Slide 1: Langer Heinrich Mine Restart Plan
PALADIN ENERGY LTD Langer Heinrich Mine Restart Plan June 2020 Ian Purdy – Chief Executive Officer PALADIN ENERGY LTD
Slide 2: Disclaimer and Competent Persons Statement
Disclaimer and Competent Persons Statement Disclaimer This presentation contains summary information about the Company’s activities current as at the date of this presentation. The information in this presentation is of a general background nature and does not purport to be complete or contain all t
Slide 3: Why Paladin?
Why Paladin? Paladin has streamlined the company with its sole focus on the restart of the globally significant Langer Heinrich operation in mining friendly Namibia The Langer Heinrich Mine Restart Plan (The Restart Plan) confirms the asset’s position alongside other large-scale suspended Uranium op
Slide 4: Langer Heinrich Mine
Langer Heinrich Mine A Globally Significant Uranium Operation PALADIN ENERGY LTD
Slide 5: Langer Heinrich – a proven mining operation and Uranium supplier
Langer Heinrich – a proven mining operation and Uranium supplier Located in a Paladin owns 75% 10-year 43Mlb U3O8 Fully permitted Uranium mining CNNC 25% production track produced to resume mining province with record and sold and Uranium stable regulatory exports regime PALADIN ENERGY LTD Langer He
Slide 6: Restart Plan objectives & outcomes
Restart Plan objectives & outcomes Objectives: Low risk, reliable restart plan balancing ability to rapidly respond to strengthening Uranium prices and maximising asset value Outcomes: The Restart Plan has optimised previous PFS work and delivered a path to bring Langer Heinrich back into production
Slide 7: Restart Plan confirms economic significance of Langer Heinrich Mine
Restart Plan confirms economic significance of Langer Heinrich Mine Cost to Restart Life of Mine C1 Peak Operations Cost of Production Production US$81M US$27/lb 5.9Mlb U3O8 pa for 7 years $ Mine Restart Capital Life Intensity1 17 years US$14/lb 1. Capital restart costs divided by annual production
Slide 8: US$81M pre-production expenditure required to restart & deliver reliable operations
US$81M pre-production expenditure required to restart & deliver reliable operations Operational Readiness (US$34M) Operational Readiness US$34M Working capital and other cash expenditure to restart baseline operations: • Perform maintenance on plant and infrastructure Maintenance 13 • Replenish reag
Slide 9: Restart scope of work to deliver mine to mill improvements
Restart scope of work to deliver mine to mill improvements Additional Water Storage prevents interruptions Replace & improve product from external water supply drying and packaging plant Thickener and pumping Process control upgrade upgrade to maximise density Surge Tank decouples ore Leach heating
Slide 10: Key restart operational metrics
Key restart operational metrics Ramp Up Phase Ramp Mining Stockpile • Ramp up to full production targeting 80% nameplate within six months and Up Phase Phase Phase 100% nameplate within twelve months (McNulty Curve, Type One) (Year 1) (Years 2-8) (Years 9-17) • Targeted reliability improvements deli
Slide 11: Rapidly returning to full production rate
Rapidly returning to full production rate Ramp Up Mining Phase Stockpile Phase Mine Plan • Plant is self sufficient in Year One drawing from 7 700 existing Medium Grade Stockpile (4.7Mt @ 520 ppm) • In-situ mining for 7 years with peak mining total 6 600 material movement of ~38Mtpa • Strip ratio of
Slide 12: Langer Heinrich cost profile
Langer Heinrich cost profile Production Cash Cost Ramp Up Mining Stockpile Life of Mine US$/lb U3O8 Phase Phase Phase (all 3 Phases) Mining Phase Mining & Stockpile Rehandling1 3.3 12.2 4.6 8.7 5% Mining & Stockpile Rehandling 2% 10% Processing & Maintenance 16.9 13.7 19.3 16.2 45% ` Processing - re
Slide 13: Why Uranium?
