Paladin Energy Ltd · ASX:PDN
Paladin Energy — Q3 2008 Earnings Presentation
25 slides from Paladin Energy's earnings presentation, Nov 11, 2008
Slide 1: The New Energy In The Market
Paladin Energy Ltd The e New Energy e gy In The e Ma Market et John Borshoff – Managing Director/CEO Gillian Swaby – Company Secretary September Quarter 2008 Results & Investor Update 1 11 November 2008
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 • Financial Sept Qtr Review • Projects Update • Future Outlook 3
Slide 4: Paladin's Suite of Uranium Properties
Paladin’s Suite of Uranium Properties staged g for sequential q development p Advanced Exploration Pre Development Project j Project Resources of 23Mlb Resource - 85Mlb Construction of Mine Reserves of 25Mlb Resources of 35Mlb pro uranium pro uranium Re-activate Evaluation Manyingee Resource of pro
Slide 5: Paladin Status
Paladin Status overview • Achieving stated operational objectives – Langer Heinrich produced 650,554lb U3O8 Sept Qtr – at design – Langer Heinrich Stage II expansion will be commissioned Mar Qtr – Langer Heinrich resources and reserves increased substantially to support long mine life at expanded pr
Slide 6: Langer Heinrich Production
Langer Heinrich Production quarter by q yqquarter Quarterly Production at Stage I Design 650,000 650,554 600,000 500,000 , 568,670 490 800 490,800 lb 400,000 390,807 U3O8 300,000 100% 259,755 88% 200,000 75% 60% 100,000 00,000 40% 0 Q1 Q2 Q3 Q4 Q1 Sept 07 Dec 07 Mar 08 Jun 08 Sept 08 6
Slide 7: Presentation Outline
Presentation Outline • Paladin Status • Financial Sept Qtr Review • Projects Update • Future Outlook 7
Slide 8: Key Highlights
Key Highlights September p 08 Qtr • Langer Heinrich reaches nameplate production – US$51M revenue, US$22M gross profit – 650 554lb produced, 650,554lb d d up ffrom 568,670lb 568 670lb for f the h previous i quarter – Represents annualised production of 2.6Mlb – Operating costs and production targets
Slide 9: Financial Performance
Financial Performance September p 08 Qtr September 08 June 08 2008 Quarter Quarter Full Year Production (lb) 650,554 568,670 1,710,032 Annualised (lb pa) 2.6M 2.3M N/A Sales (lb) 878,000 601,614 1,411,000 Average Sales Price (US$/lb U3O8) 58 60 66 Sales Revenue (US$M) 51.0 36.3 93.8 Gross Profit (US
Slide 10: Income Statement
Income Statement September p 08 Qtr • Gross profit of US$22M generated, with LHUP contributing US$19 3M Significantly higher than previous quarter as LHUP US$19.3M. at nameplate production • Exploration expenditure of US$3.6M with US$2.2M of this spent on the Valhalla/Skal Project in Queensland 10
Slide 11: Income Statement (continued)
Income Statement (continued) September p 08 Qtr • Other expenses of US$12.2M incurred for September quarter. Major components comprised: – Share based payments expense, US$3.1M (non-cash) – Employee benefits expense (salaries etc.), US$1.6M after allocation to exploration – Corporate and marketing c
Slide 12: Balance Sheet and Cash Flow
Balance Sheet and Cash Flow September p 08 Qtr • Cash and cash equivalents of US$279.7M at end of September quarter US$100M short term US treasury bonds quarter. bonds, balance held in Australian banks (minimum AA rating) • The significant cash outflows during the quarter were: – US$40.6M for Kayele
Slide 13: Presentation Outline
Presentation Outline • Paladin Status • Financial Sept Qtr Review • Projects Update • Future Outlook 13
