Paladin Energy Ltd (ASX: PDN) shares are catching the eye of investors on Friday.
In morning trade, the ASX 200 uranium stock is up 7% to $15.10.
This compares favourably to the performance of the ASX 200 index, which is down 0.15% at the time of writing.
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Why are Paladin Energy shares jumping?
Investors have been bidding Paladin Energy shares higher today after it released an update on its operations and guidance for the Langer Heinrich Mine (LHM) in FY 2026.
According to the release, the LHM ramp-up and transition to full mining operations has progressed well during the first nine months of FY 2026.
Management notes that 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 FY 2026 production of 3.6Mlb U3O8.
As a result of the strong performance in the first three quarters of FY 2026, management has decided to update its guidance.
It now expects U3O8 production of 4.5Mlb to 4.8Mlb. This is up from its previous guidance range of 4Mlb to 4.4Mlb.
What else?
Management advised that LHM has recorded 3.0Mlb U3O8 in sales in the first nine months of FY 2026. Despite the upgraded production guidance, full year sales guidance remains unchanged. It continues to expect sales of 3.8Mlb to 4.2Mlb for the year.
In addition, it revealed that its cost of production is expected to materially align with previous guidance of US$44 per pound to US$48 per pound. However, this is pending the duration of the current conflict in the Middle East and any further associated impacts on forecast cost.
One thing that is changing is its capital and exploration expenditure guidance range. It has been reduced to US$15 million to US$17 million (from US$26 million to US$32 million). This is due to the reprioritisation and deferral of capital and exploration expenditure.
However, once again, management warned that "the revised guidance is based on current operating conditions and assumptions and may be impacted by disruptions arising from current geopolitical events. Paladin is closely monitoring the potential impact of these events."
It also reiterated that "Paladin continues to expect LHM to transition to full mining and processing plant operations by the end of FY2026."
Following today's move, Paladin Energy's shares are up over 200% since this time last year.
