Paladin Energy (PDN) investor relations material

Market outlook and industry trends

• Global nuclear energy demand is rising, driven by energy security, electrification, and climate goals, with 31 countries pledging to triple nuclear capacity by 2050 and the US targeting a fourfold increase in its nuclear fleet by 2050.

• Structural uranium supply-demand deficit persists due to under-investment, with utilities seeking supply from Western jurisdictions and ~1 billion pounds of uncovered uranium requirements over the next decade.

• Spot and term uranium prices have increased, but term contract volumes remain below replacement levels, supporting a positive pricing outlook.

Operational performance and production

• Langer Heinrich Mine (LHM) produced 2.3Mlb U3O8 in H1 FY2026, with FY2026 output expected at the upper end of 4.0–4.4Mlb guidance; full mining and processing operations are planned for FY2027.

• LHM achieved an average realised price of $70.5/lb and a cost of production of $40.5/lb in H1 FY2026, with a target recovery rate of 85–90%.

• 1.96Mlb U3O8 sold in H1 FY2026, with 23Mlb contracted to 2030 and 85% of LHM ore reserve exposed to market-related prices or uncontracted.

Growth projects and development pipeline

• Patterson Lake South (PLS) Project in Canada features a high-grade, near-surface deposit with a probable reserve of 93.7Mlb U3O8 at 1.41% and a 10-year mine life, targeting ~9Mlb annual production.

• Engineering review confirmed the robustness of PLS, with pre-production capital cost at $1,226M, operating cash cost at $11.7/lb, and first production targeted for 2031.

• PLS Project offers significant exploration upside, with strategies to extend mine life and convert additional resources to reserves.