Paladin Energy Ltd · ASX:PDN
Paladin Energy — Investor Presentation (June 2008)
33 slides from Paladin Energy's investor presentation, June 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 Presentation, June 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: Paladin – Basis for nuclear focus
Paladin – Basis for nuclear focus Industry in a MAJOR upward transformation • Nuclear industry revival will be underpinned by adequate availability of mine-side uranium resources • Supply-side ill prepared – traditional Tier I suppliers in various stages of dysfunction (starting to improve) – all ma
Slide 4: Paladin Strategy
Paladin Strategy • Harness Paladin’s considerable uranium expertise and know-how for shareholder benefit • Establish geographically diversified project pipeline • Drive projects to production ASAP – establish expertise in construction and operations with competent management overall – demonstrate cr
Slide 5: Presentation Outline
Presentation Outline • Uranium Demand & Supply • Paladin Status • Projects Update • Future Outlook • Conclusion 5
Slide 6: Nuclear Generating Capacity
Nuclear Generating Capacity October 2007 & future In Operation (currently) Currently China • 439 REACTORS India • 372,002 MWe (16% world electricity) Remainder 20% Canada • 31 Countries South Korea 3% • 173Mlbs U3O8 required 2007 5% Germany 6% Under construction United States • 33 REACTORS Russia 26
Slide 7: The Nuclear Reactor Fleet (1965 to 2050)
The Nuclear Reactor Fleet (1965 to 2050) From stagnation to full revival 800 Future growth (2007 possibility forecast) 700 (2006 600 forecast) 500 DRAMATIC TURNAROUND Reactors 439 400 (2005 forecast) ? 300 Dying/stagnating industry. 200 (dismal outlook reinforced ? over 20 years) WNA 01 forecast (re
Slide 8: Global Uranium Production/Demand
Global Uranium Production/Demand Supply is flat despite strong price/demand growth Cumulative planned and proposed reactor builds (by year of announcement) 112 120 Production 1996-2007 50 222 316 110 50 108.9 108 100 104.7 102.5 90 Million Pounds U 3O8 92.8 91.5 94.5 93.7 92.6 91 80 87.7 80.8 70 60
Slide 9: Building a New Mining Supply Industry
Building a New Mining Supply Industry 2007 to 2030 and beyond 2007 20M 250+--------------------------------------------------------------------------------------------- 30M 220 -------------------------------------------------- 160M 72M 180M 108 108M 40M 90M 2005 WNA forecast Huge discovery/developm
Slide 10: Current World Uranium Status
Current World Uranium Status globalisation of uranium markets – one nuclear economy • Process of inevitable globalisation of markets has commenced • Have NEW nuclear economies (e.g. China and India) • Have GROWING nuclear economies (e.g. US, Russia & France) Very poor U resources Major U mining and
Slide 11: The Uranium Term Market
The Uranium Term Market Bulk of Nuclear industry is time based long dated uranium contracts (85% of annual fuel) Spot Market barely observable at this scale Short Term Spot Market Term Market
Slide 12: Uranium Term Market Drives The Nuclear Industry
Uranium Term Market Drives The Nuclear Industry Locomotive = Term Market = Big = Time based delivery system No Locomotive = NO Nuclear Industry Oil Can = Spotmarket = Very Small = Only lubricates wheels of the key driver of the Nuclear Fuel Cycle No Oil Can = ONLY a less efficient Nuclear Industry
Slide 13: Presentation Outline
Presentation Outline • Uranium Demand & Supply • Paladin Status • Projects Update • Future Outlook • Conclusion 13
Slide 14: Uranium Companies
Uranium Companies current global status Companies Operations Producers - 18 countries Tier I • Cameco, AREVA, Rio Tinto, BHP-B, • ~85% of 2007 mine Companies Kazatomprom, ROSATOM, Navoi production operating in 9 Countries Tier II • Paladin, Uranium One, Denison, • ~15% of 2007 production Companies H
Slide 15: Paladin Accomplishments
Paladin Accomplishments overview • Achieving stated operational objectives – Langer Heinrich and Kayelekera • Demonstrating clear action to support its vision for its future development – foresaw transformational changes in nuclear industry • Seeking to establish a global mining footprint by end 200
Slide 16: Paladin’s Suite of Uranium Properties
Paladin’s Suite of Uranium Properties Advanced Exploration Pre Development Project Project Resources of 14Mlb Valhalla Resource of Construction of Mine 57Mlb Reserves of 25Mlb Andersons/Watta Resource 8Mlb Resources of 35Mlb On hold Manyingee Resource New Project of 24Mlb Angela/Pamela Deposits Hist