Slide 14: Langer Heinrich Uranium Project
S Stage II Works W k St Stage II Works W k S Stage II Works W k Langer Heinrich Uranium Project Tailings Dam Plant Shallow O Open Pit 14
Slide 15: Langer Heinrich Uranium Project: current status
Langer Heinrich Uranium Project current status • Stage I at design production (Sept Qtr) production profile – H2/CY07 – 650,562lb 650 562lb U3O8 – H1/CY08 – 1.06Mlb U3O8 – Sept Qtr – 650,554lb U3O8 – Dec Qtr – 750,000lb U3O8 ((expected) p ) • Stage II expansion on schedule – 2.6Mlb to 3.7Mlb pa U3O8
Slide 16: Langer Heinrich Project: large resource/reserve upgrade
Langer Heinrich Project large g resource/reserve upgrade pg MINERAL RESOURCES 250ppm Cut-off Mt Grade % U3O8 t U 3 O8 Mlb U3O8 Measured Resources 32.8 0.06 19,582 43.158 Indicated Resources 23.8 0.06 13,278 29.260 Measured + Indicated 56.4 0.06 32,858 72.418 46% increase Inferred Resources 70.7 0.06
Slide 17: Kayelekera Uranium Project
Kayelekera Uranium Project construction progressing p g g well Pre Leach Mill Installed Resin in Pulp Tanks 17
Slide 18: Kayelekera Uranium Project: current status
Kayelekera Uranium Project current status • US$200M CAPEX – (US$180M committed to Sept 08) Exploration – on time and on budget Targets – commissioning/ramp i i i / up Mar M Qtr Qt – 3.3Mlb U3O8 pa using acid leach/Resin in Pulp Karonga • Plant erection advanced stage – 1700 people on site (near peak
Slide 19: Mt Isa Uranium Project: current status
Mt Isa Uranium Project current status • Uranium resource attributable to Paladin increased by 30% to 75.5Mlb – V Valhalla lh ll resource upgraded due d Dec D Qtr Qt 08 (drilling underway to 300m depth) • Focused metallurgical scoping test work k underway d • Environmental baseline work ongoing VALHA
Slide 20: Presentation Outline
Presentation Outline • Paladin Status • Financial Sept Qtr Review • Projects Update • Future Outlook 20
Slide 21: 4 Year Production Outlook
4 Year Production Outlook 10 9.3 9 8.4 Actual Forecast 8 7 6.6 6 Mlb 5 U3O8 4 3 35 3.35 3 2 1.71 1 0 2007/08 2008/09 2009/10 2010/11 2011/12 Langer Heinrich Production Kayelekera Production 21
Slide 22: Project Pipeline
Project Pipeline assets acquired q &p projects j developed p Langer Heinrich Uranium Mining 2012 Operation p End 2008 Inventory U3O8 330 Mlb New production with staged t d organic i growth 2008 to 2010 22
Slide 23: Paladin Offers Excellent Upside
Paladin Offers Excellent Upside key y outcomes for 2008/09 • Langer Heinrich (Namibia) – achieve between 1.4Mlb to 1.55Mlb for H2 2008 (CY) – complete Stage II expansion (2.6Mlb to 3.7Mlb pa) Dec 08 – planning/design for Stage III expansion Mar Qtr – produce 3.05Mlb U3O8 for 12 month period end June
Slide 24: Conclusion
Conclusion • MAINTAINING STRONG PRODUCTION PROFILE FY 08/09 • CONTINUED EXPANSION AT LANGER HEINRICH (STAGE III) • SUSTAINED DEVELOPMENT FROM PROJECT PIPELINE – progress Mt Isa and Angela Projects for development start 2012+ • FOCUSSED M&A ACTIVITY – opportunity to establish a global uranium mining
Slide 25: Contact Details
PALADIN ENERGY LTD Contact Details Mr John Borshoff Head Office (Managing Director/CEO) Grand Central 1st Floor, 26 Railway Rd Mobile: +61 (0) 419 912 571 Subiaco Western Australia 6008 Email: john.borshoff@paladinenergy.com.au PO Box 201, Subiaco Western Australia 6904 Telephone: +61 (0) 8 9381 436