Paladin Energy Ltd · ASX:PDN
Paladin Energy — 23rd Global Metals and Mining Conference 2014 (BMO Capital Markets)
22 slides from Paladin Energy's conference presentation, Feb 26, 2014
Slide 1: 23rd Global Metals and Mining Conference
23rd Global Metals and Mining Conference BMO Capital Markets 23‐26 February 2014 John Borshoff – Managing Director/CEO
Slide 2: Disclaimer and Notes for JORC and NI 43-101 Mineral Resources and Ore Reserves
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 re
Slide 3: Presentation Outline
Presentation Outline Key Achievements and Update Uranium Market Update Project Update Positioning for the Future 2
Slide 4: Material Achievements are Redefining Paladin
Material Achievements are Redefining Paladin The 5 Key Company Initiatives Achieved Operations – solid production/unit cost reduction continues Minority Equity Sale – successful with major Chinese nuclear utility Project Refinancing – collateral utilisation KM Care & Maintenance – cost reduction / a
Slide 5: Production and Future Cashflow Improvement
Production and Future Cashflow Improvement Record combined production for Langer Heinrich and Kayelekera — 4.253Mlb (1,929t) U3O8 for six months to December 2013 Langer Heinrich/Kayelekera Refinancing — US$59M reduction in debt repayments over CY14 and CY15 — Langer Heinrich debt repayments reduced
Slide 6: Langer Heinrich Minority Sale
Langer Heinrich Minority Sale 25% JV equity stake to China National Nuclear Corporation (CNNC) — consideration of US$190M US$20M non-refundable deposit to Paladin — currently held in escrow, with release upon receipt of: (i) Lenders consent (ii) Bank of Namibia approval to assign intercompany loans
Slide 7: Presentation Outline: Uranium Market Update
Presentation Outline Key Achievements and Update Uranium Market Update Project Update Positioning for the Future 6
Slide 8: World Nuclear Capacity – February 2014
World Nuclear Capacity – February 2014 “Fukushima is behind us” Current Under Planned Proposed Nuclear Construction Capacity Reactors / 434 70 173 310 (Capacity) (374.3GWe) (74.9GWe) (186.4GWe) (349.2GWe) Key 30 14 28 37 350 Countries 300 Fukushima China 20 28 58 118 250 (17.0GWe) (31.6GWe) (62.6GWe
Slide 9: Supply Fundamentals Deteriorating
Supply Fundamentals Deteriorating Mine suspension or closures — Kayelekera, Honeymoon, Priargunsky Mine No. 2 Supply disruptions — Ranger, Rossing, Somair, Cominak Production delays — Cigar Lake, Imouraren, Husab Suspension / Delays of future planned developments — Greenfield - Kintyre, Lake Way, Mk
Slide 10: Price Catalysts – demand and shortage
Price Catalysts – demand and shortage Reactors under construction continue to increase (now 70 and growing) Japanese reactor restarts — 16 reactors undergoing evaluations by NRA now prioritising to fasttrack — economically unsustainable and uncompetitive without nuclear — political support strengthe
Slide 11: Supply Deficit Certain even with Price Escalation
Supply Deficit Certain even with Price Escalation Supply/demand balance Widening deficits start in 2016 — under a moderate price increase scenario, supply deficit would be equivalent to 31Mlb pa by 2020 Current excess supply can mitigate initial future deficits through inventory buildup, but shortag
Slide 12: Presentation Outline: Project Update
Presentation Outline Key Achievements and Update Uranium Market Update Project Update Positioning for the Future 11
Slide 13: Globally Diverse Project Pipeline
Globally Diverse Project Pipeline 12
Slide 14: Langer Heinrich Project Update
Langer Heinrich Project Update Three successful production capacity Actual Budget Actual expansions completed FY13 Dec’13 Dec’13 — 5.2Mlb with Stage 3 starting mid 2012 YTD YTD — currently producing above budget Ore processed 3.54Mt 1.84Mt 1.83Mt — half year to Dec >5.7Mlb annualised rate Ore feed g
Slide 15: Kayelekera Project Update
Kayelekera Project Update First modern resin-in-pulp (RIP) uranium Actual Budget Actual processing facility FY13 Dec’13 Dec’13 YTD YTD Production capacity of 3.3Mlb U3O8 pa Ore 1.3Mt 0.67Mt 0.59Mt processed C1 cost initiatives for FY13 successful and better than target Ore feed 1,143ppm 1,181ppm 1,2
Slide 16: C1 Cost of Production - Positive Trends Continue
C1 Cost of Production - Positive Trends Continue Langer Heinrich Significant cost reductions and production optimisation at site Focus also on corporate cost efficiencies Kayelekera (on C&M from June 2014) T “Proven ability to reduce costs through production optimisation” 15
Slide 17: Kayelekera – Care & Maintenance from May/June 2014
Kayelekera – Care & Maintenance from May/June 2014 7 February 2014 decision to go to care and maintenance — unavoidable in current uranium price environment — preserve resource to allow better utilisation and future profitability Transition from operating to care and maintenance — processing will co
Slide 18: Presentation Outline: Positioning for the Future
Presentation Outline Key Achievements and Update Uranium Market Update Project Update Positioning for the Future 17
Slide 19: New Joint Venture Partner for Langer Heinrich
New Joint Venture Partner for Langer Heinrich CNNC is a major nuclear organisation of China — engaged in the scientific research and development, construction and operation in such fields as nuclear power, nuclear fuel cycle, nuclear technology application and nuclear environmental engineering — CNN
Slide 20: Positioned for the Future
Positioned for the Future Long term undertaking with 2 strong, reputable nuclear utilities in place — CNNC with 25% JV interest in Langer Heinrich — EdF key delivery contract 2019-2024 with +$200M prepayment made Jan 2012 Proven builder/operator — extensive uranium expertise in the group (technical,
Slide 21: Conclusion
Conclusion Paladin on track to continue solid production results – on track with revised guidance of 7.8Mlb to 8Mlb for FY14 Focused on further cost rationalisation and production optimisation Proven management team delivered on both operational and strategic goals Strategic initiatives strengthenin
Slide 22: Paladin Energy Ltd Contact Details
Paladin Energy Ltd Contact Details Head Office Level 4, 502 Hay Street Subiaco Western Australia 6008 PO Box 201, Subiaco Western Australia 6904 Telephone: +61 (0) 8 9381 4366 Facsimile: +61 (0) 8 9381 4978 Email: paladin@paladinenergy.com.au Website: www.paladinenergy.com.au Investor Relations Team
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