Paladin Energy Ltd · ASX:PDN
Paladin Energy — Investor Presentation (March 2022)
75 slides from Paladin Energy's investor presentation, Mar 31, 2022
Slide 1: Paladin Equity Raising Investor Presentation
PALADIN lan Purdy - Chief Executive Officer Anna Sudlow - Chief Financial Officer Alex Rybak —- GM Business Development & Marketing Not for release to US wire services or distribution in the United States
Slide 2: Important notice and disclaimer
PALADIN IMPORTANT: You must read the following before continuing. This presentation Presentation) has been prepared by Paladin Energy Ltd ACN 061 681 098 (PDN or the Company) and is dated 31 March 2022. Summary information The following notice and disclaimer applies to this Presentation. You are adv
Slide 3: Past performance and future performance
PALADIN Past performance Past performance information given in this Presentation is given for illustrative purposes only and should not be relied upon as (and is not) an indication of future performance, including future share price performance. Historical information in this Presentation relating t
Slide 4: Disclaimer
PALADIN Disclaimer The Joint Lead Managers and the advisers to the Company listed in the accompanying ASX announcement, together with each of their respective related bodies corporate, shareholders or affiliates and each of their (and their related bodies corporate, shareholders’ or affiliates) resp
Slide 5: Competent persons statement
PALADIN Competent persons statement The information contained within this Presentation which relates to Mineral Resources or Ore Reserves for Langer Heinrich is extracted from the report titled “Langer Heinrich Mine Restart Plan Update, Mineral Resource and Ore Reserve Update” released on 4 November
Slide 6: JORC Code notice
PALADIN ustzalasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (JORC Code) It is a requirement of the ASX Listing Rules that the reporting of Ore Reserves and Mineral Resources in Australia comply with the JORC Code. There are some historical Mineral Resources that
Slide 7: Table of contents
Table of contents
Slide 8: Paladin is heading towards production
Paladin is heading towards production “..* PALADIN Advanced Exploration Funding and Restart Plan Execution for recommencement of production Advanced Exploration Advanced Exploration Namibia 4 : Australia v Ready to fuel global Set to return to production & Over 365Mlb of U;O, Strategic footprint in
Slide 9: Paladin is poised to return to production in a dynamic uranium market
Paladin is poised to return to production in a dynamic uranium market Moving towards restarting production * Early works to commence with mobilisation of key staff and contractors * Long lead time capital equipment to be ordered * Formal project launch expected in July 2022 + Targeting commercial pr
Slide 10: Equity Raising Overview
Equity Raising Overview
Slide 11: Equity raise details
Equity raise details _/ PALADIN A$215M equity raising comprising * Fully underwritten placement (Placement) to sophisticated and professional investors to raise A$200M before costs - the Placement will take place in a single tranche and fall within the Company's placement capacity under ASX Listing
Slide 12: Sources and uses of funds
Sources and uses of funds -» PALADIN Transaction sources of funds US$M! ASM! Placement Proceeds 150.0 200.0 Share Purchase Plan Proceeds? 11.2 15.0 Total 161.2 215.0 Restart Capital 87.0 116.0 Working Capital and Fees 74.2 99.0 Total 161.2 215.0 Pro-forma capitalisation Shares on issue? 2.679B Place
Slide 13: Equity raise timetable
PALADIN Record Date for eligibility to participate in Share Purchase Plan 7:00PM AEDT Wednesday, 30 March 2022 Trading halt (pre-market open) Thursday, 31 March 2022 Announcement of Offer & Placement opens Thursday, 31 March 2022 Trading halt lifted and announcement of completion of Placement (pre-m
Slide 14: Langer Heinrich Mine (75% Paladin ownership)
Section 2 Langer Heinrich Mine (75% Paladin ownership)
Slide 15: Langer Heinrich Mine highlights
Proven operational track record at Langer Heinrich Mine with over A3Mlb U30z delivered to customers Fully permitted to resume mining, processing and uranium exports Execution ready Mine Restart Plan provides low risk path to production and competitive economics Located ina proven premier uranium min
Slide 16: Restart cost and cost of production
