quite a well-developed 12-week schedule, and we're doing some reoptimization on the basis of the new fleet we're getting.

Paul Hemburrow: Yeah. Most of our work is focused on G and F at the moment, and we may move into the J as well. We've got quite a well-developed 12-week schedule, and we're doing some re-optimization on the basis of the new fleet we're getting. We'll talk more about that as we get through the year. Fundamentally focused on G and F.

Speaker #3: So we'll, we'll we'll talk more about that as we, as we get through the year. But fundamentally, focus on, on GNF.

Speaker #6: Okay, understood. No, that's clear. Thanks very much for that.

[Analyst 2]: Okay. Understood. No, that's clear. Thanks very much for that.

Speaker #3: Thank you.

Paul Hemburrow: Thank you.

Speaker #2: Thank you. Your next question comes from Regan Burrows from Bell Potter Securities. Please, go ahead.

Operator: Thank you. Your next question comes from Regan Burrows from Bell Potter Securities. Please go ahead.

Speaker #7: Good Good morning. good morning, guys. Congratulations on a on a good quarter in line with what you said. just following on from Alistair's questions before, on total material moved, at full capacity in in the second half, what what sort of run rate will you be targeting there?

Regan Burrows: Good morning. Good morning, guys. Congratulations on a good quarter in line with what you said. Just following on from Alistair's questions before, on total material moved, at the full capacity in the second half, what sort of run rate will you be targeting there?

Speaker #3: So we provided guidance for the full year at $4 to $4.4 million, and we absolutely stand behind that. You know, Regan, that it actually depends on how quickly we're able to commission the new fleet.

Paul Hemburrow: We provide guidance for the full year at 4 to 4.4, and we absolutely stand behind that. You know, Regan, it actually depends on how quickly we're able to commission the new fleet. We've got to go through the receival of that, the mobilization of the fleet, recruitment, training, commissioning. There are a few ifs, but by and large, we expect to stand behind the guidance at a 4 to 4.4 million pound rate for the full financial year.

Speaker #3: You know, we've got to go through the receivable of that, or the mobilization of the fleet—recruitment, training, commissioning. So there are a few hits, but by and large, we expect to stand behind the guidance at a £4 to £4.4 million rate for the full financial year.

Speaker #6: Sorry, just on, as in if we've sort of had a look at the material moved on a million tons per annum annualized basis. I mean, what’s 100% operating capacity for that fleet that you're looking at?

Regan Burrows: Sorry, just on as in if we've sort of had a look at the material moved on a million tons per annum annualized basis, I mean, what's 100% operating capacity for that fleet that you're looking at?

Speaker #3: Yeah, we haven't, we haven't guided on that, Regan.

Paul Hemburrow: Yeah, we haven't guided on that, Regan.

Speaker #6: That's all right. Okay. and just in terms of, I guess, mill performance, over the quarter, can you give us a bit more of a breakdown on that blending strategy and, and I guess, what was fed into the mill?

Regan Burrows: That's all right. Okay, just in terms of, I guess, mill performance over the quarter, can you give us a bit more of a breakdown on that blending strategy and, I guess, what was fed into the mill? Were you sort of 50/50, I guess, with the stockpile and fresh ore? How did that sort of shape out?

Speaker #6: Were you sort of 50/50? I guess, with the stockpile and fresh ore, how did that sort of shape out?

Speaker #3: Yeah, the blend strategy varies as we go. As I've mentioned before, we typically have four types of feed that go into the crusher.

Paul Hemburrow: Yeah, the blend strategy varies as we go. As I've mentioned before, we've typically got four types of feed that goes into the crusher: dry and wet coarse, and dry and wet sort of fine clay material. We blend on the basis of what gives us the best throughput numbers. As we progress through the MG3 stockpile and find different types of materials, our blend strategy is adjusted accordingly. We don't actually have a fixed blend strategy. It also depends on the material coming out of the pit, and that, of course, depends on how it presents itself. That blend strategy has varied quite significantly over the quarter, and, just interestingly, it's produced the same 477 PPM this quarter as it did last quarter. So, yeah.

