Paladin Energy Ltd · ASX:PDN
Paladin Energy — Q1 FY2016 Earnings Presentation
22 slides from Paladin Energy's earnings presentation, Nov 13, 2015
Slide 1: Correction to 30 September 2015 Quarterly Conference Call Presentation
PALADIN ENERGY LTD ACN 061 681 098 Ref: 402385_1.docx 13 November 2015 ASX Market Announcements By Electronic Lodgement Australian Securities Exchange 20 Bridge Street SYDNEY NSW 2000 Dear Sir/Madam Correction to 30 September 2015 Quarterly Conference Call Presentation Further to the quarter ended 3
Slide 2: September Quarter Results Conference Call and Investor Update
September Quarter Results Conference Call and Investor Update 13 November 2015 Alexander Molyneux – Interim Chief Executive Officer Craig Barnes – Chief Financial Officer Darryl Butcher – EGM Technical and Project Development Andrew Mirco – GM Corporate Development and Investor Relations
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…
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 32.7Mlbs 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 30 September 2015 Highlights
Quarter to 30 September 2015 Highlights Production 1.083Mlbs LTIFR 1.39 Compared to 2.41 last quarter and Drummed Production 1.2Mlbs 4.10 for 3 months ended 30 September 2014 US$46.12/lb ASP C1 Cash Cost US$27.82/lb 26.4% above average spot Vs September quarter guidance US$26/lb to US$30/lb US$11.3M
Slide 8: Quarter to 30 September 2015 Highlights
Quarter to 30 September 2015 Highlights References below to 2015 and 2014 are to the equivalent three months ended 30 September 2015 and 2014 respectively. Sales revenue US$36.9M Gross Profit 0.800Mlb sold at average US$11.3M realised price of US$46.12/lb Increase from 2014 Gross Profit of US$1.4M D
Slide 9: Quarter to September 2015 Cash Flow
Quarter to 30 September 2015 Cash Flow Q1 FY2016 change in cash and cash equivalents 200.0 Sales proceeds of US$36.9M only 183.7 received in (18.0) October 2015 (1.2) (4.3) 150.0 (5.7) (37.4) (3.2) US$M (3.0) 100.0 (2.5) 108.4 50.0 0.0 Paladin Energy Ltd 7
Slide 10: EBITDA Variance Analysis
EBITDA Variance Analysis Quarter to 30 September 2015 vs. Quarter to 30 June 2015 Quarter to 30 September 2015 vs. Quarter to 30 September 2014 20 Revenue variance 10 8.2 15 COS variance 2.4 10 5 1.9 6.4 36.9 0.4 18.7 COS variance 1.5 5 6.8 (1.3) 0.1 0.8 (0.8) 6.4 4.4 0 -0 -5 13.6 US$M US$M -5 -10 -
Slide 11: All-in Cash Spending (Breakeven Price)
All-in Cash Spending (Breakeven Price) All-in spending reduced by Quarter to 30 September 2015 vs. Quarter to 30 September 2014 US$17.61/lb Vs. equivalent Q1 FY2015 Actual all-in cash costs 63.86 quarter last year (excluding one Currency (7.47) off items) Volume effect Vs. the quarter to Volume
Slide 12: Capital Management
Capital Management Total debt reduction1 ― US$449.6M since June 2012 ― US$20M during Sep Quarter Next maturity is April 2017 Breakdown of Key Debt Instruments 1 US$M LHM Syndicated Facility Agreement 61 Outlook for improved operating cash flows Convertible Bonds due April 2017 254 Convertible
Slide 13: Optimisation a Core Competency
Optimisation a Core Competency Paladin maintains a world class technical services team focused on 33% Reduction cash flow optimisation BRP Enhancement 4 now operational Capital Cost of additional <US$100k of our original capital cost of US$6.8M Recovery of sodium bicarbonate now exceeds 200%
Slide 14: Optimisation a Core Competency
Optimisation a Core Competency FY2016 Cash Flow Optimisation Initiatives All in total expenditure including annualised impact and optimisation initiatives1 Assumed USD/NAD of 12.60 Vs 11.48 for FY2015 9.6% reduced grade to 694ppm offset by volume increase Mining and processing optimisation: ― Full-y
Slide 15: Best Leverage to Uranium Upside
Best Leverage to Uranium Upside Uranium is not affected by recent commodity rout Oil Bloomberg Commodity Index Uranium 130 120 110 100 Rebased to 100% 90 80 70 60 50 40 30 Jan-14 Mar-14 May-14 Jul-14 Sep-14 Nov-14 Jan-15 Mar-15 May-15 Jul-15 Sep-15 Nov-15 Paladin Energy Ltd 13
Slide 16: Best Leverage to Uranium Upside
Best Leverage to Uranium Upside Uranium has a positive outlook and Paladin has leverage US$/lb Current situation is positive ― Japan 2 reactors restarted and Analysts’ forecast 25 have applied to follow 68 ― 2017 will see record nuclear power generation ― 65 reactors under construction 55 – 59% in
Slide 17: Strategy
Strategy 1. Maximise LHM operating cash flows through optimisation initiatives that preserve 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 ini
Slide 18: FY2016 Guidance
FY2016 Guidance 5.0 - 5.4Mlbs US$4/lb Production ASP Premium to spot US$19M corporate costs, LHM C1 US$25-27/lb KM care and maintenance 7-14% lower than FY2015 and exploration US$14M lower than FY2015 Cash flow neutral December Quarter for FY2016 Sales 1.5 - 1.7Mlb Subsequent quarters to LHM C1
Slide 19: Appendix
Appendix Paladin Energy Ltd 17
Slide 20: Langer Heinrich Project Update
Langer Heinrich Project Update Production September Quarter Actual Actual Sept Qtr Sept Qtr ― 1.083Mlb (drummed 1.200Mlb) FY2015 FY2016 ― recovery 82% (has now improved with reversion to typical ore) Ore processed 0.734Mt 0.847Mt ― Bicarbonate Recovery Project (BRP) Enhancement 1 now operational a
Slide 21: Pipeline Projects
Pipeline Projects Kayelekera Mine ― now stable in C&M ― restart feasibility study near completion and current focus ― 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
Slide 22: 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