PALADIN a Sim A Cost to Restart Life of Mine C1 Operations? Cost of Production* Peak i Commercial Production i Production Target | ;
Slide 17: Langer Heinrich plant layout
1. 2. 3. 4. 5. 6. 7. 8. 9. PALADIN Primary Cyclones Leach Feed Surge Tanks Steam Injectors Thickener Feed Wells Tailings Dewatering Tailings Line NamWater Supply Swakop River Supply Centralised Control Room . Product Thickener Sodium Diuranate Overflow . FRP Drying & Packaging Filter . ROM Bin & Chu
Slide 18: Langer Heinrich Mine Restart Plan — next steps
Langer Heinrich Mine Restart Plan — next steps Execute long lead time contracts to guarantee scheduled delivery, focusing on items such as the Product Drying & Packaging Plant FF Lodge key notices and progress communications with Namibian Federal and local government officials, and the local communi
Slide 19: Langer Heinrich uranium marketing update
Langer Heinrich uranium marketing update + Existing Life of Mine Offtake for up to 25% of production with a market pricing mechanism + Successful Tender Award! for approximately 5% of production to 2030 with a base escalated pricing mechanism + Approximately 65% of forecast Year 1 sales are covered
Slide 20: Exploration
Exploration
Slide 21: Exploration Projects
PALADIN Exploration Projects : see . . . Mineral Resources?2 & Globally significant high grade exploration portfolio 203MIt at 710ppm U,0z for 317.6Mlb (6) Extensive historical exploration activity has seen over US$140M spent on the portfolio Wow | Diverse portfolio of assets provides optionality on
Slide 22: Global portfolio
PALADIN Global portfolio |& + Paladin’s current exploration focus includes: + First principles review of proprietary information comprising more than 30 years of exploration work + Local and regional scale data compilations to outline targets * Outline of targets for follow-up testing * Our strategi
Slide 23: Uranium Market
Uranium Market
Slide 24: Structural supply deficit with growing demand
Structural supply deficit with growing demand Structural Supply Shortage, TradeTech World Nuclear Generation Facts Mlb U2Og p.a. Returning Mine Production Secondary Suppl _ . essing Povtcion peoctor Roquromonts Ease Doman aes) 10% of global electricity generation! 200 ee 20% of United States! and 25
Slide 25: Historic Term Contract Activity
PALADIN Historic Term Contract Activity U30g Mlb pa mEvaluating/Potential m™U.S. Utilities ™Non-U.S. Utilities 2000 2001 200220032004 20052006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Source: Ux0, February 2022 300 250 200 151 Ss tol Ss 5 ry ° * Significant inc
Slide 26: Recent uranium market activity
Recent uranium market activity Geopolitical uncertainties + Recent events in Russia, Ukraine and Kazakhstan have emphasised the need for: » Energy independence and supply from producers in low-risk, stable jurisdictions - Accelerated transition away from fossil fuels China’s commitment to Nuclear En
Slide 27: Slide 27
Slide 28: Our Investment Drivers
PALADIN Our Investment Drivers Proven operational track record & fully permitted to resume mining, processing and uranium exports i= Execution ready Mine Restart Plan 56 Successful uranium marketing strategy © underpinning restart decision 6 Estimated ~A$259M"' cash post placement and no corporate d
Slide 29: About Paladin
Section 6 About Paladin
Slide 30: Our sustainability commitment
Our sustainability commitment Paladin is committed to the core principle of delivering value through sustainable development. Our Paladin Values support every decision we take. With these strong foundations, we can focus on achieving economic, social and environmental sustainability in balanced and
Slide 31: Sustainability KPIs FY2021
Sustainability KPls FY2021! PALADIN 1,374 Lost Time Injury | O Reportable incidents 100% Permits in place i 100% of Paladin The proportion of Free Days! in 2021 for leases, mining and Lead Safety Indicators workforce is local to women in roles i export operations Paladin Group is 3 "As at 30 June 20
Slide 32: Meet the Board and CEO
Meet the Board and CEO Cliff Lawrenson Non-Executive Chairman Mining executive with deep expertise in the minerals and energy sectors derived from global experience having worked extensively in project development and investment banking. A successful track record of leading strategic direction in co
Slide 33: The Executive Team