Speaker #3: Dry and wet court, and dry and wet sort of fine plane material. We blend on the basis of what gives us the best throughput numbers.

Speaker #3: So as we progress through the MG3 stockpile and find different types of materials, our blend strategy is adjusted accordingly. We don't actually have a fixed blend strategy.

Speaker #3: It also depends on the material coming out of the pit and and that, of course, depends on, you know, how it presents itself. So, so that blend strategy is very, quite significantly over the over the quarter.

Speaker #3: And, interestingly, it produced the same 477 PPM this quarter as it did last quarter. So, yeah.

Speaker #6: Great. And if I could just squeeze one in there, you mentioned water availability over the quarter was managed well. Can you sort of elaborate on what you mean by that?

Regan Burrows: Right. If I could just squeeze one in there, you mentioned water availability over the quarter was managed well. Can you sort of elaborate on what you sort of mean by that? Were there any issues, I guess, with water availability coming out of the desal plant or your sort of allocation?

Speaker #6: Were there any issues, I guess, with water availability coming out of the desal plant or your sort of allocation?

Speaker #3: Yeah, so in terms of our infrastructure on site, we've got our two bladders. We're pretty much operating in two bladders at full capacity.

Paul Hemburrow: Yeah. In terms of our infrastructure on site, we've got our two bladders. We're pretty much operating on the two bladders at full capacity. The NAM water system is able to supply at or above our contracted rates. There have been some challenges in the Ourano desal system, but by and large, we've been unaffected by that with utilization of our on-site capacity. We've also improved our unit consumption rates on site as well. We're progressively having fewer and fewer impacts, even considering the system variations from the Ourano desal and the NAM water system. It's going exceptionally well on the water crunch.

Speaker #3: The near water system is able to supply, at or above our contracted rates. You know, there have been some challenges in the Irano desal system, but by and large, we've been unaffected by that, with utilization of our on-site capacity.

Speaker #3: But we've also improved our unit consumption rates on site as well. So, we're progressively having fewer and fewer impacts, even considering the system variations from the Irano desal and the near water system.

Speaker #3: So, you know, it's going exceptionally well on the water crunch.

Speaker #6: Great. Thanks. I'll leave it there. Congratulations.

Regan Burrows: Great. Thanks for that. I'll leave it there. Congratulations.

Speaker #3: Thanks, Regan.

Paul Hemburrow: Thanks, Regan.

Speaker #2: Thank you. Your next question comes from Milan Tomek from JP Morgan. Please, go ahead.

Operator: Thank you. Your next question comes from Milan Tomic from JP Morgan. Please go ahead.

Speaker #4: Hi, Paul and team. Thanks for the call. I just have a question on the Sasanian CapEx, as it was quite low compared to the previous quarter.

[Analyst 1]: Hi, Paul and team. Thanks for the call. Just a question on the sustaining CapEx. I know it was quite low compared to the previous quarter. Is this just a function of the movement in the stockpile door, and is the expectation for the next quarter expected to be broadly in line with this quarter? I'll come back with the next one.

Speaker #4: Is this just a function of the movement in the stockpile door? And is the expectation for the next quarter expected to be broadly in line with this quarter?

Speaker #4: I'll come back with the next one.

Speaker #5: Yeah, look, I think the main reason that the numbers are just low this quarter is really just a function of the timing. So we're still standing behind the guidance of the kind of $26 to $32 million for the full year.

Anna Sudlow: Yeah, look, I think the main reason the numbers are just low this quarter is really just a function of the timing. We're still standing behind the guidance of the kind of $26 to $32 million for the full year. It's not to do with the growth low-grade stockpile or capitalized stripping. They weren't included in that guidance. We've also got, you know, some kind of chunky capital numbers in there, around, you know, infill drilling and exploration. That capital is not going to be evenly allocated over the year.

Speaker #5: it's not to do with the, the growth low-grade stockpile or or capitalized stripping. They weren't included in that guidance. we've also got, you know, some kind of chunky capital numbers in there, around, you know, infill drilling and exploration.

Speaker #5: So, you know, that capital's not going to be evenly allocated over the year.

