Paladin Energy Ltd · ASX:PDN
Paladin Energy — Q3 FY2008 Earnings Presentation
20 slides from Paladin Energy's earnings presentation, May 21, 2008
Slide 1: Paladin Energy Ltd: The New Energy In The Market
Paladin Energy Ltd The New Energy In The Market John Borshoff – Managing Director Ron Chamberlain – Chief Financial Officer March Quarter Financial Report & Investor Update 1 21 May 2008
Slide 2: Disclaimer
Disclaimer 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 resource potential, exploration drilling, exploitation activities and e
Slide 3: Quarter Activity Highlights
Quarter Activity Highlights • Langer Heinrich production 490,800lb U3O8, plus 60,600lb increase in inventory • US$50M stage II expansion commenced for 3.7Mlb pa production - scheduled for mechanical completion at end of calendar 2008 • Construction work on schedule and budget at the Kayelekera Urani
Slide 4: Paladin Accomplishment
Paladin Accomplishment overview • Achieving stated operational objectives – Langer Heinrich and Kayelekera • A clear vision for its future development – foresaw transformational changes in nuclear industry • Seeking to establish a global mining footprint by end 2009 – in the principal uranium rich c
Slide 5: March 2008 Quarter Financials
MARCH 2008 QUARTER FINANCIALS 5
Slide 6: Sales Revenue
Sales Revenue • Sales Revenue of US$13.8M for the Mar 08 quarter and US$57.5M for the nine months - Mar 08 quarter in line with revised plan to overcome shipping delays • June 08 quarter sales will catch up shipping plan • 208,000lb sold for the Mar 08 quarter at an average realised price of US$66/l
Slide 7: Income Statement
Income Statement • Gross profit of US$7.5M for the Mar 08 quarter and US$14.3M for the nine months with Langer Heinrich contributing US$6.0M and US$8.8M respectively – unit costs continuing to trend down and this will continue into the June 08 quarter • Exploration expenditure of US$2.5M for the Mar
Slide 8: Balance Sheet and Cash Flow
Balance Sheet and Cash Flow • Cash and cash equivalents of US$417M at 31 Mar 08 – includes net proceeds from US$325M Convertible Bond on 11 Mar 08 • Net assets of US$1.4 billion – includes inventories of US$37.5M of which US$19.1M relates to Langer Heinrich finished goods • Cash outflow from operati
Slide 9: Projects
PROJECTS 9
Slide 10: Paladin's Suite of Uranium Properties
Paladin’s Suite of Uranium Properties Advanced Exploration Pre Development Project Project Resources of 14Mlb Valhalla Resource of Construction of Mine 57Mlb Reserves of 25Mlb Andersons/Watta Resource 8Mlb Resources of 35Mlb On hold Manyingee Resource New Project of 24Mlb Angela/Pamela Deposits Hist
Slide 11: Langer Heinrich Uranium Project
Langer Heinrich Uranium Project current status • Stage I ramp-up completed – now on plant optimisation and recovery improvement programmes • Production improving – H2/CY07 - 650,562lb U3O8 – Q2/CY08 - 490,800lb U3O8 (plus 60,600lb increase in inventory) – expected H1/CY08 – 1.1-1.2Mlb U3O8 • Stage I
Slide 12: Kayelekera Project
Kayelekera Project construction progressing well Status December Quarter 2007 Status March Quarter 2008 12
Slide 13: Kayelekera Uranium Project
Kayelekera Uranium Project current status • US$200M CAPEX – (US$140M committed) – US$167M project finance approved (project now fully funded) – project on schedule and on budget with completion end 2008 • Civil earthworks and plant erection underway – 900 people on site • Long lead capital items – p
Slide 14: Mt Isa Uranium Project
Mt Isa Uranium Project current status • Intensive drilling of Valhalla for resource expansion and classification • Focused metallurgical test work underway • Environmental baseline work ongoing • Preparing for Pre-Feasibility Study end 2008 • Ongoing lobbying of QLD government re uranium policy Valh
Slide 15: Outlook
OUTLOOK 15
Slide 16: Production Schedule
Production Schedule plenty of upside on existing major projects 2007 2008 2009 2010 2011 2012 Mlb Mlb Mlb Mlb Mlb Mlb LH Stage I - 2.6 2.6 2.6 2.6 2.6 (2.6Mlb) LH Stage II - - 0.5 1.1 1.1 1.1 (3.7Mlb) LH Stage III to - - - 0.4 1.6 2.3 6Mlb Sub Total - 2.6 3.1 4.1 5.3 6.0 Kayelekera - - 1.6 3.3 3.3 3
Slide 17: Project Pipeline
Project Pipeline assets acquired & projects developed Langer Heinrich Uranium Mining Operation 2012 Angela End 2008 Inventory U3O8 269 Mlb In New production and expansion staged organic growth 2008 to 2010 17
Slide 18: Paladin Offers Excellent Upside
Paladin Offers Excellent Upside key outcomes for 2008 • Langer Heinrich (Namibia) – complete Stage II expansion (2.6Mlb to 3.7Mlb pa) – optimisation of Stage I (2.6Mlb + for 2008) – new resource estimate by mid 2008 • Kayelekera (Malawi) – construction completed end 2008 – new resource estimate by m
Slide 19: Conclusion
Conclusion Develop Paladin Into A Major Global Uranium Supplier • A focused uranium energy company – large resource base in 6 deposits - 269Mlb – strong resource upside potential – strength through geographic diversity Manyingee – expertise and funding to deliver • Langer Heinrich and Kayelekera – p
Slide 20: Paladin Energy Ltd Contact Details
PALADIN ENERGY LTD Contact Details Mr John Borshoff Grand Central 1st Floor, 26 Railway Rd (Managing Director) Subiaco Western Australia 6008 Mobile: +61 (0) 419 912 571 PO Box 201, Subiaco Email: john.borshoff@paladinenergy.com.au Western Australia 6904 Telephone: +61 (0) 8 9381 4366 Facsimile: +61