The Executive Team Anna Sudlow Chief Financial Officer Corporate finance professional with 25 years’ experience across the energy and resources sectors in senior management roles. Her experience includes funding execution, commercial management, accounting, finance and treasury in both the ASX liste
Slide 34: Namibia location and jurisdiction
LEGEND oct NAMIBIA REPUBLIC OF SOUTH AFRICA PALADIN Globally significant uranium province (Husab, Rossing and Langer Heinrich) and a major supplier of the world’s uranium when at full capacity Uranium has been produced in Namibia since 1976 under a stable mining and uranium regulation regime Mining
Slide 35: Life of Mine cost of production
PALADIN Ramp Up Mining Phase Stockpile Phase JUSS/IbU0,__Lifeof Mine | Mining & Stockpile Re-handling2:> 10.8 7 700 Processing & Maintenance 14.4 600 G&A and Other 2.2 aan | C1 Cost of Production 27.4 500 : an ! Freight & Logistics 1.0 4) 400 Capex? 3.2 : Government Royalties® 3% 34 300 i Export Lev
Slide 36: Langer Heinrich Mine restart operational metrics
Langer Heinrich Mine restart operational metrics! * PALADIN Ramp Up Phase + Targeted reliability improvements will ramp up to deliver 95% runtime + Processing medium grade Mining Rate (total material movement Mt pal 0 27.0 0 stockpile at 508ppm grade - Mill throughput (Mt pa) 3.5 5.4 5.5 (from stock
Slide 37: Langer Heinrich Mine upside potential
Langer Heinrich Mine upside potential Paladin will continue focusing attention on delivering further upside at the LHM, through concept studies for potential value enhancement opportunities, including: Increased production Mine life extension Further cost rate for stockpile and resource optimisation
Slide 38: Langer Heinrich Mine historical performance parameters
Langer Heinrich Mine historical perf ance parameters PALADIN FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 Mining Rate (in-situ) Mt 27.8 21.6 20.2 24.6 7.6 0.0 Mill Throughput Mt 3.44 3.72 3.40 3.57 3.52 2.95 Mill Feed Grade ppm 812 783 768 699 610 475 Recovery % 86.0% 87.0% 87.6% 86.3% 87.7% 88.5% U;Og
Slide 39: Large tenement holding securing the most prospective ground
Large tenement holding securing the most prospective ground Total Mineral Resource: 127.7Mlb at 860ppm US$75M of total historical in ground exploration Hosted by one of the most globally productive mineralised belts Total Mineral Resource: 148.4Mlb at 680ppm US$55M of historical in ground exploratio
Slide 40: Summary Mineral Resources and Ore Reserves
Summary Mineral Resources1 Summary Ore Reserves1
Slide 41: Mineral Resources: Canada
PALADIN Measured Michelin! 17.6 965 37.6 65 Rainbow? 0.2 920 0.4 65 Indicated Gear? 0.4 770 0.6 65 Inda? 1.2 690 18 65 Jacques Lake! 13.0 630 18.0 65 Michelin’ 20.6 980 44.6 65 Nash? 0.7 830 1.2 65 Rainbow” 0.8 860 14 65 Inferred Gear? 0.3 920 0.6 65 Inda? 3.3 670 48 65 Jacques Lake! 3.6 550 44 65 M
Slide 42: Mineral Resources: Australia
PALADIN Mineral Resources Paladin Ownership (2 Australia Measured Valhalla! . 100 Indicated Andersons* 1.4 1,450 4.6 100 Bikini> 5.8 495 6.3 100 Duke Batman* 0.5 1,370 1.6 100 Odin® 8.2 555 10.0 100 Skal® 14.3 640 20.2 100 Valhalla! 18.6 840 34.5 100 Carley Bore” 5.4 420 5.0 100 Manyingee® 84 850 15
Slide 43: Key Risks
Key Risks
Slide 44: Key risks introduction
PALADIN Introduction This section describes the key business risks of investing in Paladin together with the risks relating to participation in the Equity Raise which may affect the value of Paladin shares. It does not describe all the risks of an investment. Investors should consult their own profe
Slide 45: Restarting operations
PALADIN Restarting operations The LHM is currently on care and maintenance, and while Paladin is moving towards the restart of the LHM, a final decision to restart uranium mining operations has not been made at this time. While the Company has announced and provided updates to its mine restart plan
Slide 46: Mineral Resources and Ore Reserves
PALADIN Mineral Resources and Ore Reserves The Mineral Resources and Ore Reserves for Paladin's assets are estimates only and no assurance can be given that any particular recovery level will in fact be realised. Paladin's estimates are prepared in accordance with either the reporting standard JORC
Slide 47: Political risks and government actions
PALADIN Political risks and government actions The Company's activities are subject to extensive laws and regulations controlling not only the mining of and exploration for mineral properties, but also the possible effects of such activities upon the environment and upon interests of native and/or i
