Paladin Energy Ltd · ASX:PDN
Paladin Energy — Q3 FY2014 Earnings Presentation
14 slides from Paladin Energy's earnings presentation, May 16, 2014
Slide 1: March Quarter Results Conference Call and Investor Update
March Quarter Results Conference Call and Investor Update 16 May 2014 John Borshoff – Managing Director/CEO Alan Rule – CFO Mark Chalmers – Executive General Manager, Production
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 Highlights and Market Update Financial Review Project Update Outlook 2
Slide 4: Highlights for the March Quarter
Highlights for the March Quarter Solid production and cost results being maintained at Langer Heinrich — record production of 4.253Mlb (1,929t) U3O8 for nine months to March 2014 — unit costs trending lower and production optimisation continues Kayelekera transition to Care and Maintenance without i
Slide 5: Uranium Market Updated Supply-Demand Status
Uranium Market Updated Supply-Demand Status Summary results under delayed incentive price scenario: — lack of incentive price delaying substantial mine development — supply deficit increased by 13% on 2020 reference point despite slight increase in secondary supply — shortfall now structurally imbed
Slide 6: Presentation Outline
Presentation Outline Highlights and Market Update Financial Review Project Update Outlook 5
Slide 7: Financial Summary
Financial Summary Strong production and sales for quarter and YTD – sales volume up 16% to 6.853 Mlb YTD Loss for quarter of US$20M due to low uranium price Loss YTD of US$323M due to Mt Isa impairment of US$227M in December quarter and low uranium price Strong cash flow from operations for the quar
Slide 8: Presentation Outline
Presentation Outline Highlights and Market Update Financial Review Project Update Outlook 7
Slide 9: Langer Heinrich Project Update
Langer Heinrich Project Update Actual Actual Strong Operational Results Mar’ 14 Mar’14 — record 4.253Mlb for 9 months ended March 2014 YTD Qtr — currently producing above budget Ore processed 2.82Mt 0.98Mt Low quartile cost producer Ore feed grade 784ppm 748ppm — March Qtr C1 cost US$29/lb — C1 cost
Slide 10: Kayelekera Project Update
Kayelekera Project Update Strong production results Actual Mar’ Actual — 2.089Mlb for 9 months to March 14 YTD Mar’14 — recoveries remained high at 86.7% March Qtr Qtr Ore processed 0.91Mt 0.33Mt C1 cost initiatives better than target Ore feed grade 1,278ppm 1,141ppm — C1 cost March Qtr US$32.9/lb,
Slide 11: Presentation Outline
Presentation Outline Highlights and Market Update Financial Review Project Update Outlook 10
Slide 12: Minority 25% JV Sale of LH - Update
Minority 25% JV Sale of LH - Update JV with CNNC a major fully integrated nuclear organisation Introduces a strong JV partner at project level — will enable the value of LHM asset to be maximised — will provide funding support for future growth US$20M non-refundable deposit paid 16 April 2014 — cons
Slide 13: Conclusion
Conclusion Paladin on track to continue solid production results – stated guidance of 7.8Mlb to 8Mlb for FY14, expect in upper range Focused on further cost rationalisation and production optimisation for FY15 Strategic initiatives achieving balance sheet objectives and ability to leverage growth Fo
Slide 14: 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