Slide 1: Annual Results Conference Call and Investor Update
Annual Results Conference Call and Investor Update 31 August 2012 John Borshoff – Managing Director/CEO Alan Rule – CFO Mark Chalmers – Executive General Manager, Production
Slide 2: Disclaimer and Notes for JORC and NI 43-101 Mineral Resources and Ore Reserves
Disclaimer and Notes for JORC and NI 43- 101 Mineral Resources and Ore Reserves This presentation includes certain statements that may be deemed “forward-looking statements”. All statements in this presentation, other than statements of historical facts, that address future production, reserve or re
Slide 3: Strong Growth – Delivered and Anticipated
Strong Growth – Delivered and Anticipated Alongside parallel project Growth potential pipeline establishment (only if uranium price >$85/lb) 16.00 Development / Ramp-up Optimisation Growth (Price Dependent) 14.00 duction (Mlb)) 12.00 Current installed capacity 8.5Mlb 10.00 Development +Ramp Up GROWT
Slide 4: Supply Misunderstood
Supply Misunderstood key trends 180 Paladin Need 200-220Mlb by 2020 160 Kazatomprom Operated (excl. Areva & Cameco) ? Actual Global Global (excl. Kazatomprom (excl. Kazatomprom & Paladin) & Paladin) 140 WNA 2005 Ref Production Forecast Mlb U3O8 120 WNA 2007 Ref Production Forecast Trend line 100 odu
Slide 5: Presentation Outline
Presentation O tli Outline Company Status & Highlights Financial Review Project Update Outlook 4
Slide 6: Strategic Initiatives
Strategic Initiatives Paladin announced on 15 August that it had entered into a landmark long- term contract with a major utility — 13.73Mlb U3O8 — 6 year contract from 2019 to 2024 — market prices at time of delivery bound by escalating floor and ceiling Key feature of the contract is a US$200M pre
Slide 7: Paladin Progress
Paladin Progress Meeting corporate objectives • Year-on-year production increase >20% Production • LHM at Stage 3 nameplate (5.2Mlb pa) Delivered • KM at nameplate p (3.3Mlb ( pa) p ) • Development from pipeline projects Future defined - Manyingee → Michelin Production • In FY13 - no construction ac
Slide 8: Presentation Outline
Presentation O tli Outline Company Status & Highlights Financial Review Project Update Outlook 7
Slide 9: Profit and Loss Year ended June 2012
Profit and Loss Year ended June 2012 % Change 30 June 2012 US$M 30 June 2011 US$M Revenue Sales Revenue 37% 365.8 266.8 Other Revenue (24)% 1.6 2.1 Total Revenue 37% 367.4 268.9 Cost of Sales (36)% (301.7) (222.2) Impairment of inventory (48)% (39.0) (26.4) Gross Profit 32% 26.7 20.3 Other income 37
Slide 10: Profit & Loss Year ended June 2012 (continued)
Profit & Loss Year ended June 2012 (continued) Revenue of US$366M – up 37% — 6 7Mlb sold at average realised price of US$54 6.7Mlb US$54.61/lb 61/lb Gross margin from operations of US$27M – up 32% — average C1 costs for all operations at US$39/lb — KM inventory impairment of US$39M Corporate and mar
Slide 11: Balance Sheet and Cash Flow
Balance Sheet and Cash Flow Year Ended June 2012 Cash and cash equivalents of US$112M Cash outflow from operating activities of US$126M — LHM & KM generated positive cash before working capital of US$113M — US$148M invested in working capital including US$85M in inventory — US$38M interest payments
Slide 12: Progress on Cost Optimisation Programme
Progress on Cost Optimisation Programme Focus Area Status Achievement Overheads Reduce cash overheads Delivered US$5.5M down 21% from 2011 Reduce share based payments Delivered US$4.7M down 41% from 2011 Exploration Reduce by US$5M in FY12 Delivered Actual reduced to US$16M K Kayelekera l k Mi Mine
Slide 13: Presentation Outline
