Paladin Energy Ltd · ASX:PDN
Paladin Energy — BMO Capital Markets 2015 Global Metals & Mining Conference
19 slides from Paladin Energy's conference presentation, Feb 25, 2015
Slide 1: A Unique Platform Positioned for the Future
A Unique Platform Positioned for the Future John Borshoff – Managing Director/CEO BMO Capital Markets 2015 Global Metals & Mining Conference, Miami 22-25 Feb 2015
Slide 2: Disclaimer and Notes for JORC and NI 43-101 Mineral Resources and Ore Reserves
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 re
Slide 3: Presentation Outline
Presentation Outline Key Achievements and Update Uranium Market Project Update Positioned for the Future 3
Slide 4: Paladin: A Unique Platform Positioned for the Future
Paladin: A Unique Platform Positioned for the Future Who is Paladin? Paladin is the world’s only independent pure play uranium producer • World’s top seven producer, mkt cap ~US$525M Mlb • Employs 1,100 staff and contractors Rest of World 27.4 • Only substantial new producer to emerge in the past 30
Slide 5: Project Locations – A Global Footprint
Project Locations – A Global Footprint 5
Slide 6: Material Achievements have De-Risked Paladin
Material Achievements have De-Risked Paladin KEY FOCUS AREAS - WE ARE TICKING THE BOXES Achieve strong Deleverage the Establish Take advantage operational balance sheet sustainable of future price Key Paladin Achievements performance cash flows resurgence Significant ongoing cost reductions and prod
Slide 7: Financial Status December 2014 Half Year
Financial Status December 2014 Half Year Balance sheet strengthened — initiatives to de-risk the balance sheet have been successful, boosting cash balances to US$334M in half year (and to US$484M post US$150M CB) — net debt decreased by 48% to US$305.6M — gearing ratio down to 40% from 58% June 2014
Slide 8: US$300M CB Tender Underway
US$300M CB Tender Underway (ready to capitalise with stronger balance sheet) Previous uncertainty around US$300M CB repayment has overshadowed Paladin’s business case in recent times — undue pressure on Paladin share price — taken the focus away from Paladin’s achievements, positioning and quality a
Slide 9: Presentation Outline
Presentation Outline Key Achievements and Update Uranium Market Project Update Positioned for the Future 9
Slide 10: 2015 – Changing Dynamics Will Initiate Price Revival
2015 – Changing Dynamics Will Initiate Price Revival 2014 2015 Excess supply affected price Excess supply largely depleting Supply disruptions surfacing Supply disruptions continuing +12Mlb of annual production taken +16Mlb - lag effect of 2014 lost out of spot market via cutbacks and production thr
Slide 11: Uranium Supply and Outlook
Uranium Supply and Outlook (Uranium price should normalise to pre-Fukushima level within 2 years) A near/medium term supply shortage appears unavoidable post 2015. New primary supply will have to contribute ~70Mlb to meet demand requirements before 2020 Mine supply achievement 2004-2014 Paladin Mine
Slide 12: Presentation Outline
Presentation Outline Key Achievements and Update Uranium Market Project Update Positioned for the Future 12
Slide 13: Langer Heinrich Project Update
Langer Heinrich Project Update Actual Actual Actual Production 6 Months Sept Dec — strong and stable production 5.59Mlb in FY14 Dec’14 Qtr Qtr YTD — outlook scale issue resolved Ore processed 1.66Mt 0.745Mt 0.917Mt further operational improvements expected Ore feed grade 769ppm 765ppm 773ppm t
Slide 14: Kayelekera Project Strategically Placed
Kayelekera Project Strategically Placed Transition to Care & Maintenance smoothly completed — water management plan approved — treated water release licensed to internationally recognised standard Restart feasibility study underway — technical risk is low proven process proven resource — strong
Slide 15: Key Pipeline Projects being Advanced
Key Pipeline Projects being Advanced Field Leach Trial (FLT) application being developed ISR project targeting 2Mlb pa U3O8 production – existing mining lease MANYINGEE – Paladin has the expertise to develop WA – advancing hydrogeological, metallurgical test work, etc – low operating cost 2018 devel
Slide 16: Presentation Outline
Presentation Outline Key Achievements and Update Uranium Market Project Update Positioned for the Future 16
Slide 17: Strategic Alliance Next Step to Unlock Value
Strategic Alliance Next Step to Unlock Value Paladin continues to strengthen strategic alliances — partnership with HOPU announced — discussions ongoing with major nuclear utilities — Paladin has established a clear and realistic roadmap for discussions — decision on preferred utility/strategic part
Slide 18: Conclusions and Outlook
Conclusions and Outlook FY2015 guidance revised to 5.2Mlb - 5.5Mlb U3O8 2015 priorities – focus on optimisation of operations and achieving production targets – continue cost rationalisation at operations and corporate level – remain positioned to take advantage of the future uranium price resurgenc
Slide 19: THANK YOU!
THANK YOU! 19
Paladin Energy — BMO Capital Markets 2015 Global Metals & Mining Conference on 6ix