Paladin Energy Ltd · ASX:PDN
Paladin Energy — Paladin Resources — Shareholder Meeting (September 2005)
41 slides from Paladin Energy's shareholder meeting presentation, Sep 8, 2005
Slide 1: Paladin Resources Ltd - The New Energy in the Market
PALADIN RESOURCES LTD THE NEW ENERGY IN THE MARKET John Borshoff Managing Director GENERAL MEETING 8th Sept 2005
Slide 2: Disclaimer
Disclaimer This presentation does not constitute an offer to sell securities and is not a solicitation of an offer to buy securities. It is not to be distributed to third parties without the consent of Paladin Resources Ltd. (the “Company”). It is intended that any offering of securities of the Comp
Slide 3: Uranium Exploitation Global History
Uranium Exploitation Global History 60 years $30.20
Slide 4: Paladin Today
Paladin Today • A Top 200 ASX Stock ( market cap A$770M ) • Development of Langer Heinrich Uranium Mine (Namibia) • BFS underway on Kayelekera Uranium Project (Malawi) • Most Comprehensive Uranium Team Outside Majors – geological, engineering, environmental, marketing – 200+ person years of uranium
Slide 5: Recent Fund Raising History
Recent Fund Raising History (in AUD) Aug 2003 $ 200,000 1¢ US Group Oct 2003 $ 333,350 2.1¢ Australian Investors Oct 2003 $ 2,000,000 * 5¢ options Société Générale Feb 2004 $ 1,025,000 5.25¢ Shaw Stockbroking Mar 2004 $ 500,000 8¢ US Resource Fund May 2004 $ 3,500,000 11¢ Canadian Fund Sept 2004 $ 3
Slide 6: Presentation Outline
Presentation Outline • Paladin Status • Key Projects • Outlook and Production Expectation
Slide 7: Paladin Uranium Assets
Paladin Uranium Assets Basis for a Future Mining House Key uranium projects (142Mlbs U3O8) • Langer Heinrich (Namibia) • Kayelekera (Malawi) • Manyingee (Australia) • Oobagooma (Australia) • Frome (Australia) • 12% interest Deep Yellow In-house uranium expertise Unique uranium databases • Africa ini
Slide 8: Capital Structure
Capital Structure 12 Month Trading Chart Ordinary Shares 405M – fully paid 33.6M – unlisted options (exc 22c - $1.50) 12 month trading range 31c -$1.95 Recent share price A$1.90 Cash in Hand A$35M Market Capitalisation A$770M (US$580M) - undiluted Best performing ASX stock for year to June 2005
Slide 9: Uranium Company Comparison
Uranium Company Comparison Emerging producer hopefuls COMPANIES STATUS PROJECT EXCHANGE MARKET CAP LOCALITIES PALADIN 3 Advanced Australia / A$770M (Emerging Producer ) Feasibility Projects Africa ASX/TSX (C$700M) 1 Advanced SUMMIT Australia ASX A$137M Project (on hold) Exploration play + US/Canada/
Slide 10: 12 Month Highlights
12 Month Highlights • Langer Heinrich Uranium Project (Namibia) – BFS completed and resource upgraded – A$37.8M raised April for smooth development transition – bank finance approved (US$71M) – Mining Licence Granted August 05 • Kayelekera (Malawi) – Pre Feas Study updated - POSITIVE – BFS commenced
Slide 11: World Uranium Mining Status
WORLD URANIUM MINING STATUS
Slide 12: World Uranium Mine Production
World Uranium Mine Production Scheduled vs Required (2005 -2015) (Source – ZB Marketing, Denver, USA) (Source – ZB Marketing, Denver, USA)
Slide 13: Uranium Producers
Uranium Producers State of the Global Industry • Supplier base severely rationalised over 20 year period – low uranium prices / no production incentives – maintain viability via consolidation • Majority of production reduced to 5 major suppliers – struggling to meet emerging demand – key suppliers n
Slide 14: World Supply & Demand Scenario
World Supply & Demand Scenario 2020 Demand 215Mlb
Slide 15: Production Scenario for 2020
Production Scenario for 2020 for existing uranium mines vs requirement Production Centre Country 2003 Production 2020 Mine (million lbs U3O8) Production Status KEY LAKE/MCARTHUR RIVER Canada 15.2 Nil MINED OUT RANGER Australia 11.4 Nil MINED OUT PRIARGUNSKY Russia 7.2 7–8 MAINTAINED OLYMPIC DAM Aust
Slide 16: Langer Heinrich Uranium Project
LANGER HEINRICH URANIUM PROJECT
Slide 17: Langer Heinrich Project Location Map
Langer Heinrich Project Location Map
Slide 18: Langer Heinrich Geological Cross Sections
Langer Heinrich Geological Cross Sections New channel discovery
Slide 19: Langer Heinrich Resource Drilling
Langer Heinrich Resource Drilling New Channel Area
Slide 20: Langer Heinrich Project BFS - Results Strong
Langer Heinrich Project BFS - results strong • Large low to moderate grade resource with significant upside – 25 year mine life – mine model maximizes in-ground value – 1.5Mt ore throughput / 1,180tpa U3O8 production - alkaline leach / process recovery 90% • Study shows strong project performance •
Slide 21: Langer Heinrich Flow Sheet
Langer Heinrich Flow Sheet Va – Under Development
Slide 22: Langer Heinrich Key Performance Parameters