Speaker #4: Yep, understood. And just going, touching on the previous question regarding the water management strategy, can you just remind me how many days of water buffer you have on site?

[Analyst 1]: Yep. Understood. Just going, touching on the previous question regarding the water management strategy, can you just remind me how many days of water buffer do you have on-site?

Speaker #3: Yeah, it's about eight or nine days. It depends on our water consumption per cubic meter of feed into the crusher. So, it's about eight or nine days.

Paul Hemburrow: Yeah, it's about eight or nine days. It depends on our water consumption per cubic meter of feed into the crusher. Yeah, about eight or nine days.

Speaker #4: Yeah. And has that issue with NAM water been resolved, or are you still relying on the capacity you have on site to provide water to the mill?

[Analyst 1]: Has that issue with NAM water been resolved, or are you still relying on the capacity you have on-site to provide water to the mill?

Speaker #3: Yeah, we don't have any outstanding issues with NAM water.

Paul Hemburrow: Yeah, we don't have any outstanding issues with NAM water.

Speaker #4: Cool. Thank you very much. That's it.

[Analyst 1]: Cool. Thank you very much. That's it.

Speaker #3: Thank you very much.

Paul Hemburrow: Thanks very much.

Speaker #2: Thank you. Your next question comes from Glen Lawcock from Barron Joey. Please go ahead.

Operator: Thank you. Your next question comes from Glen Lourcock from Barenjoey. Please go ahead.

Speaker #6: Morning, Paul. Paul, can I just clarify that I think one of the questions, or the answers to one of the earlier questions, just when you look at the costs, obviously lower in the quarter, is it fair just to simply assume that you've got your guidance and, as we move into the second half, you'll basically be staying to process what you mine as opposed to capitalizing it?

[Analyst 2]: Morning, Paul. Paul, can I just clarify? I think one of the questions or the answers to one of the earlier questions. Just when you look at the costs, obviously, lower in the quarter, is it fair just to simply assume that you've got your guidance, and as we move into the second half, you'll basically be starting to process what you mine as opposed to capitalizing it? It's really just that that drives the cost higher, or is there some opportunity maybe to do better than your guidance?

Speaker #6: And it's really just that that drives the cost higher, or is there some opportunity maybe to do better than your guidance?

Speaker #5: Yeah, again, I think you're right. I think, you know, we will be ramping up mining and so as you would imagine, the the actual costs, will increase 'cause we're we are using that medium-grade stockpile now.

Anna Sudlow: Yeah, I think you're right. I think, you know, we will be ramping up mining. As you would imagine, the actual costs will increase because we're using that medium-grade stockpile now. I think it's reasonable to assume that the costs are going to increase as the mining fleet comes on and there's greater proportion of mined material.

Speaker #5: So, yeah, I think it's reasonable to assume that the costs are going to increase as the mining fleet comes on. And that's a great amount proportion of mine material.

Speaker #6: Okay. And then, Paul, just

[Analyst 2]: Okay. Paul, I know you've been mining a lot more waste than ore during the quarter, but just how's the pit shaping up? I mean, obviously, clay presence, etc. Is it sort of are you seeing what you expected to see as you mine through the pits in these early days?

Speaker #4: I know you've been mining a lot more waste than ore during the quarter, but just how's the pit shaping up? You know, I mean, obviously, clay presence, etc.

Speaker #4: Is it sort of, are you seeing what you expected to see as you mine through the pits in these early days?

Speaker #3: Yeah, the GPIT is absolutely in line with expectations. So, you know, we don't have a lot of plain material in that area.

Paul Hemburrow: Yeah, the Jeep pit is absolutely in line with expectations. We don't have a lot of clay material in that area, so it's actually shaping up very, very well. Probably slightly lower waste than anticipated, but yeah, it's looking good. I'm very excited about next quarter and particularly the second half of the year.

Speaker #3: so it's it's actually shaping up very, very well. Probably slightly lower, waste than anticipated, but, yeah, it's looking looking good. so I'm I'm I'm, very excited about, you know, next quarter and, and particularly the second half of the year.

