Chamwe Kaira
Paladin Energy Ltd has completed a restructure of its syndicated debt facility, cutting its total debt capacity to U$110 million (about N$2.09 billion) as its liquidity position improves.
The uranium producer said the restructure with lenders Nedbank Limited, Nedbank Namibia Limited and Macquarie Bank was executed on 18 December, subject to the completion of customary conditions.
The original facility was arranged in January 2024, ahead of the restart of production at Paladin’s Langer Heinrich Mine in the Erongo Region and before the company acquired Fission Uranium Corp.
Since then, Paladin’s financial position has strengthened, supported by the completion of a A$300 million equity raise and a A$100 million share purchase plan in 2025.
The company has now reduced the facility from U$150 million to US$110 million, saying the revised size better matches its current funding needs as production ramps up at Langer Heinrich.
Under the new structure, Paladin will keep a US$40 million term loan facility that matures on 28 February 2029 and a U$70 million undrawn revolving credit facility. The revolving facility matures on 28 February 2027, with options to extend the term by up to two years.
As part of the restructure, Paladin will repay U$39.8 million to reduce the outstanding balance on the term loan at completion.
Paladin said the revised arrangement is expected to reduce borrowing costs while retaining enough undrawn capacity to support operations and future growth.
The restructure follows improved operational performance at the Langer Heinrich Mine. During the 2025 financial year, the mine delivered 3 million pounds of uranium oxide (U₃O₈), marking a return to full-scale production after years on care and maintenance.
The mine also maintained a competitive cost profile, with production costs of US$40.2 per pound, reflecting improved efficiency as processing ramp-up continued.
The trend continued into the first quarter of the 2026 financial year.
The mine produced 1.06 million pounds of U₃O₈ at a cost of US$41.6 per pound, while average realised selling prices rose to U$67.4 per pound from U$65.7 per pound in the prior year.
Processing plant optimisation has supported stable operations. Throughput and recovery levels have steadied, with more than 1 000 kilotonnes processed per quarter and recovery rates close to the 86% to 88% target range.
This stability has helped Paladin meet delivery commitments in a tightening global uranium market.
Commercial performance is supported by long-term sales agreements. Paladin has secured 14 uranium contracts with utilities in the United States, Europe and Asia. More than 24.5 million pounds of production are contracted through to 2030.
About 85% of life-of-mine reserves remain either uncontracted or linked to market-related pricing, giving the company exposure to rising uranium prices.
