Slide 1: March Quarter Results Conference Call and Investor Update
March Quarter Results Conference Call and Investor Update 15 May 2015 John Borshoff – Managing Director/CEO Craig Barnes – Chief Financial Officer 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 Key Achievements and Update Uranium Market Update Financial Review Project Update Outlook 2
Slide 4: Paladin Has Weathered the Storm
Paladin Has Weathered the Storm Post the Fukushima event, the uranium mining industry has suffered uncertainty and under-investment. This has negatively redefined the uranium supply base affecting all producers and their positioning for the future. Paladin successfully weathered this storm and has:
Slide 5: Paladin Highlight Update
Paladin Highlight Update Deleveraging of the balance sheet complete — US$300M convertible bond to be completely repaid and cancelled 18 May Bicarbonate Recovery Project (BRP) successfully commissioned – strong operational results to follow — the success of this project will have far reaching implica
Slide 6: Building a Strong Shareholder Base
Building a Strong Shareholder Base Shares on issue 1.67bn Shareholding Market cap A$0.38 ASX A$633M:US$503M Institutions 72% Paladin’s institutional holders increased Retail significantly since mid 2014 (from 25%-72%) 28% Top 3 shareholders — HOPU 14.99% — GIC 7.49% — Fidelity 6.03% Geographic Distr
Slide 7: Presentation Outline
Presentation Outline Key Achievements and Update Uranium Market Update Financial Review Project Update Outlook 6
Slide 8: Improving Nuclear Outlook
Improving Nuclear Outlook Restart of Sendai 1 & 2 probable for September quarter timeframe — Japan declares 20%-22% nuclear contribution by 2030 — 5-6 reactors operating by end 2015 China has reinitiated reactor approval process post-Fukushima India commenced pursuing additional uranium supplies in
Slide 9: Uranium Market Snapshot
Uranium Market Snapshot Paladin is the world’s only independent pure play uranium producer Current Under Nuclear Planned Proposed Mlb Construction Capacity Rest of World 27.4 Reactors / 437 65 165 316 Share of production from majors (Capacity) (380.8GWe) (67.8GWe) (185.9GWe) (363.6GWe) KazAtomProm 2
Slide 10: U.S. Utilities – Unfilled Uranium Requirements
U.S. Utilities – Unfilled Uranium Requirements (31 Dec 2014) 60 2015-2024 (10 years) 282Mlb unfilled 50 480Mlb total requirement 60% unfilled Millions of pounds U3O8 40 2015-2017 30 21Mlb unfilled 135Mlb requirement 15% unfilled 20 2018-2021 10 127Mlb unfilled 191Mlb requirement 0 66% unfilled 2015
Slide 11: Presentation Outline
Presentation Outline Key Achievements and Update Uranium Market Update Financial Review Project Update Outlook 10
Slide 12: Profit & Loss Nine Months Ended March 2015
Profit & Loss Nine Months Ended 31 March 2015 Sales revenue of US$125.3M – down 52% on 2014* — 3.601Mlb sold at average realised price of US$34.80/lb — anticipated sales of approximately 1.7Mlb in the June quarter Gross profit from operations of US$4.6M (2014*: gross loss of US$27.6M) — average unit
Slide 13: Cash Flow Nine Months Ended March 2015
Cash Flow Nine Months Ended 31 March 2015 Cash and cash equivalents of US$469.6M — balance sheet strengthened by US$479.9M total net proceeds received from various capital raising initiatives Cash outflow from operating activities of US$47.2M — LHM & KM utilised cash of US$20.5M — US$11.8M corporate
Slide 14: Presentation Outline
Presentation Outline Key Achievements and Update Uranium Market Update Financial Review Project Update Outlook 13
Slide 15: Langer Heinrich Project Update
Langer Heinrich Project Update Production down as reported Actual Actual — production for quarter of 1.234Mlb U3O8 Dec Qtr Mar Qtr — down as a result of mainly pre-leach thickener #2 2014 2015 centre well failure (12 days loss of full production) — recovery up slightly to 88.4% Ore processed 0.917Mt
Slide 16: Kayelekera Project Strategically Placed
Kayelekera Project Strategically Placed Transition to Care & Maintenance smoothly completed — water management plan approved and implemented — treated water release licensed to internationally recognised standards — treated water release programme underway and operating smoothly Restart feasibility
Slide 17: Key Pipeline Projects (being advanced)
Key Pipeline Projects (being advanced) Advancing toward Field Leach Trial (FLT) – additional metallurgical and hydrogeological work underway – targeted date for FLT permit submission March 2016 quarter – FLT approval expected Sept 2016 quarter MANYINGEE WA Low-cost ISR project targeting 2Mlb pa U3O8
Slide 18: Presentation Outline
Presentation Outline Key Achievements and Update Uranium Market Update Financial Review Project Update Outlook 17
Slide 19: Outlook
Outlook Paladin now positioned to capitalise on improving uranium market fundamentals through a range of value creating strategies Strategic Partnership to provide a platform for growth — negotiating from a position of strength, no time pressure — proceed only if value accretive and the right terms
Slide 20: Conclusion
Conclusion Guidance for FY2015 remains 5.0Mlb to 5.2Mlb Cost rationalisation at operations and corporate level — Paladin has delivered on cost reduction targets ahead of schedule and will continue to reduce costs further Improving operational performance through production optimisation — expected in
Slide 21: 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 Te