Paladin Energy (ASX:PDN) is anticipated to show continued momentum through the fiscal year, with full operations planned for fiscal year 2027, as fiscal second-quarter production results surpassed expectations, Jefferies said in a note on Tuesday.

The company reported improved mining performance and ore recovery, overcoming minor delays in fleet deliveries.

Mined volumes exceeded Jefferies' expectations, given the modest delays in fleet delivery being pushed into third quarter.

Ore mined was higher than expectations, given activities were focused on pit stripping in the quarter, resulting in higher feed grades of 524 parts per million and a recovery rate of 91%, and a production gain of 1.2 million pounds.

Fiscal year guidance is now expected to be at the top end of the range of between 4 million pounds and 4.4 million pounds.

Jefferies maintained a buy rating on Paladin Energy and a price target of AU$12.

Paladin Energy shares fell 3% in midday trade on Thursday.