Paladin Energy Ltd

Thank you for standing by and welcome to the Paladin Energy Ltd June 2026 quarterly results call. All participants are in illicit only mode. There will be a presentation followed by a question and answer session. If you wish to ask a question, you will need to press the star key followed by the number one on your telephone keypad. I would now like to hand the conference over to Paul Hembrough, CEO. Please go ahead.

Good morning everybody and thank you for joining us today. I have Anna Sutlow, our CFO, with me this morning and on the line we also have Scott Barber, our COO, and Alex Ryder, our Chief Commercial Officer. There are two areas I want to cover today on the call. First I'll take you through the June call lead results and the key achievements from FY26 and then I'll move into the FY27 guidance for Langer Hymery, which builds directly from the operating platform we established throughout this last year. At a high level, FY2026 was about transforming Langa Heinrich from a restart project into a stable operating uranium mine while laying the foundation for our next phase of growth through Patterson Lakes down. I'm completely pleased to report that we successfully completed the ramp-up of Langa Heinrich mine during the quarter. This is a commitment we made to shareholders. We've now delivered on that commitment. For the June quarter, production was 1.23 million pounds of E308, bringing full-year production to 4.82 million pounds right at the upper end of our revised 2026 production guidance range. Sales were strong. We sold 1.35 million pounds during the quarter and 4.35 million pounds for the full year, exceeding the top end of our guidance range. Operationally, the business continued to improve throughout the year. total mine material increased steadily and reached 7.45 million tonnes in the quarter, the highest quarterly mining rate since the restart. The full mining fleet is now operational and positioned to support our 2027 objectives. Processing performance remains consistent with plant recovery averaging 90% during the quarter, demonstrating stable operations and plant performance at the top end of our recovery targets. During the quarter, we achieved an average real life price of $70.60 per pound, with FY26 averaging $70 per pound. From a cost perspective, FY2026 cost of production was $43.30 per pound, outperforming our guidance range of $44.48 per pound, while quarterly costs increased to $61.60 per pound as a result of the mine development work and transition to full mining activities and mining wild grade areas in line with our mine plan. The successful completion of ramp-up provides a strong platform as we move into FY2027. While Lange Heimlich remains our predicting asset today, Hazen Lake South represents a significant component of Halidah's future growth strategy. During the quarter, we reached one of the most important permitting milestones since acquiring the project. The Canadian Nuclear Safety Commission confirmed that our construction life and applications had achieved sufficiency status. This means the application has met the required completeness and technical standards and can now progress through the formal regulatory assessment process. Subsequent to the quarter end, we signed an administrative protocol with the CNSC, which establishes a targeted pathway aimed at completing construction-like interiors by the end of calendar year 2027. This provides greater clarity around the permitting process and represents another important de-risking milestone. At the same time, our Canadian team continued progressing the FEED study and advancing engineering activities while maintaining strong engagement with Indigenous partners and local communities. We also executed a binding term sheet with the Burschnero Dene Nation as part of the Mutual Benefits Agreement process, further strengthening our relationship and social licence in the region. A highlight here in the quarter was the Atlas discovery. Atlas is a new high-grade uranium ore body located approximately 3.5km south of the RRR deposit at Patterson Lake South. 7 of 8 exploration holes intersect this significant uranium mineralisation, confirming the existence of an entirely new mineralised system within the broader saloon trend. Importantly, Atlas remains open along the strike and the steps. We believe this discovery reinforces exploration potential across the water PLS land package and supports our view that there are opportunities to enhance the long-term value and development potential of the project beyond what is currently contemplated. We ended the quarter with cash and investment of US$265 million and an undrawn $70 million revolving credit facility. This strong financial position provides flexibility to continue advancing Patterson Lake South, support our exploration programs and optimise land and mine as we enter the next stage of growth. So in summary, the June quarter flies out a year of delivery to Paladins. We successfully completed the round-up of the labour mine rig, met the upper end of guidance range on production and exceeded guidance on sales, cost and cost performance. We advanced PASMATE staff through major regulatory milestones, established a clear pathway towards licensing, strengthened Indigenous partnerships and delivered significant exploration discovery That delivery gives us the right platform for 2027. We're going to now re-ramp up the focus shifts from restart execution to disciplined operating performance, safe production, cost control, mine and paint optimisation and of course reliable deliveries to customers. I'll now turn to FY27 guidance for Langer Heinrich. to produce between 5.1 and 5.6 million pounds of U3LA on 100% basis. Sale volumes are expected to be between 4.8 to 5.3 million pounds of U3LA. Production will not be evenly weighted across the year. We expect lower production in the first half due to plane maintenance shutdowns as well as lower growth from the mine in September and December 14. Production is expected to improve in the second half as high oil grade fee to the plant increases. Cost of production is expected to be between $44 and $48 per pound. We expect cost to trend upward... Sorry, we expect cost to trend toward the upper end of the range in the third half, reflecting lower production volumes and the additional cost impact of planned arrangements. It's also important to note that all ore processed in FY2027 will be sourced from the mine following depletion of the previously mined MG3 stockpile. This means longer haul distances compared with FY26, whilst ongoing removal of overburden and waste will continue to open up future mining areas. Operationally our focus remains on mining and plant optimisation through FY2027. Medium and high grade ore will be delivered to the processing by lower grade material will be stockpiled for future processing. This supports improved grade outcomes and provides operational flexibility over the life of mine. We will continue to report action costs associated with capitalised stripping and the building of low grade stockpiles on a quarterly basis. These items are not included in the Cost of Production Guidance. On capital, Capital Expenditure Atlanta Homes is expected to be between $29 and $35 million for FY20.7. The key areas of expenditure include tailings, storage facilities, design and construction, process improvement studies and infield drilling, as well as the completion of selective capital exploration activities deferred from FY26. On sales and pricing, Pelham's contract will continue to provide leverage to a strengthening uranium market. During FY27, sales are expected to reflect both capital delivery schedules and intentions to repay part of the current uranium product loan balance. As of 30 June 2026, Pelham has had £400,000 of E3A and outstanding uranium product loans. Consistent with industry practice, we maintain access to short-term uranium product loans and swap facilities to support operational and delivery flexibility. Realised pricing will vary from port to port depending on customer delivery nominations, contract pricing mix, individual contract terms, shipping schedules and providing swap prices. Based on the contract book, as of 1 July 2026, we have updated the realised price sensitivity table. In summary, FY27 is about discipline delivery from Langeheimer following a successful completion of brand class.

We have provided clear guidance on production costs, capital and sales, while retaining the flexibility to manage order on order movements in production and delivery.