Paladin Energy (PDN) Investor update summary

Revised production guidance and operational update

• FY2025 production guidance has been reduced from 4–4.5M lbs to 3–3.6M lbs due to stockpile grade variability and water supply disruptions, with all other guidance withdrawn due to ramp-up variability.

• October production was 186,667 lbs, below plan due to variable ore feed grade and water supply issues, though plant recovery improved to 87%.

• Stockpile processing remains profitable but below initial expectations; transition to open pit mining is expected by June next year, with higher grades and less volatility.

• A planned two-week shutdown in November will implement operational upgrades and fill water storage to buffer against future supply disruptions.

• Share price volatility is partly attributed to the pending Fission Uranium Corp. transaction, expected to resolve by year-end.

Key drivers and outlook

• Water supply from NamWater is now the main operational risk, with grade variability factored into revised guidance.

• Quarterly reports will provide transparency on water and production performance, with a key update expected in January.

• Realized uranium prices are closely tied to production volumes and shipping schedules, with a strong bias toward spot pricing.

• No additional capital expenditure is anticipated beyond current plans; tailings facility preparation is the main project for the year.

• Production is expected to be higher in the second half of FY2025 as operational challenges are addressed.

Financial and contract position

• Liquidity remains strong with AUD 55M cash and AUD 55M undrawn debt at September quarter-end; cash flow positive for the current quarter.

• Confident in meeting all customer delivery obligations despite lower production, aided by contract flexibility and inventory management tools.

• A 200,000 lb uranium loan is being used for shipment timing, with terms comparable to bank debt.

• No concerns about water allocation due to sufficient desalination capacity and infrastructure upgrades.