Paladin Energy Ltd · ASX:PDN
Paladin Energy — Diggers and Dealers Mining Forum 2022
28 slides from Paladin Energy's conference presentation, August 2022
Slide 1: Diggers and Dealers Mining Forum
Diggers and Dealers Mining Forum Clean energy. Clear future. August 2022 IAN PURDY CHIEF EXECUTIVE OFFICER
Slide 2: Disclaimer and competent person’s statement
Disclaimer and competent person’s statement Disclaimer This presentation contains summary information about the Company’s activities current as at the date of this presentation. The information in this presentation is of a general background nature and does not purport to be complete or contain all
Slide 3: Target production in Q1 2024, low risk restart, balance sheet strength, global exploration portfolio
Michelin Manyingee & Mount Isa Langer Heinrich Carley Bore Head Office Target production in Low risk Balance sheet Global exploration Q1 2024 restart project strength portfolio Clean energy. Clear future. 3
Slide 4: Our mission: Resourcing a global carbon-free future
Our mission: Emissions Intensity by Energy Source 3, g/kWh Resourcing a global 1,200 carbon-free future 1,000 800 Nuclear energy is playing a critical role in the transition to a decarbonised economy. 600 Today nuclear energy accounts for 47% of carbon-free electricity generation in the US1. 400 The
Slide 5: Our sustainability commitment
Our sustainability commitment Paladin is committed to the core principle of delivering value through sustainable development. Environmental Community People & Health, Safety Stewardship & Social Investment Opportunity & Wellbeing ESG Highlights and FY2022 Performance Our ESG reporting Commitments Ov
Slide 6: Langer Heinrich Mine
Langer Heinrich Mine (75% Paladin ownership) 6
Slide 7: Langer Heinrich – A globally significant uranium mine
Langer Heinrich – A globally significant uranium mine Independent Q1 CY2024 4% of annual Cornerstone producer in a production global offtakes secured premier target production2 jurisdiction 17 year mine 10 years of Peak life producing production production of 77Mlb1 of history 6Mlb1 of U3O8 U3O8 Sou
Slide 8: Low risk restart
Low risk restart • Over 10 years of historical production delivering >43Mlb of U3O8 • Operation was placed on Care and Maintenance in 2018 due to low uranium prices • Restart project has commenced with target production Q1 CY2024 • Restart scope of work focuses on: • general repairs and refurbishmen
Slide 9: Langer Heinrich Mine production profile
Langer Heinrich Mine production profile Material Crushed (t) UU308 3O8 Production (lbs) Grade (ppm) Ramp Up Mining Phase Stockpile Phase 7 700 6 600 Crushed (t) Production (lb) Millions 5 500 Grade (ppm) 4 400 3 300 2 200 1 100 - - Y1 Y2 Y3 Y4 Y5 Y6 Y7 Y8 Y9 Y10 Y11 Y12 Y13 Y14 Y15 Y16 Y17 Y18 Proce
Slide 10: Capital cost
Capital cost Total capital expenditure for the project has increased to US$118M (previous guidance of US$87M) driven by: • Recent industry-wide cost escalation on labour, equipment, and raw materials • The bringing forward of key utility infrastructure work packages to ensure the stable and reliable
Slide 11: Langer Heinrich Mine uranium marketing update
Langer Heinrich Mine uranium marketing update Cornerstone counterparties Current Activities • A leading Fortune 150 North American power utility • Expanded uranium marketing team with appointment of US-based executive • CNNC, leading Chinese nuclear utility and one of the largest consumers of uraniu
Slide 12: Uranium Market
Sage PALADIN Uranium
Slide 13: Structural supply deficit with growing demand
Structural supply deficit with growing demand Structural Supply Shortage, Western Market, Mlb U3O8 p.a. • Current primary uranium supply 200 unable to meet current demand. Deficit met by secondary supplies and inventory drawdowns • Projected production from 150 returning mines will not be sufficient
Slide 14: Term contracting volumes on the rise
