Paladin Energy Ltd · ASX:PDN
Paladin Energy — Q4 2008 Earnings Presentation
33 slides from Paladin Energy's earnings presentation, Feb 17, 2009
Slide 1: Paladin Energy Ltd - December Quarter 2008 Results & Investor Update
Paladin Energy Ltd The New Energy In The Market John Borshoff – Managing Director/CEO Mark Bolton – Acting CFO December Quarter 2008 Results & Investor Update 1 17 February 2009
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: Presentation Outline
Presentation Outline • Paladin Status • Financial Dec Qtr Review • Projects Update • Future Outlook
Slide 4: Paladin 2008 Quarterly key takeaways
Paladin 2008 Quarterly key takeaways • Paladin reaches significant growth operational milestones – Langer Heinrich sustaining above nameplate and commissioning – Kayelekera in commissioning phase • Committed to growth and expanding production base – Stage III Langer Heinrich – Mount Isa – M&A (eg FU
Slide 5: Paladin's Suite of Uranium Properties
Paladin’s Suite of Uranium Properties staged for sequential development Advanced Exploration Pre Development Project Project Resources of 23Mlb Resource - 85Mlb Construction of Mine Reserves of 25Mlb Resources of 35Mlb pro uranium pro uranium Re-activate Evaluation Manyingee Resource of pro uranium
Slide 6: Presentation Outline
Presentation Outline • Paladin Status • Financial Dec Qtr Review • Projects Update • Future Outlook
Slide 7: Key Highlights
Key Highlights Dec 08 Qtr • Langer Heinrich – record underlying performance – US$14.2M revenue, US$6.4M gross profit – 673,982lb produced, up from 650,554lb for the previous quarter – Represents annualised production of 2.7Mlb – Operating costs per pound continue to decline – Stage II expansion to 3
Slide 8: Financial Performance
Financial Performance Dec 08 Qtr December 08 September 08 June 08 2008 Quarter Quarter Quarter Full Year Production (lb) 673,982 650,554 568,670 1,710,032 Annualised (lb pa) 2.7M 2.6M 2.3M 1.7M Sales (lb) 245,000 878,000 601,614 1,411,000 Average Sales Price (US$/lb U3O8) 54 58 60 66 Sales Revenue (
Slide 9: Income Statement
Income Statement Dec 08 Qtr • Gross profit of US$6.4M, with LHUP contributing US$5.3M. • Exploration expenditure of US$3.6M with US$2.2M of this spent on the Mount Isa Project. Impact of large exchange rate movements limited. • Impairment of Mount Isa exploration assets (US$527.6M net of DTL) and in
Slide 10: Income Statement (Continued)
Income Statement (Continued) Dec 08 Qtr • Impairment of Mount Isa assets – Board elected to impair for transparency of Balance Sheet and prudence given the impact of the global financial crisis – carrying value now not significantly different from Summit Resources Limited market cap – no impairment
Slide 11: Income Statement (Continued)
Income Statement (Continued) Dec 08 Qtr • Other expenses of US$7.8M Major components comprised: – share based payments expense, US$2.3M (non-cash) – employee benefits expense (salaries etc.), US$1.4M after allocation to exploration – corporate and marketing costs US$2.7M – no further impairment of u
Slide 12: Balance Sheet and Cash Flow
Balance Sheet and Cash Flow Dec 08 Qtr • Cash and cash equivalents of US$192.2M at end of Dec qtr - held in Australian banks with minimum AA rating • The significant cash outflows during the quarter were: – US$59.8M for Kayelekera mine construction – US$10.8M for LHUP Stage II – US$3.1M exploration
Slide 13: Presentation Outline
Presentation Outline • Paladin Status • Financial Dec Qtr Review • Projects Update • Future Outlook
Slide 14: Langer Heinrich
• STAGE I - at above design production • STAGE III - expansion in design phase Questions? • STAGE II - expansion being commissioned • Large Resource Upgrade Langer Heinrich Mountain Open Pits Plant Tailings
Slide 15: Langer Heinrich Project
Langer Heinrich Project large resource/reserve upgrade MINERAL RESOURCES 250ppm Cut-off Mt Grade % U3O8 t U3O8 Mlb U3O8 Measured Resources 32.8 0.06 19,582 43.171 Indicated Resources 23.6 0.06 13,276 29.269 Measured + Indicated 56.4 0.06 32,858 72.440 46% increase Inferred Resources 70.7 0.06 41,557
Slide 16: Production – 6 months at design
Production – 6 months at design Production last 6 m onths (tonnes U3O8) sm oothed averages 120.0 100.0 80.0 Acc't prod 60.0 drummed Nameplate 40.0 20.0 - July Aug Sept Oct Nov Dec
Slide 17: Langer Heinrich Production
