Paladin Energy Ltd · ASX:PDN
Paladin Energy — Non-Deal Roadshow (March 2019)
29 slides from Paladin Energy's roadshow presentation, Mar 6, 2019
Slide 1: Paladin Energy Ltd Toronto Canada Road Show
PALADIN ENERGY LTD TORONTO CANADA ROAD SHOW MARCH 2019 ASX: PDN
Slide 2: Disclaimer and Notes
DISCLAIMER AND NOTES JORC AND NI 43-101 MINERAL RESOURCES AND ORE RESERVES This presentation includes certain statements that may be deemed “forward-looking In the following presentation, for those deposits that are reported as conforming to the statements”. All statements in this presentation, othe
Slide 3: A Global Uranium Leader & Proven Producer
A GLOBAL URANIUM LEADER & PROVEN PRODUCER The best leverage to uranium upside
Slide 4: Corporate Snapshot
CORPORATE SNAPSHOT CAPITAL STRUCTURE As at 22/02/2019 SHARE PRICE SINCE RE-STRUCTURE 120 $0.25 Shares on issue 1,752M Millions Share price A$ 19.0c Market capitalisation A$ 332.8M 100 $0.20 Market capitalisation US$1 236.3M Cash US$2 33.0M 80 Debt US$2 125.9M $0.15 Enterprise value US$ 329.2M 60 $0.
Slide 5: Investment Highlights
INVESTMENT HIGHLIGHTS Proven producer and product. Diversified portfolio of developed mines and projects with unsurpassed uranium price leverage (~8Mlbpa idled capacity) Lead time and capital associated with a re-start to bring Langer Heinrich back into production is less than new projects Explorati
Slide 6: Meet Our Board of Directors
MEET OUR BOARD OF DIRECTORS Mr Crabb is a solicitor by background and was a partner in Perth firms Robinson Cox (now Clayton Utz) and Blakiston & Crabb (now Gilbert & Tobin). Mr Rick Crabb He has over 25 years experience specialising in mining, corporate and commercial law, advising multinationa
Slide 7: Meet Our Senior Management
MEET OUR SENIOR MANAGEMENT Mr Sullivan brings 30 years of diversified mining experience to Paladin, across multiple commodities and projects domestically and internationally. His experience spans strategic planning in mines and smelters; feasibilities; commissioning; mine expansion and restructuri
Slide 8: Strong Demand in the Uranium Market
STRONG DEMAND IN THE URANIUM MARKET A solid long-term outlook
Slide 9: The Uranium Story Is Compelling
THE URANIUM STORY IS COMPELLING Spot Price 2012 - 2018 Underlying estimated uranium use based on Cumulative supply cuts $50 nuclear power generation 2016 2017 2018 2019 2020 $45 250 0 Compound $40 “Under buying” -5 Reduction $35 200 Rabbit Lake U308 Spot Price (US$/lb) -10 $30 Ranger -15 Mlbs U3O8 1
Slide 10: It's All About Supply
IT’S ALL ABOUT SUPPLY FUTURE CONTRACTED COVERAGE RATES OF US & EUROPEAN UTILITIES +40Mlbs taken out of the market in Global mine supply now 120.00% recent years (including Ranger 2019) structurally impaired and unable to respond in time to price Contract Coverage (% of total requirements) 100.00
Slide 11: Green Shoots Are Still Visible
GREEN SHOOTS ARE STILL VISIBLE IPCC REPORT – Global warming increase by 1.5˚C by 2030 China - Plans to have 56 reactors operating by 2020 and 180 reactors, or 220% increase, by 2030 to reduce its reliance on coal India following suit with 21 reactors into operation by 2031 17 new reactors in
Slide 12: China Key Driver of Demand
CHINA KEY DRIVER OF DEMAND China National Nuclear Corp (CNNC) looking to invest in overseas uranium mines to secure supply for an expected ramp-up in China’s nuclear power generation. 1.4Blb’s stated requirement. CNNC worth $100 billion as China's premier energy company, with investments includi
Slide 13: Possible Outlook – Mid Level Growth
POSSIBLE OUTLOOK – MID LEVEL GROWTH 200 Supply gap 150 16.8Mlbs 100 50 0 2021 Implied Consumption 2021 Secondary Supply 2021 Requirement for Mined Current Mined Supply Returnable Care and Source: Supply Maintenance Supply - UxC, TradeTech and Paladin Research Care and maintenance The industry also n
Slide 14: Vanadium: A New Opportunity
A NEW OPPORTUNITY VANADIUM Vanadium to be produced as a co-product
Slide 15: Vanadium - A New Opportunity for Langer Heinrich
VANADIUM - A NEW OPPORTUNITY FOR LANGER HEINRICH $35 Vanadium Price V2O5 Flake 98% $30 $25 $20 $15 $10 $5 $0 2013 2014 2015 2016 2017 2018 2019 Opportunity to produce Vanadium at LHM Estimated production circa 1.3Mlbs Long term price of US$8.50/lb Significant price increase due to Chinese re
