Paladin Energy Ltd · ASX:PDN
Paladin Energy — BMO Capital Markets 27th Global Metals & Mining Conference (February 2018)
26 slides from Paladin Energy's conference presentation, Feb 26, 2018
Slide 1: Paladin Energy Ltd – BMO Capital Markets Global Metals & Mining Conference
PALADIN ENERGY LTD BMO Capital Markets 27th Global Metals & Mining Conference 12 December, 2016 Hollywood, Florida, February 25-28 Alexander Molyneux Private and Confidential Chief Executive Officer Paladin Energy | Company Update | 0
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 res
Slide 3: Paladin: A Global Uranium Leader
Paladin A GLOBAL URANIUM LEADER OWNS LANGER HEINRICH A STRATEGIC TIER ONE MINE BALANCE SHEET STRENGTH AND FLEXIBILITY BEST SENIOR LEVERAGE TO URANIUM UPSIDE Paladin Energy | Company Update | 2
Slide 4: Global Uranium Leader
Global Uranium Leader Resources (measured, indicated and inferred, mlbs) Production capacity (mlbs)1 1,023 28 27 889 23 758 611 447 12 344 10 8 271 6 89 85 84 77 58 18 Uranium One Kazatomprom Cameco BHP Billiton Areva Rio Tinto Paladin Bannerman Berkeley Penninsula Energy Deep Yellow Toro Areva Kaza
Slide 5: Langer Heinrich A Strategic Tier One Mine
Langer Heinrich A Strategic Tier One Mine First Quartile All-in Cash Cost1 Lowest cost open-pit mine globally1 Top 10 Uranium Mine 2 by Production 4th largest open-pit Mineral Resources depleted to 30th June 2017 3 +20 Year Mine Life Class Measured Indicated Tonnes Mt 60.7 21.5 Grade ppm 513 459 Met
Slide 6: Summary of Recent Recapitalisation
Summary of Recent Recapitalisation 1 Paladin PaladinEnergy Energy || Company CompanyUpdate Update | 5
Slide 7: Key Elements of Recent Recapitalisation
Key Elements of Recent Recapitalisation Debt for equity swap – Previous bondholders and former EDF pre-payment debt (note: EDF’s claims were acquired by Deutsche Bank during the restructuring) were transferred 70% of existing pre-restructure Paladin shares outstanding pro-rata to the value of thei
Slide 8: Key Outcomes
Key Outcomes Significant reduction in debt and debt servicing Pre-Restructure Post-Restructure US$715m Net Debt1 US$44m 31 Dec 2017 Pro-forma 31 December 20174 Average Debt Tenor 1.5 Years 5 Years Annual Interest Cost US$24.4m - - Cash - PIK - US$11.5m2 All-in Company–Wide Cash US$29-31/lb US$27-30/
Slide 9: Substantial Shareholders
Substantial Shareholders Pre-Restructure HOPU 14.6% GIC 7.0% Post -Restructure Tembo 13.1% Burlington Loan Management (Davidson Kempner) 12.4% Value Partners 11.8% Deutsche Bank AG and its affiliates 10.2% JPMorgan 9.9% HOPU 7.0% China Investment Corporation 5.6% During the restruc
Slide 10: New Board of Directors
New Board of Directors Mr Rick Wayne Crabb Mr Crabb holds degrees of Bachelor of Jurisprudence (Honours), Bachelor of Laws and a Master of Business Administration from the University of B. Juris (Hons), LLB, MBA, Western Australia. He practised as a solicitor from 1980 to 2004 specialising in mini
Slide 11: Current Operating Status and Outlook
Current Operating Status and Outlook 2 Paladin PaladinEnergy Energy || Company CompanyUpdate Update | 10
Slide 12: Langer Heinrich Mine – Status
Langer Heinrich Mine – Status Located near the west coast of central Namibia, 85km northeast of Walvis Bay To reduce cash operating costs, LHM ceased physical mining in November 2016 maintaining processing feed from medium grade ore stockpiles C1 cash costs reduced from US$25.27/lb to a record l
Slide 13: Langer Heinrich Mine - Cost Reductions
Historical and Continued Optimisation Langer Heinrich Mine - Cost Reductions Optimisation has resulted in a reduction in C1 Cash Costs to a record low of US$16.25/lb C1 Cash Cost (US$/lb) 35 Recent costs increased due to lower production and higher 30.55 reagent usage. Lower production caused by: 30