Speaker #4: Yeah. And if I could just squeeze a third one in quickly, I mean, everyone now globally is talking about support for critical minerals. I'm sort of unclear where uranium falls a little bit in that.

[Analyst 2]: Yeah. If I could just squeeze the third one in quickly. I mean, everyone now globally is talking about support for critical minerals. I'm sort of unclear where uranium falls a little bit in that. Does what we're seeing, has it provided any more impetus for discussions with local governments here, Western Australia, Queensland, to maybe overturn mining? Or are you not really in any active discussions at the moment? Thanks.

Speaker #4: But does what we're seeing provide any more impetus for discussions with local governments here in WA and Queensland to maybe overturn mining? You know, or are you not really in any active discussions at the moment?

Speaker #4: Thanks.

Speaker #3: I think we've got planned to keep us occupied at the moment, particularly, you know, finishing the ramp-up this year at Langer Heinrich and pushing forward with PLS.

Paul Hemburrow: Yeah, I think we've got plenty of people occupied at the moment, particularly, you know, finishing the ramp-up this year at Langer Heinrich and pushing forward with PLS. You know, we're not really in the space where we're actively engaged in pushing forward in Western Australia or Queensland at this time, Cleen.

Speaker #3: You know, so we're not really in the space where we're actively engaged in pushing forward in WA or Queensland at this time, clearly.

Speaker #4: All right. That's great. Thanks, Paul.

[Analyst 2]: All right. That's great. Thanks, Paul.

Speaker #2: Thank you. Your next question comes from Dim Ari Singha from UBS. Please go ahead.

Operator: Thank you. Your next question comes from Dim Ari Singer from UBS. Please go ahead.

Speaker #4: Thanks, guys. Just a couple of quick ones from me. Number one, I'm part of the plant and maybe recoveries related to blended lower over the last few quarters.

[Analyst 3]: Thanks, guys. Just a couple of quick ones from me. Number one, on the plant and maybe recoveries. Noted it's trended lower over the last few quarters. Wondering if there's anything to read into that as you ramp up. I presume it's, you know, it's all within range, but yeah, just any clarity on that?

Speaker #4: Wondering if there's anything to read into that, as you ramp up and presume it's, you know, all within range. But, yeah, just any clarity on that?

Speaker #3: Yeah, thanks for the question. so typically, our target range is 85 to 90, and, and we're we're we're within that range. in most, plants like this, it's very, very dependent on, your plant stability and that particularly with respect, in this circumstance to to feed grade.

Paul Hemburrow: Yeah, thanks for the question. Typically, our target range is 85% to 90%, and we're within that range. In most plants like this, it's very, very dependent on your plant stability, and that's particularly with respect, in this circumstance, to feed grade. With the stockpile ore and the blending strategy that we use to focus on throughput, we do get a bit of feed grade variability, which does drive variability in the overall recovery rate. As long as it performs within the 85% to 90% target range, we're pretty happy.

Speaker #3: With the stockpile ore and blend strategy that we use to focus on throughput, we do get a bit of feed grade variability, which does drive variability in the overall recovery rate.

Speaker #3: But as long as it performs within the 85 to 90 target range, we're pretty happy.

Speaker #4: Yeah, okay, cool. And then the other one, like, so obviously, there will be a bit of focus on the fleet to pick up. Just in terms of what you can put through the plant, you know, that was kind of unchanged quarter on quarter.

[Analyst 3]: Okay. Cool. The other one, obviously, a bit of focus on the fleet pickup. Just in terms of what you can put through the plant, you know, that was kind of unchanged quarter on quarter. Can you, I guess, what's the bottleneck there to start sweating the plant more, even as you're continuing to process stockpiles? Can you go into a bit more detail there, please?

Speaker #4: Can you guess what the bottleneck is there to start? What in the plant, even as you're continuing to process stockpiles? Can you go into a bit more detail there, please?

Speaker #3: Yeah, I can go into heaps of detail on this one. Look, there's a couple of different bottlenecks, and of course, it depends on what type of feed you're putting into the plant.

