Paladin Energy skewers short sellers with better-than-expected output from Langer Heinrich uranium mine

Uranium producer Paladin Energy is flying high after quarterly production at its Langer Heinrich mine in Namibia defied expectations. Shares in Paladin surged 23 per cent to $4.90 by 9.15am on the back of quarter-on-quarter production from the African mine rising 17 per cent for the first three months of 2025. It produced 745,484 pounds of triuranium octoxide and sold 872,435lb of this uranium compound at an average price of $US69.90/lb. The output uplift came despite a “significant weather event” during the quarter that flooded a mining pit. Perth-based Paladin, which is the second most shorted stock on the ASX, said the quarterly production result was its best since Langer Heinrich was restarted last April. The mine had been plagued by issues after being switched back on, with water supply disruptions and lower-than-expected ore grades leading to a major production guidance downgrade in November. Law firm Slater and Gordon is currently pursuing a class action against Paladin for the downgrade, claiming investors were misled by the original production guidance that was “unreasonably optimistic”. Paladin has lost about 65 per cent of its value over the past year as the Langer Heinrich issues get amplified by weakness in the uranium market as hopes of a swift global nuclear power renaissance taper off and trade tariffs weigh on sentiment. The Ian Purdy-led business is also digesting a $1.5 billion acquisition of Toronto-listed Fission Uranium that it made while uranium prices last year were at heights not seen since 2007. Wednesday’s update spells bad news for Paladin’s large contingent of short sellers who have sought to profit from the ASX-listed miner’s woes. Paladin has 16.8 per cent of its shares in the hands of short sellers and is only behind fellow uranium producer Boss Energy as the most shorted stock on the bourse. Short sellers effectively lose money when the share price of a stock they are betting against rises.