Paladin Energy Q4 2025 Paladin Energy Ltd Earnings Call | AllMind AI Earnings | AllMind AI
Q4 2025 Paladin Energy Ltd Earnings Call
Operator: Thank you for standing by, and welcome to the Paladin Energy Ltd. December 2025 Quarterly Results Call. All participants are in a listen-only mode. There'll be a presentation followed by a question-and-answer session. If you would like to ask a question, you 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. Ian Purdy, CEO. Please go ahead.
Thank you for standing by, and welcome to the Paladin Energy Ltd. December 2025 Quarterly Results Call. All participants are in a listen-only mode. There'll be a presentation followed by a question-and-answer session. If you would like to ask a question, you 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. Ian Purdy, CEO. Please go ahead.
Speaker #1: There will be a presentation followed by a question-and-answer session. If you would like to ask a question, you will need to press the star key followed by the number 1 on your telephone keypad.
Speaker #1: I would now like to hand the conference over to Mr. Paul Hamburgo, CEO. Please go ahead.
Speaker #1: ahead. Thank you
Ian Purdy: Thank you very much, and hello everyone. Thank you for joining us today. With me is Anna Sudlow, our Chief Financial Officer; Alex Rybak, Chief Commercial Officer; Melanie Williams, Chief Legal Officer; Scott Barber, Chief Operating Officer; and of course, Paula Raffo, Head of Investor Relations. I'll provide a brief overview of our Q2 performance, focusing on Langer Heinrich, our progress in Canada, and specifically at Patterson Lake South development, and our financial position before opening for questions. Let me begin by saying it was a very strong quarter for Paladin, and we couldn't be more pleased with the result. At Langer Heinrich, we produced 1.23 million pounds of U3O8, a 16% increase in the prior quarter, as ramp-up continues to build momentum. We delivered sales of 1.43 million pounds at an average realized price of $71.80 per pound, reflecting the quality of our contract book and the improving uranium market conditions.
Ian Purdy: Thank you very much, and hello everyone. Thank you for joining us today. With me is Anna Sudlow, our Chief Financial Officer; Alex Rybak, Chief Commercial Officer; Melanie Williams, Chief Legal Officer; Scott Barber, Chief Operating Officer; and of course, Paula Raffo, Head of Investor Relations.
Speaker #2: Very much. And hello, everyone. Thank you for joining us today. With me are Anna Sutlow, our Chief Financial Officer; Alex Ryback, Chief Commercial Officer; Melanie Williams, Chief Legal Officer; Scott Barber, Chief Operating Officer; and, of course, Paul Arakpo, Head of Investor Relations.
Speaker #2: I'll provide a brief overview of our Q2 performance, focusing on Langer Heinrich, our progress in Canada—specifically at the Persian Lake South development—and our financial position before opening for questions.
I'll provide a brief overview of our Q2 performance, focusing on Langer Heinrich, our progress in Canada, and specifically at Patterson Lake South development, and our financial position before opening for questions. Let me begin by saying it was a very strong quarter for Paladin, and we couldn't be more pleased with the result. At Langer Heinrich, we produced 1.23 million pounds of U3O8, a 16% increase in the prior quarter, as ramp-up continues to build momentum. We delivered sales of 1.43 million pounds at an average realized price of $71.80 per pound, reflecting the quality of our contract book and the improving uranium market conditions.
Speaker #2: Let me begin by saying it was a very strong quarter for Paladin, and we couldn't be more pleased with the result. At Langer Heinrich, we produced 1.23 million pounds of U3O8, a 16% increase on the prior quarter, as ramp-up continues to build momentum.
Speaker #2: We delivered sales of 1.43 million pounds at an average realized price of $7,180 per pound, reflecting the quality of our contract book and the improving uranium market conditions.
Speaker #2: Based on the strength of performance in the first half of the year, recognizing it is a ramp-up year and we have yet to commission the new fleet, we continue to expect full-year production to trend towards the upper end of our 4 to 4.4 million pound guidance range.
Ian Purdy: Based on the strength of performance in the first half of the year, recognizing it is a ramp-up year and we have yet to commission the new fleet, we continue to expect full-year production to trend towards the upper end of our 4 to 4.4 million lb guidance range. Safety and environmental performance remained strong. Over the trailing 12 months, we recorded an average total recordable injury frequency of 2.9, and we had no serious environmental or radiation incidents during the quarter. Operationally, mining activities continued to ramp up, with increased ore availability feeding directly into higher grades and stronger plant performance. The average ore feed grade increased to 524ppm, and plant recovery reached 91%, underpinning the step-up in production.
Based on the strength of performance in the first half of the year, recognizing it is a ramp-up year and we have yet to commission the new fleet, we continue to expect full-year production to trend towards the upper end of our 4 to 4.4 million lb guidance range. Safety and environmental performance remained strong. Over the trailing 12 months, we recorded an average total recordable injury frequency of 2.9, and we had no serious environmental or radiation incidents during the quarter. Operationally, mining activities continued to ramp up, with increased ore availability feeding directly into higher grades and stronger plant performance. The average ore feed grade increased to 524ppm, and plant recovery reached 91%, underpinning the step-up in production.
Speaker #2: Safety and environmental performance remain strong. Over the trailing 12 months, we recorded an average total recordable injury frequency of 2.9, and we had no serious environmental or radiation incidents during the quarter.
Speaker #2: Operationally, mining activities continue to ramp up, with increased ore availability feeding directly into higher grades and stronger plant performance. The average ore feed grade increased to 524 parts per million, and plant recovery reached 91%, underpinning the step-up in production.
Speaker #2: Half of the new fleet arrived prior to Christmas, and the remaining mining fleet is due to arrive on-site very soon. This keeps us on track to complete the ramp-up by the end of FY2026 and transition to full mining operations in FY2027.
Ian Purdy: Half of the new fleet arrived prior to Christmas, and the remaining mining fleet is due to arrive on site very soon, keeping us on track to complete the ramp-up by the end of FY 2026 and transition to full mining operations in FY 2027. Costs trended positively as volumes increased. The cost of production reduced to $3,970 per pound. On the sales side, quarterly volumes and pricing reflect contract delivery schedules and customer nominations, and the average realized price of $780 per pound highlights the strength of our contract book. In Canada, we continue to advance the high-quality PLS project. At Patterson Lake South, winter drilling mobilization was complete, and drilling commenced in January. The program is focused on resource conversion, extension of Triple R, and regional exploration, supporting long-term development opportunities there.
Half of the new fleet arrived prior to Christmas, and the remaining mining fleet is due to arrive on site very soon, keeping us on track to complete the ramp-up by the end of FY 2026 and transition to full mining operations in FY 2027. Costs trended positively as volumes increased. The cost of production reduced to $3,970 per pound. On the sales side, quarterly volumes and pricing reflect contract delivery schedules and customer nominations, and the average realized price of $780 per pound highlights the strength of our contract book. In Canada, we continue to advance the high-quality PLS project. At Patterson Lake South, winter drilling mobilization was complete, and drilling commenced in January. The program is focused on resource conversion, extension of Triple R, and regional exploration, supporting long-term development opportunities there.
Speaker #2: Cost trended positively as volumes increased. The cost of production reduced to $39.70 per pound. On the sales side, quarterly volumes and pricing reflect contract delivery schedules and customer nominations, and the average realized price of $71.80 per pound highlights the strength of our contract book.
Speaker #2: In Canada, we continue to advance the high-quality PLS project. At Paterson Lake South, winter drilling mobilization was complete, and drilling commenced in January. The program is focused on resource conversion, extension of Triple R, and regional exploration supporting long-term development opportunities there.
Speaker #2: We also continue constructive engagement with the regulators and Indigenous partners regarding the EIS and remain confident of a timely outcome. Following the completion of the share purchase plan and debt facility restructure, we ended the quarter with $278 million of cash and investments and a fully undrawn $70 million revolving credit facility.
Ian Purdy: We also continue constructive engagement with the regulators and indigenous partners regarding the EIS and remain confident of a timely outcome. Following the completion of the share purchase plan and debt facility restructure, we ended the quarter with $278 million of cash and investment and a fully undrawn $70 million revolving credit facility. This provides Paladin with substantial flexibility to advance PLS towards FID and support the final phase of the Langer Heinrich ramp-up. We also strengthened our leadership team during the period, with Dale Huffman appointed as President of Paladin Canada and, of course, Scott Barber commencing as Chief Operating Officer early this month. In summary, the first half of FY 2026 demonstrates Paladin Energy's capability to execute. Langer Heinrich is performing strongly. Production is building towards the top end of guidance in preparation for full mining and production capacity by the end of FY 2026.
We also continue constructive engagement with the regulators and indigenous partners regarding the EIS and remain confident of a timely outcome. Following the completion of the share purchase plan and debt facility restructure, we ended the quarter with $278 million of cash and investment and a fully undrawn $70 million revolving credit facility. This provides Paladin with substantial flexibility to advance PLS towards FID and support the final phase of the Langer Heinrich ramp-up. We also strengthened our leadership team during the period, with Dale Huffman appointed as President of Paladin Canada and, of course, Scott Barber commencing as Chief Operating Officer early this month. In summary, the first half of FY 2026 demonstrates Paladin Energy's capability to execute. Langer Heinrich is performing strongly. Production is building towards the top end of guidance in preparation for full mining and production capacity by the end of FY 2026.
Speaker #2: This provides Paladin with substantial flexibility to advance PLS towards FID and support the final phase of the Langer Heinrich ramp-up. We also strengthen our leadership team during the period, with Dale Huffman appointed as President of Paladin Canada and, of course, Scott Barber commencing as Chief Operating Officer early this month.
Speaker #2: In summary, the first half of FY2026 demonstrates Paladin Energy's capability to execute. Langer Heinrich is performing strongly, and production is building toward the top end of guidance in preparation for full mining and production capacity by the end of FY2026.
