Why are Paladin Energy shares jumping 12% to a 52-week high?

Paladin Energy Ltd (ASX: PDN) shares are catching the eye of investors on Wednesday.

In morning trade, the uranium producer’s shares are up 12% to a 52-week high of $13.01.

Why are Paladin Energy shares roaring higher today?

Investors have been fighting to get hold of the company’s shares today after responding positively to its quarterly update.

According to the release, Paladin Energy’s uranium production increased 16% on the previous quarter to 1.24M pounds. This was driven by an uplift in ore feed grade as a result of a higher proportion of mined ore processed.

The company also revealed strong sales volumes of 1.43M pounds with a realised price of US$71.8 per pound. This represents a 150% and 6.5% increase, respectively, over the first quarter. Management highlights that this reflects the quality of the Langer Heinrich Mine (LHM) contract book and the strengthening uranium pricing environment.

This was achieved with a cost of production of US$39.7 per pound, which is down 4.6% quarter on quarter.

Combined with the completion of its share purchase plan and the restructure of its syndicated debt facility, Paladin Energy ended the period with cash and investments of US$278.4 million and an undrawn US$70 million revolving credit facility.

Guidance update

Also giving Paladin Energy shares a boost today was its update on its guidance for FY 2026.

Management advised that given the robust production in the first half of FY 2026, coupled with the continued ramp up of LHM to full mining and processing operations, it expects full year production to trend towards the upper end of the guidance range of 4M pounds to 4.4M pounds.

Commenting on the company’s performance during the first half, its CEO, Paul Hemburrow, said:

As global interest in nuclear energy continues to strengthen, I am delighted by our progress in ramping-up operations at Langer Heinrich Mine. The new level of production achieved during the quarter provides insight into the robust performance that can be achieved from this strategic uranium asset. Our site team’s goal is to continue delivering a consistent operational performance for the remainder of this financial year.

Hemburrow also spoke positively about its Patterson Lake South (PLS) Project. He adds:

The capability of our Canadian team is growing under the leadership of Dale Huffman as President Paladin Canada, with exploration and permitting workstreams advancing at PLS. Completion of the debt restructure has provided additional balance sheet flexibility to support the continued ramp up at LHM and progress the PLS Project. As a group we are focused on improving production volumes and ensuring capability to deliver a multi-decade production pipeline for the market and to drive value for our shareholders.

The post Why are Paladin Energy shares jumping 12% to a 52-week high? appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.