Full Year 2026 Paladin Energy Ltd Earnings Call

August 26, 2026

Operator 1: Thank you for standing by, and welcome to the Paladin Energy Ltd. FY2026 financial results call. All participants are in listen-only mode. There will be a presentation followed by a question and answer session. If you wish to ask a question, you will need to press the star key followed by the number one on your telephone keypad. I would now hand the conference over to Paul Hemburrow, MD and CEO. Please go ahead.

Operator: Thank you for standing by, and welcome to the Paladin Energy Ltd. FY2026 Financial Results Call. All participants are in listen-only mode. There will be a presentation followed by a question and answer session. If you wish to ask a question, you will need to press the star key followed by the number one on your telephone keypad. I would now hand the conference over to Paul Hemburrow, MD and CEO. Please go ahead.

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

Speaker #1: Please go ahead.

Speaker #2: Good morning, everyone, and thank you for joining Paladin Energy’s FY2026 financial results conference call. Joining me today on the call are Anna Sutler, Chief Financial Officer; Scott Barber, Chief Operating Officer; and Alex Rybak, Chief Commercial Officer.

Paul Hemburrow: Good morning, everyone, and thank you for joining Paladin Energy's FY2026 financial results conference call. Joining me today on the call are Anna Sudlow, our Chief Financial Officer, Scott Barber, Chief Operating Officer, and Alex Rybak, Chief Commercial Officer. FY2026 was a significant year for Paladin and one in which we delivered on several key commitments across our operating and development portfolio. Most notably, we successfully completed the ramp-up of Langer Heinrich Mine in Namibia, delivering annual production of 4.82 million pounds of U3O8 and sales of 4.35 million pounds. We revised our production guidance in April, and we are pleased that the final production result was at the top end of that increased range. This achievement reflected the growing capability of our team and the quality of our operational execution.

Paul Hemburrow: Good morning, everyone, and thank you for joining Paladin Energy's FY2026 Financial Results Conference Call. Joining me today on the call are Anna Sudlow, our Chief Financial Officer, Scott Barber, Chief Operating Officer, and Alex Rybak, Chief Commercial Officer. FY2026 was a significant year for Paladin and one in which we delivered on several key commitments across our operating and development portfolio. Most notably, we successfully completed the ramp-up of Langer Heinrich Mine in Namibia, delivering annual production of GBP 4.82 million of U3O8 and sales of 4.35 million pounds. We revised our production guidance in April, and we are pleased that the final production result was at the top end of that increased range. This achievement reflected the growing capability of our team and the quality of our operational execution.

Speaker #2: FY26 was a significant year for Paladin, and one in which we delivered on several key commitments across our operating and development portfolio. Most notably, we successfully completed the ramp-up of the Langer Heinrich mine in Namibia, delivering annual production of 4.82 million pounds of U3O8 and sales of 4.35 million pounds.

Speaker #2: We revised our production guidance in April, and we're pleased that the final production result was at the top end of that increased range. This achievement reflects the growing capability of our team and the quality of our operational execution.

Speaker #2: As we've grown our production capability and increased the LHM workforce, our risk management systems and processes have enabled the team to deliver on their safety objectives, and we're proud of our strong safety performance in Namibia, which was reflected in a low group TRIF of 3.2 for FY26.

Paul Hemburrow: As we have grown our production capability and increased the LHM workforce, our risk management systems and processes have enabled the team to deliver on their safety objectives. We are proud of our strong safety performance in Namibia, which was reflected in a low group TRIFR of 3.2 for FY2026. We remain committed to ongoing improvement, further training, and strengthening of our safety culture. The successful ramp-up translated into a substantial improvement in our financial performance. Revenue increased 71% to $304 million, supported by higher sales volumes and an average realized price of US$70 per pound. We reported gross profit of US$52 million and generated positive operating cash flow of $37.7 million for the year. Net loss after tax improved significantly to US$9.1 million. On the balance sheet, we ended FY2026 with US$265 million of cash and investments and an undrawn US$70 million revolving credit facility.

Speaker #2: We remain committed to ongoing improvement, further training, and strengthening our safety culture. The successful ramp-up translated into a substantial improvement in our financial performance: revenue increased 71% to $304 million USD, supported by higher sales volumes and an average realized price of $70 per pound.

Speaker #2: We reported gross profit of $52 million and generated positive operating cash flow of $37.7 million for the year. Net loss after tax improved significantly to $9.1 million.

Speaker #2: On the balance sheet, we ended FY26 with US$265 million of cash and investments and an undrawn $70 million revolving credit facility. This provides us with considerable flexibility as we continue to invest in growth while maintaining a disciplined approach to capital management.