Slide 48: Foreign jurisdictions
PALADIN Foreign jurisdictions The Company's future operations are exposed to political, economic and other risks and uncertainties associated with operating in a foreign jurisdiction. These risks and uncertainties vary from country to country and include, but are not limited to, currency exchange ra
Slide 49: Funding risk
PALADIN Funding risk Exploration and development of the various mineral properties in which Paladin holds interests depend upon Paladin’s ability to obtain funding through operational cash flows, joint ventures, debt financing, equity financing or other means. In addition, the Company is required in
Slide 50: Effect of COVID-19
PALADIN Effect of COVID-19 The Company is subject to the risk that the continuing effects of the COVID-19 pandemic will have a material adverse effect on, or cause a material adverse change to, the mining industry as a whole, with resulting material adverse impacts on Paladin’s business and financia
Slide 51: Incorporated joint venture
PALADIN Incorporated joint venture The Company is a party to a shareholders agreement (Shareholders’ Agreement) with CNNC Overseas Uranium Holding Limited (CNNC), a subsidiary of China National Nuclear Corporation, in respect to the operations of Langer Heinrich Mauritius Holdings Limited (LHMHL, th
Slide 52: Production risks
PALADIN Production risks Commissioning of restart activities prior to the recommencement of production at the LHM may not proceed to plan, with potential for delay in the timing of targeted production and/or a failure to achieve the level of targeted production. These potential delays or difficultie
Slide 53: Availability of key inputs including water
PALADIN Availability of key inputs including water Infrastructure in most of Africa for utilities such as electricity and water supply is under strain and underdeveloped. Paladin depends on the reliable and continuous delivery of sufficient power and water supply to its projects. A serious failure o
Slide 54: Supply chain and counterparty risk
PALADIN Supply chain and counterparty risk The LHM operates within a complex supply chain. The Company depends on suppliers of raw materials, services, equipment and infrastructure to ensure its mine and process plant can operate and on providers of logistics to ensure products are delivered. Failur
Slide 55: Reliance on key personnel
PALADIN Reliance on key personnel Retaining qualified personnel is critical to the Company's success. The Company may face risks from the loss of key personnel as it may be difficult to secure and retain candidates with appropriate experience and expertise. One or more of the Company's key employees
Slide 56: Climate change
PALADIN Climate change Increased regulation of greenhouse gas emissions could adversely affect the Group's cost of operations. Mining of Mineral Resources including uranium is relatively energy intensive and depends on fossil fuels. Regulatory change by governments in response to greenhouse gas emis
Slide 57: Tax and royalty risks
PALADIN Tax and royalty risks Any change to the current rate of Company income tax or mineral royalties in jurisdictions where the company operates will impact on the profitability and performance of Paladin. The Company is subject to complex tax laws. Paladin and its related bodies have recognised
Slide 58: Australia's uranium policy
PALADIN Australia’s uranium policy At the national level of Australian politics, both the Federal Coalition parties and the Federal Labor Party support the development of the uranium industry. However, the granting of licences to mine uranium is a decision made within the residual jurisdiction of ea
Slide 59: Access to land
PALADIN Access to land The Company will experience delays and cost overruns if it is unable to access the land required for its operations. This may be as a result of weather, environmental restraints, native title, harvesting, landholder’s activities or other factors. The Company's exploration acti
Slide 60: Estimates and assumptions in financial statements
PALADIN Estimates and assumptions are used in preparing consolidated financial statements Preparation of the consolidated financial statements requires the Company to use estimates and assumptions. Accounting for estimates requires Paladin to use its judgement to determine the amount to be recorded
