Paladin Energy Ltd · ASX:PDN
Paladin Energy — Q1 2016 Earnings Presentation
20 slides from Paladin Energy's earnings presentation, May 11, 2016
Slide 1: March Quarter 2016 Conference Call and Investor Update Presentation (ASX cover letter)
PALADIN ENERGY LTD ACN 061 681 098 Ref: 409025 10 May 2016 ASX Market Announcements By Electronic Lodgement Australian Securities Exchange 20 Bridge Street SYDNEY NSW 2000 Dear Sir/Madam March Quarter 2016 Conference Call and Investor Update Presentation Attached please find the presentation in rela
Slide 2: March Quarter Results Conference Call and Investor Update
March Quarter Results Conference Call and Investor Update 11 May 2016 Alexander Molyneux – Chief Executive Officer Craig Barnes – Chief Financial Officer Darryl Butcher – EGM Technical and Project Development
Slide 3: Disclaimer and Notes for JORC and NI 43-101
Disclaimer and Notes for JORC and NI 43-101 Mineral Resources 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 production, reserve or res
Slide 4: Paladin: A Global Uranium Leader
Paladin…. 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
Global Uranium Leader Paladin is the world’s leading 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 Integrated with no
Slide 6: Langer Heinrich A Strategic Tier One Mine
Langer Heinrich A Strategic Tier One Mine First Quartile C1 Cash Cost1 Top 10 Uranium Mine by 2 Production 4th largest open-pit +20 Year Mine Life3 35.1Mlbs Cumulative production 1 Source – UxC Uranium Production Cost Study – August 2015 2 Source – TradeTech Uranium Market Study – 2015: Issue 3 (bas
Slide 7: Quarter to 31 March 2016 Highlights
Quarter to 31 March 2016 Highlights References below to 2016 and 2015 are to the equivalent three months ended 31 March 2016 and 2015 respectively. Production 1.302Mlbs LTIFR 1.4 Compared to 2.1 last quarter and Drummed Production 1.268Mlbs 2.3 in 2015 US$34.67/lb ASP C1 Cash Cost US$24.13/lb 6% abo
Slide 8: Quarter to 31 March 2016 Highlights
Quarter to 31 March 2016 Highlights References below to 2016 and 2015 are to the equivalent three months ended 31 March 2016 and 2015 respectively. Sales revenue Cost of Sales US$20.8M US$18.7M 0.595Mlb sold at average Increase from 2015 realised price of US$34.67/lb Cost of Sales of US$16.4M Up 22%
Slide 9: EBITDA Variance Analysis
EBITDA Variance Analysis Quarter to 31 March 2016 vs. Quarter to 31 December 2015 Quarter to 31 March 2016 vs. Quarter to 31 March 2015 Revenue variance COS variance Revenue variance COS variance US$M US$M Paladin Energy Ltd 7
Slide 10: All-in Cash Expenditure (Breakeven Price)
All-in Cash Expenditure (Breakeven Price) Defined to include all spending Quarter to 31 March 2016 vs. Quarter to 31 March 2015 Ahead on plans to reduce expenditure in line with low uranium price Reduced by US$15.27/lb vs. equivalent quarter last year (excluding one off items) FY2015 Average U
Slide 11: Capital Management
Capital Management Debt reduction1 ― US$552.5M since June 2012 ― US$81M during March 2016 Quarter • US$25M reduction in 2017 CB • US$56M repayment of LHM Syndicated Facility Breakdown of Key Debt Instruments 1 US$M Next maturity is April 2017 Convertible Bonds due April 2017 212 Convertible Bond
Slide 12: Optimisation a Core Competency
Optimisation a Core Competency Paladin maintains a world class technical services team focused on cash flow optimisation BRP continues to operate well above design and absorbs process deviations well Focus of technical services now on: ― final stages of innovation strategy; ― U/V separation en
Slide 13: Optimisation a Core Competency
Optimisation a Core Competency All-in cash costs variance analysis (FY2016 current guidance vs. FY2015 actual) 1 Assumed USD/NAD of 14.76 vs 11.48 for FY2015 9.0% reduced grade to 697ppm offset by volume increase Mining and processing optimisation: ― Impact of BRP plus minor optimisation initiatives
Slide 14: Best Leverage to Uranium Upside
Best Leverage to Uranium Upside Uranium market liquidity improving and outlook remains robust Mlb Long Term Contracting Volumes 1 Increased market activity in 2015 ― LTC volumes increased to 81Mlb (43 300 deals) 250 ― Market replacement volumes need to trend 249 to 180M to 200Mlb 200 193 ― 2015 sp
Slide 15: Strategy
Strategy 1. Maximise LHM operating cash flows through optimisation initiatives whilst preserving 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. Progress strategic
Slide 16: FY2016 Guidance
FY2016 Guidance Approx. 4.8Mlb FY2016 US$4/lb Production Full-year average ASP Premium to spot vs approx. 5.0Mlb previously (no change) US$19M corporate costs, Cash flow neutral KM care and maintenance for FY2016 and exploration 2H FY2016 to be cash flow positive US$14M lower than FY2015 (no change)
Slide 17: Appendix
Appendix Paladin Energy Ltd 15
Slide 18: Langer Heinrich Project Update
Langer Heinrich Project Update Actuals Mar Quarter Mar YTD Production March Quarter ― 1.302 Mlb (drummed 1.268Mlb) FY2015 FY2016 FY2015 FY2016 ― recovery 85.5% Ore treated (Mt) 0.860 0.981 2.522 2.731 Ore grade (ppm) 736 705 758 708 C1 Cost US$24.13/lb, on track to achieve $24-26/lb for FY2016 R
Slide 19: Pipeline Projects
Pipeline Projects Kayelekera Mine ― now stable in C&M ― restart feasibility study completed and under Board review ― site stable in terms of water and other environmental issues for the long term Michelin Deposit Canada ― minimum expenditure planned for FY2016 Manyingee WA ― Minimum activity p
Slide 20: 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 Investor Relations An