Presentation O tli Outline Company Status & Highlights Financial Review Project Update Outlook 12
Slide 14: Langer Heinrich Project Overview
Langer Heinrich Project Overview Three successful production capacity Design Criteria Stage 2 Stage 3 expansions complete: Ore Throughput 2.5Mt/a 3.5Mt/a — 2.6Mlb (Stage 1) - 2008 Leach 1.5Mt/a 2.1Mt/a — 3.7Mlb (Stage 2) - late 2009 Throughput — 5 2Mlb (Stage 3) - current 5.2Mlb O Feed Ore F d Grade
Slide 15: Langer Heinrich: Operational Update
Langer Heinrich: Operational Update FY12 annual record production of 4.42Mlb – 25% increase year on year — June quarter production of 1.32Mlb, up 26% on March quarter • mill feed up 23% on March quarter • grades approaching Stage 3 design (800ppm), down to 840ppm — production running above Stage 3 n
Slide 16: Langer Heinrich Production
Langer Heinrich Production LHM Quarterly Production & C1 Costs (US$/lb) 1400 $32 $32 $31 $31 35 $30 1200 $28 00) $27 $27 30 $25 $26 $26 $26 $26 $26 $26 $26 oduction (00 1000 $/lb U₃O₈) 25 800 pected 20 600 15 Nameplate exp U₃O₈ Pro C1 Costs (US$ 400 10 Oct-Dec 1193 1052 1322 200 5 796 650 674 686 69
Slide 17: Kayelekera Project Overview
Kayelekera Project Overview Production capacity of 3.3Mlb U3O8 pa Design Criteria Ore Throughput 1 5Mt/a 1.5Mt/a Project ramp-up complete and running at Leach Throughput 1.5Mt/a or near nameplate Ore Feed Grade 1100ppm First modern resin-in-pulp uranium Recovery 87% processing facility U3O8 Producti
Slide 18: Kayelekera: Operational Update
Kayelekera: Operational Update FY12 annual record p production of 2.48Mlb – 14% increase y year on y year — record June quarter production - slight increase on March quarter — impact from 7 days industrial action in May - now resolved — plant recoveries continue to improve and operating times remain
Slide 19: Kayelekera Quarterly Production
Kayelekera Quarterly Production 7 day industrial 16 days planned action² maintenance 900 Plant shutdown f 6 weeks¹ for k ¹ 750 Production (000lb) 600 450 300 150 U₃O₈ P 74 145 229 515 463 534 606 566 396 632 725 726 0 Apr-Jun Apr-Jun Apr-Jun Jul-Sep Jul-Sep Jul-Sep Jul-Sep Oct-Dec JJan-Mar Oct-Dec J
Slide 20: Operations Outlook
Operations Outlook Production Conservative range of 8.0-8.5Mlb in FY13 Guidance Currently on target to deliver Targeting T ti <US$30/lb att LHM and d llow US$40’ US$40’s/lb /lb att KM Cost Reduction KM - further cost savings through grid power and processing innovation LHM Stage 4 expansion remains
Slide 21: Presentation Outline
Presentation O tli Outline Company Status & Highlights Financial Review Project Update Outlook 20
Slide 22: Paladin – Built for the Future
Paladin – Built for the Future Uranium specialist company with demonstrated achievements Production — installed nameplate capacity of 8.5Mlb pa — operations de-risked Further expansion possible — Stage 4 feasibility pending with overall potential to increase up to 13 13.5Mlb 5Mlb pa Diversified proj
Slide 23: Outlook - Key Takeaways
Outlook - Key Takeaways Step change to nameplate production achieved Site cost and corporate overhead reduction well advanced P Prepayment t ffrom llong-term t off-take ff t k agreementt — alleviated imminent debt concerns — strengthened balance sheet — placed Company in strong position to achieve s
Slide 24: Paladin Energy Ltd Contact Details
Paladin Energy Ltd Contact Details Head Office Level 4 4, 502 Hay Street Subiaco Western Australia 6008 PO Box 201, Subiaco Western Australia 6904 Telephone: +61 (0) 8 9381 4366 Facsimile: +61 (0) 8 9381 4978 Email: paladin@paladinenergy.com.au Website: www.paladinenergy.com.au Investor Relations Te