The Paladin Energy Ltd (ASX: PDN) share price jumped 6% in response to upgraded FY26 guidance.
Paladin Energy is a uranium miner with its Langer Heinrich Mine (LHM), a large open pit mine located in the western part of Namibia. The ASX mining share owns 75% of it.
Increased guidance production range
The ASX uranium share has provided an operations and guidance update for the LHM in advance of its March 2026 quarter update, which is scheduled for release on 22 April 2026 (next week).
The LHM ramp-up and transition to full mining operations have progressed “well” during the first nine months of FY26.
Paladin Energy said the combination of successful mobilisation of the mining fleet, improved feed grade and high recovery rates from the processing plant have resulted in year-to-date FY26 production of 3.6 million pounds of U3O8.
As a result of the strong performance in the first nine months of FY26, Paladin revised its FY26 guidance.
U3O8 production has been upgraded to a range of between 4.5 million pounds to 4.8 million pounds, up from a range of 4 million pounds to 4.4 million pounds. The mid-point has been increased by 10.7%.
The amount of U3O8 sold is still expected to be between 3.8 million pounds to 4.2 million pounds – that’s not changed.
The cost of production is expected to be between US$44 per pound to US$48 per pound – that wasn’t changed either. It said this is pending the duration of the current conflict in the Middle East and any further associated impacts on the forecast cost.
Capital and exploration expenditure is expected to be between US$15 million to US$17 million, down from US$26 million to US$32 million.
The company said the revised guidance is based on current operating conditions and assumptions, and may be impacted by disruptions arising from the current geopolitical events.
It also reported that in the third of FY26, it produced 1.29 million pounds of U3O8 and sold 1.03 million pounds of U3O8 at an average realised price of US$68.3 per pound compared to cost of production of US$40.3 per pound.
Final thoughts on the Paladin Energy share price
The Paladin Energy share price is up more than 40%, so it’s certainly not cheap any more. But, it’s good to see that the business is delivering strong production.
It seems like it is regularly volatile, so there could be a better price than today, sooner rather than later. Global uranium demand is likely to continue rising as the world moves away from fossil fuels, so it could be a useful long-term investment. But, there are other ASX growth shares I’d rather buy today.