Slide 17: Presentation Outline
Presentation Outline • Uranium Demand & Supply • Paladin Status • Projects Update • Future Outlook • Conclusion 17
Slide 18: Langer Heinrich Uranium Project
Stage II Works Stage II Works Langer Heinrich Uranium Project Tailings Dam Plant Shallow Open Pit 18
Slide 19: Langer Heinrich Uranium Project: current status
Langer Heinrich Uranium Project current status • Stage I ramp-up completed – focus on plant optimisation and recovery improvement programmes • Production improving – H2/CY07 - 650,562lb U3O8 – Q2/CY08 - 490,800lb U3O8 (plus 60,600lb increase in inventory) – expected H1/CY08 – 1.1-1.2Mlb U3O8 • Stage
Slide 20: Langer Heinrich Operations
Langer Heinrich Operations Langer Heinrich Pit and Mine Fleet Langer Heinrich Process Plant 20 LHUPL Product Ready For Shipment Stage II Expansion - Earthworks
Slide 21: Kayelekera Uranium Project
Kayelekera Uranium Project Camp Tailings Dam Treatment Plant Open Pit 21
Slide 22: Kayelekera Uranium Project: Project Summary
Kayelekera Uranium Project Project Summary • Discovered 1980 - worked to 1991 by other parties • Feasibility study and project databases acquired by PDN 1997 • BFS completed in 2006 modelled at US$60/lb • Project represents: – 10% of GDP – 40% of export revenue of Malawi • Treatment Plant: – 1.5Mtpa
Slide 23: Kayelekera Uranium Project: current status
Kayelekera Uranium Project current status • US$200M CAPEX – (US$155M committed) Karonga – project on schedule and on budget with completion end 2008 • Civil earthworks and plant erection underway – 900 people on site • Long lead capital items – power plant commissioned, completely refurbished mill o
Slide 24: Kayelekera Project: construction progressing well
Kayelekera Project construction progressing well Leach Tanks Mill Foundations Pre Leach Thickener 24
Slide 25: Mt Isa Uranium Project: current status
Mt Isa Uranium Project current status • Intensive drilling of Valhalla for resource expansion and classification – 50,000m/definition to 300m depth • Focused metallurgical test work underway • Environmental baseline work ongoing • Preparing for Pre-Feasibility Study end 2008 • Ongoing lobbying of QL
Slide 26: Angela Project
Angela Project Angela Deposit – Northern Territory • Uranium Deposits in Northern Territory – 37 applicants to Government for much sought after properties • Successful applicants – Cameco and Paladin in 50:50 JV – awarded Feb 08 – NIL acquisition cost – commitment to explore and finalise BFS/EIS in
Slide 27: Presentation Outline
Presentation Outline • Uranium Demand & Supply • Paladin Status • Projects Update • Future Outlook • Conclusion 27
Slide 28: Production Schedule
Production Schedule plenty of upside on existing major projects 2007 2008 2009 2010 2011 2012 Mlb Mlb Mlb Mlb Mlb Mlb LH Stage I - 2.6 2.6 2.6 2.6 2.6 (2.6Mlb) LH Stage II - - 0.5 1.1 1.1 1.1 (3.7Mlb) LH Stage III to - - - 0.4 1.6 2.3 6Mlb Sub Total - 2.6 3.1 4.1 5.3 6.0 Kayelekera - - 1.6 3.3 3.3 3
Slide 29: Project Pipeline
Project Pipeline assets acquired & projects developed Langer Heinrich Uranium Mining 2012 Operation End 2008 Inventory U3O8 269 Mlb New production and staged organic growth 2008 to 2010 29
Slide 30: Paladin Offers Excellent Upside
Paladin Offers Excellent Upside key outcomes for 2008 • Langer Heinrich (Namibia) – complete Stage II expansion (2.6Mlb to 3.7Mlb pa) – optimisation of Stage I (2.6Mlb + for 2008) – new resource estimate by mid 2008 – Initiate planning/design for Stage III expansion • Kayelekera (Malawi) – construct
Slide 31: Project Development
Project Development established team and sequential development capability BFS CONSTRUCTION - US$92M PRODUCTION 2.6Mlb pa 3.7Mlb pa Stage II US$50M Stage III PRE-FEASIBILITY CONSTRUCTION PRODUCTION BFS ~ US$2.3M US$200M 3.3Mlb pa UPDATE Through Project Generation Activities M&A ACTIVITIES BFS CONST.
Slide 32: Conclusion: Develop Paladin Into A Major Global Uranium Supplier
Conclusion Develop Paladin Into A Major Global Uranium Supplier • A focused uranium energy company – large resource base in 6 deposits - 269Mlb – strong resource upside potential – strength through geographic diversity Manyingee – expertise and funding to deliver • Langer Heinrich and Kayelekera – p
Slide 33: 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