Speaker #2: Our contract book is delivering solid pricing outcomes; our balance sheet positions us to execute on a multi-decade uranium production strategy. I appreciate your time today, and I’m happy to hand over to any—
Ian Purdy: Our contract book is delivering solid pricing outcomes. Our balance sheet positions us to execute on a multi-decade uranium production strategy. I appreciate your time today, and I'm happy to hand over to any questions.
Our contract book is delivering solid pricing outcomes. Our balance sheet positions us to execute on a multi-decade uranium production strategy. I appreciate your time today, and I'm happy to hand over to any questions.
Speaker #2: questions.
Speaker #1: Thank
Speaker #1: If you would like to ask a question, please press *1 on your telephone and wait for your name to be announced. If you would like to cancel your request, please press *2.
Operator: Thank you. If you would like to ask a question, please press star one on your telephone and wait for your name to be announced. If you would like to cancel your request, please press star two. If you are on a speakerphone, please pick up the handset to ask your question. Your first question today comes from Henry Meyer from Goldman Sachs. Please go ahead.
Operator: Thank you. If you would like to ask a question, please press star one on your telephone and wait for your name to be announced. If you would like to cancel your request, please press star two. If you are on a speakerphone, please pick up the handset to ask your question. Your first question today comes from Henry Meyer from Goldman Sachs. Please go ahead.
Speaker #1: If you are on a speakerphone, please pick up the handset to ask your question. Your first question today comes from Henry Meyer from Goldman Sachs.
Speaker #1: Please go ahead.
Speaker #3: Morning, team. Thanks for the update. It's been another strong quarter for cost performance, below guidance, so mining is still to come, of course. I hope you could add some color on expectations for Unicast coming in the second half.
Henry Meyer: Morning, team. Thanks for the update. It's been another strong quarter for cost performance below guidance, though mining's still to come, of course. I hope you could add some color on expectations for unit costs coming in the second half. If costs remain within guidance overall and we produce 4.4 million pounds, we might be looking at sort of low 50s in the second half. Is that sort of the run rate you're expecting going forward and into FY 27?
Henry Meyer: Morning, team. Thanks for the update. It's been another strong quarter for cost performance below guidance, though mining's still to come, of course. I hope you could add some color on expectations for unit costs coming in the second half. If costs remain within guidance overall and we produce 4.4 million pounds, we might be looking at sort of low 50s in the second half. Is that sort of the run rate you're expecting going forward and into FY 27?
Speaker #3: If costs remain within guidance overall, and we produce 4.4 million pounds, we might be looking at sort of low 50s. In the second half, is that sort of the run rate you're expecting going forward?
Speaker #3: And into FY 27?
Speaker #4: Thanks for the question, Henry. We're still maintaining our guidance on cost. You're right in that we've had a really good quarter this quarter. There will be an increase in cost of production next quarter as a result of mining.
Anna Sudlow: Thanks for the question, Henry. We're still maintaining our guidance on cost. You're right in that we've had a really good quarter this quarter. There will be an increase in cost of production next quarter as a result of mining. It's obviously a function of volumes as well, but at this point, we're maintaining our position on the guidance range on cost of production.
Anna Sudlow: Thanks for the question, Henry. We're still maintaining our guidance on cost. You're right in that we've had a really good quarter this quarter. There will be an increase in cost of production next quarter as a result of mining. It's obviously a function of volumes as well, but at this point, we're maintaining our position on the guidance range on cost of production.
Speaker #4: It's obviously a function of volumes as well, but at this point, we're maintaining our position on the guidance range on cost of production.
Speaker #3: Great, thank you. And on production, then—in the second half, run rate is above the top end of guidance now. Could you maybe just step through some of the key assumptions as you ramp up production over Q3 and Q4 that would maybe limit you from exceeding guidance?
Henry Meyer: Great. Thank you. On production then, in the second half, run rate above the top end of guidance now. Could you maybe just step through some of the key assumptions as you ramp up production over Q3 and Q4 that would maybe limit you from exceeding guidance?
Henry Meyer: Great. Thank you. On production then, in the second half, run rate above the top end of guidance now. Could you maybe just step through some of the key assumptions as you ramp up production over Q3 and Q4 that would maybe limit you from exceeding guidance?
Speaker #2: Look, Henry, there are a couple of things there. Thanks for the question. First of all, it is a ramp-up year, and the goal of this year is really to get us to full production for FY2027.
Ian Purdy: Look, Henry, there's a couple of things there. Thanks for the question. First of all, it is a ramp-up year, and the goal of this year is really to get us to full production for FY 2027. Yes, we've had a very strong quarter, underpinned by uplift in tons processed. The ore feed grade increased up to 524, and in fact, recovery is above our target range of 85 to 90. Our expectation is now that we start commissioning the new fleet, we've got some fleet optimization to do, and there's six months to go. It's probably a bit early to call the full year, but the goal really is to drive a level of consistency in our performance to deliver that full production rate by the end of this financial year.
Ian Purdy: Look, Henry, there's a couple of things there. Thanks for the question. First of all, it is a ramp-up year, and the goal of this year is really to get us to full production for FY 2027. Yes, we've had a very strong quarter, underpinned by uplift in tons processed. The ore feed grade increased up to 524, and in fact, recovery is above our target range of 85 to 90. Our expectation is now that we start commissioning the new fleet, we've got some fleet optimization to do, and there's six months to go. It's probably a bit early to call the full year, but the goal really is to drive a level of consistency in our performance to deliver that full production rate by the end of this financial year.
Speaker #2: Yes, we've had a very strong quarter, underpinned by an uplift in tons processed. The ore feed grade increased up to 524, and in fact, recovery is above our target range of 85 to 90.
Speaker #2: Our expectation is now that we start commissioning the new fleet, we've got some fleet optimization to do. And there's six months to go.
Speaker #2: It's probably a bit early to call the full year, but the goal really is to drive a level of consistency in our performance to deliver that full production rate by the end of this financial.
Speaker #2: year. Great.
Henry Meyer: Great. Thank you.
Henry Meyer: Great. Thank you.
Speaker #3: Thank
Speaker #3: Thank you. Thank you.
Operator: Thank you. Your next question comes from Alexander Rankin from RBC Capital Markets. Please go ahead.
Operator: Thank you. Your next question comes from Alexander Rankin from RBC Capital Markets. Please go ahead.
Speaker #1: Your next question comes from Alastair Rankin from RBC Capital Markets. Please go ahead.
Speaker #5: Oh, good morning, Paul and Alex and Scott. And congrats on a strong result. First question, just following on from your last comment about recovery rates—they improved by about 5% to the highest level, I think, since the restart.
Alexander Rankin: Good morning, Paul, Anna, Alex, and Scott. Congrats on a strong result. First question, just following on from your last comment about recovery rates. They improved by about 5%, the highest level I think since the restart. So is there anything specific you can point to that drove that improvement?
Alistair Rankin: Good morning, Paul, Anna, Alex, and Scott. Congrats on a strong result. First question, just following on from your last comment about recovery rates. They improved by about 5%, the highest level I think since the restart. So is there anything specific you can point to that drove that improvement?
Speaker #5: So, is there anything specific you can point to that drove that?
Speaker #5: improvement? Alastair, one of the
Ian Purdy: Alastair, one of the things that I think is a real feature of Langer Heinrich is when it has very consistent feed, you're able to tune the process to make sure that our recovery rates are stabilized. I think since we introduced mining, we've been able to improve the consistency of feed in terms of material type and grade, and the team has done a terrific job dialing in recovery. My expectation is that we continue to recover in that 85 to 90 range. They've just done an extraordinary job in the last quarter, hitting the 91.
Ian Purdy: Alastair, one of the things that I think is a real feature of Langer Heinrich is when it has very consistent feed, you're able to tune the process to make sure that our recovery rates are stabilized. I think since we introduced mining, we've been able to improve the consistency of feed in terms of material type and grade, and the team has done a terrific job dialing in recovery. My expectation is that we continue to recover in that 85 to 90 range. They've just done an extraordinary job in the last quarter, hitting the 91.
Speaker #2: One thing that I think is a real feature of Langer Heinrich is when it has very consistent feed, you're able to tune the process to make sure that our recovery rates are stabilized.
Speaker #2: And I think since we introduced mining, we've been able to improve the consistency of feed in terms of material type and grade. And the team has done a terrific job dialing in recovery.
Speaker #2: My expectation is that we continue to recover in that 85 to 90 range, but they've just done an extraordinary job in the last quarter hitting the 91.
Speaker #1: Understood. And then just a second one on your cash flow costs. So, looking at slide six, it looks like your total costs were around $62 million when you include the stockpile build and also the stripping.
Operator: Understood. Then just a second one on your cash flow costs. So looking at slide six, it looks like your total costs were around $62 million when you include the stockpile build and also the stripping. So in FY 2027, what do you think that will sit at roughly once your mining activity has ramped up materially, maybe on a per quarter basis?
Alistair Rankin: Understood. Then just a second one on your cash flow costs. So looking at slide six, it looks like your total costs were around $62 million when you include the stockpile build and also the stripping. So in FY 2027, what do you think that will sit at roughly once your mining activity has ramped up materially, maybe on a per quarter basis?
Speaker #1: So in FY27, what do you think that will sit at roughly once your mining activity is ramped up materially, maybe on a per-quarter basis?
Speaker #4: So, I think that the intent is to provide guidance in July. This year, on FY27, as was described, we are in ramp-up this year and the intent is to get to full production by the end of this year, which will inform our FY27 guidance.
Anna Sudlow: So I think the intent is to provide guidance in July this year on FY 2027. As was described, we are in ramp-up this year, and the intent is to get to full production by the end of this year, which will inform our FY 2027 guidance.
Anna Sudlow: So I think the intent is to provide guidance in July this year on FY 2027. As was described, we are in ramp-up this year, and the intent is to get to full production by the end of this year, which will inform our FY 2027 guidance.
Speaker #2: So I might just add to that, Alastair, we've got a bit of optimization to do, particularly around the mining fleet. Also, some mine plan optimization that will lead us into the budget program, and shortly thereafter we'll be able to provide full-year guidance on FY27.
