Paladin Energy Ltd · ASX:PDN
Paladin Energy — Shareholder Meeting (November 2016)
17 slides from Paladin Energy's shareholder meeting presentation, Nov 18, 2016
Slide 1: ASX Announcement: AGM Presentation and Chairman's Address
PALADIN ENERGY LTD ACN 061 681 098 Ref: 418391_1.docx 18 November 2016 ASX Market Announcements By Electronic Lodgement Australian Securities Exchange 20 Bridge Street SYDNEY NSW 2000 Dear Sir/Madam Annual General Meeting Presentation and Chairman’s Address Attached please find the presentation in r
Slide 2: Chairman's Address at 2016 Annual General Meeting
PALADIN ENERGY LTD ACN 061 681 098 Chairman’s Address at 2016 Annual General Meeting Dear Fellow Shareholders There is no denying that these past few years have been more than challenging for the uranium industry. The spot price for uranium has persistently declined quarter by quarter and now is at
Slide 3: Annual General Meeting
xxxxxxxxxxxx Xxxxxxxx Annual General Meeting 18 November 2016 Alexander Molyneux – Chief Executive Officer
Slide 4: Disclaimer and Notes for JORC and NI 43-101
Disclaimer and Notes for JORC and NI 43-101 xxxxxxxxxxxx Mineral XxxxxxxxResources 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 produ
Slide 5: A Global Uranium Leader
xxxxxxxxxxxx Paladin…. Xxxxxxxx A GLOBAL URANIUM LEADER OWNS LANGER HEINRICH, A STRATEGIC TIER ONE MINE HAS OPTIMISATION AS A CORE COMPETENCY PROVIDES BEST SENIOR LEVERAGE TO URANIUM UPSIDE Paladin Energy Ltd 2
Slide 6: Global Uranium Leader
xxxxxxxxxxxx Global Xxxxxxxx Uranium Leader Paladin is the world’s leading independent pure play uranium miner 27.4 Annual Capacity KazAtomProm 24.5 Mlb Areva 23.5 Cameco 23.5 ARMZ/Uranium One 21.4 Rio Tinto 11.8 BHP Billiton 8.8 Paladin 8.0 Navoi 6.2 Government owned Divisions of diversified compan
Slide 7: Langer Heinrich A Strategic Tier One Mine
xxxxxxxxxxxx Langer Xxxxxxxx Heinrich A Strategic Tier One Mine First Quartile C1 Cash Cost1 Top 10 Uranium Mine by 2 Production 4th largest open-pit +20 Year Mine Life3 37.7Mlb Cumulative production 1 Source – UxC Uranium Production Cost Study – August 2015 2 Source – TradeTech Uranium Market Study
Slide 8: Year to June 2016 Highlights
xxxxxxxxxxxx Year to 30 June 2016 Highlights Xxxxxxxx References below to 2016 and 2015 are to the equivalent twelve months ended 30 June 2016 and 2015 respectively. Production 4.763Mlb LTIFR 1.8 Drummed Production 4.737Mlb Compared to 2.4 in 2015 US$37.75/lb ASP C1 Cash Cost US$25.88/lb 4.56/lb abo
Slide 9: Year to June 2016 Highlights (Cont)
xxxxxxxxxxxx Year to 30 June 2016 Highlights (Cont) Xxxxxxxx References below to 2016 and 2015 are to the equivalent twelve months ended 30 June 2016 and 2015 respectively. Sales revenue Cost of Sales US$184.9M US$152.5M 4.899Mlb sold at average Decrease from 2015 realised price of US$37.75/lb Cost
Slide 10: Optimisation and cost structure sustainability
xxxxxxxxxxxx Optimisation Xxxxxxxx and cost structure sustainability Paladin has led the industry with its focus on cost reductions Operating cost reductions driven by in-house specialist technical LHM C1 cost (FY2015 – FY2017'F) services team 35 Avg FY15: 29.07 Bi-carbonate recovery plant 30
Slide 11: Optimisation and cost structure sustainability (Cont)
xxxxxxxxxxxx Optimisation Xxxxxxxx and cost structure sustainability (Cont) All-in cash costs variance analysis (FY2017 current guidance vs. FY2016 actual)1 19% reduced grade to 570ppm due to mining curtailment Mining and processing optimisation: ― Mining curtailment and processing of ore stockpiles
Slide 12: Uranium is unsustainable at < US$20/lb
xxxxxxxxxxxx Uranium Xxxxxxxx is unsustainable at < US$20/lb A uranium price of US$20/lb is Global uranium cost curve vs forecasted achieved price (US$/lb) unsustainable into the future as historical fixed contracts roll off Taking into account contracts and un-contracted volumes, Paladin 2017 wei
Slide 13: The medium and long-term rationale for stronger uranium prices is compelling
The medium and long-term rationale for stronger xxxxxxxxxxxx Xxxxxxxx prices is compelling uranium Consensus outlook for Uranium pricing (US$/lb) Broker commentary We don't believe the uranium price can sustain a sub US$30/lb 70 level for longer than a year given the cost structure of the industry a
Slide 14: Strategy
xxxxxxxxxxxx Strategy Xxxxxxxx 1. Maximise LHM operating cash flows through optimisation initiatives that preserve the integrity of the long-term life of mine plan 2. Maintain KM and exploration on a “minimal expenditure, care and maintenance basis” 3. Minimise corporate and administrative costs 4.
Slide 15: FY2017 Guidance
xxxxxxxxxxxx FY2017 Guidance Xxxxxxxx Amended LHM mine plan Production 3.8-4.0Mlb to enhance operating level cash flows LHM C1 US$17-19/lb “All in” US$29-31/lb US$14M corporate costs, December Quarter: Sales 1.40Mlb-1.60Mlb KM care and maintenance ASP US$25-27/lb1 and exploration LHM C1 cash c
Slide 16: xxxxxxxxxxxx
xxxxxxxxxxxx Xxxxxxxx Paladin Energy Ltd 13
Slide 17: Proxy Votes 2016 Annual General Meeting
xxxxxxxxxxxx Proxy Votes 2016 Annual General Meeting Xxxxxxxx 1,047 proxies were received representing 34.85% of the issued capital For Against Abstain Open % of Issued Excluded usable* Capital Votes** Resolution 1 Re-election of Philip Baily 571,875,208 5,418,384 2,549,017 1,957,292 33.81% Resoluti