Paladin Energy Ltd · ASX:PDN
Paladin Energy — Investor Presentation (May 2010)
32 slides from Paladin Energy's investor presentation, May 2010
Slide 1: Paladin Energy Ltd – Investor Update May 2010
Paladin Energy Ltd The New Energy In The Market Investor Update May 2010 V13.05.10
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 • Paladin Status • U i Uranium S Supply l and dDDemand d • Projects Update • Future Outlook 3
Slide 4: Paladin Status
Paladin Status • Listed on Australian (ASX), Toronto (TSX) and Namibian ((NSX)) Stock Exchanges g – trades on Munich, Berlin Stuttgart and Frankfurt Exchanges – included in the MSCI Global Standard Indices, - ASX top 100 and Dow Jones African Titans 50 Index • Market Cap: A$2.7bn • Issued Capital: 7
Slide 5: Value Proposition
Value Proposition Paladin offers an extremely attractive investment offering at a time when the uranium market outlook remains uniquely positive. Uranium Producer Paladin is an (emerging Tier I global) uranium producer Fully Independent Paladin is the only non-aligned pure uranium producer Increasin
Slide 6: March Quarter 2010 Highlights
March Quarter 2010 Highlights • Record quarterly production of 1,157,375lb U3O8 • Langer Heinrich delivers full quarter at Stage 2 nameplate capacity. – production 928,370lb vs 841,995lb for previous quarter – Stage 3 construction remains on track for year-end commissioning • Kayelekera production s
Slide 7: Paladin – A Mining House in the Making
Paladin – A Mining House in the Making DEC 07 DEC 08 DEC 09 Cash on hand US$160M US$280M US$433M (400.6)* Shares on issue 601M 613M 716M Mkt Capital US$3.9bn US$1.2bn US$2.7bn LHM Stage 1 50% design 100% design 100% design Stage 2 Feasibility Construction 100% design Stage 3 - Feasibility Constructi
Slide 8: Paladin proceeding with multi-staged parallel activities
Paladin proceeding with multi-staged multi staged parallel activities Developing a complete company with 100% focus on achieving near term production targets. • Sustained production - LHM Stage 2 • Ramping up production - KM (73% of capacity) • E Expansion i (immediate) (i di t ) - LHM Stage St 3 (c
Slide 9: Two Operating Uranium Mines in Two Years
Two Operating Uranium Mines in Two Years WORLD FIRSTS ON BOTH OPERATIONS • New process technologies utilised • Langer Heinrich Mine – Alkaline Leach • Kayelekera Mine – Resin-in-Pulp • Prepared to take the up-front technical risk although this has presented ramp-up challenges • Gi Gives PDN a strong
Slide 10: Paladin's Suite of Uranium Properties
Paladin’s Suite of Uranium Properties staged for sequential development
Slide 11: Resources and Reserves (April 2010)
Paladin Energy Resources and Reserves (April 2010) Project Total Resources Total Reserves Attributable to Paladin 100% project basis Cut-off C t off Cut-off C t off ppm ppm t U3O8 Mlb U3O8 % U3O8 U3O8 t U3O8 Mlb U3O8 % U3O8 U3O8 Langer Heinrich (100%) 74,415 164.0 0.06 250 29,874 65.8 0.06 250 Kayel
Slide 12: Presentation Outline
Presentation Outline • Paladin Status • U i Uranium S Supply l and dDDemand d • Projects Update • Future Outlook 12
Slide 13: Building a New Mining Supply Industry
Building a New Mining Supply Industry 2007 to 2030 and beyond 2007 2020 2030 300 20M 290 (360) --------------------------------------------- 30M 220 (250) ------------------------------------------ 200 200M 72M 180M 100 108 108M 40M 90M 25-30 25 30 Huge discovery/development effort required (ADDITIO
Slide 14: Global Uranium Production 2000 - 2008
Global Uranium Production 2000 - 2008 Demand – remains robust Supply – static and not responding to both price and demand 130 487 120 360 50 112 315 110 50 100 90 nds U3O8 80 70 million poun 125 60 115 120 104.7 108.9 107.1 50 102.3 91.5 94.5 93.7 92.6 40 30 20 10 0 20 20 20 20 20 20 20 20 20 20 00
Slide 15: World Nuclear Capacity - Growth is Assured
World Nuclear Capacity - Growth is Assured number of reactors p proposed p to be operating p g by y 2030 Status April p 2010 Total 958 vs [853] – 12% increase in 12 months Current Nuclear Under Construction Planned Capacity Reactors / (Capacity) 438 (372.5GWe) 52 (44.3GWe) [43] 143 (150GWe) [108] 17
Slide 16: Uranium Companies – current global status