Ian Purdy: I might just add to that, Alexander, we've got a bit of optimization to do, particularly around the mining fleet, also some mine plan optimization. That'll lead us into the budget program, and shortly thereafter, we'll be able to provide full-year guidance on FY 2027.
Ian Purdy: I might just add to that, Alexander, we've got a bit of optimization to do, particularly around the mining fleet, also some mine plan optimization. That'll lead us into the budget program, and shortly thereafter, we'll be able to provide full-year guidance on FY 2027.
Speaker #1: Yep, no problem at all. Thanks. Thank you. Your next question comes from Daniel Roden from Jefferies. Please go ahead.
Alexander Rankin: Yep, no problem at all. Thanks.
Alistair Rankin: Yep, no problem at all. Thanks.
Operator: Thank you. Your next question comes from Daniel Morgan from Jefferies. Please go ahead.
Operator: Thank you. Your next question comes from Daniel Morgan from Jefferies. Please go ahead.
Speaker #6: Hello, guys. Thanks for taking my question. Just following up on the quarter—obviously, had higher ore and lower waste. It seems like, relative to your expectations even.
Alexander Rankin: Hello, guys. Thanks for taking my question. Just following up on the quarter, obviously had higher ore and lower waste. It seems like relative to your expectations even. I just wondered, what was the, I guess, delta there? Is that a reconciliation issue in the, obviously, a positive reversion? But how do you think about that going into the next few quarters? It seems like it's do you have a catch-up waste volumes that you're targeting in second half? Is there a higher strip that we need to be modeling in and factoring and thinking about? How do we think about that?
Daniel Roden: Hello, guys. Thanks for taking my question. Just following up on the quarter, obviously had higher ore and lower waste. It seems like relative to your expectations even. I just wondered, what was the, I guess, delta there? Is that a reconciliation issue in the, obviously, a positive reversion? But how do you think about that going into the next few quarters? It seems like it's do you have a catch-up waste volumes that you're targeting in second half? Is there a higher strip that we need to be modeling in and factoring and thinking about? How do we think about that?
Speaker #6: I just wondered, what was the, I guess, delta there? Is that a reconciliation issue in the, obviously, a positive reversion? But how do you think about that going into the next few quarters?
Speaker #6: It seems like—do you have a catch-up waste volumes that you're targeting in the second half? Is there a higher strip that we need to be modeling in and factoring and thinking about?
Speaker #6: How do we think about that?
Speaker #2: Yeah, you're a bit difficult to hear there, Daniel, but let me sort of answer—I think answer the question. So, you're right.
Ian Purdy: Yeah, you're a bit difficult to hear there, Daniel, but let me sort of answer, I think, answer the question. So you're right. We probably mined a little bit out of sequence, but total mine material is absolutely spot on. No material difference in the last two quarters. Waste is probably a tad lower and a little bit higher on low grade, but the medium grade ore was pretty much spot on. So slight difference in sequencing, no overall material difference, and we'll continue to follow the mine plan. Now, one of the big differences, of course, for the second half is bringing in the new fleet, 140-ton trucks. That gives us significantly more stripping capability and haulage capability. We're currently at 49% of the mining fleet.
Ian Purdy: Yeah, you're a bit difficult to hear there, Daniel, but let me sort of answer, I think, answer the question. So you're right. We probably mined a little bit out of sequence, but total mine material is absolutely spot on. No material difference in the last two quarters. Waste is probably a tad lower and a little bit higher on low grade, but the medium grade ore was pretty much spot on. So slight difference in sequencing, no overall material difference, and we'll continue to follow the mine plan. Now, one of the big differences, of course, for the second half is bringing in the new fleet, 140-ton trucks. That gives us significantly more stripping capability and haulage capability. We're currently at 49% of the mining fleet.
Speaker #2: We probably mined a little bit out of sequence, but total mine material is absolutely spot on. No material difference in the last two quarters.
Speaker #2: Waste is probably a tad lower, and a little bit higher on low grade. But the medium grade ore was pretty much spot on. So, slight difference in sequencing—no overall material difference.
Speaker #2: And we'll continue to follow the mine plan. Now, one of the big differences, of course, for the second half is bringing in the new fleet—140-ton trucks.
Speaker #2: That gives us significantly more stripping capability and haulage capability. We're currently at 49% of the mining fleet. That'll shift to something like 110% early or later this quarter.
Ian Purdy: That'll shift to something like 110% early or later this quarter, and we'll pull that back to 100% of our capacity through an optimization. So we'll continue to follow the mine plan, and our expectation is that'll bring us in at the top end of that guidance range.
That'll shift to something like 110% early or later this quarter, and we'll pull that back to 100% of our capacity through an optimization. So we'll continue to follow the mine plan, and our expectation is that'll bring us in at the top end of that guidance range.
Speaker #2: And we'll pull that back to 100% of our capacity through an optimization. So we'll continue to follow the mine plan, and our expectation is that will bring us in at the top end of that guidance range.
Speaker #2: And we'll pull that back to 100% of our capacity through an optimization. So we'll continue to follow the mine plan, and our expectation is that will bring us in at the top end of that guidance range.
Speaker #6: Yeah, okay. I guess the reason I’m asking is that, I guess, my assumption is that, looking at it, MG3—the low, medium, low-grade stockpiles—are largely complete.
Henry Meyer: Yeah, okay. Yeah, I guess reason, I guess, one for asking is, I guess my assumption is that looking at MG3, the medium low-grade stockpiles are largely complete. The total material volume was a little bit up, but not materially up. So when that fleet is commissioned, that increase in volume, you should be expecting, I guess, an equivalent increase in medium grade delivered to the mill. Would that be the right way of thinking about it? And yeah, I guess from that, if mill feed is consistent quarter on quarter and the grade is relatively consistent from the current quarter and you transpose that out, again, what's giving you what's the lack of confidence in increasing guidance?
Daniel Roden: Yeah, okay. Yeah, I guess reason, I guess, one for asking is, I guess my assumption is that looking at MG3, the medium low-grade stockpiles are largely complete. The total material volume was a little bit up, but not materially up. So when that fleet is commissioned, that increase in volume, you should be expecting, I guess, an equivalent increase in medium grade delivered to the mill. Would that be the right way of thinking about it? And yeah, I guess from that, if mill feed is consistent quarter on quarter and the grade is relatively consistent from the current quarter and you transpose that out, again, what's giving you what's the lack of confidence in increasing guidance?
Speaker #6: The total material volume was a little bit up, but not materially up. So when that fleece is commissioned, that increase in volume should be expecting an equivalent increase in medium-grade delivered to the mill.
Speaker #6: Would that be the right way of thinking about it? And yeah, I guess from that, the mill feed is consistent quarter on quarter, and the grade is relatively consistent.
Speaker #6: From the current quarter, and if you transpose that out again, what's giving you—what's the lack of confidence in increasing guidance?
Speaker #2: Yeah, the answer to the first half of your question is yes, you're about right. In terms of the second half, it's still a ramp-up year.
Ian Purdy: Yeah, the answer to the first half of your question is yes; you're about right. In terms of the second half, it's still a ramp-up year, and commissioning the fleet pretty much means recruiting, training. We've still got an excavator to arrive on site and building the excavator. There's a fair bit of work to do to actually pull it all together. We've got 10 60-ton ADTs. We'll need to optimize those and take some of that capacity out. We've got the 100-ton fleet, three fleets operating really well. But Daniel, it's an outdoor sport, and anything can happen. So we're going to follow the plan, and we're sticking to guidance. But the main game is delivering full production by the end of this financial year, making sure that we roll into FY 2027 with 100% capability in the mine, 100% capability in the plant to deliver in FY 2027.
Ian Purdy: Yeah, the answer to the first half of your question is yes; you're about right. In terms of the second half, it's still a ramp-up year, and commissioning the fleet pretty much means recruiting, training. We've still got an excavator to arrive on site and building the excavator. There's a fair bit of work to do to actually pull it all together. We've got 10 60-ton ADTs. We'll need to optimize those and take some of that capacity out. We've got the 100-ton fleet, three fleets operating really well. But Daniel, it's an outdoor sport, and anything can happen. So we're going to follow the plan, and we're sticking to guidance. But the main game is delivering full production by the end of this financial year, making sure that we roll into FY 2027 with 100% capability in the mine, 100% capability in the plant to deliver in FY 2027.
Speaker #2: And commissioning the fleet pretty much means recruiting, training—we've still got an excavator to arrive on site—and building the excavator. There's a fair bit of work to do to actually pull it all together.
Speaker #2: We've got ten 60-ton ADTs; we'll need to optimize those and take some of that capacity out. We've got the 100-ton fleet—three fleets—operating really well.
Speaker #2: But Daniel, it's an outdoor sport and anything can happen. So we're going to follow the plan and we're sticking to guidance. But the main game is delivering full production by the end of this financial year, making sure that we roll into FY27 with 100% capability in the mine, 100% capability in the plant.
Speaker #2: To deliver in FY
Speaker #2: 27. Yeah, okay.
Henry Meyer: Yeah, okay. Noted. If we can slip just an accounting one in here. If I look at your cash flow waterfall, you've got $60 million of production costs out in the quarter. If I back calculate the $39.7 per pound, that gives me $48 million. What's my delta between those two figures?
Daniel Roden: Yeah, okay. Noted. If we can slip just an accounting one in here. If I look at your cash flow waterfall, you've got $60 million of production costs out in the quarter. If I back calculate the $39.7 per pound, that gives me $48 million. What's my delta between those two figures?
Speaker #6: Noted. And if we can flip just an accounting one in here. If I look at your cash flow waterfall, you've got $60 million of production costs out in the quarter.
Speaker #6: And if I back-calculate the $39.70 per pound, that gives me $48 million. What's my delta between those two?
Speaker #6: figures? So that
Anna Sudlow: So that production cost has got your low-grade stockpile in it, Daniel. I'm not sure if you're taking that into account. But if you want to talk through that, we can take that offline post the call.