Slide 61: Dividends and insurance
PALADIN Dividends Paladin expects to retain all earnings and other cash resources in the short term for the future operation and development of its business. Payment of any future dividends will be at the discretion of Paladin's Board of Directors after taking into account many factors, including Pa
Slide 62: General investment risks
PALADIN General investment risks As with all stock market investments, there are risks associated with an investment in Paladin. The trading price of the Company's shares may fluctuate with movements in equity capital markets in Australia and internationally, and may also be influenced by a number o
Slide 63: Government policy and taxation risk
PALADIN Government policy and taxation risk Changes in relevant mining laws, taxation laws, interest rates, other legal, legislative and administrative regimes, and government policies in Australia, Canada or Namibia may have an adverse effect on the assets, operations and ultimately the financial p
Slide 64: Foreign Offer Restrictions
Foreign Offer Restrictions
Slide 65: Foreign offer restrictions: Brazil
PALADIN This document does not constitute an offer of 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 not be offered or sold, in any country outside Australia except to the extent p
Slide 66: Canada (British Columbia, Ontario and Quebec provinces)
PALADIN Canada (British Columbia, Ontario and Quebec provinces) This document constitutes an offering of New Shares only in the Provinces of British Columbia, Ontario and Quebec (the "Provinces'), only to persons to whom New Shares may be lawfully distributed in the Provinces, and only by persons pe
Slide 67: European Union and Hong Kong
PALADIN European Union This document has not been, and will not be, registered with or approved by any securities regulator in the European Union. Accordingly, this document may not be made available, nor may the New Shares be offered for sale, in the European Union except in circumstances that do n
Slide 68: Norway and Singapore
PALADIN Norway This document has not been approved by, or registered with, any Norwegian securities regulator under the Norwegian Securities Trading Act of 29 June 2007 no. 75. Accordingly, this document shall not be deemed to constitute an offer to the public in Norway within the meaning of the Nor
Slide 69: United Kingdom
PALADIN United Kingdom Neither this document nor any other document relating to the offer has been delivered for approval to the Financial Conduct Authority in the United Kingdom and no prospectus (within the meaning of section 85 of the Financial Services and Markets Act 2000, as amended (FSMA")) h
Slide 70: United States
PALADIN United States This document does not constitute an offer to sell, or a solicitation of an offer to buy, securities in the United States. The New Shares have not been, and will not be, registered under the US Securities Act of 1933 or the securities laws of any state or other jurisdiction of
Slide 71: Summary of Placement Agreement
Summary of Placement Agreement
Slide 72: Placement underwriting and fees
PALADIN The Placement will be fully underwritten by Canaccord Genuity (Australia) Limited (Canaccord) and Shaw and Partners Limited (Shaw) (together, the Joint Lead Managers) on the terms and conditions set out in a placement agreement (Placement Agreement). Pursuant to the Placement Agreement, the
Slide 73: Placement Agreement termination events
PALADIN * The Joint Lead Managers have the ability to terminate their obligations under the Placement Agreement if certain events occur. If the Placement Agreement is terminated by the Joint Lead Managers, the Joint Lead Managers are not obliged to perform their obligations that remain to be perform
Slide 74: Summary of Placement Agreement
Summary of Placement Agreement * PALADIN In addition to the above, some termination events will depend on whether the Joint Lead Managers have reasonable grounds to believe that the relevant event has or could be reasonably expected to have material adverse effect on the success, settlement or marke
Slide 75: Investor Enquiries
Investor Enquiries: Alex Rybak + 618 9423 8135 paladin@paladinenergy.com.au * PALADIN Clean energy. Clear future. Level 8 191 St Georges Terrace WA 6000 +61 8 9423 8100 paladin@paladinenergy.com.au paladinenergy.com.au