Paul Hemburrow: This provides us with considerable flexibility as we continue to invest in growth while maintaining a disciplined approach to capital management. Alongside the operational success at Langer Heinrich, we continued to make meaningful progress at Patterson Lake South project in Canada, one of the highest quality undeveloped uranium projects globally. During the year, we achieved environmental impact statement approvals, advanced the licensing process with the Canadian Nuclear Safety Commission, completed an engineering review, and progressed FEED activities and announced the Atlas discovery, which further highlights the growth potential within close proximity to PLS. More broadly, we believe Paladin is exceptionally well-positioned to benefit from the continued strength of long-term uranium market fundamentals. Growing demand for secure, reliable, and low carbon baseload power continues to underpin increasing support for nuclear energy globally, reinforcing the importance of existing and new uranium supply.

Speaker #2: Alongside the operational success at Langer Heinrich, we continue to make meaningful progress at the Paterson Lake South project in Canada, one of the highest-quality undeveloped uranium projects globally.

Speaker #2: During the year, we achieved Environmental Impact Statement approval, advanced the licensing process with the Canadian Nuclear Safety Commission, completed an engineering review, and progressed FEED activities.

Speaker #2: And announced the Atlas Discovery, which further highlights the growth potential within close proximity to PLS. More broadly, we believe Paladin is exceptionally well positioned to benefit from the continued strength of long-term uranium market fundamentals.

Speaker #2: Growing demand for secure, reliable, and low-carbon baseload power continues to underpin increasing support for nuclear energy globally, reinforcing the importance of existing and new uranium supply.

Speaker #2: As we enter FY27, our priorities remain clear: maximize the value from the Langer Heinrich Mine, unlock the value of the PLS Project, advance our exploration assets, and maintain a strong balance sheet that supports long-term shareholder value creation.

Paul Hemburrow: As we enter FY27, our priorities remain clear: maximize the value from Langer Heinrich Mine, unlock the value of the PLS project, advance our exploration assets, and maintain a strong balance sheet that supports long-term shareholder value creation. On behalf of the board and management team, I'd like to thank our employees, contractors, customers, local communities, and shareholders for their ongoing support throughout the year. Thank you again for joining the call today, and I'd like to open the call to questions.

Speaker #2: On behalf of the Board and management team, I'd like to thank our employees, contractors, customers, local communities, and shareholders for their ongoing support throughout the year.

Speaker #2: Thank you again for joining the call today. I'd like to open the call to questions.

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

Operator 2: Thank you. If you wish to ask a question, please press star one on your telephone and wait for your name to be announced. If you wish to cancel your request, please press star two. If you're on a speakerphone, please pick up the handset to ask your question. Your first question comes from Hugo Nicolaci with Goldman Sachs.

Operator: Thank you. If you wish to ask a question, please press star one on your telephone and wait for your name to be announced. If you wish to cancel your request, please press star two. If you're on a speakerphone, please pick up the handset to ask your question. Your first question comes from Hugo Nicolaci with Goldman Sachs.

Speaker #1: If you're on a speakerphone, please pick up the handset to ask your question. Your first question comes from Hugo Nicolasi with Goldman Sachs.

Speaker #3: Hello, morning team. Thanks for the update today. Firstly, list on the result more just looking to the investor day next week. Just want to get a sense of what we should expect there.

Hugo Nicolaci: Morning, team. Thanks for the update today. Look, firstly, less on the result, more just looking to the Investor Day next week. Just want to get a sense of what we should expect there. Are we going to get more detail of the operational outlook on Langer Heinrich, or is that more just a pivoting the focus to Canada and the Patterson Lake development?

Speaker #3: I mean, are we going to get more detail on the operational outlook for Langer-Heinrich, or is that more just pivoting the focus to Canada and the Paterson Lake development?

Speaker #2: Thanks for the question, Hugo. You know, I don't want to ruin the surprise of the Investor Day, but, you know, the focus is clearly going to be on PLS.

Paul Hemburrow: Thanks for the question, Hugo. I do not want to ruin the surprise of the Investor Day, but the focus is clearly going to be on PLS. We have spoken a lot about Langer Heinrich Mine over the last couple of years and the success that we have had through the ramp-up. This financial year just gone underpins that Langer Heinrich ramp-up is now complete. We have got full production capability, and what we are turning our attention to is really leveraging the value out of PLS. What we would like to do next week is give people more insight into what we are doing, the key milestones that we have achieved and that we have coming up, and some of the growth opportunities that come out of our exploration projects.

Speaker #2: You know, we've spoken a lot about the Langer-Heinrich mine over the last couple of years and the success that we've had through the ramp-up. This financial year just gone underpins that the Langer-Heinrich ramp-up is now complete.

Speaker #2: We've got full production capability, and what we're turning our attention to is really leveraging the value out of PLS. So what we'd like to do next week is give people more insight into what we're doing, the key milestones that we have achieved and that we have coming up.

