Paladin Energy Ltd · ASX:PDN
Paladin Energy — Investor Presentation (September 2019)
23 slides from Paladin Energy's investor presentation, Sep 3, 2019
Slide 1: Paladin Energy Ltd WNA Presentation
PALADIN ENERGY LTD WNA PRESENTATION Wednesday 4 September 2019 ASX: PDN
Slide 2: Disclaimer and Notes
DISCLAIMER AND NOTES JORC AND NI 43-101 MINERAL RESOURCES AND ORE RESERVES This presentation includes certain statements that may be deemed “forward-looking In the following presentation, for those deposits that are reported as conforming to the statements”. All statements in this presentation, othe
Slide 3: Corporate Profile: Who is Paladin?
CORPORATE PROFILE WHO IS PALADIN? MARKET SNAPSHOT ASX: PDN as at 22 August 2019 An ASX listed independent uranium company Shares on issue 1,752M with a focus in Africa, Australia and Canada Share price A$ 13.5c Market capitalisation A$ 236.5M 14 years of production history across two mines Market ca
Slide 4: Strong Demand in the Uranium Market
STRONG DEMAND IN THE URANIUM MARKET A solid long-term outlook
Slide 5: The Uranium Story is Compelling
THE URANIUM STORY IS COMPELLING $160 Spot Price 2000 - 2018 Demand Fulfilment 2011 - 2018 Cumulative supply cuts 250.0 $140 “Under buying” 2016 2017 2018 2019 2020 200.0 0 Langer $120 -5 Heinrich U308 Spot price (US$/lb) 150.0 Cominak $100 -10 Mlbs McArthur Mlb U3O8 -15 Mlb $80 100.0 River -20 Kazak
Slide 6: Supply Side Factors
SUPPLY SIDE FACTORS KEY MARKET OBSERVATIONS New project development Kazakhstan production Stocks drawn down Significant decrease When long-term timelines stretched: flat @ <60Mlb to Permitting uncertainty remains contracting returns, >400Mlb and +40Mlb in exploration spend 2021. 15% IPO + (ve) in
Slide 7: Demand Side Factors
DEMAND SIDE FACTORS GLOBAL WARMING Nuclear energy is a low cost and low emission base load energy source Global impetus to reduce carbon emissions and global warming Intergovernmental Panel on Climate Change (IPCC) REPORT – Limit global warming increase to 1.5˚C China - Plans to have 56 reac
Slide 8: Sentiment Moving Back to Nuclear
SENTIMENT MOVING BACK TO NUCLEAR Nuclear energy is gaining increased support, even from former opponents (Source: Michael Shellenberger https://www.youtube.com/watch?v=N-yALPEpV4w) Over two decades of climate change conferences (Berlin 1995) with little to show for it Carbon emission continue
Slide 9: Demand Growth Far Exceeds Supply Capability
DEMAND GROWTH FAR EXCEEDS SUPPLY CAPABILITY Future Contracted Coverage Rates of US & European Utilities 325 120.00% 300 Contract Coverage (% of total requirements) 275 100.00% 250 225 80.00% 200 175 Mlbs 60.00% 150 125 40.00% 100 75 50 20.00% 25 0 0.00% Base supply need Additional High supply need S
Slide 10: A Strategic Tier-One Asset at Langer Heinrich
A STRATEGIC TIER-ONE ASSET AT LANGER HEINRICH A LOW COST, LONG LIFE URANIUM MINE
Slide 11: We Are Not Standing Still…
WE ARE NOT STANDING STILL… WE ARE PLANNING FOR A RAPID, RELIABLE RESTART CONCEPT STUDY COMPLETED TO OPTIMISE RESTART: Verify C&M practices to Learn from 10 years of Define further potential Prefeasibility study for ensure asset is operation to ensure restart improvements and cost rapid, low-risk res
Slide 12: Rapid Production Restart on Uranium Price Recovery
RAPID PRODUCTION RESTART ON URANIUM PRICE RECOVERY DESCRIPTION STATUS TIMING PURPOSE Identify, detail and compare multiple Completed February restart options Concept Study 2019 Rank on risk and return 1. RAPID RESTART STUDY (PFS1) Strategic aim - be Select single go forward plan able to initia