Anna Sudlow: So that production cost has got your low-grade stockpile in it, Daniel. I'm not sure if you're taking that into account. But if you want to talk through that, we can take that offline post the call.
Speaker #4: Production cost has got your low-grade stockpile in it, Daniel. I'm not sure if you had taken that into account. But if you want to talk through that, we can take that offline, post the—
Speaker #4: call. Yeah,
Speaker #6: Okay. Might do. Thanks, guys. I'll pass it on.
Henry Meyer: Yeah, okay. Might do. Thanks, guys. I'll pass it on.
Daniel Roden: Yeah, okay. Might do. Thanks, guys. I'll pass it on.
Speaker #1: Thank you. Your next question comes from Regan Burrows from Bell Potter. Please go ahead.
Operator: Thank you. Your next question comes from Regan Burrows from Bell Potter. Please go ahead.
Operator: Thank you. Your next question comes from Regan Burrows from Bell Potter. Please go ahead.
Speaker #7: Hi. Hi, Paul and team. Congratulations on a good result. My first question is around the grade coming out of the pits—whether it's sort of in line with what you expected.
Regan Burrows: Hi, Ian and team. Congratulations on a good result. Just first question I had was around the grade coming out of the pits, whether it's sort of in line with what you expected, and I guess how that blend strategy is going and went during the quarter. Did you sort of find that you were feeding in more fresh ore into the mill, or is it still sort of a blending process going forward?
Regan Burrows: Hi, Ian and team. Congratulations on a good result. Just first question I had was around the grade coming out of the pits, whether it's sort of in line with what you expected, and I guess how that blend strategy is going and went during the quarter. Did you sort of find that you were feeding in more fresh ore into the mill, or is it still sort of a blending process going forward?
Speaker #7: And I guess, how that blends strategy is going and went during the quarter—did you sort of find that you were feeding in more fresh ore into the mill, or is it still sort of a blending process going?
Speaker #7: forward? Yeah.
Ian Purdy: Yeah, good question, Regan. The mine, and like most mines, will have some sort of blend strategy based on both the grade and the ore type that's delivered, and Langer Heinrich is no different. If we were to feed 100% fines, then we'd probably slow production and throughput. If we were to feed 100% coarse material, then we would increase our recirculating load and throttle throughput. So a blend is always necessary. Blending for grade is one of our primary objectives, but blending for throughput is the key secondary objective. In the last quarter, we did have a blend of MG3 stockpile, and we saw the grade slightly uplift in the lower benches of that old stockpile. And grade coming from the pit was as per the mine plan. For the remainder of the year, we'll continue to deplete that stockpile.
Ian Purdy: Yeah, good question, Regan. The mine, and like most mines, will have some sort of blend strategy based on both the grade and the ore type that's delivered, and Langer Heinrich is no different. If we were to feed 100% fines, then we'd probably slow production and throughput. If we were to feed 100% coarse material, then we would increase our recirculating load and throttle throughput. So a blend is always necessary. Blending for grade is one of our primary objectives, but blending for throughput is the key secondary objective. In the last quarter, we did have a blend of MG3 stockpile, and we saw the grade slightly uplift in the lower benches of that old stockpile. And grade coming from the pit was as per the mine plan. For the remainder of the year, we'll continue to deplete that stockpile.
Speaker #2: Good question, Regan. The mine, like most mines, will have some sort of blend strategy based on both the grade and the ore type that's delivered.
Speaker #2: And Langer Heinrich is no different. If we were to feed 100% fines, then we'd probably slow production and throughput. If we were to feed 100% coarse material, then we would increase our recirculating load and throttle throughput.
Speaker #2: So a blend is always necessary. Blending for grade is one of our primary objectives, but blending for throughput is the key secondary objective. In the last quarter, we did have a blend of MG3 stockpile, and we saw the grade slightly uplift in the lower benches of that old stockpile.
Speaker #2: And grade coming from the pit was as per the mine plan. For the remainder of the year, we'll continue to deplete that stockpile. It's probably going to reduce faster than we expected.
Ian Purdy: It's probably going to reduce faster than we expected as we ramp up through this final phase with the new fleet.
It's probably going to reduce faster than we expected as we ramp up through this final phase with the new fleet.
Speaker #2: As we ramp up through this final phase with the new fleet.
Speaker #6: Great, thanks. And just in terms, obviously, the pricing surprised to the upside a bit. Perhaps one for Alex to just talk through the market and the contracting.
Regan Burrows: Great, thanks. And just in terms of, obviously, the pricing surprised the upside a bit. Perhaps one for Alex just to talk through the market and the contracting. Obviously, Grant Isaac was talking about ceilings and floors in the 70 to 150 range. Is that what you're seeing at the moment? And how does the book sort of transform over the next three months, six months, as we see sort of increased pricing going forward?
Regan Burrows: Great, thanks. And just in terms of, obviously, the pricing surprised the upside a bit. Perhaps one for Alex just to talk through the market and the contracting. Obviously, Grant Isaac was talking about ceilings and floors in the 70 to 150 range. Is that what you're seeing at the moment? And how does the book sort of transform over the next three months, six months, as we see sort of increased pricing going forward?
Speaker #6: Obviously, Grant Isaac was talking about ceilings and floors in the $70 to $150 range. Is that what you're seeing at the moment? And how does the book sort of transform over the next three months, six months, as we see sort of increased pricing going?
Speaker #6: forward? Yeah,
Ian Purdy: Yeah, Regan, we're very pleased with the sales results, both on the volumes and the realized prices. On the volumes, I think some of that is a function of catching up with the sales from previous quarter. And on the realized pricing, a lot of that depends on which contracts we deliver in the quarter. So this quarter, we benefit probably from a higher delivery into the market-related contracts and obviously from the strengthening uranium price environment, which we've seen as a result of a lot of positive macro developments. And I think it really highlights two things for me. One is that we are a producer, and we benefit from the current environment through realized pricing and through cash flow. But also, it really is a positive uranium market environment with a lot of factors driving strengthening pricing.
Alex Rybak: Yeah, Regan, we're very pleased with the sales results, both on the volumes and the realized prices. On the volumes, I think some of that is a function of catching up with the sales from previous quarter. And on the realized pricing, a lot of that depends on which contracts we deliver in the quarter. So this quarter, we benefit probably from a higher delivery into the market-related contracts and obviously from the strengthening uranium price environment, which we've seen as a result of a lot of positive macro developments. And I think it really highlights two things for me. One is that we are a producer, and we benefit from the current environment through realized pricing and through cash flow. But also, it really is a positive uranium market environment with a lot of factors driving strengthening pricing.
Speaker #2: Regan, I was very pleased with the sales results, both on the volumes and the realized prices. On the volumes, I think some of that is a function of catching up with the sales from the previous quarter.
Speaker #2: And on the realized pricing, a lot of that depends on which contracts we're delivering in the quarter. So, this quarter, we benefited probably from a higher delivery into the market-related contracts.
Speaker #2: And obviously, from the strengthening uranium price environment, which we've seen as a result of a lot of positive macro developments. And I think it really highlights two things for me.
Speaker #2: One is that we are a producer, and we benefit from the current environment through realized pricing and through cash flow. But also, it's really a positive uranium market environment, with a lot of factors driving strengthening pricing.
Speaker #2: We're seeing, to your second point on the floors and ceilings and the relative relevant prices, that we are seeing a lot of strong inquiry from our utility customers for material on a longer-term basis.
Ian Purdy: We're seeing, to your second point on the floors and ceilings and the relative relevant prices, we are seeing a lot of strong inquiry from our utility customers for material on a longer-term basis. So to me, that is a really interesting development when utility customers come to you and they ask for material in the 2030s rather than the next year or two. That, to me, says that utilities are seeing this structural supply-demand deficit. The internal departments are now turning their mind to contracting that longer-term supply. We're not really in a rush to contract more longer-term volumes. We're pretty happy with the way our book looks currently. Our book is very strong. It's delivered strong performance this quarter. It'll fluctuate from quarter to quarter, but it does retain a market-related balance with some price protection.
We're seeing, to your second point on the floors and ceilings and the relative relevant prices, we are seeing a lot of strong inquiry from our utility customers for material on a longer-term basis. So to me, that is a really interesting development when utility customers come to you and they ask for material in the 2030s rather than the next year or two. That, to me, says that utilities are seeing this structural supply-demand deficit. The internal departments are now turning their mind to contracting that longer-term supply. We're not really in a rush to contract more longer-term volumes. We're pretty happy with the way our book looks currently. Our book is very strong. It's delivered strong performance this quarter. It'll fluctuate from quarter to quarter, but it does retain a market-related balance with some price protection.
Speaker #2: So to me, that is a really interesting development when utility customers come to you and they ask for material in the 2030s rather than the next year or two.
Speaker #2: That, to me, says that utilities are seeing this structural supply-demand deficit. Internal departments are now turning their mind to contracting that longer-term supply. We're not really in a rush to contract more longer-term volumes.
Speaker #2: We're pretty happy with the way our book looks currently. Our book is very strong. It's delivered strong performance this quarter. It'll fluctuate from quarter to quarter.
Speaker #2: But it does retain a market-related balance with some price protection. So we're very, very happy with the way the book is performing, and we are probably taking a strategic pause a little bit in terms of Langer Heinrich contracting, but we're very active in the market talking to utility customers and positioning for further contracting cycles.
Ian Purdy: So we're very, very happy with the way the book is performing, and we are probably taking a strategic pause a little bit in terms of Langer Heinrich contracting, but we're very active in the market talking to utility customers and positioning for further contracting cycles ahead.
So we're very, very happy with the way the book is performing, and we are probably taking a strategic pause a little bit in terms of Langer Heinrich contracting, but we're very active in the market talking to utility customers and positioning for further contracting cycles ahead.
Speaker #2: ahead. Great.
Regan Burrows: Great. Thank you very much. I'll leave it there. Congratulations on a good quarter.