Uranium Companies current global status Companies Operations Producers - 18 countries Tier I • Cameco, AREVA, Rio Tinto, BHP-B, • ~85% of 2007 mine Companies K Kazatomprom, Atomredmetzoloto A d l production d i operating i iin 9 (ARMZ), Navoi countries Paladin Tier II • Uranium One, One Denison Deni
Slide 17: Presentation Outline
Presentation Outline • Paladin Status • Uranium Supply and Demand • Projects Update • Future Outlook 17
Slide 18: Langer Heinrich Project Location
Langer Heinrich Project Location
Slide 19: Langer Heinrich Project – staged growth
Langer Heinrich Project staged growth • Stage 1 – Alkaline leach, CAPEX US$100M (Jan 2007) – design g 2.6Mlb pa p • Stage 2 – Full quarter of nameplate production achieved – design g 3.7Mlb p pa,, CAPEX US$59M $ • Stage 3 - Expansion - increase to 5.2Mlb pa, – EIS approval pp received from Governmen
Slide 20: Langer Heinrich Project – large resource/reserve upgrade
Langer Heinrich Project large resource/reserve upgrade MINERAL RESOURCES 250ppm Cut-off Mt Grade % U3O8 t U3O8 Mlb U3O8 Measured Resources 32 8 32.8 0 06 0.06 19 582 19,582 43 171 43.171 Indicated Resources 23.6 0.06 13,276 29.269 Measured + Indicated 56.4 0.06 32,858 72.440 Inferred Resources 70.7
Slide 21: Langer Heinrich Production quarter by quarter
Langer Heinrich Production quarter by quarter 1,000 FY10 928 900 Stage 2 Design 841 800 686 693 700 674 650 655 b U 3O 8) Stage 1 Design 600 uction (000lb 500 Stage 2 400 nameplate Produ achieved 300 mid quarter 200 100 0 * Q1 - Sept 08 Q2 - Dec 08 Q3 - Mar 09 Q4 - Jun 09 Q1 - Sept 09 Q2 - Dec 09 Q3
Slide 22: Kayelekera Project Location
Kayelekera Project Location M26 Karonga-Chitipa Road Zambia Lake Malawi 5 km 5 mi
Slide 23: Kayelekera Geology and Resources
Kayelekera Geology and Resources Measured Indicated Inferred Total Grade Grade Grade Grade Mt ppm Metal t Mt ppm Metal t Mt ppm Metal t Mt ppm Metal t Resources 35 3.5 1 241 1,241 4 347 4,347 17 2 17.2 769 13 242 13,242 55 5.5 625 3 433 3,433 26 2 26.2 802 21 032 21,032 23
Slide 24: Kayelekera Mine – current status (May 2010)
Kayelekera Mine current status (May 2010) • Resin handling issues at RIP now resolved- circuit no longer a b ttl bottleneck k • Resin movement time from RIP to Elution significantly reduced from 6-8 hours to 2-3 hours by installation of new screen cloth • Traditional design elements proven to delive
Slide 25: Kayelekera Mine – current status May 2010 (cont)
Kayelekera Mine current status May 2010 (cont) Short Term Objectives • Achieve nameplate capacity during the June 2010 qtr • Improve mechanical availability Kayelekera Production 200000 150000 Lb U3O8 100000 50000 0 25
Slide 26: Mount Isa Uranium Project – current status
Mount Isa Uranium Project current status • Uranium resource now 111Mlb • Focussed metallurgical scoping test work underway • Environmental baseline work ongoing • Feasibility y study y to start mid 2010 • Ongoing lobbying of QLD Government re uranium policy • 09/10 budget A$10.5M SKAL • Significant
Slide 27: Presentation Outline
Presentation Outline • Paladin Status • U i Uranium S Supply l and dDDemand d • Projects Update • Future Outlook 27
Slide 28: 4 Year Production Outlook
4 Year Production Outlook 15 13.8 14 Actual Forecast 12.8 13 12 Stage 3 Langer Heinrich 11 Production 10.0 10 8.5 9.0 9 Mlb 8 7.0+ Stage 4 U3O8 7 6 5.0 5 I 4 2.70 4.4 3 1.71 2 1 0 07/08 08/09 09/10 10/11 11/12 12/13 13/14 14/15 15/16 + Stage 3 ramp up contribution Langer Heinrich Actual Langer Heinr
Slide 29: Project Pipeline
Project Pipeline assets acquired & projects developed Stage 3 Expansion Langer Heinrich Mine LHM LHM Stage 4 Expansion Kayelekera Mine Inventory U3O8 379 1Mlb 379.1Mlb New production with staged g organic g growth 2007 to 2013
Slide 30: Paladin Outlook – strong growth
Paladin Outlook – strong growth • Langer Heinrich (Namibia) – optimise Stage 2 production – Complete Stage 3 construction – Stage 4 feasibility to commence 2nd half CY10 – resource upgrade drilling underway y • Kayelekera (Malawi) – nameplate production in current quarter – drilling d illi off hot h
Slide 31: Key Takeaways
Key Takeaways • Multi-mine/multi-country operating status • P i it focus Priority f on meeting ti production d ti objectives bj ti • Maintaining strong production growth profile • Langer Heinrich Stage 3 e expansion pansion increasing prod production ction to 5 5.2Mlb 2Mlb pa – commissioning start u
Slide 32: 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 32