Paladin Energy Ltd · ASX:PDN

Paladin Energy — Shareholder Meeting (November 2018)

17 slides from Paladin Energy's shareholder meeting presentation, Nov 9, 2018

  1. Slide 1: ASX: PDN AGM Presentation

    9 NOVEMBER 2018 ASX: PDN AGM PRESENTATION

  2. Slide 2: Disclaimer and Notes for JORC and NI 43-101

    DISCLAIMER and NOTES FOR JORC AND NI 43-101 MINERAL RESOURCES 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 production, reserve or r

  3. Slide 3: Corporate Snapshot

    CORPORATE SNAPSHOT CAPITAL STRUCTURE SHARE PRICE SINCE LISTING As at 08/11/18 120 $0.25 Millions Shares on issue 1,747.3M Share price A$ 20.0c Market capitalisation A$ 349.5M 100 $0.20 Market capitalisation US$1 254.3M Cash US$ 30.6M Debt US$ 122M 80 Enterprise value US$ 345.7M $0.15 60 MAJOR SHAREH

  4. Slide 4: The Uranium Story Is Compelling

    THE URANIUM STORY IS COMPELLING Underlying estimated uranium use based on nuclear power generation  Spot uranium prices recovering from a 13-year low 250  Growth in China, India and elsewhere means the nuclear power industry is consuming more uranium than pre-Fukushima 200 “Under buying” Mlbs U3O8

  5. Slide 5: Reduced Contracting Levels Cannot Continue

    REDUCED CONTRACTING LEVELS CANNOT CONTINUE Future Contracted Coverage Rates of US & European Utilities 120.00% Contract Coverage (% of total requirements) 100.00% 80.00% 60.00% 40.00% 20.00% 0.00% US Utilities Coverage Euratom Utilities Coverage Sources: (1) EIA Uranium Marketing Annual Report 2017

  6. Slide 6: It's All About Supply

    IT’S ALL ABOUT SUPPLY  +35Mlbs taken out of the market in recent years  Significant decrease in exploration spend since Fukushima  New Project Development timelines stretched:  Majority are still very much in the early stages of development  Require significantly higher incentive prices  Produ

  7. Slide 7: Possible Outlook – Mid Level Growth

    POSSIBLE OUTLOOK – MID LEVEL GROWTH  Care and maintenance supply expected to come back online if prices lift to US$40-50/lb range  The industry also needs additional new growth from mining before 2021 – this requires incentive prices of US$60-80/lb (i.e. 2-3 x current price levels)  In reality, t

  8. Slide 8: A Strategic Tier-One Asset at Langer Heinrich

    A STRATEGIC TIER-ONE ASSET AT LANGER HEINRICH A low cost, long life uranium mine 8

  9. Slide 9: Key Activities Underway

    KEY ACTIVITES UNDERWAY  Operational Review of Langer Heinrich Mine  Study team has been assembled  Concept Study is currently underway  Studies will examine improving the existing base operation, lowering operating costs, increasing recoveries and throughput and the potential for vanadium recove

  10. Slide 10: Future Optimisation Potential

    FUTURE OPTIMISATION POTENTIAL BACK END UPGRADE PROJECT (BUP) BENEFICAITION  The BUP will utilise the existing Langer Heinrich Mine process across  Paladin is reviewing available third-party beneficiation technologies to the Beneficiation, Leach, CCD and TSF areas with relatively minor assess benef

  11. Slide 11: Vanadium - A New Horizon?

    VANADIUM - A NEW HORIZON?  Opportunity to produce Vanadium at LHM  Estimated resource grade 150ppm  Potential economic, marketing and environmental benefits  Significant price increase due to usage within vanadium redox flow batteries  Future demand is expected to rise due to supply constraints

  12. Slide 12: So What's Ahead for Paladin?

    SO WHAT’S AHEAD FOR PALADIN? New management, ready to re-start production, diverse portfolio, attracting value 12

  13. Slide 13: We've Greatly Reduced Costs

    WE’VE GREATLY REDUCED COSTS EXPLORATION ~ US$1.5Mpa  Exploration costs will reflect the work required to meet minimum tenement commitments  Includes 100% spend for the Michelin Project CORPORATE COSTS ~ US$4.0Mpa  All non-essential expenditure continues to be reduced  No change to recently reduc

  14. Slide 14: Strategy

    STRATEGY  Focus on optimizing and restarting LHM  Progress feasibility studies centred on lowering costs, improving recoveries, increasing throughputs and potential vanadium production  Leverage increases in the uranium price to create value propositions for Paladin’s leading global resource base

  15. Slide 15: Green Shoots Everywhere

    Green Shoots Everywhere  IPCC REPORT – Global warming increase by 1.5˚C by 2030  China - Plans to have 56 reactors operating by 2020 and 180 reactors, or 400% increase, by 2030 to reduce its reliance on coal  India following suit with 300% increase  17 new reactors in Saudi Arabia announced  De

  16. Slide 16: Contact Us

    CONTACT US Head Office Level 4, 502 Hay Street Subiaco Western Australia 6008 PO Box 201, Subiaco Western Australia 6904 T: +61 (0) 8 9381 4366 E: paladin@paladinenergy.com.au Investor Relations Karen Oswald T: +61 (0) 423 602 353 E: karen@paladinenergy.com.au www. paladinenergy.com.au 16

  17. Slide 17: Appendix: Resource & Reserve Tables

    APPENDIX: RESOURCE & RESERVE TABLES 30-Jun-18 30-Jun-18 Mineral Resources M tonnes grade % U3O8 Mlb U3O8 Paladin Ownership % Canada Measured Michelin 17.62 0.097 37.6 50 Rainbow 0.21 0.092 0.4 50 Indicated Gear 0.35 0.077 0.6 50 Paladin Ownership Inda 1.2 0.069 1.8 50 Ore Reserves M tonnes grade % U

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