Paladin Energy Ltd · ASX:PDN
Paladin Energy — Debt Investor Presentation (February 2008)
34 slides from Paladin Energy's debt investor presentation, February 2008
Slide 1: Paladin Energy Ltd: The New Energy In The Market
PALADIN ENERGY LTD The New Energy In The Market John Borshoff, Managing Director Investor CB Presentation February 2008 1
Slide 2: Disclaimer
Disclaimer 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 resource potential, exploration drilling, exploitation activities and e
Slide 3: Presentation Outline
Presentation Outline • Uranium Demand & Supply Overview • Paladin Status • Project Update • Outlook • Convertible Bond Issue 3
Slide 4: Uranium Demand & Supply Overview
URANIUM DEMAND & SUPPLY OVERVIEW 4
Slide 5: Nuclear Generating Capacity
Nuclear Generating Capacity January 2008 & future In Operation (currently) Currently • 439 REACTORS • 372,059 MWE Remainder 21% Canada • 30 Countries South Korea 3% • 168Mlbs U3O8 required 2008 5% Germany Under construction 5% United States • 34 REACTORS Russia 26% 6% • 27,798 MWE • 12 Countries Fra
Slide 6: The Nuclear Reactor Fleet (1965 to 2050)
The Nuclear Reactor Fleet (1965 to 2050) from stagnation to full revival 800 (2007) Future growth possibility 700 (2006) 600 500 DRAMATIC TURNAROUND Reactors 400 ? 300 Dying/stagnating industry. 200 (dismal outlook reinforced ? over 20 years) WNA 01 forecast (ref case) 100 WNA 05 forecast (ref case)
Slide 7: New Pricing Regime / Key Events
New Pricing Regime / Key Events US$75/lb Uranium players operating with very strong competition for uranium assets Period of extreme downturn & destruction of U supply industry 70’s/80’s period of Cigar Lake oversupply & Flooding inventory build up MacArthur Lake Mine Flooding 7 Paladin Energy Ltd
Slide 8: Global Uranium Production/Demand
Global Uranium Production/Demand Planned and proposed reactor builds Uranium Market Balance Production 1996 - 2007 50 112 2007-2015 50 222 315 120 110 2000 100 1800 90 80 1600 million pounds U3O8 70 60 1400 million pounds U3O8 104.7 108.9 108 50 91 92.8 87.7 91.5 94.5 93.7 92.6 102.3 1200 40 80.8 30
Slide 9: Building a New Mining Supply Industry
Building a New Mining Supply Industry 2007 to 2030 and beyond 2007 20M 230+--------------------------------------------------------------------------------------------- 30M 190 -------------------------------------------------- 160M 72M 150M 108 108M 40M 90M 2005 WNA forecast 9 Paladin Energy Ltd
Slide 10: Uranium Pricing 2007/08
Uranium Pricing 2007/08 2007/08 Spot Price vs Term Price 140 130 Uranium Price (US$/lb) 120 110 100 90 80 70 60 50 Industry Realised Prices ov pr ug p ec l n ct n b n ar ay Ju Se Ja Ja Fe Ju O A M 80 N D A M 70 Received Price (US$/lb) Term Price Spot Price 60 50 40 30 20 10 0 2007 ERA Cameco Uranium
Slide 11: Uranium Companies – current status
Uranium Companies – current status Companies Operations PRODUCERS - 18 countries Tier I • Cameco, AREVA, RIO, BHP, • ~83% of 2006 mine Companies Kazatomprom, ROSATOM, Navoi production operating in 9 Countries Tier II • PALADIN, Uranium One, Denison, • ~17% of 2006 production Companies Heathgate, Mes
Slide 12: Paladin Status
Paladin Status c 12
Slide 13: Corporate Details
Corporate Details • Listings: ASX (S&P ASX 100 Company), TSX, Namibia, Munich, Berlin, Stuttgart and Frankfurt • Issued Capital: 613M Shares 17M Employee Options • Market cap: US$3.3bn (A$3.6bn) • Cash on hand: US$150M • Shareholding: 40,000 shareholders 47% institutional – global distribution • Cor
Slide 14: Paladin Project Locations
Paladin Project Locations Advanced Exploration Pre Development Project Projects Resources of 14mlbs Valhalla Resource Development Mine of 57mlbs Reserves of 25mlbs Andersons/Watta Resource 8mlbs Resources of 35mlbs On hold Manyingee Resource of 24mlbs Operating Mine Reserves of 38mlbs Resources of 1
Slide 15: Achievements
Achievements Paladin has demonstrated over the past two years that it has multi project capability supported by a strong team PROJECTS M&A FINANCING PROJECTS PROJECTS M&A PROJECTS Langer Heinrich Valhalla US$250M LHU Kayelekera Summit Langer Heinrich at Construction Uranium Convertible Commissioning
Slide 16: Producing Uranium Companies