Speaker #2: And some of the growth opportunities that come out of our exploration and our project.

Speaker #3: Fantastic. And maybe just on that—I mean, from a funding perspective for Paterson Lake, and obviously we've seen uranium prices rising more recently, and the share price with it.

Hugo Nicolaci: Fantastic. Maybe just on that, from a funding perspective for Patterson Lake, and obviously we have seen uranium prices rising more recently, share price with it. How do we think about the right mix of funding options for Patterson Lake here in terms of project versus prepayment versus potential equity in that mix?

Speaker #3: I mean, how do we think about the right mix of funding options for Paterson Lake here, in terms of project versus prepayment versus potential equity in that mix?

Speaker #2: Oh, hi, Hugo. It's Anna. Look, I think, as you'd appreciate, the project is really strong economically, and what that provides us is plenty of options.

Anna Sudlow: Hi Hugo, it is Anna. Look, I think as you would appreciate, the project is really strong economically, and what that provides us is plenty of options. Given we are still a while away from an FID on PLS, our key focus at the moment is really on ensuring we retain flexibility. That flexibility is really ensuring we can project finance if we want to. So that is kind of the key focus at the moment, acknowledging that is not the only path, but probably the longest lead transaction. What we would like to get out of the process that we are running there is really an indication from potential debt financiers around ticket size, around what the offtake book might look like. So that is the initial focus at the moment. Just acknowledging we have got a way to go and a range of options available to us to fund PLS.

Speaker #2: Given we're still a while away from an FID on PLS, our key focus at the moment is really on ensuring we retain flexibility, and that flexibility is really about ensuring we can project finance if we want to.

Speaker #2: So that’s kind of the key focus at the moment, acknowledging that’s not the only path, but probably the longest lead transaction. What we’d like to get out of the process that we’re running there is really an indication from potential debt financiers around, you know, ticket size, around what the off-take book might look like.

Speaker #2: So that's the initial focus at the moment, just acknowledging we've got a way to go and a range of options available to us to, you know, to fund PLS.

Anna Sudlow: So that is the initial focus at the moment. Just acknowledging we have got a way to go and a range of options available to us to fund PLS.

Speaker #3: All right. Thanks, guys. I'll pass it on.

Hugo Nicolaci: Great. Thanks for the time.

Speaker #1: Your next question comes from Alistair Rankin with RBC Capital Markets.

Operator 2: Your next question comes from Alistair Rankin with RBC Capital Markets.

Operator: Your next question comes from Alistair Rankin with RBC Capital Markets.

Speaker #3: Oh, good day, team. Appreciate the presentation and for taking my question. Just firstly, on the Langer reserve statement, I saw there was a small downgrade for the in-situ reserve due to the TSS-6 placement.

Alistair Rankin: Good day, team. Appreciate the presentation and for taking my question. Firstly, on the Langer Reserve statement, I saw there was a small downgrade for the in situ reserve due to the TSF 6 placement sterilized a little bit of the ore body. Can you just give a little bit more color on what happened there and why that sterilization has happened as a result of the TSF 6 placement?

Speaker #3: You sterilized a little bit of the ore body. Can you just give a little bit more color on what happened there and why that sterilization has happened as a result of the TSS-6 placement?

Speaker #2: I might have to revert back to you on that one, Alista. I must admit, I don't specifically remember that level of detail. I'll get back to you as quickly as I can.

Paul Hemburrow: Might have to revert back on that one, Alistair. I must admit, I don't specifically remember that level of detail. I'll get back to you as quickly as I can.

Speaker #3: All good, no stress. Maybe one for Alex—just broadly on the uranium market. I mean, Price Report has set up the term price in the mid-$90s.

Alistair Rankin: All good. No stress. Maybe one for Alex, just broadly on the uranium market. Price report is the term price in the mid-90s. I think things are getting a little bit ridiculous there because most participants you speak to are reporting well above this. Just wanted to get your feel on where you're seeing prices in broad terms right now, how the activity has been for the last few months. It seems like it's been a little bit quiet for the last couple of months, but as we head in exit summer you usually see it seasonally high. Just wondering how you're seeing it at the moment.

Speaker #3: I think things are getting a little bit ridiculous there, because most participants used to speak to a reporting well above this. Just wanted to get your feel on where you're seeing prices in broad terms right now, how the activity has been for the last few months. I mean, it seems like it's been a little bit quiet for the last couple of months, but, you know, as we head to exit summer, you usually see it seasonally high.

Speaker #3: Just wondering how you're seeing it at the moment.

Speaker #2: Yeah, hi, Alista. So, as you've noted, this is typically a quiet period, being Northern Hemisphere summer. But despite that, we've had a number of inquiries and discussions in supply, and just overnight.