Slide 14: Langer Heinrich Mine – Future Optimisation Potential
Langer Heinrich Mine – Future Optimisation Potential Innovation remains key to increasing operation efficiencies and lowering production costs Back-end Upgrade Project (BUP) U-pgrade The BUP will utilise the existing LHM process across Marenica Energy Ltd has performed initial test work and the
Slide 15: Non-Langer Heinrich Portfolio – An Industry Leading Suite of Development Assets
Non-Langer Heinrich Portfolio – An Industry Leading Suite of Development Assets Michelin (100%) Mt Isa (82/91/100%) 91,500ha mineral licence in Labrador Direct 50% interest in 2,724ha of 336,130m of cumulative licences and 82% ownership of linear drilling Canada ASX-listed Summit Resources U
Slide 16: Continued Reduction in Non-LHM Spending
Continued Reduction in Non-LHM Spending Exploration and other controllable costs have been significantly reduced and are expected to hit a "run rate" of c. US$10-11m per year from FY19E 32.9 Reduction of c. 68% Exploration Previously deferred exploration commitments at 5.3 the Michelin project are
Slide 17: Best Senior Leverage To Uranium Upside
Best Senior Leverage To Uranium Upside 3 Paladin Energy | Company CompanyUpdate Update | 16
Slide 18: Uranium is Unsustainable at US$20-25/lb
Uranium is Unsustainable at US$20-25/lb Contracts are rolling off industry-wide and the spot price is too low to cover costs for most Global uranium cost curve vs forecasted achieved price (US$/lb) Global uranium cost curve vs forecasted achieved price (US$/lb) 100% 5% 40 90% 38 32% 80% 36 70% 62% 3
Slide 19: Positive Catalysts Are Happening
Positive Catalysts Are Happening Positive supply and demand changes are already driving prices off CY16&17 lows Key catalysts Historical uranium price (US$/lb) KazAtomProm announced (in January 17), it $80.00 Green shoots leading into 2018 $30.00 plans to cut 2017 uranium production by 10% (equate
Slide 20: Unique Leverage Through Potential Volume Growth
Unique Leverage Through Potential Volume Growth Our fully built capacity plus pipeline provides unique growth potential Potential volume growth within existing capacity (mlbs) Future Pipeline 8 7 Michelin 2.50 6 MT Isa 5 mlbs 1.5 Manyingee 4 7.50 3 2 3.50 1 - LHM Curtailment Undwinding of KM unwind
Slide 21: Outlook
Outlook 4 Paladin PaladinEnergy Energy || Company CompanyUpdate Update | 20
Slide 22: Strategy
Strategy MAXIMISE LHM OPERATING CASH FLOWS THROUGH CONTINUED OPTIMISATION INITIATIVES WHILST PRESERVING THE INTEGRITY OF THE LONG-TERM LIFE OF MINE PLAN MAINTAIN KM AND EXPLORATION ON A “MINIMAL EXPENDITURE, CARE AND MAINTENANCE BASIS” MINIMISE CORPORATE AND ADMINISTRATIVE COSTS PREPARE FOR GROWTH P
Slide 23: 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 Paladin Energy | Comp
Slide 24: Additional Information
Paladin Energy Ltd Additional Information Paladin Energy | Company Update | 23
Slide 25: Post Restructure Pro-Forma Balance Sheet
Post Restructure Pro-Forma Balance Sheet Pro-Forma Balance Sheet Forecast Pro-Forma Adjustments Key components Comment at 31 December 2017 31 Dec Debt to New Repay DB Pre-admin Pro- 2017 Equity Notes Facility Creditors Forma 2017 and 2020 Bondholders claim of US$391m US$m US$m US$m US$m US$m US$m
Slide 26: Resource and Reserve Tables June 2017
Resource and Reserve Tables 30 June 2017 30 June 2017 Ore Reserves grade % Metal Ownership Mineral Resources M tonnes grade % U3O8 Metal t Paladin Ownership % M tonnes U3O8 t % Canada Malawi Measured Jacques Lake - - - 100 Michelin 17.62 0.097 17,045 100 Proven Kayelekera 0.39 0.117 457 85 Rainbow 0
Paladin Energy — BMO Capital Markets 27th Global Metals & Mining Conference (February 2018) on 6ix