Paul Hemburrow: Oh, yeah. I can go into heaps of detail on this one. Yeah, there's a couple of different bottlenecks, and of course, it depends on what type of feed you're putting into the plant. If you put wet, clay materials, then the crusher is going to be the bottleneck. What we found is if we put dry coarse material in, then we can increase our plant throughput, and that doesn't become the bottleneck. Similarly, as a CTD, if we have low density feed that we have, low settling rate, and that becomes a bottleneck in the plant. The leaching circuit is not a bottleneck. Classification is not a bottleneck, and the final recovery and packaging facility is not a bottleneck in the plant. It really depends on the type of feed that we put through, as to where the bottleneck appears.

Speaker #3: So if you put wet plant materials in, the crusher's gonna be the bottleneck. What we found is if we put dry force material in, then we can increase our plant throughput, and that doesn't become the bottleneck.

Speaker #3: Similarly, at the CTD, if we have low-density feed, then we have a low settling rate, and that becomes the bottleneck in the plant. The leaching circuit is not a bottleneck.

Speaker #3: Classification is not a bottleneck, and the final recovery and packaging facility is not a bottleneck in the plant. So it really depends on the type of feed that we put through, as to where a bottleneck appears.

Speaker #4: And I'm assuming, sorry, just kind of hard to hear a little bit, but as you get into the threshold, that bottleneck lifts effectively.

[Analyst 3]: I'm assuming, sorry, it's kind of hard to hear a little bit, but as you get into the threshold, that bottleneck lifts effectively. Is that the way to dumb it down? Okay.

Speaker #4: Is that the is that the way to dumb it down for?

Speaker #3: Yeah, again, it depends on the type of material that we feed into that plant. If the feed grade lithology is heavily clay and wet, then it’s going to be more difficult to process.

Paul Hemburrow: Yeah. Again, it depends on the type of material that we feed into that plant. If the feed grade or the lithology is heavily clay and wet, then it's going to be more difficult to process. That means we adopt a blending strategy that optimizes our crusher throughput, so although fresh ore largely will be very helpful for us.

Speaker #3: And that means we adopt a blend strategy that optimizes our crusher throughput. So, although fresh ore largely would be very helpful for us.

Speaker #4: Okay, cool. Thank you. Cheers and welcome the result. Thank you.

[Analyst 3]: Okay. Cool. Thank you. Cheers, and welcome the result. Thank you.

Speaker #3: Thank you.

Paul Hemburrow: Thank you.

Speaker #2: Thank you. Your next question comes from Josh Barr-Jones from Canaccord. Please go ahead.

Operator: Thank you. Your next question comes from Josh Farr Jones from Canaccord. Please go ahead.

Speaker #6: Morning, Paul and team. Congrats on the result and thanks for the call. In the last two updates, you mentioned how the mine plan has been optimized and now delivers medium and high-grade ore to the processing plant while stockpiling the lower-grade ore.

[Analyst 2]: Morning, Paul and team. Congrats on the result and thanks for the call. In the last two updates, you mentioned how the mine plan has been optimized to now deliver medium and high-grade ore to the processing plant while stockpiling the lower-grade ore. I was just wondering if you could provide some context around this change and maybe add some color on what this could mean for production during the initial mining phase?

Speaker #6: I was just wondering if you could provide some context around this change, and maybe add some color on what this could mean for production during the initial mining phase.

Speaker #3: So, what we've been doing is we've done several optimizations on the mine, and every time, you know, we get a change in new price, for example, we can do some re-optimization to see if we can increase the pit shelf.

Paul Hemburrow: What we've been doing is we've done several optimizations of the mine, and every time we get a change in new price, for example, we can do some re-optimization to see if we can increase the pit shelf. As well as doing infill drilling around the fringes of the existing pit gives us a few more opportunities. We continue to run optimization strategies to determine our feed to the pit. That'll be an ongoing process over the life of the mine.

Speaker #3: As well as doing infill drilling around the fringes of the existing pit, this gives us a few more opportunities. So we continue to run optimization strategies to determine our feed to the pit.

Speaker #3: That'll be an ongoing process over the life of the mine.