Alex Rybak: Yeah. Hi, Alistair. This, as you have noted, typically is a quiet period being a Northern Hemisphere summer. But despite that, we have had a number of inquiries and discussions and RFPs both for term supply and just overnight. Got a request for a spot supply into 2027, which is not our sort of business, but it is interesting, and that is really one of the things that we expect to bridge the delta between the term price and the spot price, which in recent months has been above historic levels. I think as we come into WNA, people are recognizing that that delta needs to narrow and term prices are not coming down, so there is only one way for the spot price to go. The discussions with the utilities have already been quite interesting. We are in the market, obviously speaking with all of our utility customers.

Speaker #2: Got a request for a spot supply into '27, which is not our sort of business, but it's interesting and that is really one of the things that we expect to bridge the delta between the term price and the spot price.

Speaker #2: Which, in recent months, has been above historic levels. As we—I think as we come into the W&A, people are recognizing that delta needs to narrow and term prices aren't coming down.

Speaker #2: So there's only one way for the spot price to go. And the discussions with the utilities have already been quite interesting. You know, we are in the market, obviously, speaking with all of our utility customers, and it's going to be really interesting at WNA in the next couple of weeks, as it's really an industry event that all the utilities attend. I think this year's is going to be very active. Utilities recognize the tightness in supply and they're really looking for supply in the 2030s.

Alex Rybak: It is going to be really interesting at WNA, in the next couple of weeks is really an industry event that all the utilities attend. I think this year is going to be very active. Utilities recognize the tightness in supply, and they are really looking for supply in the 2030s, so it would be really interesting to see what happens there.

Speaker #2: So, it’d be really interesting to see what happens there. Alista—just Alista—the depletion is actually a combination of three things. It’s ore depletion from mining, write-down of the MG3 stockpile, and a very small amount from TSS—sorry, TSS-6—which was actually caused by the western wall that we put in place, that does sterilize a very small amount on the northern and southern sides.

Paul Hemburrow: Alistair, the depletion is actually a combination of three things. It is ore depletion from mining, write-down of the MG3 stockpile, and a very small amount from TSF 6 which is actually caused by the Western ore that we put in place that does sterilize a very small amount on the northern, southern sides. The TSF 6 component of that is very small.

Speaker #2: It's the TSS-6 component of that which is very small.

Speaker #3: Okay, understood. I appreciate that. Thank you.

Alistair Rankin: Okay. Understood. Appreciate that. Thank you.

Speaker #1: Your next question comes from Branko Skostic with JP Morgan.

Operator 2: Your next question comes from Branko Skoric with J.P. Morgan.

Operator: Your next question comes from Branko Skoric with J.P. Morgan.

Speaker #4: Yeah, morning, guys. I had one question on PLS, and I appreciate, obviously, the update we can expect next week. But just particularly around Native Title and Métis Nation—if you could just talk to any progress that you've seen in the last three to six months with that group in particular?

Branko Skoric: Yeah, morning, guys. I had one question on PLS, and I appreciate, obviously, the update we can expect next week, but just particularly around native title and Métis Nation. If you could just talk to any progress that you've seen in the last 3 to 6 months with that group in particular. Much appreciated. Thank you.

Branko Skocic: Yeah, morning, guys. I had one question on PLS, and I appreciate, obviously, the update we can expect next week, but just particularly around native title and Métis Nation. If you could just talk to any progress that you've seen in the last 3 to 6 months with that group in particular. Much appreciated. Thank you.

Speaker #4: I'm much appreciated. Thank you.

Speaker #2: Yeah. We have very constructive and positive engagement with the remaining two First Nations groups, and we're continuing to progress our conversations with them. So, it's progressing as you would expect.

Paul Hemburrow: Yeah, we have very constructive and positive engagement with the remaining two First Nations groups, and we're continuing to progress our conversations with them. It's progressing as you would expect. I'm hoping that in the not-too-distant future, we're able to conclude those negotiations for the benefit of us and both the Métis and the Birch Narrows groups.

Speaker #2: And I'm hoping that in the not too distant future, we're able to conclude those negotiations. It's to the benefit of us and both the Métis and the Birch Narrows groups.

Speaker #4: All right, all good. And then, just picking up on one of Hugo's questions earlier, I was just wondering what the preferred funding pathway, as we see it today for management, for PLS can be—and has that potentially changed over the last six to twelve months?

Branko Skoric: All good. Then just picking up on one of Hugo's questions earlier, I was just wondering what the preferred funding pathway, as we see it today for management for PLS could be, and has that potentially changed over the last 6 to 12 months?