Regan Burrows: Great. Thank you very much. I'll leave it there. Congratulations on a good quarter.
Speaker #6: Thank you very much. I'll leave it there. Congratulations on a good quarter.
Speaker #1: Thank you. Your next question comes from Milan Tomic from JP Morgan. Please go ahead.
Operator: Thank you. Your next question comes from Elan Tomic from J.P. Morgan. Please go ahead.
Operator: Thank you. Your next question comes from Elan Tomic from J.P. Morgan. Please go ahead.
Speaker #1: ahead. Yeah.
Regan Burrows: Yeah, hi, team. Thanks for the call. Just interested in the sales over the next two quarters. Are you expecting them to be relatively evenly distributed, or should we kind of expect them to be skewed towards one quarter versus another?
Milan Tomic: Yeah, hi, team. Thanks for the call. Just interested in the sales over the next two quarters. Are you expecting them to be relatively evenly distributed, or should we kind of expect them to be skewed towards one quarter versus another?
Speaker #8: Hi, team. Thanks for the call. I'm just interested in the sales over the next two quarters. Are you expecting them to be relatively evenly distributed, or should we kind of expect them to be skewed towards one quarter versus another?
Speaker #2: Yeah. Look, I think, again, sales will be a function of customer delivery nomination timing, as well as shipping schedules. So, they will fluctuate. But I think with higher production trending towards the upper end of the guidance range, we're probably expecting the sales to also trend towards the upper end of the range.
Ian Purdy: Yeah, look, I think, again, sales will be a function of customer delivery nomination timing as well as shipping schedules. So they will fluctuate. But I think with higher production trending towards the upper end of the guidance range, we probably expect the sales to also trend towards the upper end of the range. But there will be that variability in the timing and realized pricing.
Ian Purdy: Yeah, look, I think, again, sales will be a function of customer delivery nomination timing as well as shipping schedules. So they will fluctuate. But I think with higher production trending towards the upper end of the guidance range, we probably expect the sales to also trend towards the upper end of the range. But there will be that variability in the timing and realized pricing.
Speaker #2: But there will be that variability in the timing and realized.
Speaker #2: pricing. Yep.
Regan Burrows: Yep, thanks very much. Maybe just on the grades of the current pit that you're mining at, can you just remind me, what's the actual sequencing plan there for the next year? Just if you can remind us of what the average mine grades that you're expecting out of those pits are.
Milan Tomic: Yep, thanks very much. Maybe just on the grades of the current pit that you're mining at, can you just remind me, what's the actual sequencing plan there for the next year? Just if you can remind us of what the average mine grades that you're expecting out of those pits are.
Speaker #8: Thanks very much. And maybe just on the grades of the current pit that you're mining at, can you just remind me what's the actual sequencing plan there?
Speaker #8: For the next year, and just if you can, remind us of what the average mine grades that you're expecting out of those pits are?
Speaker #2: Yeah, we're not guiding on that level of detail. But what I will say is we're absolutely on track to reach that upper end of guidance, but we do have more work to do on optimization of the mine plan.
Ian Purdy: Yeah, we're not guiding on that level of detail. But what I will say is we're absolutely on track to reach that upper end of guidance. But we do have more work to do on optimization of the mine plan to make sure that we're delivering the best value out of Langer Heinrich.
Ian Purdy: Yeah, we're not guiding on that level of detail. But what I will say is we're absolutely on track to reach that upper end of guidance. But we do have more work to do on optimization of the mine plan to make sure that we're delivering the best value out of Langer Heinrich.
Speaker #2: To make sure that we're delivering the best value out of Langer Heinrich.
Speaker #8: Great. Thanks very much. I'll leave it there.
Regan Burrows: Great. Thanks very much. I'll leave it there.
Milan Tomic: Great. Thanks very much. I'll leave it there.
Speaker #1: Thank you. Your next question comes from Dim from UBS. Please go ahead.
Operator: Thank you. Your next question comes from Tim from UBS. Please go ahead.
Operator: Thank you. Your next question comes from Tim from UBS. Please go ahead.
[Analyst] (UBS): Sorry, just wanted to ask that previous question in a different way. So on inventory then, are you happy with where your current balance is? Do you feel you need to build it a little bit more? I can maybe just refresh this on that working capital briefly.
Dim Ariyasinghe: Sorry, just wanted to ask that previous question in a different way. So on inventory then, are you happy with where your current balance is? Do you feel you need to build it a little bit more? I can maybe just refresh this on that working capital briefly.
Speaker #9: Previous question in a different way. So on inventory then, are you happy with where you're currently balances, do you see you need to build it a little bit more for community refreshers on where that working capital falls
Speaker #9: for? I'm really sorry,
Ian Purdy: I'm really sorry, Tim. I couldn't hear your question.
Ian Purdy: I'm really sorry, Tim. I couldn't hear your question.
Speaker #2: Dim, I couldn't hear your question.
Speaker #8: Sorry, it might be my AirPods. So yeah, if I could ask that question—yep, yeah, AirPods. If I could ask that previous question just a little bit differently, can you refresh us on levels of inventory?
Henry Meyer: Sorry, it might be my AirPods. So yeah, if I could ask that previous question?
Dim Ariyasinghe: Sorry, it might be my AirPods. So yeah, if I could ask that previous question?
Regan Burrows: That's good.
Ian Purdy: That's good.
Henry Meyer: Yep, yeah, AirPods. If I could ask that previous question just a little bit differently, can you refresh us on levels of inventory? Are you happy? I think you've got three months of inventory based on nameplate. Is that the sort of level you want to maintain? Can we see that?
Dim Ariyasinghe: Yep, yeah, AirPods. If I could ask that previous question just a little bit differently, can you refresh us on levels of inventory? Are you happy? I think you've got three months of inventory based on nameplate. Is that the sort of level you want to maintain? Can we see that?
Speaker #8: Are you happy? I think you've got three months of inventory based on nameplate. Is that the sort of level you want to maintain? Can we see that?
Speaker #2: Yeah, Dim. The level of inventory is fluctuating. With the sales and the timing of deliveries, as well as shipping schedules, obviously the inventories have come down a little bit from 1.8 to 1.6 this quarter.
Ian Purdy: Yeah, Tim, the level of inventories fluctuate with the sales and the timing of deliveries as well as shipping schedules, obviously. The inventories have come down a little bit from 1.8 to 1.6 this quarter, and they will fluctuate. But this is sort of probably a normal level of inventories at this point in time. Obviously, as we ramp up, that level is expected to increase. Our inventories are probably around, on average, if you have a look, is about four months of production. And that's quite favorable relative to other major producers who run probably at around five to six months of production on average. So we manage our inventory very tightly, and all of our inventories are earmarked for customer deliveries. So we don't sort of hold inventories for trading purposes. We deliver material into our contract book.
Alex Rybak: Yeah, Tim, the level of inventories fluctuate with the sales and the timing of deliveries as well as shipping schedules, obviously. The inventories have come down a little bit from 1.8 to 1.6 this quarter, and they will fluctuate. But this is sort of probably a normal level of inventories at this point in time. Obviously, as we ramp up, that level is expected to increase. Our inventories are probably around, on average, if you have a look, is about four months of production. And that's quite favorable relative to other major producers who run probably at around five to six months of production on average. So we manage our inventory very tightly, and all of our inventories are earmarked for customer deliveries. So we don't sort of hold inventories for trading purposes. We deliver material into our contract book.
Speaker #2: And they will fluctuate. But this is probably a normal level of inventories at this point in time. Obviously, as we ramp up, that level is expected to increase.
Speaker #2: How inventories are probably around, on average, if you have a look, is about four months of production. And that's quite favorable relative to other major producers, who run probably at around five to six months of production.
Speaker #2: On average, we manage our inventory very tightly. All of our inventories are earmarked for customer deliveries, so we don't sort of hold inventories for trading purposes.
Speaker #2: We deliver material into our contract book.
Speaker #8: Yep, awesome. And maybe just to expand on that—thanks, Alex—on the previous comment you made about maybe not being in a hurry for subsequent contracting. If you could expand on that, is that just more strategic in terms of letting the market come to you, or is it about giving yourself a bit of buffer on future production or your expectations for future production?
Henry Meyer: Yep, awesome. And maybe just to expand on, thanks, Alex, previous comment you made about maybe not being in a hurry for subsequent contracting. Is that more a, yeah, if you can expand on that, is that just more strategic in terms of letting the market come to you, or is it just giving yourself a bit of buffer on future production or your expectations for future production?
Dim Ariyasinghe: Yep, awesome. And maybe just to expand on, thanks, Alex, previous comment you made about maybe not being in a hurry for subsequent contracting. Is that more a, yeah, if you can expand on that, is that just more strategic in terms of letting the market come to you, or is it just giving yourself a bit of buffer on future production or your expectations for future production?
Speaker #2: Yeah, I think it's a function of a few things. First of all, obviously, in the early stage of the ramp-up, we produced slightly less than we expected.
Ian Purdy: Yeah, I think it's a function of a few things. First of all, obviously, in the early stage of the ramp-up, we produce slightly less than we expected. So our contracted position, as a result, has increased and was probably higher than we initially anticipated. So we've got a little bit of catch-up there. But we do have flexibility in our book and in our offtakes to flex some deliveries up and down. So we've managed that. But then it's a strategic question, as you said. We are seeing stronger price levels, and we've always layered contracts into our portfolio. So we'd like to see a higher price level before we pursue further contracts into the longer term, particularly into the 30s where we are seeing strong demand, and we're not really seeing additional incremental production coming from the market.
Alex Rybak: Yeah, I think it's a function of a few things. First of all, obviously, in the early stage of the ramp-up, we produce slightly less than we expected. So our contracted position, as a result, has increased and was probably higher than we initially anticipated. So we've got a little bit of catch-up there. But we do have flexibility in our book and in our offtakes to flex some deliveries up and down. So we've managed that. But then it's a strategic question, as you said. We are seeing stronger price levels, and we've always layered contracts into our portfolio. So we'd like to see a higher price level before we pursue further contracts into the longer term, particularly into the 30s where we are seeing strong demand, and we're not really seeing additional incremental production coming from the market.