Why Uranium? Positive Structural Dynamics
Slide 14: Langer Heinrich’s proven Uranium product
Langer Heinrich’s proven Uranium product • 43Mlb U3O8 successfully marketed over 10 years Langer Heinrich Sales by Utility Sales by • Delivered product aligned to feedstock specifications of Customer Group Region global UF6 conversion facilities operated by Cameco, Honeywell, Orano and CNNC 0.4% • L
Slide 15: Structural supply deficit
Structural supply deficit World Nuclear Association Supply Shortage Graph Stockpile Drawdown Tonnes U MIb 125,000 250 100,000 200 75,000 150 “Under buying” 50,000 100 25,000 ` 50 ` 0 0 2018 2020 2022 2024 2026 2028 2030 2032 2034 2036 2038 2040 2011 2012 2013 2014 2015 2016 2017 2018 2019 Current Ca
Slide 16: Current pricing unsustainable
Current pricing unsustainable Recent Supply Disruptions Spot Price Uranium Market Prices 2011-20 $35 $33 US$/lb $31 US$/lb $29 Spot Price Term Contract $27 Jan 2011 Spot market peaks, $25 Ranger tailings overflow risk $23 3Mlb lost production 31-Dec- 31-Jan- 29-Feb- 31-Mar- 30-Apr- 31-May- $75 Nov 2
Slide 17: Impact of sub-economic pricing
Impact of sub-economic pricing Cumulative Primary Supply Cuts Future Contracted Coverage Rates of US & European Utilities Mlb pa Contract coverage (% of total requirements) 0 120% -5 -10 100% -15 80% -20 -25 60% -30 40% -35 -40 20% -45 ` ` -50 0% 2016 2017 2018 2019 2020 2021 2022 2020 2021 2022 202
Slide 18: Paladin Investment Conclusion
Paladin Investment Conclusion PALADIN ENERGY LTD
Slide 19: What does it mean for Paladin?
What does it mean for Paladin? Advance the critical 1 Paladin is poised to take 2 Langer Heinrich is 3 Strong Financial 4 path elements of The advantage of improving competitively positioned Position Restart Plan Uranium market versus other suspended mines • Continue detailed mine • Growing structur
Slide 20: Appendix
Appendix PALADIN ENERGY LTD
Slide 21: Reconciliation of The Restart Plan to The Prefeasibility Study (October 2019)
Reconciliation of The Restart Plan to The Prefeasibility Study (October 2019) • In October 2019 the Company released the findings of its Prefeasibility Study (refer ASX announcement ‘PFS delivers for Langer Heinrich’ released on 14 October 2019) • The October 2019 PFS (‘The PFS’) outlined two potent
Slide 22: Langer Heinrich Mine historical performance parameters
Langer Heinrich Mine historical performance parameters FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 Mining Rate (in-situ) Mt 27.8 21.6 20.2 24.6 7.6 0 Mill Throughput Mt 3.44 3.72 3.40 3.57 3.52 2.95 Mill Feed Grade ppm 812 783 768 699 610 475 Recovery % 86.0% 87.0% 87.6% 86.3% 87.7% 88.5% U3O8 Product
Slide 23: Proven process flow sheet with increased reliability and stability
Proven process flow sheet with increased reliability and stability MINING CLASSIFICATION Second Hydrosorter improves metal selectivity for leaching Relocate TSF1 to access high HEATING grade mineralisation beneath COMMINUTION Steam Boiler Reliability Upgrades CCD New Water Storage prevents interrupt
Slide 24: Other financial information
Other financial information Langer Heinrich Mine (75% Paladin Energy; 25% CNNC Overseas Corporate (Paladin Energy) Uranium Holding) • US$34.8M unrestricted cash at 31 May 2020 • US$364M carry forward Namibian tax losses at 30 June 2019 • US$144.6M of senior debt (10% non-cash coupon rate) at 30 Apri
Slide 25: Meet the new Board and CEO
Meet the new Board and CEO Cliff Lawrenson Peter Main Peter Watson Ian Purdy Non-Executive Chairman Non-Executive Director Non-Executive Director Chief Executive Officer Mining executive with deep expertise in Mining and finance professional with Chemical engineer with extensive Highly-respected exe
Slide 26: Future growth options
Future growth options Restart Plan highlights several mineral-processing technology innovations Paladin declared a maiden vanadium Mineral Resource Estimate in 2019. As part of a reagent recycling project (membrane technology) there is potential for vanadium to be extracted and sold Reagent recyclin
Slide 27: Mineral Resources Table
Mineral Resources Table Measured Indicated Inferred Total Mlb U3O8 Mlb U3O8 Mlb U3O8 Mlb U3O8 Paladin Uranium Mineral Resources1 Grade ppm (100% Grade ppm (100% Grade ppm (100% Grade ppm (100% Ownership 250ppm U3O8 cutoff Mt U3O8 basis) Mt U3O8 basis) Mt U3O8 basis) Mt U3O8 basis) (%) Langer Heinric
Slide 28: Contact Us
CONTACT US HEAD OFFICE T: +61 (0) 8 9423 8117 Level 4, 502 Hay Street E: paladin@paladinenergy.com.au Subiaco Western Australia 6008 www.paladinenergy.com.au PALADIN ENERGY LTD