Branko Skocic: All good. Then just picking up on one of Hugo's questions earlier, I was just wondering what the preferred funding pathway, as we see it today for management for PLS could be, and has that potentially changed over the last 6 to 12 months?

Speaker #2: Look, I think our ultimate objective is to minimize the cost of funding and to have line of sight on funding at FID. So, at this point, we're really just ensuring we retain flexibility on all options. As I said earlier, the project financing is the longest lead transaction to get done.

Anna Sudlow: Look, I think our ultimate objective is to minimize the cost of funding and to have line of sight of funding at FID. At this point, we are really just ensuring we retain flexibility on all options. As I said earlier, the project financing is the longest lead transaction to get done. Our initial focus is ensuring we do not lose that as an option. We will continue to evaluate the options that are available to us as time progresses.

Speaker #2: So, our initial focus is ensuring we don't lose that as an option. But, you know, we'll continue to evaluate the options that are available to us as time progresses.

Speaker #4: All right. Makes sense. I appreciate it. Thank you.

Branko Skoric: Makes sense. Appreciate it. Thank you.

Branko Skocic: Makes sense. Appreciate it. Thank you.

Speaker #1: Your next question comes from James Willen with CGF.

Operator 2: Your next question comes from James Willan with CGF.

Operator: Your next question comes from James Willan with CGF.

Speaker #3: Oh, good morning all, and thanks for taking my question. Just around the market, one of your peers last week on their conference call talked about a change in mindset from utilities—moving from a just-in-time approach to a just-in-case approach.

James Willan: Good morning, all, and thanks for taking my question. Just around the market, one of your peers last week on their conference call talked about a change in mindset from utilities, moving from a just-in-time approach to a just-in-case approach, which to me suggests restocking. Are you seeing any evidence of that, and is there more activity in the term market than you would otherwise anticipated?

James Bullen: Good morning, all, and thanks for taking my question. Just around the market, one of your peers last week on their conference call talked about a change in mindset from utilities, moving from a just-in-time approach to a just-in-case approach, which to me suggests restocking. Are you seeing any evidence of that, and is there more activity in the term market than you would otherwise anticipated?

Speaker #3: Which, to me, suggests restocking. Are you seeing any evidence of that, and is there more activity in the term market than you'd otherwise anticipated?

Speaker #2: Yeah, James. We are definitely seeing that, and we've been talking about it for a little while because we are seeing requests for proposals in the 2030s—well into the late 2030s, in fact.

Alex Rybak: Yeah, James, we are definitely seeing that, and we have been talking about that for a little while because, we are seeing requests for proposals in the 2030s, well into late 2030s, in fact. Which has been quite unusual with utilities being a lot more forward-thinking. It is really a combination of a number of things. One is the supply-demand deficit and the new supply that is required to balance the market. But I think it is also the geopolitical developments and, if in the previous years it is really been the tug of war between, I guess, US and China, if we were to simplify it a little bit. We have got these additional countries now entering the mix, with India, and with their aggressive reactor build-out programs.

Speaker #2: This has been quite unusual, with utilities being a lot more forward-thinking. And it's really a combination of a number of things. One is the supply-demand deficit and the new supply that's required to balance the market.

Speaker #2: But I think it's also the geopolitical developments and, you know, if in the, you know, previous years it's really been the tug-of-war between I guess, you know, US and China, if we were to simplify it a little bit, we've got this additional countries now entering the mix, you know, with India.

Speaker #2: And with their aggressive reactor build-out programs, and then you hear less of Russia, but they're also building a lot of reactors and also building a lot of reactors in their countries' sphere of influence.

Alex Rybak: Then you hear less of Russia, but they are also building a lot of reactors and also building a lot of reactors in their country's sphere of influence. So, that requires, as we have seen Atomredmetzoloto results, a lot of their production is earmarked for China and Russia. US is obviously taking steps to finance reactors, to enable the reactor build-out program there. So all these factors are really feeding into a market that requires supply into the long term. That is why there is that more of a just-in-case rather than just-in-time approach.

Speaker #2: So, that requires supply. We've seen Atomredmetzoloto (ARMZ) results — a lot of their production is earmarked for China and Russia. You know, the US is obviously taking steps to finance reactors to enable the reactor build-out program there.

Speaker #2: So, all these factors are really feeding into a market that requires supply into the long term. And that's why there's more of a just-in-case, rather than just-in-time, approach.

Speaker #3: Yeah, understood. Thank you.

James Willan: Yeah. Understood. Thank you.

James Bullen: Yeah. Understood. Thank you.

Speaker #1: Your next question comes from Daniel Rodden with Jefferies.

Operator 2: Your next question comes from Daniel Roden with Jefferies.

Operator: Your next question comes from Daniel Roden with Jefferies.

Speaker #3: Can I go? My first question, I just wanted to ask, was just on PLS. Just noting the hearings are targeted for the end of calendar year 2027.