Speaker #2: So our contracted position, as a result, has increased and was probably higher than we initially anticipated. So we've got a little bit of catch-up there.
Speaker #2: But we do have flexibility in our book and in our offtakes to flex some deliveries up and down, so we've managed that. But then it's a strategic question, as you said.
Speaker #2: We are seeing stronger price levels, and we've always layered contracts into our portfolio. So we'd like to see a higher price level before we pursue further contracts into the longer term, particularly into the 30s, where we are seeing strong demand and we're not really seeing additional incremental production coming from the market.
Speaker #2: We sort of struggle to see how the market is going to meet that level of demand. I think one interesting observation I'll make, that was made to me by one of the niche brokers in the UK, Ocean Wall, is on the 1st of January, the new MET regime in Kazatomprom in Kazakhstan has come in.
Ian Purdy: We sort of struggle to see how the market is going to meet that level of demand. I think one interesting observation I'll make that was made to me by one of the niche brokers in the UK, OceanWall, is on 1 January, the new MET regime in Kazatomprom in Kazakhstan has come in. And that really, if you have a look at the details of it, that really disincentivizes Kazatomprom to increase production, particularly at high uranium prices. So a lot of the concerns in the market last year was that Kazatomprom was going to increase production if prices increased. I think this MET regime largely puts those concerns to bed. So that's quite interesting. We just don't see how the market on the supply side is going to meet the forecast demand in the 2030s.
We sort of struggle to see how the market is going to meet that level of demand. I think one interesting observation I'll make that was made to me by one of the niche brokers in the UK, OceanWall, is on 1 January, the new MET regime in Kazatomprom in Kazakhstan has come in. And that really, if you have a look at the details of it, that really disincentivizes Kazatomprom to increase production, particularly at high uranium prices. So a lot of the concerns in the market last year was that Kazatomprom was going to increase production if prices increased. I think this MET regime largely puts those concerns to bed. So that's quite interesting. We just don't see how the market on the supply side is going to meet the forecast demand in the 2030s.
Speaker #2: And that really, if you have a look at it, the details of it, that really disincentivizes Kazatomprom to increase production, particularly at high uranium prices.
Speaker #2: So, a lot of the concerns in the market last year were that Kazatomprom was going to increase production if prices increased. I think this MET regime largely puts those concerns to bed, so that's quite interesting.
Speaker #2: We just don't see how the market on the supply side is going to meet the forecast demand in the 2030s. So we do see a further price cycle, a higher price environment, and we want to leave some production uncontracted to place into that strong environment.
Ian Purdy: So we do see further price cycle, higher price environment, and we want to leave some production uncontracted to place into that strong environment.
So we do see further price cycle, higher price environment, and we want to leave some production uncontracted to place into that strong environment.
Speaker #8: Okay. Okay. Cool. No, thanks,
Henry Meyer: Okay, okay, cool. No, thanks, thanks, Alex.
Dim Ariyasinghe: Okay, okay, cool. No, thanks, thanks, Alex.
Speaker #8: Alex. Thank
Speaker #1: You. Your next question comes from Glyn Lawlock from Baron Joey. Please go ahead.
Operator: Thank you. Your next question comes from Glynn Lawcock from Barrenjoey. Please go ahead.
Operator: Thank you. Your next question comes from Glynn Lawcock from Barrenjoey. Please go ahead.
Speaker #1: ahead. Good
Speaker #10: Morning, Paul. Just looking at the last few quarters, the plant throughput's been running around 4.8 million tonnes annualised. How does that compare to where you think you can finally get it to?
Regan Burrows: Good morning, Paul. Just looking at the last few quarters, the plant throughput's been running around 4.8 million tons annualized. How's that compared to where you think you can finally get it to? Is that just like, is it not ramping up because you just don't have the feed for it at the moment? Because, I mean, you've obviously got stockpiles as well. Just how should I think about that and the outlook? Thanks.
Glyn Lawcock: Good morning, Paul. Just looking at the last few quarters, the plant throughput's been running around 4.8 million tons annualized. How's that compared to where you think you can finally get it to? Is that just like, is it not ramping up because you just don't have the feed for it at the moment? Because, I mean, you've obviously got stockpiles as well. Just how should I think about that and the outlook? Thanks.
Speaker #10: Is that just—is it not ramping up because you just don't have the feed for it at the moment? Because, I mean, you've obviously got stockpiles as well.
Speaker #10: Just how should I think about that and the outlook? Thanks.
Speaker #2: Yeah, Glyn, we're consistently optimising. Let me sort of just go back to the project. When we refurbished the plant, one of the key bottlenecks prior to that time was failure of the plant to consistently process material that went through it.
Ian Purdy: Yeah, Glynn, we're consistently optimizing. Let me sort of just go back to the project. When we refurbished the plant, one of the key bottlenecks prior to that time was failure of the plant to consistently process material that went through it that had lots of blockages. It couldn't handle coarse material. What we did during the upgrade was change the design of the chute, increase the capacity of the apron feed motors. We pretty much run completely free of blockages and delays at the crushing circuits. We installed the pre-leach surge tanks to provide additional surge capacity in the case of an outage in the beneficiation circuit. All of that is working exceptionally well. What's left to do really is to make sure that we have a consistent feed type.
Ian Purdy: Yeah, Glynn, we're consistently optimizing. Let me sort of just go back to the project. When we refurbished the plant, one of the key bottlenecks prior to that time was failure of the plant to consistently process material that went through it that had lots of blockages. It couldn't handle coarse material. What we did during the upgrade was change the design of the chute, increase the capacity of the apron feed motors. We pretty much run completely free of blockages and delays at the crushing circuits. We installed the pre-leach surge tanks to provide additional surge capacity in the case of an outage in the beneficiation circuit. All of that is working exceptionally well. What's left to do really is to make sure that we have a consistent feed type.
Speaker #2: That had lots of blockages. It couldn't handle coarse material. And what we did during the upgrade was change the design of the chute, increase the capacity of the apron feed motors, and we pretty much run completely free of blockages and delays at the crushing circuits.
Speaker #2: We installed the pre-leach surge tanks to provide additional surge capacity in the case of an outage in the beneficiation circuit. And all of that is working exceptionally well.
Speaker #2: What's left to do, really, is to make sure that we have a consistent feed type. So, optimisation of the blend between coarse and fines, and progressively ramp up that material as it's uncovered from the pit.
Ian Purdy: So, optimization of the blend between coarse and fines and progressively ramp up that material as it's uncovered from the pits. So, I think there's more capacity that we can squeeze out of that, and it's just a matter of time and optimization. At the moment, we've got 49% of our fleet capacity, which means we have to allocate it to waste. We have to allocate it to low-grade, and the medium-grade, and we have to manage the stockpile. With the new fleet coming, it gives us more options, and optimization of the mine plan may include multiple pit sources to improve the blend strategy. But there's capacity there to improve. We've just got to do the work now, particularly over the next six months.
So, optimization of the blend between coarse and fines and progressively ramp up that material as it's uncovered from the pits. So, I think there's more capacity that we can squeeze out of that, and it's just a matter of time and optimization. At the moment, we've got 49% of our fleet capacity, which means we have to allocate it to waste. We have to allocate it to low-grade, and the medium-grade, and we have to manage the stockpile. With the new fleet coming, it gives us more options, and optimization of the mine plan may include multiple pit sources to improve the blend strategy. But there's capacity there to improve. We've just got to do the work now, particularly over the next six months.
Speaker #2: So I think there's more capacity that we can squeeze out of that, and it's just a matter of time and optimisation. At the moment, we've got 49% of our fleet capacity, which means we have to allocate it to waste; we have to allocate it to low-grade and the medium-grade.
Speaker #2: And we have to manage the stockpile. With the new fleet coming, it gives us more options and optimisation of the mine plan. It may include multiple pit sources to improve the blend strategy.
Speaker #2: But there's capacity there to improve. We've just got to do the work now, particularly over the next six.
Speaker #2: But there's capacity there to improve. We've just got to do the work now, particularly over the next six months.
Regan Burrows: Okay, that's great. And then maybe just you made the comment that there was a higher proportion of mined ore fed to the plant. Can you give me some sense of how much, what's the percentage split, mined ore versus stockpile ore going through the plant, say, the last couple of quarters? When you say it's changing, how material is that?
Glyn Lawcock: Okay, that's great. And then maybe just you made the comment that there was a higher proportion of mined ore fed to the plant. Can you give me some sense of how much, what's the percentage split, mined ore versus stockpile ore going through the plant, say, the last couple of quarters? When you say it's changing, how material is that?
Speaker #10: And then maybe just you make the comment that there was a higher proportion of mine ore fed to the plant. Can you give me some sense of how much—what's the percentage split, mine versus stockpile ore, going through the plant?
Speaker #10: Say the last couple of quarters. When you say it's changing, how material is it?
Speaker #2: Yeah, so it absolutely depends on not so much the grade, but the type of ore that we're seeing. So, I think we've spoken about it before.
Ian Purdy: Yeah, so it absolutely depends on not so much the grade, but the type of ore that we're seeing. So I think we've spoken about it before where we talked about we've got wet and dry fine material, and we've got wet and dry coarse material, and we've got wet and dry clay material. And as that material presents itself in the benches in the mine or, in fact, the benches in the Medium Grade stockpile, we change the blend strategy accordingly. And we don't actually have a fixed blending strategy going forward. We address the lithology as it presents itself on any particular day and adjust it to make sure that we're continually trying to increase the throughput rates.
Ian Purdy: Yeah, so it absolutely depends on not so much the grade, but the type of ore that we're seeing. So I think we've spoken about it before where we talked about we've got wet and dry fine material, and we've got wet and dry coarse material, and we've got wet and dry clay material. And as that material presents itself in the benches in the mine or, in fact, the benches in the Medium Grade stockpile, we change the blend strategy accordingly. And we don't actually have a fixed blending strategy going forward. We address the lithology as it presents itself on any particular day and adjust it to make sure that we're continually trying to increase the throughput rates.