Langer Heinrich Project Key Performance Parameters (incl 50% of Inferred) Base Case Optimized Production U3O8 2.60Mlb 3.0Mlb Annual revenue US$76.8M US$88M Operating costs US$31.3M US$30M Royalty 5% US$ 3.8M US$4.7M Cash operating surplus US$41.7M US$53.3M NPV8% (after tax/royalty) US$167M US$213M I
Slide 23: Kayelekera Uranium Project
KAYELEKERA URANIUM PROJECT
Slide 24: Kayelekera Project
Kayelekera Project • One of the best undeveloped uranium projects in Africa – 10,850t at 0.12% eU308 • Final feasibility completed 1991 (giant UK power utility - $9m spent) • BFS underway by Paladin • 100% Paladin ownership
Slide 25: Kayelekera Project Orebody Zones
KAYELEKERA PROJECT ZONES (tonnes eU30g) |] Total 11,600t "] @0.15%euU,0, oy Arkose 7 : my Mudstone 7 —— Main Road ——= Coal Shale Marker Bed Exploration ne _ Downhole Camp r Radiometric Response KAYELEKERA OREBODY Forest Reserve
Slide 26: Kayelekera Project Diamond Drilling
Kayelekera Project diamond drilling July 05 metallurgical samples
Slide 27: Kayelekera Operational Parameters of Updated PFS
Kayelekera Uranium Project Operational Parameters of Updated PFS Parameter Value Annual throughput 800,000t Average Grade 0.12% U3O8 Process Recovery 90% Process route Acid leach / SX Annual production 2.3Mlb U3O8 Mine life 10 years
Slide 28: Kayelekera Bankable Feasibility Study Work Execution Schedule
Kayelekera Bankable Feasibility Study Work Execution Schedule
Slide 29: Database Utilisation
DATABASE UTILISATION
Slide 30: Uranium Database
Uranium Database Invaluable resource – unique and proprietary • Uranerz (1970-1990) – Australia and Africa – 50+ geologists – total expenditure US$40 million Australia alone – Paladin acquired database 1991 • Proprietary data – exploration reports – project generation studies – extensive uranium occ
Slide 31: Future Outlook & Production Expectation
FUTURE OUTLOOK & PRODUCTION EXPECTATION
Slide 32: Project Pipeline
Project Pipeline Asset base depth – shareholders’ dream ! DATABASE UTILISATION OOBAGOOMA MANYINGEE Inventory U3O8: 142 Mlb Plus upside
Slide 33: Project Development Schedule
Project Development Schedule The building blocks BFS ~ US$3.2M CONSTRUCTION US$92M PRODUCTION – 2.6M lb pa (1,180 TPA) - 15 YEAR PLUS PRE-FEASIBILITY PRODUCTION BFS ~ US$2.3M CONSTRUCTION US$65M 1,000 TPA(2.2Mlb) for UPDATE 10 YEARS GLOBAL EXPLORATION TO IDENTIFY NEW PROJECT OPPORTUNITIES PRE-FEASIB
Slide 34: Project Development Schedule vs Uranium Outlook
Project Development Schedule Vs Uranium Outlook – PERFECT! BFS ~ US$3.2M CONSTRUCTION US$92M PRODUCTION – 2.6M lb pa (1,180 TPA) - 15 YEAR PLUS PRE-FEASIBILITY PRODUCTION BFS ~ US$2.3M CONSTRUCTION US$65M 1,000 TPA(2.2Mlb) for UPDATE 10 YEARS GLOBAL EXPLORATION TO IDENTIFY NEW PROJECT OPPORTUNITIES
Slide 35: Future Programme
Future Programme • Langer Heinrich – complete 10,000m resource drilling Sept/Oct 2005 – finalise construction contracts early Sept 05 – commence construction mid Sept 05 – finalise funding Oct 05 – production start up Sept/Oct 06 • Kayelekera • complete 5,000m resource drilling Oct 05 • complete BFS
Slide 36: Production Schedule
Production Schedule Plenty of Upside Project Production Start Production Vol. (U3O8) million pounds LANGER HEINRICH September 2006 2.60 (stage 1) KAYELEKERA April 2008 2.30 LANGER HEINRICH July 2008 1.10 (stage 2) 6.00Mlb
Slide 37: Paladin can be Trusted to Deliver
Paladin can be Trusted to Deliver 1998 to 2002 we said: – secure uranium projects during downturn 9 – complete the Kayelekera and Langer Heinrich PFS 9 2004 we said: – start Langer Heinrich BFS 9 – grow and strengthen management 9 – update Kayelekera PFS 9 2005 we said: – dual list Canada 9 – commen
Slide 38: What We Say Now
What We Say Now: • Only serious emerging uranium producer globally • Langer Heinrich to commence production early 4th quarter 2006 • Kayelekera BFS - complete end 2006 • Activate new project acquisition using unique database • Consolidate brown field exploration – Namibia and Kayelekera
Slide 39: Conclusion
Conclusion become a significant global U producer • Focused uranium energy company – large resource base in 4 deposits-142Mlb – excellent resource upside potential – strength through geographic diversification • Quality project in Langer Heinrich – development schedule in tune with market upturn • S
Slide 40: Forward Looking Statements
Forward Looking Statements This presentation contains forward-looking statements that are not based on historical fact, including those identified by the use of forward-looking terminology such as statements containing the words “believes”, “may”, “will”, “estimates”, “continue”, “anticipates”, “int
Slide 41: Paladin Resources Ltd - Emerging Uranium Producer
PALADIN RESOURCES LTD EMERGING URANIUM PRODUCER September 2005 END
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