Paladin Energy Ltd

Thank you for standing by and welcome to the Paladin Energy Limited December 2025 quarterly results call. All participants are in a listen only mode. There will be a presentation followed by a question and answer session. If you would like to ask a question you need to press the start key followed by the number one on your telephone keypad. I would now like to hand the conference over to Mr Paul Hemborough, CEO. Please go ahead.

Thank you very much and hello everyone. Thank you for joining us today. With me is Anna Fudlow, our Chief Financial Officer, Alex Ryback, 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 Lange Heinrich, our progress in Canada, and specifically at Perth and 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 Langeheine, we produced 1.23 million pounds of E3O8, 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. Based on the strength of performance in the first half of the year, recognising 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 million to £4.4 million guidance range. 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. Operationally, mining activity continued 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. Half of the new fleet arrived prior to Christmas and the remaining mining fleet is due to arrive onsite very soon. keeping us on track to complete the ramp-up by the end of FY2026 and transition to full mining operations in FY2027. Costs trended positively as volumes increased. The cost of production reduced to $39.70 per pound. On the south side, quarterly volumes and pricing reflect contract delivery schedules and customer nominations, and the average realised price of $7.80 per pound highlights the strength of our contract book. In Canada, we continue to advance the high-quality PLS project. At Paterson Lake South, winter drilling mobilisation was complete and drilling commenced in January. The program is focused on resource conversion, extension of RRR and regional exploration, supporting long-term development opportunities there. 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 shared purchase plan and debt facility restructure, we ended the quarter with $278 million of cash and investment and a fully undrawn US $70 million revolving credit facility. This provides Paladin with substantial flexibility to advance PLA towards FIDs 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 earlier this month. In summary, the first half of FY2026 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 FY2026. 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.

Thank you. If you would like to ask a question, please press star 1 on your telephone and leave your name to be announced. If you would like to cancel your request, please press star 2. 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.