Speaker #2: We talked about—we’ve got wet and dry fine material, and we’ve got wet and dry coarse material, and we’ve got wet and dry clay material.
Speaker #2: And as that material presents itself in the benches in the mine or, in fact, the benches in the medium-grade stockpile, we change the blend strategy accordingly.
Speaker #2: And we don't actually have a fixed blending strategy going forward. We address the lithology as it presents itself on any particular day and adjust it to make sure that we're continually trying to increase the throughput rates.
Speaker #2: So what that means is that, as we finish off that MG3 stockpile, we need to make sure that we've got multiple sources in the pit.
Ian Purdy: So what that means is that as we finish off that MG3 stockpile, we need to make sure that we've got multiple sources in the pit so that we can continue to optimize that blend strategy. But we have no fixed blend strategy.
So what that means is that as we finish off that MG3 stockpile, we need to make sure that we've got multiple sources in the pit so that we can continue to optimize that blend strategy. But we have no fixed blend strategy.
Speaker #2: So that we can continue to optimise that blend strategy, but we have no fixed blend.
Speaker #2: strategy. Okay.
Regan Burrows: Okay. And then just a final question, if I could. Just as you've been mining and processing, what's the grade reconciliation been like? I mean, how's the mine been performing from that perspective?
Glyn Lawcock: Okay. And then just a final question, if I could. Just as you've been mining and processing, what's the grade reconciliation been like? I mean, how's the mine been performing from that perspective?
Speaker #10: And then just a final question, if I could. Just as you've been mining and processing, what's the grade reconciliation been like? I mean, how's the mine been performing from that?
Speaker #10: perspective? Yeah.
Ian Purdy: Yeah, we've got a lot of data from the mine, and we have had for a very long time. And reconciliation is typically very good. And we're seeing our resultant grade from the pit aligned with the mine model.
Ian Purdy: Yeah, we've got a lot of data from the mine, and we have had for a very long time. And reconciliation is typically very good. And we're seeing our resultant grade from the pit aligned with the mine model.
Speaker #2: We've got a lot of data from the mine, and we have had it for a very long time. Reconciliation is typically very good.
Speaker #2: And we're seeing our resultant grade from the pit aligned with the mine model.
Speaker #10: All right. That's great. Thanks very much.
Regan Burrows: All right, that's great. Thanks very much.
Glyn Lawcock: All right, that's great. Thanks very much.
Speaker #1: Thank you. Your next question comes from James Bullen from Canaccord Genuity. Please go ahead.
Operator: Thank you. Your next question comes from James Bullen from Canaccord Genuity. Please go ahead.
Operator: Thank you. Your next question comes from James Bullen from Canaccord Genuity. Please go ahead.
Speaker #1: ahead. Thank you.
Regan Burrows: Thank you. Thanks for taking my call. Just quickly around the water position. Obviously, we're coming into a period where we do sometimes see some algal blooms in Namibia. Just wondering about the buffers that you've got there and your discussions with NamWater and how they're performing.
James Bullen: Thank you. Thanks for taking my call. Just quickly around the water position. Obviously, we're coming into a period where we do sometimes see some algal blooms in Namibia. Just wondering about the buffers that you've got there and your discussions with NamWater and how they're performing.
Speaker #11: And thanks for taking my call. Just quickly, around the water position, obviously we're coming into a period where we do sometimes see some algal blooms.
Speaker #11: In Namibia, just wondering about the buffers that you've got there and your discussions with NamWater and how they're performing.
Speaker #2: Thanks, James. Interestingly, there was an article recently in Namibia that the Orano desal plant has actually produced more water in the last year than at any other time in its history.
Ian Purdy: Thanks, James. Interestingly, there was an article recently in Namibia that the Erongo desalination plant has actually produced more water in the last year than any other time in its history, which is really positive for the Erongo region in Namibia. Our system is fully commissioned, and we have our backup supplies in the bladders. But we also have opened up an additional open water storage point as well. We're not anticipating any particular challenges. We're kind of halfway through the season where we would normally see an increase in demand from the townships. We're halfway through the season where we might expect to see some sulfur blooms in the bay. Things are progressing well.
Ian Purdy: Thanks, James. Interestingly, there was an article recently in Namibia that the Erongo desalination plant has actually produced more water in the last year than any other time in its history, which is really positive for the Erongo region in Namibia. Our system is fully commissioned, and we have our backup supplies in the bladders. But we also have opened up an additional open water storage point as well. We're not anticipating any particular challenges. We're kind of halfway through the season where we would normally see an increase in demand from the townships. We're halfway through the season where we might expect to see some sulfur blooms in the bay. Things are progressing well.
Speaker #2: And which is really positive for the Oronga region in Namibia. Our system is fully commissioned, and we have our backup supplies in the bladders.
Speaker #2: But we also have opened up an additional open water storage point as well. We're not anticipating any particular challenges. We're kind of halfway through the season where we would normally see an increase in demand from the township.
Speaker #2: We're halfway through the season where we might expect to see some sulphur blooms in the bay, and things are progressing well. Given our production rates and the unit water rate consumption that we've continued to improve, we've got more than enough storage capacity on site now that will exceed any stoppage that we've seen in supply in the last couple of years.
Ian Purdy: Given our production rates, the unit water rate consumption that we've continued to improve, we've got more than enough storage capacity on site now that will exceed any stoppage that we've seen in supply in the last couple of years. So I'm feeling reasonably positive about our capacity to manage any event that might come up in the next half year.
Given our production rates, the unit water rate consumption that we've continued to improve, we've got more than enough storage capacity on site now that will exceed any stoppage that we've seen in supply in the last couple of years. So I'm feeling reasonably positive about our capacity to manage any event that might come up in the next half year.
Speaker #2: So I'm feeling reasonably positive about our capacity to manage any event that might come up in the next half.
Speaker #2: So, I'm feeling reasonably positive about our capacity to manage any event that might come up in the next half year. Thanks,
Regan Burrows: Thanks, Paul. And question maybe for Alex, following on from Regan. Just around, it was a pretty frenetic end in terms of contracting in the term market last year. What did you learn from that? And what are you thinking really around where you could get to in terms of pricing this year?
James Bullen: Thanks, Paul. And question maybe for Alex, following on from Regan. Just around, it was a pretty frenetic end in terms of contracting in the term market last year. What did you learn from that? And what are you thinking really around where you could get to in terms of pricing this year?
Speaker #11: Paul. And a question maybe for Alex, following on from Regan—just around, it was a pretty frenetic end in terms of contracting and the term market last year.
Speaker #11: What did you learn from that? And what are you thinking, really, around where you could get to in terms of pricing this?
Speaker #11: What did you learn from that? And what are you thinking, really, around where you could get to in terms of pricing this year? Yeah.
Ian Purdy: Yeah, good question, James. I think from last year, what we've seen is we've seen low contracting volumes probably in the first nine months of the year, and then volumes kicking up in the last quarter. Last number I've seen was about $115 million from UxC. And that number will probably be revised upwards as they get more data. That's a healthy level. Some people thought volumes were subdued. We certainly saw a healthy level of interest. That number is relatively strong, but it is still below replacement level. So what that says is that additional term contracting has to come in, which we expect this year and forward. And as I said already, we are getting strong levels of contracting inquiries from utilities that we haven't been getting previously, like the Japanese utilities, for example. The European utilities are covering some of the holes in previous production sources.
Alex Rybak: Yeah, good question, James. I think from last year, what we've seen is we've seen low contracting volumes probably in the first nine months of the year, and then volumes kicking up in the last quarter. Last number I've seen was about $115 million from UxC. And that number will probably be revised upwards as they get more data. That's a healthy level. Some people thought volumes were subdued. We certainly saw a healthy level of interest. That number is relatively strong, but it is still below replacement level. So what that says is that additional term contracting has to come in, which we expect this year and forward. And as I said already, we are getting strong levels of contracting inquiries from utilities that we haven't been getting previously, like the Japanese utilities, for example. The European utilities are covering some of the holes in previous production sources.
Speaker #2: Good question, James. I think from last year, what we've seen is we've seen low contracting volumes, probably in the first nine months of the year, and then volumes kicking up in the last quarter.
Speaker #2: The last number I've seen was about 150 million pounds from UxC, and that number will probably be revised upwards as they get more data. That's a healthy level.
Speaker #2: Some people thought volumes were subdued. We certainly saw a healthy level of interest. That number is relatively strong, but it is still below replacement level.
Speaker #2: So what that says is that additional term contracting has to come in, which we expect this year and forward. And as I said already, we are getting strong levels of contracting inquiries from utilities that we haven't been getting previously—like the Japanese utilities, for example. The European utilities are covering some of the holes in previous production sources.
Speaker #2: The US market is very strong, particularly with some of the things that are going on there. The AI and the data centers are consuming a lot of, or expected to consume a lot of, electricity.
Ian Purdy: The US market is very strong, particularly with some of the things that are going on there. The AI and the data centers are consuming a lot of or expected to consume a lot of electricity. Some of these players are entering into significant electricity supply contracts with utilities. We've seen Meta sign contracts with Constellation, Vistra, Oklo, TerraPower. These are really significant volumes of electricity supply, which require significant nuclear energy generation. All that, to me, is very positive on the demand side across the world. Obviously, Japan is restarting reactors. The Koreans still need to fill their requirements from last year. There's a lot of positive factors there. The volumes themselves may not reflect the kind of strength of the term contracting activity, but definitely we're seeing very strong levels of inquiry and strong term prices.
