Paladin Energy Ltd · ASX:PDN
Paladin Energy — Investor Presentation (September 2019)
26 slides from Paladin Energy's investor presentation, Sep 11, 2019
Slide 1: Paladin Energy Ltd Equity Raising Presentation
Not for release to US wire services or for distribution in the United States PALADIN ENERGY LTD EQUITY RAISING PRESENTATION THIS IS NOT THE ANNOUNCEMENT September 2019 THAT BRINGS THE COMPANY OUT OF TRADING HALT ASX: PDN
Slide 2: Disclaimer and Notes
DISCLAIMER AND NOTES JORC AND NI 43-101 MINERAL RESOURCES AND ORE RESERVES This presentation has been prepared by Paladin Energy Ltd ABN 47 061 681 098 (the “Company”) and is dated 11 September 2019. It has been prepared in relation to a proposed capital raising to be conducted by an offer by the Co
Slide 3: Corporate Profile
CORPORATE PROFILE WHO IS PALADIN? MARKET SNAPSHOT ASX: PDN An ASX listed independent uranium company Shares on issue 1,752M with a focus in Africa, Australia and Canada Share price A$1 13.5c Market capitalisation A$ 236.5M 14 years of production history across two mines Market capitalisation US$2 16
Slide 4: Equity Raising Overview
EQUITY RAISING OVERVIEW ▪ Proceeds will be used to fund the Company’s working capital requirements including: ▪ C&M costs associated with the Langer Heinrich mine Equity raising rationale ▪ Exploration tenement holding costs ▪ Corporate costs ▪ Langer Heinrich restart and optimisation studies ▪ Equi
Slide 5: Indicative Timetable
INDICATIVE TIMETABLE MILESTONE DATE1 Record date for SPP 7pm Tues 10 September 2019 Trading Halt and announcement of equity raising Wed 11 September 2019 Announcement of outcome of Placement Fri 13 September 2019 Trading halt lifted and trading of shares recommences on ASX Fri 13 September 2019 SPP
Slide 6: Paladin (Africa) Ltd (PAL) Sale Announced
PALADIN (AFRICA) LTD (PAL) SALE ANNOUNCED ▪ PAL to be sold to Lotus Resources Pty Ltd (subsidiary Hylea Resources). PAL holds an 85% interest in Kayelekera Mine and associated leases ▪ Consideration for the sale: ▪ A$5M ▪ A$200,000 cash ▪ A$4.8M in shares (A$1.8M on completion subject to 12 month es
Slide 7: Strong Demand in the Uranium Market
STRONG DEMAND IN THE URANIUM MARKET An exciting long-term outlook
Slide 8: The Uranium Story Is Compelling
THE URANIUM STORY IS COMPELLING $160 Spot Price 2000 - 2018 Demand Fulfilment 2011 - 2018 Cumulative supply cuts 250.0 $140 “Under buying” 2016 2017 2018 2019 2020 200.0 0 Langer $120 -5 Heinrich U308 Spot price (US$/lb) 150.0 Cominak $100 -10 Mlbs McArthur Mlb U3O8 -15 Mlb $80 100.0 River -20 Kazak
Slide 9: Supply Side Factors
SUPPLY SIDE FACTORS KEY MARKET OBSERVATIONS New project development Kazakhstan production Stocks drawn down Significant decrease When long-term timelines stretched: flat @ <60Mlb to ▪ Permitting uncertainty remains contracting returns, >400Mlb and +40Mlb in exploration spend 2021. 15% IPO + (ve) in
Slide 10: Demand Side Factors
DEMAND SIDE FACTORS GLOBAL WARMING ▪ Nuclear energy is a low cost and low emission base load energy source ▪ Global impetus to reduce carbon emissions and global warming ▪ Intergovernmental Panel on Climate Change (IPCC) REPORT – Limit global warming increase to 1.5˚C ▪ China - Plans to have 56 reac
Slide 11: Sentiment Moving Back to Nuclear
SENTIMENT MOVING BACK TO NUCLEAR ▪ Nuclear energy is gaining increased support, even from former opponents (Source: Michael Shellenberger https://www.youtube.com/watch?v=N-yALPEpV4w) ▪ Over two decades of climate change conferences (Berlin 1995) with little to show for it ▪ Carbon emission continue
Slide 12: Demand Growth Far Exceeds Supply Capability
DEMAND GROWTH FAR EXCEEDS SUPPLY CAPABILITY Demand and Supply Scenarios Future Contracted Coverage Rates of US & European Utilities 325 120.00% 300 Contract Coverage (% of total requirements) 275 100.00% 250 225 80.00% 200 175 Mlbs 60.00% 150 125 40.00% 100 75 50 20.00% 25 0 0.00% Base supply need A
Slide 13: A Strategic Tier-One Asset at Langer Heinrich
A STRATEGIC TIER-ONE ASSET AT LANGER HEINRICH A LOW COST, LONG LIFE URANIUM MINE
Slide 14: We Are Not Standing Still…