Speaker #4: Thanks for that. The inventory level obviously appears quite strong at £1.8 million. I was just wondering if there's an optimal level that you'll target moving forward as a buffer against any potential challenges.

[Analyst 2]: Thank you for that. The inventory level, obviously, appears quite strong at $1.8 million. I was just wondering if there's an optimal level that you'll target moving forward as a buffer against any potential challenges?

Speaker #5: Yeah, I think, you know, the inventory level is not a deliberate strategy. It's really just a function of shipping availability and the working capital cycle.

Anna Sudlow: Yeah, I think, you know, the inventory level is not a deliberate strategy. It's really just a function of shipping availability and the working capital cycle. So, as Alex said on the earlier Q&A, all of that material that's produced is in months for sale. It's really about getting it from site to point of sale. That drives that balance. We don't have a deliberate strategy around inventory other than, you know, I'd like it to be as low as possible, but it's, you know, a function of the shipping schedule ultimately.

Speaker #5: So Alex, as Alex said earlier in the Q&A, all of that material that's produced is in months for sale. It's really about getting it from site to point of sale, so that drives that balance where we don't have a deliberate strategy around inventory other than, you know, "I'd like it to be as low as possible." But it's, you know, a function of the shipping schedule ultimately.

Speaker #4: Oh, that's understood. thanks, team.

[Analyst 2]: Oh, that's understood. Thanks, team.

Speaker #3: Thanks, guys.

[Analyst 3]: Thanks, guys.

Speaker #2: Thank you. Your next question comes from Milan Tomek from JP Morgan. Please go ahead.

Operator: Thank you. Your next question comes from Milan Tomic from JP Morgan. Please go ahead.

Speaker #4: Hi, yes. Thanks for the follow-up. I just wanted to ask, more of a high-level question: how is the performance of the pit performing versus the restart plan?

[Analyst 1]: Oh, hi. Yes. Thanks for the follow-up. I just wanted to ask more of a high-level question. How is the performance of the pit performing versus the restart plan? I guess, you know, do you still see chances of getting to £6 million, and, you know, maybe if anything else has changed relative to that study? Thanks.

Speaker #4: I guess, you know, do you still see chances of getting to £6 million? And, you know, maybe if anything else has changed relative to that study?

Speaker #4: Thanks.

Speaker #3: Yeah, I think what you will see, or what we are seeing, is that the performance is exactly what we thought it would be.

Paul Hemburrow: Yeah, I think what you will see, or what we are seeing, is that the performance is exactly what we thought it would be. We guided on that $4.4 million per production rate for this financial year, and it is performing exactly how we thought it would. My expectation as we progress through the year is a slightly stronger second half than first half, and when we get to July, we'll be in a position to provide you with the guidance for FY 2027. At this point in time, I expect FY 2027 to be very strong.

Speaker #3: But we were guided on that, £4 to £4.4 million for production rate for this financial year. And GPIT is performing exactly how we thought it would.

Speaker #3: My expectation as we progress through the year is a slightly stronger second half than first half. When we get to July, we'll be in a position to provide you with guidance for FY 27.

Speaker #3: At this point in time, I expect FY 27 to be very strong.

Speaker #4: Got it. Thank you.

[Analyst 1]: Got it. Thank you.

Speaker #2: Thank you. There are no further questions at this time. I'll now hand back to Mr. Hembro for closing remarks.

Operator: Thank you. There are no further questions at this time. I'll now hand back to Mr. Hemburrow for closing remarks.

Speaker #3: In closing, we're really pleased with the results for the quarter, and our performance is in line with our expectations. We appreciate the support from investors through the fundraise, and we're excited about the rest of the year and achieving the guidance that we've set.

Paul Hemburrow: In closing, we're really pleased with the results for the quarter, and our performance is in line with our expectations. We appreciate the support from investors through the fundraising, and we're excited about the rest of the year and achieving the guidance that we've set. Thank you very much for joining us on the call today.

Speaker #3: Thank you very much for joining us on the call today.

Operator: Thank you. That does conclude our conference for today. Thank you for participating. You may now disconnect.