Daniel Roden: G'day, guys. My first question I just wanted to ask, was just on PLS, just noting the hearings are targeted for the end of calendar year 2027. Can you remind us what the pre-FID spend is committed for FY27 and 2028 before the construction decision is taken? Just noting the September 2025 CapEx raise had earmarked $170 million for the pre-construction costs. How much of this has been incurred and how much is remaining?

Speaker #3: Can you remind us what the pre-FID spend is committed for FY2027 and 2028, before the construction decision is taken? Just noting, the September 25 cap raise had earmarked $170 million for the pre-construction costs.

Speaker #3: How much of this has been incurred, and how much is remaining?

Speaker #2: Yeah, sure, Daniel. So look, we do report those numbers in the MD&A, and I think the development spend is around $19 per million to the end of this financial year.

Anna Sudlow: Yeah. Sure, Daniel. So look, we do report those numbers in the MD&A, and I think the development spend is around 19 from memory to the end of this financial year. But I don't think we've specifically called out, CY27 and CY28, and that kind of profile. But if you look back at that September raise, yeah, you're right. And we do provide that reconciliation in the MD&A that we released today.

Speaker #2: But I don't think we've specifically called out CY27 and CY28 and that kind of profile. But if you look back at that September raise, yeah, you're right.

Speaker #2: And we do provide that reconciliation in the MD&A that we released today.

Speaker #3: Yeah, okay. Thank you. And can you remind us, is that pre-construction cost outside of the $1.2 billion capex, correct?

Daniel Roden: Yeah. Okay. Thank you. And can you remind us, is that pre-construction cost sits outside of the 1.2 CapEx, correct?

Speaker #2: That's correct, Daniel.

Anna Sudlow: Yes, Daniel.

Speaker #3: Yeah, perfect. And just wanted to, I guess, ask a question more generally just on, I guess, the timing of when you do, I guess, economic testing on elements of Langer Heinrich, and kind of noting the TSF6, I guess, write-down of some of the MP inventory.

Daniel Roden: Yeah, perfect. Just wanted to, I guess, ask a question more generally just on, I guess, the timing of when you do, I guess, economic testing on elements of Langer Heinrich. Noting the TSF VI, I guess, write down of some of the inventory, I just wanted to understand how frequently you rerun, I guess, your revenue and cost assumptions to test the economics of things like the TSF1 relocation to access F pit and the recoverability of the low-grade stockpile treatment at the end of mine life and what the frequency of some carried balances might be.

Speaker #3: I just wanted to understand, you know, how frequently you rerun, I guess, your revenue and cost assumptions to test the economics of things like the TSF1 relocation to access FPIT, and the recoverability of the low-grade stockpile treatment at the end of mine life.

Speaker #3: And what the frequency of some carried balances might be.

Speaker #2: Daniel, so I guess what we do is, it's a continual process, right? And, you know, we have to make a range of assumptions around, you know, the pricing mechanisms.

Anna Sudlow: Daniel, I guess what we do is, it is a continual process, right? We have to make a range of assumptions around the pricing mechanisms. We continually evaluate, then we have formal annual process with the board where we approve the forward-looking financial assumptions. We also do periodic evaluations of the life of mine plan that drive those economics as well.

Speaker #2: But we continually evaluate, and then we have a formal annual process with the Board where we, you know, kind of approve the forward-looking financial assumptions.

Speaker #2: We also do periodic evaluations of the life-of-mine plan, you know, that drive those economics as well.

Speaker #3: Yeah, thanks. And remind me, if I'm recalling correctly, your life-of-mine plan assumes a US$60 per pound price. Is that correct, or is it a bit higher than that?

Daniel Roden: Yeah, thanks. Remind me if I am recalling correctly, your life of mine plan assumes a US$60 per pound price. Is that correct, or is it a bit higher than that?

Speaker #2: Yeah, I think the spot price is $50, Daniel.

Anna Sudlow: Yeah, I think the spot price is 50, Daniel.

Speaker #3: $50. Awesome, no worries. Thank you very much. I'll hand it over. Appreciate it.

Daniel Roden: Fifty. Awesome. No worries. Thank you very much. I will hand it over. Appreciate it.

Speaker #1: Once again, if you wish to ask a question, please press star 1 on your telephone and wait for your name to be announced. Your next question comes from Glen Lockhock with Barrenjoey.

Operator 2: Once again, if you wish to ask a question, please press star one on your telephone and wait for your name to be announced. Your next question comes from Glyn Lawcock with Barrenjoey.

Operator: Once again, if you wish to ask a question, please press star one on your telephone and wait for your name to be announced. Your next question comes from Glyn Lawcock with Barrenjoey.

