Slide 1: ASX cover letter: June 2015 Full Year Conference Call Presentation
PALADIN ENERGY LTD ACN 061 681 098 Ref: 399272 27 August 2015 ASX Market Announcements By Electronic Lodgement Australian Securities Exchange 20 Bridge Street SYDNEY NSW 2000 Dear Sir/Madam June 2015 Full Year Conference Call Presentation Attached please find the presentation in relation to the year
Slide 2: Annual Results Conference Call and Investor Update
xxxxxxxxxxxx Xxxxxxxx Annual Results Conference Call and Investor Update 28 August 2015 Alexander Molyneux – Chief Executive Officer Craig Barnes – Chief Financial Officer Darryl Butcher – EGM Technical and Project Development Andrew Mirco – GM Corporate Development and Investor Relations
Slide 3: 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 4: Paladin
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 5: Global Uranium Leader
xxxxxxxxxxxx Global Xxxxxxxx Uranium Leader Paladin is the world’s only 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 companies
Slide 6: Langer Heinrich A Strategic Tier One Mine
xxxxxxxxxxxx Langer Xxxxxxxx Heinrich A Strategic Tier One Mine Lowest cost open pit uranium mine in the world US$1.4Bn Cumulative sales revenue +20 Year Mine Life1 31.6Mlbs Cumulative production 1 At current processing rates Paladin Energy Ltd 4
Slide 7: 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 8: 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$180.8M write down of Queensland explorat
Slide 9: FY2015 Cash Flow
xxxxxxxxxxxx FY2015 Xxxxxxxx Cash Flow Cash and cash US$M equivalents of US$183.7M Cash outflow from operating activities of US$24.7M Cash outflow from investing activities of US$15.6M Cash inflow from financing activities of US$137.6M Operating Investing Financing Activities Activities Acti
Slide 10: Capital Management
xxxxxxxxxxxx Capital Xxxxxxxx Management Debt Reduction FY2012 to FY2015 Total debt reduction1 ― US$429.6M since June 2012 ― US$189.9M during FY2015 US$M Next maturity is Q4 FY2017 Outlook for improved operating cash flows Strategic initiatives to be Breakdown of Key Debt Instruments 1 US$M
Slide 11: Optimisation a Core Competency
xxxxxxxxxxxx Optimisation Xxxxxxxx a Core Competency Paladin maintains a world class technical services team focused on cash flow optimisation FY2015 key project delivered was BRP Capital Cost of US$6.8M 93% utilisation in first full quarter of operation – likely to achieve >95% Recovery o
Slide 12: Cash Flow Optimisation Initiatives
xxxxxxxxxxxx a Core Competency Optimisation XxxxxxxxCash Flow Optimisation Initiatives FY2016 All in total expenditure including annualised impact and optimisation initiatives1 Assumed USD/NAD of 12.60 Vs 11.48 for FY2015 9.6% reduced grade to 694ppm offset by volume increase Mining and processing o
Slide 13: Best Leverage to Uranium Upside
xxxxxxxxxxxx Best Leverage to Uranium Upside Xxxxxxxxis not affected by recent commodity rout Uranium Paladin Energy Ltd 11
Slide 14: Best Leverage to Uranium Upside
xxxxxxxxxxxx Best Leverage to Uranium Upside Xxxxxxxx Uranium has a positive outlook and Paladin has leverage US$/lb Current situation is positive ― Japan restart commenced 10 Analysts’ forecast August 68 ― 2017 will see record nuclear power generation ― 65 reactors under construction 55 – 59% in
Slide 15: 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 16: FY2016 Guidance
xxxxxxxxxxxx FY2016 Guidance Xxxxxxxx 5.0 - 5.4Mlbs US$4/lb Production ASP Premium to spot US$19M LHM C1 US$25-27/lb Corporate costs, KM care and 7-14% lower than FY2015 maintenance and exploration – US$14M lower than FY2015 Sales delivery timing, mine plan and US$6M One-off restructuring costs fore
Slide 17: Appendix
xxxxxxxxxxxx Xxxxxxxx Appendix Paladin Energy Ltd 15
Slide 18: Langer Heinrich Project Update
xxxxxxxxxxxx Langer Xxxxxxxx Heinrich Project Update Production FY2015 Actual Actual FY2015 Jun’15 ― 5.037Mlb Qtr ― recovery 87.6% ― Bicarbonate Recovery Project (BRP) commenced Ore processed 3.4Mt 0.89Mt April 2015 operating 120% of design positive change to plant performance immediate Ore feed
Slide 19: Pipeline Projects
xxxxxxxxxxxx Pipeline Xxxxxxxx Projects Kayelekera Mine ― C&M routines established and costs coming down ― restart feasibility study near completion ― discharge of water continued successfully during the year Michelin Deposit Canada ― successfully upgraded Michelin deposit Measured & Indicated m
Slide 20: Paladin Energy Ltd – Contact Details
xxxxxxxxxxxx Xxxxxxxx Energy Ltd – Contact Details Paladin 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