Uranium producer Paladin Energy’s share price plunged nearly 30% on Tuesday after the Australian miner revised down its production forecast for the Langer Heinrich mine in Namibia.
The company cited weaker-than-expected performance in October and ongoing challenges in ramping up operations as key factors behind the revised guidance.
Paladin now expects to produce between 3-million and 3.6-million pounds of uranium from Langer Heinrich in the 2025 financial year, compared with its previous forecast of 4-million to 4.5-million pounds.
Paladin announced a two-week planned shutdown at the mine to carry out operational improvements and upgrades aimed at addressing production challenges.
Langer Heinrich is currently in the midst of a 21-month ramp-up period, with the mine now about seven months into the process. Paladin emphasised that production is expected to rise as the ramp-up progresses and higher-grade ore is processed in the latter half of the 2025 financial year.
“The company remains confident that, by the end of 2025, Langer Heinrich will achieve a production run rate of 6-million pounds per year,” Paladin said in a statement.
Paladin’s stock traded at A$6.88 a share.