Slide 13: Option 1. Rapid Restart Study (PFS1)
OPTION 1. RAPID RESTART STUDY (PFS1) Comparatively low initial restart capital requirements of circa US$78M (excludes C&M costs) Plant repair and Working capital improvement US$54M US$24M (includes: first fill of reagents, recommissioning, remobilisation and tailings dam costs) Process largely a
Slide 14: Option 2. Processing Upgrade Study (PFS2)
OPTION 2. PROCESSING UPGRADE STUDY (PFS2) FURTHER ENCHANCEMENTS TO LANGER HEINRICH AFTER THE RAPID RESTART BACK END UPGRADE* To reduce reagent costs and recover vanadium, water recovery US$43M from tailings and pressure leach 12-15 month Prefeasibility Study (currently in-progress) to select pro
Slide 15: World Wide Production Cost Curve – All Projects
WORLD WIDE PRODUCT COST CURVE – ALL PROJECTS 100.00 90.00 80.00 70.00 Full costs (US$/lb U3O8) 60.00 50.00 40.00 Target Life of Mine AISC1 30.00 Aspirational Target Langer Heinrich AISC1 20.00 10.00 0.00 0.00 100.00 200.00 300.00 400.00 500.00 600.00 Cumulative Annual Production (Mlb pa) Source: UxC
Slide 16: Paladin (Africa) Ltd Sale Announced
PALADIN (AFRICA) LTD (PAL) SALE ANNOUNCED PAL to be sold to Lotus Resources Pty Ltd (subsidiary Hylea Resources). PAL holds an 85% interest in Kayelekera Mine and associated leases Consideration for the sale: A$5M A$200,000 cash A$4.8M in shares (A$1.8M on completion subject to 12 month es
Slide 17: Conclusion
CONCLUSION Diversified portfolio of developed mines and exploration projects with significant leverage to upward movements in the uranium price Lead time and capital associated with a re-start to bring Langer Heinrich back into production is shorter and lower than new projects Lower incentive price
Slide 18: Contact Us
CONTACT US HEAD OFFICE INVESTOR RELATIONS Level 4, 502 Hay Street Karen Oswald Subiaco Western Australia 6008 T: +61 (8) 9423 8162 T: +61 (0) 8 9381 4366 M: +61 (0) 423 602 353 E: paladin@paladinenergy.com.au E: karen.oswald@paladinenergy.com.au www.paladinenergy.com.au
Slide 19: Appendix
APPENDIX
Slide 20: Meet Our Board of Directors
MEET OUR BOARD OF DIRECTORS Rick Crabb – Non-Executive Chairman David Riekie – Non-Executive Director Daniel Harris – Non-Executive Director John Hodder – Non-Executive Director Mr Crabb practiced as a solicitor form 1980 to 2004 Mr Riekie is an experienced ASX Director at both the Mr Harris is a se
Slide 21: Meet Our Senior Management
MEET OUR SENIOR MANAGEMENT Scott Sullivan – Chief Executive Officer Anna Sudlow – Chief Financial Officer Andrea Betti – Company Secretary Mr Sullivan brings 30 years of diversified mining experience to Paladin, across Anna is a highly qualified CFO with more than 20-years’ experience Ms Betti is an
Slide 22: Resource & Reserve Tables
Paladin Attributable Mineral Resources Mt Grade ppm U3O8 Mlb U3O8 (100% basis) Paladin Ownership (%) (Mlb) RESOURCE & RESERVE TABLES Namibia Langer Heinrich Measured 60.7 515 68.7 75 51.5 Indicated 21.5 460 21.7 75 16.3 Inferred 8.7 470 9 75 6.8 Stockpiles 30.8 355 24 75 18.0 Total Namibia 121.7 460
Slide 23: A Quality Global Suite of Exploration Assets
A QUALITY GLOBAL SUITE OF EXPLORATION ASSETS Mt Isa (100%) Three Exploration Permits and six Mineral Development Licences Largest uranium deposit in Queensland Canada Manyingee Potential for future development of uranium mine 41.5Mlb Status: Pre-development exploration Michelin 127.7Mlb 148.4M
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