Paladin Energy Ltd · ASX:PDN
Paladin Energy — H1 FY2019 Earnings Presentation
16 slides from Paladin Energy's earnings presentation, Feb 27, 2019
Slide 1: Paladin Energy Ltd December 2018 Half Year Results
PALADIN ENERGY LTD DECEMBER 2018 HALF YEAR RESULTS ASX: PDN
Slide 2: Disclaimer and Notes
DISCLAIMER AND NOTES JORC AND NI 43-101 MINERAL RESOURCES AND ORE RESERVES This presentation includes certain statements that may be deemed “forward-looking In the following presentation, for those deposits that are reported as conforming to the statements”. All statements in this presentation, othe
Slide 3: Corporate Snapshot
CORPORATE SNAPSHOT CAPITAL STRUCTURE As at 22/02/2019 SHARE PRICE SINCE RE-STRUCTURE 120 $0.25 Shares on issue 1,752M Millions Share price A$ 19.0c Market capitalisation A$ 332.8M 100 $0.20 Market capitalisation US$1 236.3M Cash US$2 33.0M 80 Debt US$2 125.9M $0.15 Enterprise value US$ 329.2M 60 $0.
Slide 4: Financials
DECEMBER 2018 HALF YEAR RESULTS UPDATE FINANCIALS Long-term value creation
Slide 5: December 2018 Half Year Highlights
DECEMBER 2018 HALF YEAR HIGHLIGHTS REFERENCES BELOW TO 2017 ARE TO THE EQUIVALENT HALF YEAR ENDED 31 DECEMBER 2017 US$28.96/lb Average Selling Gross profit Price US$4.6M Increase from Increase from gross loss of US$21.82/lb in 2017 US$17.4M in 2017 UP 33% DOWN 56% Up 126% DOWN 59% DOWN 76% DOWN 16%
Slide 6: December 2018 Half Year Cashflow (Unrestricted) US$M
DECEMBER 2018 HALF YEAR CASHFLOW (UNRESTRICTED) 70.0 22.1 (10.8) 60.0 (4.7) 50.0 (2.5) (0.9) (2.5) 40.0 39.2 (6.8) US$M 33.0 30.0 20.0 10.0 0.0 30 Jun 2018 Uranium Uranium LHM KM Exploration Corporate Restructure 31 Dec 2018 sales purchased expenditure expenditure expenditure expenditure costs Group
Slide 7: Concept Study
DECEMBER 2018 HALF YEAR RESULTS UPDATE CONCEPT STUDY Focus on optimising and restarting LHM
Slide 8: We Are Planning for a Rapid, Reliable Restart
WE ARE PLANNING FOR A RAPID, RELIABLE RESTART OPERATIONAL REVIEW OF LANGER HEINRICH MINE (LHM) CONCEPT STUDY COMPLETED TO OPTIMISE RESTART: Defining further Prefeasibility study Prefeasibility study Verifying Care & Learning from ten years potential improvements for rapid, low-risk for optimised pla
Slide 9: Adding Value Through a Rigorous Study Methodology
ADDING VALUE THROUGH A RIGOROUS STUDY METHODOLOGY Improve definition of restart scope – repair, improve processing facility and Process debottlenecking study Mineral Resource definition – Process testwork for improvements – potential for drilling to build vanadium geology vanadium (~1.3Mlb pa). Also
Slide 10: Be Ready! But Continue to Optimise
BE READY! BUT CONTINUE TO OPTIMISE Rapid Restart Study RAPID RESTART STUDY: 6-9 month Prefeasibility Study focused on optimising the current facility 6-9 month Feasibility Study to enable LHM Restart to be triggered from June 2020 PROCESSING UPGRADE STUDY: Processing Upgrade Study 12-15 month
Slide 11: We Have Verified Our Restart and LOM Improvement Capital
WE HAVE VERIFIED OUR RESTART AND LOM IMPROVEMENT CAPITAL Relatively low initial capital requirements of circa US$100M Post production plant optimisation capital requirements (excludes C&M and study costs) (funded from operating cash flows) Plant repair and Working capital Pre-start tailings Back-End
Slide 12: Strong Demand in the Uranium Market
STRONG DEMAND IN THE URANIUM MARKET A solid long-term outlook
Slide 13: The Uranium Story Is Compelling
THE URANIUM STORY IS COMPELLING Spot Price 2012 - 2018 Underlying estimated uranium use based on Cumulative supply cuts $50 nuclear power generation 2016 2017 2018 2019 2020 $45 250 0 Compound $40 “Under buying” -5 Reduction $35 200 Rabbit Lake U308 Spot Price (US$/lb) -10 $30 Ranger -15 Mlbs U3O8 1
Slide 14: Green Shoots Are Still Visible
GREEN SHOOTS ARE STILL VISIBLE IPCC REPORT – Global warming increase by 1.5˚C by 2030 China - Plans to have 56 reactors operating by 2020 and 180 reactors, or 220% increase, by 2030 to reduce its reliance on coal India following suit with 21 reactors into operation by 2031 17 new reactors in
Slide 15: Vanadium - A New Opportunity for Langer Heinrich
VANADIUM - A NEW OPPORTUNITY FOR LANGER HEINRICH $35 Vanadium Price V2O5 Flake 98% $30 $25 $20 $15 $10 $5 $0 2013 2014 2015 2016 2017 2018 2019 Opportunity to produce Vanadium at LHM Estimated production circa 1.3Mlbs pa Long term price of US$8.50/lb Significant price increase due to Chinese
Slide 16: Contact Us
PALADIN ENERGY LTD CONTACT US HEAD OFFICE INVESTOR RELATIONS Level 4, 502 Hay Street Karen Oswald Subiaco Western Australia 6008 T: +61 (0) 423 602 353 PO Box 201, Subiaco, Western Australia 6904 E: Karen.oswald@paladinenergy.com.au T: +61 (0) 8 9381 4366 E: paladin@paladinenergy.com.au www.paladine