Paladin Energy Ltd

Thank you for standing by and welcome to the Paladin Energy Limited March 2026 quarterly results call. 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 1 on your telephone keypad. I would now like to hand the conference over to Paul Hemborough, MD and CEO. Please go ahead. Good morning everyone and thank you for joining the Paladin Energy's quarterly conference call. With me today is Anna Soto, our Chief Financial Officer, Scott Barber, our Chief Operating Officer, Alex Rybak, our Chief Commercial Officer, and Paolo Raffo, Head of Investor Relations. On the call today, we'll cover a brief overview of the quarter, an update on Langer Heinrich, our FY26 guidance revision, and progress in Canada at Paterson Lake South, and then we'll move into Q&A after that. So a couple of highlights from the quarter. Production at Langer Heinrich. 100mine was 1.79 million pounds for the quarter, up 5% on the prior quarter, supported by strong plant performance. Sales volume was 1.03 million pounds at an average real life price of 68p per pound. We increased the length of 100mine 2026 production guidance to 4.5 to 4.8 million pounds and in Canada we received Saskatchewan government approvals of the TLS EIS and we've also Continued exploration is really focused on the salooning deposit. More specifically at Logan Hydro Mines, mining continues to ramp up with the list freeze and commissioning of the remaining mining fleet completed and activity was heavily focused on the G5. How to mine approval was 6.17 million tonnes, up 12% from the previous quarter, and cross the throughput was 1.21 million tonnes at an average 4 feet grade of 503 ccm. which produced 1.29 million pounds of ECOA at an average recovery rate of 96%. Ramp-up remains on track for completion by the end of FY26. We're monitoring potential impacts from the events in the Middle East. Currently, inbound supplies to sites and outbound shipments to customers are not impacted, and we're taking steps to maintain security of our key process inputs. On sales and cash, which sold 1.03 million pounds a year per hour at an average realized price of 68 billion per pound. Cost of production was $40 billion per pound, benefiting from the utilization of the remaining MDT stockpile. At C1NARCH, we held unrestricted cash investments of 219.5 million U.S., with an undrawn 70 million U.S. revolving credit facilities. Quarterly sales revenue includes 47.3 million U.S. with cash receipts accepted during the June 2026 quarter. And we made a scheduled $4 million payment on the term loan facility, reducing the balance to $36 million. On guidance, following year-to-date production of 3.6 million pounds, we revised Langaheim Rex 2026 production guidance to 4.5 to 4.8 million pounds from the 4 to 4.4 previously announced. Sales guidance remains 3.8 to 4.2 million pounds and cost of production guidance remains US $44 to $48 per pound, while capital and exploration expenditure guidance was revised to US $15 to $17 million from the US $26 to $32 million. The revised guidance is based on current operating conditions and assumptions and may be impacted by disruptions arising from the current geopolitical events, which we're closely monitoring. Turning to Canada and the CLS project, we received ministerial approval for our environmental impact statement on the 20th of February. It's a really important regulatory milestone and a prerequisite for further payments and licensing leading to the construction and operating of the permit. On 31 March, we were advised that the main nation, Saskatchewan, had applied for a judicial review to challenge the decision to approve the EIS and would continue to actively engage in constructive conversations with local communities and Indigenous peoples. We commenced an update of the primary engineering design study during the quarter and continue to work closely with the Canadian Nuclear Safety Commission as we progress towards the life of the construct. On explorations, we drilled just over 11,000 metres across the PLS project during the last quarter. We're targeting saloon incident deposits and resource conversion extensive drilling at RRR. Our study results are still pending. Finally, at the Michelin project, There were no substantive mining exploration activities during the quarter, with prospective and target assessments continuing, and which meant that the regulatory process reduced project tenure by approximately 18% as part of the tenement rationalisation program. So we've been really busy delivering towns and building momentum across the company, and I'm pleased with the progress that we're making. I'm now happy to take questions.

Thank you. If you wish to ask a question, please press star 1 on your telephone and wait for your name to be announced. If you wish to cancel your request, please press star then 2. If you're on a speakerphone, please pick up the handset to ask your question. The first question today comes from Alistair Rankin from RBC Capital Markets. Please go ahead.

Good morning, Paul and Scott, Alex and Paula, and congrats on another strong result. You seem to be making it a habit of recording results so well done. This first question is relating to your reagents.