Slide 16: Vanadium Vital for Next-Gen Industries
VANADIUM VITAL FOR NEXT-GEN INDUSTRIES Steel making Steel industry consumption continues to grow – China’s new high-strength rebar 4.5% 3.5% Energy storage specification standards implemented in 1% November 2018, using alloys such as Superalloys (aerospace etc) vanadium has created a supply shorta
Slide 17: Langer Heinrich: A Strategic Tier-One Asset
A STRATEGIC TIER-ONE ASSET AT LANGER HEINRICH A LOW COST, LONG LIFE URANIUM MINE
Slide 18: Langer Heinrich
LANGER HEINRICH Lowest cost open-pit mine globally1 Top 10 Uranium Mine by Production2 +20 year mine life3 43.3Mlb cumulative production. Remaining resources 123.4Mlbs. Stable government Mineral Resources depleted to 30th June 2018 Class Tonnes Mt Grade ppm U3O8 Mlb Measured 60.7 515 68.7
Slide 19: We Are Planning for a Rapid, Reliable Restart
WE ARE PLANNING FOR A RAPID, RELIABLE RESTART OPERATIONAL REVIEW OF LANGER HEINRICH MINE (LHM) CONCEPT STUDY COMPLETED TO OPTIMISE RESTART: Defining further Prefeasibility study Prefeasibility study Verifying Care & Learning from ten years potential improvements for rapid, low-risk for optimised pla
Slide 20: Adding Value Through a Rigorous Study Methodology
ADDING VALUE THROUGH A RIGOROUS STUDY METHODOLOGY Improve definition of restart scope – repair, improve processing facility and Process debottlenecking study Mineral Resource definition – Process test work for improvements – potential for drilling to build Vanadium geology vanadium (~1.3Mlb pa). Als
Slide 21: Be Ready! But Continue to Optimise
BE READY! BUT CONTINUE TO OPTIMISE Rapid Restart Study RAPID RESTART STUDY: 6-9 month Prefeasibility Study focused on optimising the current facility 6-9 month Feasibility Study to enable LHM Restart to be triggered from June 2020 PROCESSING UPGRADE STUDY: Processing Upgrade Study 12-15 month
Slide 22: We Have Verified Our Restart and LOM Improvement Capital
WE HAVE VERIFIED OUR RESTART AND LOM IMPROVEMENT CAPITAL Relatively low initial capital requirements of circa US$100M Post production plant optimisation capital requirements (excludes C&M and study costs) (funded from operating cash flows) Plant repair and Working capital Pre-start tailings Back-End
Slide 23: World Wide Product Cost Curve – All Projects
WORLD WIDE PRODUCT COST CURVE – ALL PROJECTS 85 80 75 70 65 60 55 50 Full Cost (US$/lb) 45 40 Production Cost Curve LHM All-in Costs 35 Target LOM All-in costs 30 Aspirational Target LOM All-in costs 25 20 15 10 5 0 0 50 100 150 200 250 300 350 400 450 500 550 Cumulative Production Capacity (Mlb U3O
Slide 24: Kayelekera
KEYELEKERA 3.3Mlbpa Proven Producer
Slide 25: Kayelekera Mine
KAYELEKERA MINE Developed mine on care and maintenance – fully built mine commissioned in 2008 with 3.3Mlbpa nameplate capacity Restart implementation plan under preparation incorporating optimised economics >5 Year Remaining Mine Life1 10.9Mlb - Production before being placed on care and ma
Slide 26: Contact Us
PALADIN ENERGY LTD CONTACT US HEAD OFFICE INVESTOR RELATIONS Level 4, 502 Hay Street Karen Oswald Subiaco Western Australia 6008 T: +61 (0) 423 602 353 PO Box 201, Subiaco, Western Australia 6904 E: Karen.oswald@paladinenergy.com.au T: +61 (0) 8 9381 4366 E: paladin@paladinenergy.com.au www.paladine
Slide 27: Appendix: Resource & Reserve Tables
30 June 2018 APPENDIX Mineral Resources NAMIBIA Measured Indicated Langer Heinrich Mt 60.7 21.5 Grade ppm U3O8 515 460 Mlb U3O8 68.7 21.7 RESOURCE & RESERVE TABLES Inferred 8.7 470 9.0 Stockpiles 30.8 355 24.0 Total Namibia 121.7 460 123.4 MALAWI Kayelekera 30 June 2018 Measured 0.7 1,010 1.7 Mlb Pa
Slide 28: A Quality Global Suite of Exploration & Dev. Assets
A QUALITY GLOBAL SUITE OF EXPLORATION & DEV. ASSETS Mt Isa (82/91/100%) Direct 50% interest in 2,724ha of licences and 82% ownership of ASX-listed Summit Resources Canada Largest uranium deposit in Manyingee Queensland Potential for future development 41.5Mlb of 5-7Mlbpa uranium mine Michelin
Slide 29: Global Vanadium Production
GLOBAL VANADIUM PRODUCTION 90% of the world’s vanadium is produced by four countries RUSSIA major producer with 17% of global Vanadium production vanadium produced from soared from 2000-2014 steel slag as Chinese steel production production boomed but no more growth is CHINA expected from this produ