WE ARE NOT STANDING STILL… WE ARE PLANNING FOR A RAPID, RELIABLE RESTART CONCEPT STUDY COMPLETED TO OPTIMISE RESTART: Verify C&M practices to Learn from 10 years of Define further potential Prefeasibility study for ensure asset is operation to ensure restart improvements and cost rapid, low-risk res
Slide 15: Rapid Production Restart on Uranium Price Recovery
RAPID PRODUCTION RESTART ON URANIUM PRICE RECOVERY DESCRIPTION STATUS TIMING PURPOSE ▪ Identify, detail and compare multiple Completed February restart options Concept Study 2019 ▪ Rank on risk and return 1. RAPID RESTART STUDY (PFS1) Strategic aim - be ▪ Select single go forward plan able to initia
Slide 16: Option 1. Rapid Restart Study (PFS1)
OPTION 1. RAPID RESTART STUDY (PFS1) ▪ Comparatively low initial restart capital requirements of circa US$78M (excludes C&M costs) Plant repair and Working capital improvement US$54M US$24M (includes: first fill of reagents, recommissioning, remobilisation and tailings dam costs) ▪ Process largely a
Slide 17: Option 2. Processing Upgrade Study (PFS2)
OPTION 2. PROCESSING UPGRADE STUDY (PFS2) FURTHER ENCHANCEMENTS TO LANGER HEINRICH AFTER THE RAPID RESTART BACK END UPGRADE* ▪ To reduce reagent costs and recover vanadium, water recovery US$43M from tailings and pressure leach ▪ 12-15 month Prefeasibility Study (currently in-progress) to select pro
Slide 18: World Wide Product Cost Curve – All Projects
WORLD WIDE PRODUCT COST CURVE – ALL PROJECTS 100.00 90.00 80.00 70.00 Full costs (US$/lb U3O8) 60.00 50.00 40.00 Target Life of Mine AISC1 30.00 Aspirational Target Langer Heinrich AISC1 20.00 10.00 0.00 0.00 100.00 200.00 300.00 400.00 500.00 600.00 Cumulative Annual Production (Mlb pa) Source: UxC
Slide 19: Conclusion
CONCLUSION Diversified portfolio of developed mines and exploration projects with significant leverage to upward movements in the uranium price Lead time and capital associated with a re-start to bring Langer Heinrich back into production is shorter and lower than new projects Lower incentive price
Slide 20: Foreign Selling Restrictions
FOREIGN SELLING RESTRICTIONS
Slide 21: Foreign Selling Restrictions
FOREIGN SELLING RESTRICTIONS International Offer Restrictions This document does not constitute an offer of new ordinary shares ("New Shares") of the Company in any jurisdiction in which it would be unlawful. In particular, this document may not be distributed to any person, and the New Shares may n
Slide 22: Foreign Selling Restrictions
FOREIGN SELLING RESTRICTIONS Section 138 of the Securities Act (Ontario) provides that no action shall be commenced to enforce these rights more than (a) in the case of any action for rescission, 180 days after the date of the transaction that gave rise to the cause of action or (b) in the case of a
Slide 23: Foreign Selling Restrictions
FOREIGN SELLING RESTRICTIONS This document has been given to you on the basis that you are (i) an existing holder of the Company’s shares, (ii) an "institutional investor" (as defined in the SFA) or (iii) an "accredited investor" (as defined in the SFA). In the event that you are not an investor fal
Slide 24: Meet Our Board of Directors
MEET OUR BOARD OF DIRECTORS Rick Crabb – Non-Executive Chairman David Riekie – Non-Executive Director Daniel Harris – Non-Executive Director John Hodder – Non-Executive Director Mr Crabb practiced as a solicitor form 1980 to 2004 Mr Riekie is an experienced ASX Director at both the Mr Harris is a se
Slide 25: Meet Our Senior Management
MEET OUR SENIOR MANAGEMENT Scott Sullivan – Chief Executive Officer Anna Sudlow – Chief Financial Officer Andrea Betti – Company Secretary Mr Sullivan brings 30 years of diversified mining experience to Paladin, across Anna is a highly qualified CFO with more than 20-years’ experience Ms Betti is an
Slide 26: Contact Us
CONTACT US HEAD OFFICE INVESTOR RELATIONS Level 4, 502 Hay Street Karen Oswald Subiaco Western Australia 6008 T: +61 (8) 9423 8162 T: +61 (0) 8 9381 4366 M: +61 (0) 423 602 353 E: paladin@paladinenergy.com.au E: karen.oswald@paladinenergy.com.au www.paladinenergy.com.au
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