Speaker #3: Oh, morning Paul. A couple of ones from me. Just on the £400,000 loan, I know you have £200,000 due this quarter. Have you come to a landing on whether you're going to renew it, replace it, or repay it as yet?

Glyn Lawcock: Morning, Paul. Couple of ones from me. Just on the 400,000 Pound loan. I know you have 200,000 Pounds due this quarter. Have you come to a landing on whether you are going to renew it, replace it, or repay it as yet?

Speaker #2: Yeah, I'll get Alex to talk to that one. Yeah. Yeah, Glen, so this particular one, we'll essentially extend that facility. And then we have another one that's maturing in the March quarter.

Paul Hemburrow: Yeah. I will get Alex to talk to that one.

Alex Rybak: Yeah, Glyn. This particular one, we'll essentially extend that facility. Then we have another one that's maturing in the March quarter. We'll just see. As we stated during our guidance release, the intention is to repay part of the loans. I think it's really a combination of our shipping schedules, our delivery obligations. There isn't really a fixed answer I can give you on the timing. But we'll evaluate that a little bit closer to time. But gradually, we expect to repay part of the loans, but we'll obviously retain a balance. It's a standard industry practice to utilize these loans as well as the purchase and saleback arrangements which we've utilized before, as well as the location swaps. That's all part of our toolkit in making sure that we make customer deliveries as efficiently as possible.

Speaker #2: And we'll just see. As we stated during our guidance release, the intention is to repay part of the loans. I think it's really a combination of our shipping schedules and our delivery obligations.

Speaker #2: So there isn't really a fixed answer I can give you on the timing. But, you know, we'll evaluate that a little bit closer to the time.

Speaker #2: But, you know, gradually we expect to repay part of the loans, but we'll obviously retain a balance. It's a standard industry practice to utilize these loans as well as the purchase and sell-back arrangements, which we've utilized before, as well as the location swaps.

Speaker #2: And that's all part of our toolkit in making sure that we meet customer deliveries as efficiently as possible.

Speaker #3: And Alex, just on that, is there like a cost to extend and then an ongoing cost? How does it sort of trigger?

Glyn Lawcock: Alex, just on that, is there a cost to extend and then an ongoing cost? How does it sort of trigger?

Speaker #2: There's essentially an annual interest cost, which is quite competitive. And we are essentially borrowing material that is sitting on the books of intermediaries and not being used.

Alex Rybak: There's essentially an annual interest cost, which is quite competitive. We're essentially borrowing material that is sitting on the books of intermediaries and not being used. So it's a very cost-effective way of financing your working capital.

Speaker #2: So, it's a very cost-effective way of financing your working capital. There's a bit of detail in the MD&A around the costing of those product loans and the mechanisms.

Paul Hemburrow: Glyn, we do provide. Sorry, I was. Again, there's a bit of detail in the MD&A around the costing around those product loans and the mechanisms.

Anna Sudlow: Glyn, we do provide. Sorry, I was. Again, there's a bit of detail in the MD&A around the costing around those product loans and the mechanisms.

Speaker #3: All right. I'll have a look at that, thanks. And then Paul, just—I mean, it's been about five weeks now, and I guess back at the quarterly you called out that it would be a game of two halves, and you said the first two quarters have a one-week outage.

Glyn Lawcock: All right. I will have a look at that. Thanks. Paul, it has been about five weeks now, and I guess back at the quarterly, you called out that it would be a game of two halves, and you said the first two quarters have a one-week outage. Has that week outage occurred in this quarter already, or is it still to come? I am just wondering how it went, if it has occurred. Thanks.

Speaker #3: Has that one-week outage already occurred in this quarter, or is it still to come? I'm just wondering how it went, if it has already taken place.

Speaker #3: Thanks.

Speaker #2: Yeah, Glen, like I said, you're right. It's a game of two halves. I've also said it's an outdoor sport. But the planned shutdown has occurred, and we're running broadly in line with our budgeted performance.

Paul Hemburrow: Yeah, Glyn, like I said, you are right, it is a game of two halves. I have also said it is an outdoor sport. But the planned shutdown has occurred, and we are running broadly in line with our budgeted performance, so nothing unusual to report back on.

Speaker #2: So, nothing unusual to report back on.

Speaker #3: Sorry, Paul, you cut out on my end. It may not be for everyone else, but did you say you actually did the week outage?

Glyn Lawcock: Sorry, Paul, you cut out on my end. It may not be for everyone else. But did you say you have actually done the week outage? Sorry, I missed it.

Speaker #3: Sorry, I missed it.

Speaker #2: Yes, the week outage is complete as planned, and we're operating in accordance with our budgeted performance.

Paul Hemburrow: Yes. The week outage is complete as planned, and we are operating in accordance with our budgeted performance.