Term contracting volumes on the rise Term Contracting Activity, Mlb U3O8 p.a. 250 • For over a decade utilities have been “under-contracting” and drawing down their inventories 200 • In an environment of rising uranium prices and shrinking Inventory drawdowns 150 secondary supplies out of Russia, th
Slide 15: Strong uranium pricing environment
Strong uranium pricing environment Uranium Prices, Spot and Long-term, US$/lb 80 70 60 • Spot and Long-term contract prices have rebounded strongly 50 in the last 12 months 40 • Outlook is strong, supported by uranium market fundamentals 30 and geopolitical uncertainties 20 10 2010 2011 2012 2013 20
Slide 16: Recent uranium market activity
Recent uranium market activity Geopolitical uncertainties China’s commitment to nuclear energy is strengthening • Recent events in Russia, Ukraine and Kazakhstan have • 150 nuclear reactors scheduled for construction over the emphasised the need for energy independence and supply next 15 years from
Slide 17: Exploration
Exploration 17
Slide 18: A quality global suite of exploration assets
A quality global suite of exploration assets 41.5Mlb 127.7Mlb Globally significant, high-grade exploration portfolio Exploration Projects Extensive historical exploration activity has seen over US$140M previously spent Mineral Resources1,2 203Mt at 710ppm U3O8 for 317.6Mlb Diverse portfolio of asset
Slide 19: Michelin uranium project
Michelin uranium project1 (70% Paladin ownership) Restart of exploration activities at the Michelin Project (Labrador, Canada) • Activity has re-commenced at the Michelin project with a dual-track workstream focused on defining development pathways and improving the understanding of the regional exp
Slide 20: Investment Conclusion
Investment Conclusion 20
Slide 21: Clean energy. Clear future.
Clean energy. Clear future. Returning the Cornerstone offtakes Balance sheet strength Sustainable future Langer Heinrich Mine to secured and strong and financial discipline production uranium market • Project approved, fully • Offtakes secured with • US$177M in net cash • Resourcing a carbon free fu
Slide 22: About Paladin
About Paladin 22
Slide 23: Meet the Board
Meet the Board Cliff Lawrenson Peter Main Peter Watson Melissa Holzberger Joanne Palmer Non-Executive Chairman Non-Executive Director Non-Executive Director Non-Executive Director Non-Executive Director Mining executive with deep expertise in Mining and financial experience spanning Chemical enginee
Slide 24: Senior Management Team
Senior Management Team Ian Purdy Anna Sudlow Johan Roux Jess Oram Alex Rybak Chief Executive Officer Chief Financial Officer General Manager Senior Vice President Senior Vice President Langer Heinrich Exploration Marketing & Business Development Highly-respected executive with over Corporate finance
Slide 25: Mineral Resources and Ore Reserves – Langer Heinrich
Mineral Resources and Ore Reserves – Langer Heinrich Summary Mineral Resources1 Millions of Tonnes Grade U3O8 Grade V2O5 Location Classification (Mt) (ppm) Contained U3O8 (Mlb) (ppm) Contained V2O5 (Mlb) In situ -open pit Measured 79.1 450 78.6 145 25.5 In situ -open pit Indicated 23.5 375 19.5 120
Slide 26: Mineral Resources table – Canadian exploration portfolio
Mineral Resources table – Canadian exploration portfolio Mineral Resources Mt Grade ppm U3O8 Mlb U3O8 (100% basis) Paladin Ownership (%) Canada Measured Michelin1 17.6 965 37.6 70 Rainbow2 0.2 920 0.4 70 Indicated Gear2 0.4 770 0.6 70 Inda2 1.2 690 1.8 70 Jacques Lake1 13.0 630 18.0 70 Michelin1 20.
Slide 27: Mineral Resources table – Australian exploration portfolio
Mineral Resources table – Australian exploration portfolio Mineral Resources Mt Grade ppm U3O8 Mlb U3O8 (100% basis) Paladin Ownership (%) Australia Measured Valhalla1 16.0 820 28.9 100 Indicated Andersons2 1.4 1,450 4.6 100 Bikini3 5.8 495 6.3 100 Duke Batman4 0.5 1,370 1.6 100 Odin5 8.2 555 10.0 1
Slide 28: Investor Enquiries
Investor Enquiries: Alex Rybak paladin@paladinenergy.com.au Level 8 191 St George Terrace, WA 6000 +61 8 9423 8100 paladin@paladinenergy.com.au paladinenergy.com.au
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