Producing Uranium Companies Paladin differentiating itself Paladin is differentiating itself from other Tier II industry players via vertical integration growth plans and maintaining production forecasts Number of 2008 Additional Production / Production Equity Market Reserves Resources1 Development
Slide 17: Project Update
PROJECT UPDATE c 17
Slide 18: Langer Heinrich Uranium Project
LANGER HEINRICH URANIUM PROJECT 18
Slide 19: Langer Heinrich Project location map
Langer Heinrich Project location map Waterline Powerline Walvis Bay 19
Slide 20: Langer Heinrich - Project Update
Langer Heinrich - Project Update performance to date & expectation for August 08 • 6 months ago (August 2007) – plant ramp up continuing – IX columns and modified CCD piping ordered – systematic elimination of bottlenecks/design improvements – metal recovery in all sections of flow sheet need major
Slide 21: Kayelekera Uranium Project
KAYELEKERA URANIUM PROJECT 21
Slide 22: Kayelekera Project
Kayelekera Project Project Summary • Discovered 1980 • Have complete feasibility study and project databases • Project represents – 10% of GDP – 40% of export revenue • 11 year project life – commissioning end 2008 • Annual production 3.3Mlb U3O8 (yrs 1 to 7) & 1.17Mlb thereafter • CAPEX US$200M ML
Slide 23: Kayelekera - Project Update
Kayelekera - Project Update performance to date & expectation for August 08 • 6 months ago (August 2007) – construction underway – civil and earthworks started – 300 people on site – NGO’s court action – social development programmes in formulation – owner’s construction team established (moved from
Slide 24: Australian Assets
AUSTRALIAN ASSETS c 24
Slide 25: M&A Activities: Valhalla and Summit
M&A Activities Valhalla and Summit Valhalla Acquisition Overview • Mt Isa Uranium JV (QLD) - 50% − Valhalla − Skal Summit Acquisition Overview • Mt Isa Uranium (QLD) - 100% − Anderson − Bikini − Mirroola − Tjilpa − Watta − Warwai − 15 prospects • Mt Isa Uranium JV (QLD) - 50% • Georgina Basin Uraniu
Slide 26: Mt Isa - Project Update
Mt Isa - Project Update performance to date & expectation for August 08 • 6 months ago (August 2007) – Paladin 50% JV partner on Valhalla/Skal Deposit – hostile takeover for Summit Resources successful with an 82% holding – Paladin gains control of Mt Isa Uranium Province – Areva fight for uranium m
Slide 27: Outlook
OUTLOOK 27
Slide 28: Production Schedule
Production Schedule plenty of upside on existing major projects Project Production Start Production Vol. (U3O8) million pounds LANGER HEINRICH January 2007 2.60 (Stage 1) (full production Jan 08) KAYELEKERA 4Q 2008 3.30 LANGER HEINRICH December 2008 1.10 (Stage 2) 7.00Mlb Potential to expand these p
Slide 29: Project Pipeline
Project Pipeline assets acquired & projects developed Langer Heinrich Uranium Mining Operation 2012 Late 2008 Inventory U3O8 269 Mlb 29
Slide 30: Convertible Bond Issue
CONVERTIBLE BOND ISSUE 30
Slide 31: Recent Funding History
Recent Funding History • 2005 – US$87M Equity funding for initial start for Langer Heinrich construction, global exploration and corporate • 2006 – US$71M Project finance funding for Langer Heinrich – to fully fund construction and ramp up to 2.6mlb per annum • 2006 – US$250M Convertible bond fundin
Slide 32: Convertible Bond Issue: use of funds
Convertible Bond Issue use of funds Subject to appropriate market conditions, Paladin intends to issue up to US$325M in hybrid securities with the proceeds of the fund raising to be used for the following: • US$ 100–120M Mining development and expansions required to support new acquisitions • US$ 50
Slide 33: Conclusion
Conclusion DEVELOP PALADIN INTO A MAJOR GLOBAL URANIUM SUPPLIER • A focused uranium energy company ei n rich Oob agoo e r H ma – large resource base in 6 deposits - 269Mlb L an g Valhalla – strong resource upside potential Database Summit – strength through geographic diversify Manyingee – expertise
Slide 34: Paladin Energy Ltd Contact Details
PALADIN ENERGY LTD Contact Details Mr John Borshoff Grand Central 1st Floor, 26 Railway Rd (Managing Director) Subiaco Western Australia 6008 Mobile: +61 (0) 419 912 571 PO Box 201, Subiaco Email: john.borshoff@paladinenergy.com.au Western Australia 6904 Telephone: +61 (0) 8 9381 4366 Facsimile: +61
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