Speaker #3: Okay, that's great. Thanks very much.

Glyn Lawcock: Okay. That's great. Thanks very much.

Speaker #2: Thank you. Thanks, Glen.

Paul Hemburrow: Thank you. Thanks, Glyn.

Speaker #1: Your next question comes from Alistair Rankin with RBC Capital Markets.

Operator 2: Your next question comes from Alistair Rankin with RBC Capital Markets.

Operator: Your next question comes from Alistair Rankin with RBC Capital Markets.

Speaker #3: Oh, thanks guys for the follow-up. Just, Daniel reminded me about that TSF1 relocation that you're going to do to get access to the FPIT.

Alistair Rankin: Oh, thanks, guys, for the follow-up. Daniel reminded me about that TSF1 relocation that you are going to do to get access to the S pit. That's a few years away now. Just a quick one. I am not a mining engineer, but is it just as simple for that TSF1 relocation? You just get a bunch of figures, a bunch of trucks together, and it is just moving a heap of dirt from one spot to another into the, I think it is the H pit that you are turning into your new TSF. Is it as simple as that?

Speaker #3: I mean, that's a few years away now, but just a quick one. I mean, I'm not a mining engineer, but is it just as simple for that TSF1 relocation?

Speaker #3: You just get a bunch of figures, a bunch of trucks together, and it's just moving a heap of dirt from one spot to another into the—I think it's the HPIT you're turning into your new TSF.

Speaker #3: Is it as simple as that?

Scott Barber: Scott here. Thanks for that. It is a little bit more difficult than that. The tailings will still be a bit damp. It is not just moving a dry pile from one area to another. It will need to be encompassed. We are going to need to build a new tailings dam or tailings facility, then we will relocate that in. But it will be via truck and shovel. We just need to manage it a little bit because it will still have some moisture in the core in the center.

Speaker #2: Scott, yeah, thanks for that. It's a little bit more difficult than that. The tailings will still be a bit damp, so it's not just moving a dry pile from one area to another.

Speaker #2: And it will need to be encompassed, so we're going to need to build a new tailings dam or tailings facility, and then we'll relocate that in.

Speaker #2: But it will be via truck and shovel. We just need to manage it a little bit, because it will still have some moisture in the core, in the center.

Speaker #2: And we're a couple of years away from doing that work. Yeah.

Paul Hemburrow: We are a couple of years away from doing that work. Yeah.

Speaker #3: Okay. Yeah, sure. Sounds good. Thanks.

Alistair Rankin: Okay. Yeah, sure. Sounds good. Thanks.

Speaker #1: There are no further questions at this time. I'll now hand back to Paul Hemburrow for closing remarks.

Operator 2: There are no further questions at this time. I will now hand back to Paul Hemburrow for closing remarks.

Operator: There are no further questions at this time. I will now hand back to Paul Hemburrow for closing remarks.

Speaker #2: Thanks, everyone, for the questions and, of course, your continued interest in Paladin Energy. Like I said, FY26 was a defining year for the company.

Paul Hemburrow: Thanks for everybody's questions and of course, for your continued interest in Paladin Energy. Like I said, FY26 was a defining year for the company. Successfully completing the ramp-up of Langer Heinrich. We delivered substantial improvements in our financial performance, maintaining a strong balance sheet, and of course, most significantly, advanced and de-risked the Patterson Lake South project through a number of important milestones. Looking ahead, our focus remains on continuing safe and reliable production at Langer Heinrich, progressing PLS towards development, advancing both its near mine and regional exploration opportunities, and creating that long-term value for our shareholders. Paladin is well-positioned to benefit from strong fundamentals in the uranium market that we are currently seeing and of course, from that growing role of nuclear energy in supporting global energy security and decarbonization.

Speaker #2: Successfully completing the ramp-up of Langer Heinrich, we delivered substantial improvements in our financial performance, maintained a strong balance sheet, and most significantly, advanced and de-risked the Patterson Lake South project.

Speaker #2: ...through a number of important milestones. Looking ahead, our focus remains on continuing safe and reliable production at Langer-Heinrich, progressing PLS towards development, advancing both its near-mine and regional exploration opportunities, and creating that long-term value for our shareholders.

Speaker #2: Paladin is well positioned to benefit from the strong fundamentals in the uranium market that we're currently seeing, and of course, from the growing role of nuclear energy in supporting global energy security and decarbonization.

Speaker #2: I appreciate your participation in today's call, and I look forward to speaking with many of you again at Investor Day next week.

Paul Hemburrow: I appreciate your participation in today's call, and I look forward to speaking with many of you again on the Investor Day next week. Thank you, everyone, and have a good day.

Speaker #2: Thank you, everyone, and have a good day.

Operator 2: 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.

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