The US market is very strong, particularly with some of the things that are going on there. The AI and the data centers are consuming a lot of or expected to consume a lot of electricity. Some of these players are entering into significant electricity supply contracts with utilities. We've seen Meta sign contracts with Constellation, Vistra, Oklo, TerraPower. These are really significant volumes of electricity supply, which require significant nuclear energy generation. All that, to me, is very positive on the demand side across the world. Obviously, Japan is restarting reactors. The Koreans still need to fill their requirements from last year. There's a lot of positive factors there. The volumes themselves may not reflect the kind of strength of the term contracting activity, but definitely we're seeing very strong levels of inquiry and strong term prices.
Speaker #2: And some of these players are entering into significant electricity supply contracts with utilities. We've seen Meta sign contracts with Constellation, Vistra, Oklo, and TerraPower. So these are really significant volumes of electricity supply, which require significant nuclear energy generation.
Speaker #2: So all that is, to me, very positive on the demand side across the world. Obviously, Japan is restarting reactors; the Koreans still need to fill their requirements from last year.
Speaker #2: So there's a lot of positive factors there. The volumes themselves may not reflect the kind of strength of the term contracting activity, but definitely, we're seeing very strong levels of inquiry and strong term prices.
Speaker #11: Yeah, thanks for that. I guess the Koreans make their RFPs public, so it'd be interesting to see what happens there. Thank you, Alex. Appreciate it.
Regan Burrows: Yeah, thanks for that. I guess the Koreans make their RFPs public, so it'd be interesting to see what happens there. Thank you, Alex. Appreciate it.
James Bullen: Yeah, thanks for that. I guess the Koreans make their RFPs public, so it'd be interesting to see what happens there. Thank you, Alex. Appreciate it.
Speaker #2: Thanks,
Speaker #2: Thanks, James. Thank you.
Ian Purdy: Thanks, James.
Alex Rybak: Thanks, James.
Operator: Thank you. Your next question comes from Rahul Anand from Morgan Stanley. Please go ahead.
Operator: Thank you. Your next question comes from Rahul Anand from Morgan Stanley. Please go ahead.
Speaker #1: Your next question comes from Rahul Anand from Morgan Stanley. Please go ahead.
Speaker #1: ahead. In the
Speaker #12: Hi team, thanks for the call. Look, most of my questions have been answered, but one thing I would really appreciate help on is your plan to obviously move more mining to the pit, and what you define as basically 100% completion of that project.
[Analyst] (UBS): Hi, team. Thanks for the call. Look, most of my questions have been answered, but one thing I would really appreciate help on is in terms of your plan to obviously move more mining to the pit and what you define as basically 100% completion of that project. Within that scope, how many mining areas are you looking to open up within the pit? That's my only question. If you can shed a bit of light on that, because it will help us kind of understand what type of variability we can expect going forward.
Rahul Anand: Hi, team. Thanks for the call. Look, most of my questions have been answered, but one thing I would really appreciate help on is in terms of your plan to obviously move more mining to the pit and what you define as basically 100% completion of that project. Within that scope, how many mining areas are you looking to open up within the pit? That's my only question. If you can shed a bit of light on that, because it will help us kind of understand what type of variability we can expect going forward.
Speaker #12: Within that scope, how many mining areas are you looking to open up within the pit? That's my only question. If you can shed a bit of light on that, because it will help us kind of understand what type of variability we can expect going forward.
Speaker #12: forward. Well, that's an interesting
Ian Purdy: Well, that's an interesting question. We don't plan on guiding on that level of detail. What we will do is undertake a range of optimizations that deliver what we think is the best result. That may be a number of excavators in a single large pit, or it could be opening up several pits in parallel. We'll continue to work through our optimization, particularly as we get the new fleet on board and commission that fleet. We'll end up providing guidance on that around July.
Ian Purdy: Well, that's an interesting question. We don't plan on guiding on that level of detail. What we will do is undertake a range of optimizations that deliver what we think is the best result. That may be a number of excavators in a single large pit, or it could be opening up several pits in parallel. We'll continue to work through our optimization, particularly as we get the new fleet on board and commission that fleet. We'll end up providing guidance on that around July.
Speaker #2: We don't plan on guiding on that level of detail. What we will do is undertake a range of optimizations that deliver what we think is the best result.
Speaker #2: And that may be a number of excavators in a single large pit, or it could be opening up several pits in parallel. So we'll continue to work through our optimization, particularly as we get the new fleet on board and commission that fleet.
Speaker #2: And we'll end up providing guidance on that around Q4.
Speaker #2: July. Got it.
[Analyst] (UBS): Got it. Okay, that's all from me. Thank you very much.
Rahul Anand: Got it. Okay, that's all from me. Thank you very much.
Speaker #12: Okay, that's all from me. Thank you very much.
Speaker #2: Thank you.
Ian Purdy: Thank you.
Ian Purdy: Thank you.
Speaker #1: Thank you. Once again, if you would like to ask a question, please press star one and wait for your name to be announced. Your next question comes from Branko Stokic from EMP.
Operator: Thank you. Once again, if you would like to ask a question, please press star one and wait for your name to be announced. Your next question comes from Branko Stokić from ENP. Please go ahead.
Operator: Thank you. Once again, if you would like to ask a question, please press star one and wait for your name to be announced. Your next question comes from Branko Stokić from ENP. Please go ahead.
Speaker #1: Please go
Speaker #1: ahead. Yeah.
Regan Burrows: Yeah, morning, guys. Thanks for your time. It sounds like there was a slight delay in the contractor fleet delivery and then the eventual commissioning there. So I just wanted to understand, I guess, what drove this and did this prevent you guys from formally lifting the production guidance target above that 4.4 million pounds number?
[Analyst] (ENP): Yeah, morning, guys. Thanks for your time. It sounds like there was a slight delay in the contractor fleet delivery and then the eventual commissioning there. So I just wanted to understand, I guess, what drove this and did this prevent you guys from formally lifting the production guidance target above that 4.4 million pounds number?
Speaker #13: Morning, guys. Thanks for your time. It sounds like there's a slight delay in the contractor fleet delivery and then the eventual commissioning there. So I just wanted to understand, I guess, what drove this, and did this prevent you guys from formally lifting the production guidance target above that 4.4 million-pound number?
Speaker #2: No, there's no delay. Typically in Namibia, we know around Christmas— I think it's a couple of weeks before, we actually have an embargo on moving heavy fleet.
Ian Purdy: No. There's no delay. Typically, in Namibia, we know around Christmas, I think it's a couple of weeks before we actually have an embargo on moving heavy fleet. So that's pretty normal, which is also why the remainder of the fleet is actually at Walvis Bay, and we need to wait for the embargo to be lifted to move it to site. We always anticipated that commissioning of that fleet will occur in the first half of this calendar year. So no specific delays, no issues, and absolutely on track to deliver at the upper end of our guidance range at this point in time.
Ian Purdy: No. There's no delay. Typically, in Namibia, we know around Christmas, I think it's a couple of weeks before we actually have an embargo on moving heavy fleet. So that's pretty normal, which is also why the remainder of the fleet is actually at Walvis Bay, and we need to wait for the embargo to be lifted to move it to site. We always anticipated that commissioning of that fleet will occur in the first half of this calendar year. So no specific delays, no issues, and absolutely on track to deliver at the upper end of our guidance range at this point in time.
Speaker #2: So that’s pretty normal, which is also why the remainder of the fleet is actually at Wild West Bay, and we need to wait for the embargo to be lifted to move it to site.
Speaker #2: We always anticipated that commissioning of that fleet would occur in the first half of this calendar year. So, no specific delays, no issues, and absolutely on track to deliver at the upper end of our guidance range at this point in time.
Speaker #13: Okay, appreciate that one. And then, just to point of clarification, there is no comment about loan material outstanding in the quarterly. I believe there's about 450,000 pounds as of last quarter.
Regan Burrows: Okay, appreciate that one. Then just a point of clarification, there was no comment about loan material outstanding in the quarterly. I believe it was about GBP 450,000 as of last quarter. So I just want to confirm if it's still the same number as of today?
[Analyst] (ENP): Okay, appreciate that one. Then just a point of clarification, there was no comment about loan material outstanding in the quarterly. I believe it was about GBP 450,000 as of last quarter. So I just want to confirm if it's still the same number as of today?
Speaker #13: So I just want to confirm if it's still the same number as of—
Speaker #13: today. Yeah.
Ian Purdy: Yeah, that's right, Branko. It hasn't changed.
Ian Purdy: Yeah, that's right, Branko. It hasn't changed.
Speaker #2: That's right, Branko. It
Speaker #2: hasn't changed. Thank
Regan Burrows: Thank you.
Regan Burrows: Thank you.
Speaker #1: Thank you. There are no further questions at this time. I'll now hand back to Mr. Hamboro for any closing remarks.
Operator: Thank you. There are no further questions at this time. I'll now hand back to Mr. Purdy for any closing remarks.
Operator: Thank you. There are no further questions at this time. I'll now hand back to Mr. Purdy for any closing remarks.
Speaker #2: Just in closing, a very strong quarter for Paladin. Really appreciate the team on site working incredibly hard, delivering outstanding results. The focus from here is to deliver a level of consistency that enables us to execute at 100% of our mining capacity, 100% of our processing capacity, ready for an absolutely stellar FY27.
Ian Purdy: Just in closing, a very strong quarter for Paladin. Really appreciate the team on site working incredibly hard, delivering outstanding results. The focus from here is to deliver a level of consistency that enables us to execute at 100% of our mining capacity, 100% of our processing capacity, ready for an absolutely stellar FY27. Thank you, everyone, for joining us today, and thank you for your support.
Ian Purdy: Just in closing, a very strong quarter for Paladin. Really appreciate the team on site working incredibly hard, delivering outstanding results. The focus from here is to deliver a level of consistency that enables us to execute at 100% of our mining capacity, 100% of our processing capacity, ready for an absolutely stellar FY27. Thank you, everyone, for joining us today, and thank you for your support.
Speaker #2: Thank you, everyone, for joining us today. And thank you for your
Speaker #2: Support. That does conclude our conference for today.
Operator: That does conclude our conference for today. Thank you for participating. You may now disconnect.
Operator: That does conclude our conference for today. Thank you for participating. You may now disconnect.
