Paladin Energy Ltd · ASX:PDN
Paladin Energy — Shareholder Meeting (November 2015)
18 slides from Paladin Energy's shareholder meeting presentation, Nov 19, 2015
Slide 1: ASX cover letter: AGM Presentation and Chairman's Address
PALADIN ENERGY LTD ACN 061 681 098 Ref: 402537_1.docx 19 November 2015 ASX Market Announcements By Electronic Lodgement Australian Securities Exchange 20 Bridge Street SYDNEY NSW 2000 Dear Sir/Madam Annual General Meeting Presentation and Chairman’s Address Attached please find the presentation in r
Slide 2: Chairman's Address at 2015 Annual General Meeting
PALADIN ENERGY LTD ACN 061 681 098 Chairman’s Address at 2015 Annual General Meeting Dear Fellow Shareholders The further retreat in the uranium price and overall deterioration in commodity-related equities during the 2015 financial year presented continued ongoing challenges for your Company. Durin
Slide 3: Annual General Meeting
xxxxxxxxxxxx Xxxxxxxx Annual General Meeting 19 November 2015 Alexander Molyneux – Interim Chief Executive Officer
Slide 4: Disclaimer and Notes for JORC and NI 43-101
Disclaimer and Notes for JORC and NI 43-101 xxxxxxxxxxxx Mineral XxxxxxxxResources 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 produ
Slide 5: Paladin: A Global Uranium Leader
xxxxxxxxxxxx Paladin…. Xxxxxxxx A GLOBAL URANIUM LEADER OWNS LANGER HEINRICH, A STRATEGIC TIER ONE MINE HAS OPTIMISATION AS A CORE COMPETENCY PROVIDES BEST SENIOR LEVERAGE TO URANIUM UPSIDE Paladin Energy Ltd 2
Slide 6: Global Uranium Leader
xxxxxxxxxxxx Global Xxxxxxxx Uranium Leader Paladin is the world’s leading independent pure play uranium miner 27.4 Annual Capacity KazAtomProm 24.5 Mlb Areva 23.5 Cameco 23.5 ARMZ/Uranium One 21.4 Rio Tinto 11.8 BHP Billiton 8.8 Paladin 8.0 Navoi 6.2 Government owned Divisions of diversified compan
Slide 7: Langer Heinrich: A Strategic Tier One Mine
xxxxxxxxxxxx Langer Xxxxxxxx Heinrich A Strategic Tier One Mine First Quartile C1 Cash Cost1 Top 10 Uranium Mine by 2 Production 4th largest open-pit +20 Year Mine Life3 32.7Mlbs Cumulative production 1 Source – UxC Uranium Production Cost Study – August 2015 2 Source – TradeTech Uranium Market Stud
Slide 8: Key Achievements for FY2015
xxxxxxxxxxxx Key Achievements for FY2015 Xxxxxxxx Production 5.037Mlbs Recovery 87.6% US$37.0/lb ASP C1 Cash Cost US$29/lb 3.4% above average spot US$26.03/lb June Quarter 2015 US$94.9M increase in US$1.8M Gross Profit cash on hand to US$183.7M Bicarbonate Recovery Plant (BRP) implemented and oper
Slide 9: FY2015 Profit & Loss
xxxxxxxxxxxx FY2015 Xxxxxxxx Profit & Loss Sales revenue US$198.6M Gross Profit 5.367Mlb sold at average US$1.8M realised price of US$37.0/lb Turnaround from FY2014 Gross Loss of US$65.1M Down 38% Impairments of US$193.1M Finance costs (after tax) US$57.0M US$180.8M write down of Queensland explorat
Slide 10: Optimisation a Core Competency
xxxxxxxxxxxx Optimisation Xxxxxxxx a Core Competency Paladin maintains a world class technical services team focused on 33% Reduction cash flow optimisation BRP Enhancement 4 now operational Capital Cost of additional <US$100k of our original capital cost of US$6.8M Recovery of sodium bicarb
Slide 11: Cash Flow Optimisation Initiatives
xxxxxxxxxxxx a Core Competency Optimisation XxxxxxxxCash Flow Optimisation Initiatives FY2016 All in total expenditure including annualised impact and optimisation initiatives1 Assumed USD/NAD of 12.60 Vs 11.48 for FY2015 9.6% reduced grade to 694ppm offset by volume increase Mining and processing o
Slide 12: Best Leverage to Uranium Upside
xxxxxxxxxxxx Best Leverage to Uranium Upside Xxxxxxxxis not affected by recent commodity rout Uranium Oil Bloomberg Commodity Index Uranium 130 120 110 100 Rebased to 100% 90 80 70 60 50 40 30 Jan-14 Mar-14 May-14 Jul-14 Sep-14 Nov-14 Jan-15 Mar-15 May-15 Jul-15 Sep-15 Nov-15 Paladin Energy Ltd 9
Slide 13: Uranium has a positive outlook and Paladin has leverage
xxxxxxxxxxxx Best Leverage to Uranium Upside Xxxxxxxx Uranium has a positive outlook and Paladin has leverage US$/lb Current situation is positive ― Japan 2 reactors restarted and Analysts’ forecast 25 have applied to follow 68 ― 2017 will see record nuclear power generation ― 65 reactors under co
Slide 14: Strategy
xxxxxxxxxxxx Strategy Xxxxxxxx 1. Maximise LHM operating cash flows through optimisation initiatives that preserve the integrity of the long-term life of mine plan 2. Maintain KM and exploration on a “minimal expenditure, care and maintenance basis” 3. Minimise corporate and administrative costs 4.
Slide 15: FY2016 Guidance
xxxxxxxxxxxx FY2016 Guidance Xxxxxxxx 5.0 - 5.4Mlbs US$4/lb Production ASP Premium to spot US$19M corporate costs, LHM C1 US$25-27/lb KM care and maintenance 7-14% lower than FY2015 and exploration US$14M lower than FY2015 Cash flow neutral December Quarter for FY2016 Sales 1.5 - 1.7Mlb Subsequent
Slide 16: xxxxxxxxxxxx
xxxxxxxxxxxx Xxxxxxxx Paladin Energy Ltd 13
Slide 17: Proxy Votes 2015 Annual General Meeting
xxxxxxxxxxxx Proxy Votes 2015 Annual General Meeting Xxxxxxxx 1,149 proxies were received representing 37.05% of the issued capital For Against Abstain Open % of Issued Excluded usable* Capital Votes** Resolution 1 Re-election of Donald Shumka 574,674,092 54,369,240 2,619,718 5,229,908 37.05% Resolu
Slide 18: Proxy Votes 2015 Annual General Meeting (continued)
xxxxxxxxxxxx Proxy Votes 2015 Annual General Meeting Xxxxxxxx (continued from previous slide) For Against Abstain Open % of Issued Excluded usable* Capital Votes** Resolution 5 Approval of Employee Performance 566,846,780 39,391,171 1,349,922 5,159,131 35.65% 23,999,055 Share Rights Plan Resolution