Langer Heinrich Production quarter by quarter Stage I Design 673,982 650,000 600,000 650,054 568,670 500,000 104% 490,800 lb 400,000 100% 390,807 88% U3O8300,000 75 60% % 200,000 259,755 100,000 40% 0 Q1 Q2 Q3 Q4 Q1 Q2 Sept 07 Dec 07 Mar 08 Jun 08 Sept 08 Dec 08
Slide 18: Operating Costs
Operating Costs LHU Costs for the three months LHU Costs for the three months ended 30 September 2008 ended 31 December 2008 Adminstration Adminstration Mining costs costs costs 18% 4% Mining costs 4% Production costs 22% Production costs 8% 9% Staff costs Staff costs 14% 12% Electricity and diesel
Slide 19: Langer Heinrich Stage II expansion
Langer Heinrich Stage II expansion IX Columns Pre leach Front–end Upgrade CCD Thickeners Larger Leach Tanks
Slide 20: Langer Heinrich Stage II construction status
Langer Heinrich Stage II construction status Leach Tanks CCD Thickeners IX Columns Power Station 20
Slide 21: Kayelekera Uranium Project
Kayelekera Uranium Project
Slide 22: Kayelekera Uranium Project
Kayelekera Uranium Project current status • US$200M CAPEX – (final within 5%) Exploration Targets – Construction 90% complete Hot Targets – Commissioning started January 2009 – 3.3Mlb U3O8 pa using acid leach/Resin in Pulp Karonga – Production ramp-up in March 2009 – 1600 people on site – high safet
Slide 23: Kayelekera Uranium Project
Kayelekera Uranium Project large resource/reserve upgrade MINERAL RESOURCES 300ppm Cut-off Mt Grade ppm Tonnes Mlb U3O8 U3O8 U3O8 Measured Resources 3.42 1,211 4,141 9.1 Indicated Resources 18.78 725 13,626 30.0 Total 22.20 800 17,757 39.1 Inferred Resources 3.9 552 2,152 4.7 29% increase Conforms t
Slide 24: Kayelekera
Kayelekera in commissioning phase Leach Tanks Pre Leach Thickener 24 Tailings Thickener Tailings Dam
Slide 25: Mount Isa Uranium Project
Mount Isa Uranium Project current status • Uranium resource attributable to Paladin increased by 198% to 85.2Mlb – Skal resource update due March 09 • Focused metallurgical scoping test work underway • Environmental baseline work ongoing VALHALLA • Fusion takeover adds resources and SKAL potential f
Slide 26: Stated Resources – Summit and Valhalla
Stated Resources – Summit and Valhalla Deposit * Measured and Indicated Inferred Paladin Resources Resources Share Cut-off ppm Grade Grade Mt t U3O8 Mt t U3O8 U3O8 ppm ppm Valhalla 230 27.80 891 24,765 7.3 799 5,863 90.9% Skal 250 7.6 508 3,781 90.9% Bikini 250 10.1 517 5,200 81.9% Andersons 230 2.0
Slide 27: Presentation Outline
Presentation Outline • Paladin Status • Financial Dec Qtr Review • Projects Update • Future Outlook
Slide 28: 4 Year Production Outlook
4 Year Production Outlook 10 9.3 9 8.4 Actual Forecast 8 7 6.6 6 Mlb 5 U3O8 4 3.35 3 2 1.71 1 0 2007/08 2008/09 2009/10 2010/11 2011/12 Langer Heinrich Production Kayelekera Production
Slide 29: Project Development
Project Development established team and sequential development capability BFS CONSTRUCTION - US$92M PRODUCTION 2.6Mlb pa 3.7Mlb pa Stage II US$50M Stage III PRE-FEASIBILITY CONSTRUCTION PRODUCTION BFS ~ US$2.3M US$200M 3.3Mlb pa UPDATE Through Project Generation Activities M&A ACTIVITIES BFS CONST.
Slide 30: Project Pipeline
Project Pipeline assets acquired & projects developed In Commissioning Langer Heinrich Uranium Mining 2012 Operation Inventory U3O8 351Mlb New production with staged organic growth 2008 to 2011
Slide 31: Paladin Offers Excellent Upside
Paladin Offers Excellent Upside key outcomes for 2008/09 • Langer Heinrich (Namibia) – achieve 1.5Mlb to 1.6Mlb for H2 2008 (CY) – fully integrate Stage II expansion (2.6Mlb to 3.7Mlb pa) – Stage III expansion planned and designed – produce 2.95Mlb U3O8 for 12 month period end June 09 • Kayelekera (
Slide 32: Conclusion
Conclusion • Achieved multi-mine/multi-country operating status • Maintaining strong production profile • Further expansion possibility at Langer Heinrich (Stage III) • Sustained development from project pipeline – progress Mount Isa and Angela Projects for development start 2012+ • Focussed M&A act
Slide 33: Paladin Energy Ltd Contact Details
PALADIN ENERGY LTD Contact Details Mr John Borshoff Head Office (Managing Director/CEO) Grand Central 1st Floor, 26 Railway Rd Mobile: +61 (0) 419 912 571 Subiaco Western Australia 6008 Email: john.borshoff@paladinenergy.com.au PO Box 201, Subiaco Western Australia 6904 Telephone: +61 (0) 8 9381 436